Collagen Solutions upbeat on healthy order book

Biomaterials and regenerative medicines developer Collagen Solutions updated the market on its order book and contracted development revenues on Tuesday, following the signing of a “significant” new contract.

The AIM-traded firm said it recently finalised a number of contracts, including the Novabone supply agreement on 7 July, and a new supply agreement with an unnamed existing client for a long-term supply with larger contracted volumes as at 15 July.

With the new contract in place, it said it now had orders or contracted development milestones for the 2021 financial year, together with revenue already recognised through the first three months of the year, worth around £4.3m.

That, the board noted, represented 108% of the sales in the last financial year.

“In our trading update announced in June, we said our order book was at approximately £3.3m, which was 82% of 2020 financial year revenue,” said chief executive officer Jamal Rushdy.

“This further strengthening of the order book now puts us in a strong position to deliver a successful financial year.

“We remain confident that we can generate value to shareholders over the medium term.”

At 0909 BST, shares in Collagen Solutions were up 13.54% at 2.95p.