Collagen expanding Glasgow labs amid widening losses
The Glasgow facility is being expanded
Collagen Solutions, the stem cell company, saw its shares fall sharply after it reported widening losses.
Shares closed 5.63% lower at 3.35p after it announced a £1.19m pre-tax loss for the six month to 30 September against a £1.06m loss in the corresponding period last year.
Revenue increased 14.4% to £2.23m from £1.95m, the third consecutive six-month period of double-digit sales growth, but this was offset by a 14% increase in selling & marketing costs and a rise in amortisation & depreciation.
During the period the company, whose regional headquarters is in Glasgow, landed four new contracts and began supplying 10 customers with average contract size rising compared to the prior year.
However, it said it had been affected by capacity constraints within the collagen manufacturing operation. It was also held back by the timing of delivery of development contract milestones.