(Alliance News) - Cambridge Cognition Holdings PLC on Tuesday reported an interim loss as costs increased significantly.
Cambridge Cognition is a Cambridgeshire, England-based company which develops and markets digital solutions to assess brain health.
The company said its pretax loss in the first half of 2023 totalled GBP3.4 million, swinging from a profit of GBP16,000 a year ago. Revenue rose 2.7% to GBP6.0 million from GBP5.9 million. Administrative expenses, however, ballooned by 89% to GBP8.4 million from GBP4.5 million.
"Trading conditions continued to be difficult in the first half of 2023, with some drug development companies cutting costs and others delaying clinical trials. Some companies providing solutions and services for clinical trials have reported declining performance in the period. While we increased the value of contracted orders from half-to-half, we did see some delays to contract awards that we anticipate will close in the second half of 2023 or in 2024," the firm said.
Cambridge Cognition said that the market had improved, with its contract order book rising to GBP19.9 million at the end of June from GBP17.6 million at the end of December.
Looking ahead, it expects 2023 revenue in line with analysts' consensus, of around GBP14 million. That would be 11% higher than GBP12.6 million in 2022, as the company is eyeing "a major step towards profitability in the second half of 2023".
Separately, the company announced that it received a GBP3 million term loan from Claret European Specialty Lending Company III Sarl, which specialises in providing growth capital to innovative businesses.
The loan has an annual 11.5% fixed interest rate and will be drawn down in full immediately, with a term of 36 months.
The company will use the loan to focus on executing its strategy of growth.
Cambridge Cognition shares fell 18% to 78.10 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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Cambridge Cog (COG)