Collagen Solutions PLC (LON:COS) said its order book “continues to be strong” across the year and that it has been granted an extension for the filing of its accounts for the year ended March 31, 2020.
In a trading update, the biomaterials and regenerative medicine developer said it was performing in line with expectations and that it is “encouraged about the year ahead” despite operational challenges caused by the coronavirus pandemic.
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The firm said it has not seen a decrease in demand for its products and services, saying that as of June 8 it had orders or contracted development milestones for the 2021 financial year as well as revenue already recognised for the first two months of the current year of around £3.3mln, around 82% of revenues reported in its 2020 financial year.
Collagen pointed out that it has “further visibility on contracted development milestones” which is expected to add to its order book going forward.
The company also said its primary end-markets - orthopaedics, cardiovascular, wound care, and dental surgery - had not experienced a decrease in demand thus far in its current financial year, and it believed underlying clinical demand will “remain strong in the medium-to-long term”.
The group said it has completed a £500,000 investment in its Glasgow facility to increase its manufacturing capacity by at least 85%, and it expects the relaxation of UK health and safety restrictions to enable full capacity to be achieved during the second quarter of its current year.
Collagen also said that, as of June 12, it had £1.8mln in cash and that it will “continue to prioritise liquidity and the preservation of cash to enhance its financial position” and it is in advanced discussions with its debt provider to amend its current facility arrangements.
Meanwhile, the company said it has been granted an extension to the deadline for filing its accounts for the year ended March 31, 2020, and that it expects to issue unaudited, abridged financial statements including a chairman's and chief executive’s statement on the financial year “in due course”.
Looking ahead, Collagen said despite “challenging market dynamics created by [coronavirus]”, given its strong order book it was confident that it was “well-positioned to take advantage of the attractive long-term market fundamentals in order to achieve its ambitious growth plans”.