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(Alliance News) - Cambridge Cognition PLC on Tuesday reported a big drop in profit, even as revenue grew significantly.
The Cambridge-based brain health assessment software provider said its pretax profit fell 81% to GBP16,000 in the first half of the year from GBP84,000 last year.
Despite this, the company reported that revenue grew 31% to GBP5.9 million in six months that ended June 30 from GBP4.5 million a year before, but cost of sales more than kept pace and administrative expenses grew by 34% to GBP4.7 million from GBP3.5 million.
Looking forward, Cambridge Cognition said its outlook is positive and "well positioned for further year-on-year growth." The company noted a qualified pipeline of opportunities, increasing investment in commercial activities, and an attractive contracted order book.
The order book stood at GBP18.6 million at June 30, up from GBP17.1 million at December 31 2021, giving the company "visibility over future revenues".
Additionally, Cambridge Cognition's cash balance rose to GBP8.6 million from GBP6.8 million, giving the opportunity to make "considered investments as opportunities arise", it said.
Chief Executive Officer Matthew Stork said: "I am delighted with our continued progress over the last six months. Our contracted order book is at its highest level and, along with a healthy sales order pipeline and strong cash generation, puts us in a great position to continue to invest in strategies to grow the business further."
Shares in Cambridge Cognition were trading 5.8% lower at 130.00 pence each in London on Tuesday morning.
By Chris Dorrell; chrisdorrell@alliancenews.com
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