In an update on current trading accompanying results for the year ended March 31, 2020, the biomaterials and regenerative medicines firm also reported revenue of £900,000 for its first quarter, helped by a reduction in the impact of coronavirus experienced in the fourth quarter of the prior year, as well as a cash balance at the end of the period of £1.6mln.
For the prior year, Collagen reported revenues of £4.46mln, down 1% year-on-year, alongside a pre-tax loss of £2.06mln compared to £1.79mln in the prior year.
Post-year-end, the company reiterated the launch of its strategic review and a formal sale process, saying discussions were ongoing, adding that it has also implemented a number of initiatives to navigate the coronavirus pandemic including the successful restructure of the Norgine Ventures Bond Subscription Agreement that provides for a reduction in capital repayments and a delay to the final repayments, which will improve its financial position.
"We are pleased with the performance and resilience of our business last year, having achieved double-digit growth through the first 11 months up until the [coronavirus] shock in March, and quickly rebounding with a strong first quarter with a full order book on track to deliver growth in the current year", Collagen chief executive Jamal Rushdy said in the statement.
Shares in Collagen Solutions were 3.8% higher at 2.8p in early trading on Friday.