(Alliance News) - Ixico PLC on Tuesday reported strong full-year results and "significant growth" in profitability despite notable headwinds to trading.
Shares in Ixico were up 13% at 57.01 pence on Tuesday afternoon in London following the announcement.
For the full-year that ended September 30, the London-based clinical research firm said pretax profit increased by 35% to GBP1.2 million from GBP858,000 the previous year.
Ixico's operating profit also rose, by 38% to GBP1.2 million from GBP856,000.
Revenue was down 3.2% to GBP9.2 million from GBP9.5 million the previous year. Ixico cited the difficulties of the Covid-19 pandemic and the decision by its largest client to de-scope its Huntington's disease phase three trials. Ixico didn't name the client.
Ixico's earnings before interest, tax, depreciation and amortisation increased 34% to GBP1.7 million from GBP1.3 million the previous year. Ixico said this reflected its mostly steady revenue performance and careful management of discretionary costs.
Ixico reported 16 new projects, won across 14 clients, in 2021. The wins equated to GBP13.8 million of additional multi-year contracts across all phases of clinical development, substantially replenishing Ixico's contracted order book.
Chief Executive Giulio Cerroni said: "2021 has been another significant year in Ixico's development as a premium imaging technology services partner to the global biopharmaceutical industry. I look back with immense pride on how we have continued to progress our societal purpose of supporting our clients' efforts to develop new therapies across a widening range of neurodegenerative conditions. In delivering strong revenues at continued high gross profit margins and a record level of Ebitda profitability, we have once again demonstrated the resilience and value generating potential of our business model.
"The US Food & Drug Administration's approval of Aducanumab [an Alzheimer's treatment] highlights the importance, and potential commercial value, of being able to objectively measure small changes in brain regions when developing drugs to address complex neurological conditions. Ixico is perfectly placed to support this requirement with our well established, proprietary imaging data analytics capabilities. This, alongside our strategy to diversify and build our client base and continue to invest in our market-leading platform and analysis technologies, provides us with significant opportunities for long-term growth."
Ixico said it is not yet in a position to pay a dividend.
By Heather Rydings; heatherrydings@alliancenews.com
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Ixico (IXI)