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Collagen Expects Widened Annual Loss On Higher Contract Costs

18th Mar 2020 18:49

(Alliance News) - Collagen Solutions PLC, a developer and manufacturer of biomaterials for the enhancement and extension of human life, on Wednesday said loss for the year to March-end will be materially greater than anticipated due to increased costs from a development and manufacturing contract which has taken longer than originally anticipated.

The company expects to record a one-time write down of GBP900,000 relating to the delayed contract. It also expects delays in certain contracts to impact annual revenue.

In financial 2019, the company recorded a pretax loss of GBP1.8 million and revenue of GBP4.5 million.

On Covid-19 outbreak, the company said it has put in place health and safety measures aligned with the government and industry recommendations. This includes a suspension of all non-essential travel, flexibility for employees faced with indirect effects of these measures, and of course a requirement to remain at home for any sick employees.

Shares in Collagen Solutions closed 44% lower at 1.10 pence each in London on Wednesday.

By Tapan Panchal; [email protected]

Copyright 2020 Alliance News Limited. All Rights Reserved.


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