Collagen Solutions PLC (LON: COS) have unveiled their third consecutive half of double digit revenue growth.
Sales in the six months ending in September rose 14.4% to £2.23 million, showing strong revenue growth leaving stakeholders impressed.
The biomaterials manufacturer has a focus on regenerative medicine. Seniors announced they had won four new customer contracts and gained ten customers in the period accounted for.
The progress was further boosted by a fundraiser held in June, which added £6 million investment before fees applied. These funds allowed Collagen to further product development, manufacturing capacity and repay a financial debt to healthcare investor Norgine Ventures Management Ltd.
Chief executive Jamal Rushdy said: “We are pleased to report the third consecutive six-month period of double-digit sales growth demonstrating consistent performance to our expectations by the Collagen Solutions global team.
Rushdy added ““Our core business remains strong and our initiative to increase capacity is on track to meet the anticipated higher demand for both collagen and tissue products”
In the trading update, Collagen Solutions discussed plans to talk to regulatory authorities as it bids to get a European health and safety sign off for its ChondroMimetic cartilage repair technology.
Collagen added: “The company continues to execute on its customer product development milestones, having signed new development customers, which represent additional future contract manufacturing opportunities, once these products are approved and launched.”
The exploitation of further revenues in this market is something which will stimulate shareholders.
ResarchandMarkets.com reported that the Collagen market is set to be worth $5.6 Billion by 2025. The use of collagen and gelatin products are diversifying the food market, along with increasing applications in healthcare and biomaterials.
The company is set to announce its interim results for the six month period up to 30th September on 3rd December 2019.
Here it will be proven whether Collagen Solutions can tap into a highly growing and evolving market whilst competitors such as Devro (LON: DVO) evolve.
Shares of Collagen Solutions are trading at 3.45p per share 22/10/19 12:28BST.
