Collagen Solutions PLC Trading update (5391G)
March 18 2020 - 3:00AM
UK Regulatory
TIDMCOS
RNS Number : 5391G
Collagen Solutions PLC
18 March 2020
18 March 2020
Collagen Solutions Plc
(the "Company" or the "Group")
Trading Update
Collagen Solutions Plc (AIM: COS), the developer and
manufacturer of biomaterials for the enhancement and extension of
human life, announces a trading update for the year ended 31 March
2020 and a statement regarding the COVID-19 outbreak.
The Company expects the loss for the year will be materially
greater than anticipated due to increased costs from a development
and manufacturing contract which has taken longer than originally
anticipated. The related accounting treatment requires a one-time
write-down of c.GBP900k recognising the full loss over the life of
the development portion of the contract only. The accounting
treatment does not reflect a change in the Company's commercial
view of the full value of this contract inclusive of the contract
manufacturing portion.
The Company is facing multiple uncertainties that may also
impact year-end revenue, pushing some sales into the next financial
year. These include:
-- closing certain contracts in late-stage discussions, and
-- delivery of collagen and tissue products for which the Company has already received orders.
The contract closure referred to above is uncertain because some
customers have recently communicated that they are delaying their
investment decisions because of economic and business uncertainty
due to the COVID-19 outbreak. The delivery of collagen and tissue
products is at risk due to evolving government travel and transport
restrictions and potential reduced capacity of import and export
offices, testing services, and other aspects of the supply
chain.
The Company has put in place health and safety measures aligned
with the latest government and industry recommendations and
policies related to the COVID-19 outbreak. 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.
The Company is expected to provide a trading update with
preliminary year-end revenue and cash balances by mid-April.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Collagen Solutions Plc
Chris Brinsmead, Chairman
Jamal Rushdy, CEO / Hilary Spence, Via Walbrook
CFO
Cenkos Securities Plc (Nominated
Adviser and Broker)
Giles Balleny (Corporate Finance) Tel: 0207 397 8900
Stephen Keys
Walbrook PR Ltd Tel: 020 7933 8780 or collagen@walbrookpr.com
Anna Dunphy Mob: 07876 741 001
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END
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