GLASGOW life sciences company Collagen Solutions, which makes medical grade collagen and tissue components, saw revenue dip six per cent in its latest financial year.

The AIM-quoted firm’s loss of contracts with four key customers – valued at over £800,000 – meant revenue dropped from £3.83 million in the year to March 31, down from £4.09m in 2017.

Adjusted losses increased slightly to £1.58m from £1.26m. Cash balances at March 31 stood at £5.02m compared with £8.98m the previous year.

Chief executive Jamal Rushdy pointed to a “difficult year” in terms of sales performance and said the necessity to mitigate several unexpected challenges in the core business was disappointing but stressed the company had gained 16 new customers and signed 14 new customer agreements during the year.

A major customer contract the firm signed last month was also expected to improve its position.

Mr Rushdy added that the company had “faced these challenges head-on and achieved several positive outcomes during the year”. He also pointed to operational improvements and new appointments as putting Collagen Solutions in a “much stronger position”.

“As we are better positioned than last year and have set ourselves meaningful yet realistic goals for this year, I believe we will deliver improved execution and results,” he said.

Collagen Solutions had secured import licences to China, Mr Rushdy added, and completed the consolidation of its US R&D and commercial sites into its Minneapolis site. The company also achieved “critical proprietary product milestones” including successful clinical results from its ChondroMimetic regenerative “scaffold” product which is used in surgery to repair cartilage defects in the knee.