StockMarketWire.com - Collagen Solutions warned that revenue will not meet expectations, and anticipated a greater loss amid a delay in contractual discussions with a new customer and restructuring of its New Zealand operations.
The firm said revenue for the year to 31 March will be £3.5m, down from £3.9m, weighed by the new customer delay combined with other customer product delays.
'The loss for the year will be greater than anticipated due to the lower expected revenue and the costs and write-downs associated with the proposed restructuring of the New Zealand operations,' Collagen Solutions said. Group cash balances at the year-end were approximately £5.0m, down from £9m in 2017.
Jamal Rushdy, CEO, said: 'While we have experienced protracted sales cycles across several parts of our business, the size and general nature of those contracts under negotiation is promising.
'Consequently, we continue to take steps to strengthen the commercial team, address the gaps in execution and focus our resources in the areas of greatest opportunity to more efficiently convert opportunities in our core business.'
'Together with the recently announced measures aimed at rationalising the Company's cost structure, we now aim to be cash flow positive in the final quarter of the current financial year"
At 8:02am: [LON:COS] Collagen Solutions Plc share price was -1p at 2.25p
Story provided by StockMarketWire.com
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