(Alliance News) - Sensyne Health PLC said on Monday that revenue fell year-on-year in the first half of its financial year, as losses widened following a "challenging" period for the clinical artificial intelligence company.
The Oxford, England-based firm reported a pretax loss of GBP21.1 million for the six months ended October 31, widening from GBP13.8 million in the same period a year prior.
Revenue had more than halved for the period, down 57% year-on-year to GBP1.0 million, from GBP2.3 million. Revenue came mostly from a contract for AI medical imaging app MagnifEye with the Department for Health & Social Care, a life science agreement with Bristol Myers Squibb, and uptake of sales in GDm-Health, a remote monitoring app for gestational diabetes patients.
"Whilst our commercial progress in the year to date has been disappointing, we remain confident about the company's long-term prospects, given the size of our database, the strength of our medical and data science expertise, the growth of our business development pipeline, and the significant interest Sensight is now generating from potential customers," said Chief Executive Officer Paul Drayson.
Operating expenses were up 44% in the period, as the company increased its headcount for research and development in its Sensight data analytics platform. Gross margin relative to revenue fell during the period to 44% from 58%, owing to a change in sales mix of agreements with life science clients.
Cash on October 31 was GBP8.1 million, down from GBP18.6 million on October 31, 2020.
The company announced it had secured of GBP11.4 million in much-needed financing for its short term needs on Wednesday. However, it said customers may have to wait until its long-term financial position is clarified before confirming orders. It believes up to GBP26 million of contracts could be brought in during the financial year, but this could be "very materially lower" if its long-term financial outlook remains precarious.
Sensyne's share price fell 5.9% to 19.30 pence each in London on Monday morning. It has fallen 76% in value since the start of 2022.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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