Last checked at 30 Jan 2024 07:00
30 January 2024
Cambridge Cognition Holdings plc
("Cambridge Cognition", the "Company" or the "Group")
Trading Update
Return to profitability in H2; above expectation bottom line performance
Cambridge Cognition Holdings plc (AIM: COG), which develops and markets digital solutions to assess brain health, is pleased to announce a trading update for the year ended 31 December 2023.
Key (Unaudited) highlights:
· Revenue growth of 7% to £13.5 million (2022: £12.6 million)
· Adjusted operating profit of £0.9 million in H2 (2023 H1: loss of £2.1 million)
· Adjusted operating loss of £1.2 million for the year (2022: £0.1 million profit), better than market expectations
o Full year adjusted operating loss reflects the impact of business acquisitions and difficult H1 trading conditions
· Cash balance of £3.2 million at 31 December 2023 (31 December 2022: £8.3 million)
2023 was a year of significant progress for the Company operationally following the acquisitions of eClinicalHealth Limited ("Clinpal") at the end of 2022 and Winterlight Labs Inc ("Winterlight") at the beginning of 2023. Both of these acquisitions have now been fully integrated into the Group and annualised cost savings in excess of £1.5 million have been realised. Leveraging the unique capabilities of the acquired businesses, the Company recently launched combined product offerings during the year including AQUA, an Automated Quality Assurance solution derived from the Winterlight platform, which strengthens the Company's product portfolio and provides additional cross-selling opportunities. This contributed to a major contract win in October 2023 for a sizeable later stage clinical trial valued at £1 million.
With revenue increasing 7% over the prior year to £13.5 million and following the comprehensive integration and re-organisation mid-year, the Company made an adjusted operating profit of £0.9 million in H2, improving the adjusted operating loss from £2.1 million in H1 to £1.2 million at the end of the year. The H2 adjusted operating profit was better than expected due to robust cost control. The contracted order book remained healthy at the end of 2023 at £17.2 million (£17.6 million at 31 December 2022), with at least £8.0 million of the current contracted order book expected to be recognised as revenue in 2024, subject to customer trial schedules.
Outlook
There has been considerable M&A activity by large pharmaceutical companies in the central nervous system ("CNS") drug development sector recently and, together with an improving global economic outlook, that is expected to prompt further investment in CNS clinical trials. The Company is focused on capitalising on this market opportunity, growing the order book and maximising the benefits of the recent acquisitions to drive sustainable profitable growth.
Matthew Stork, Chief Executive Officer of Cambridge Cognition, commented:
"Despite challenging market conditions during 2023, the Company has strengthened its technology platforms and commercial offering and is positioned to capitalise on the anticipated growth in the CNS drug development market. We continue to focus on delivering profitable growth and driving success over the medium-term."
The Company will announce its preliminary results for the year ended 31 December 2023 in April 2024.
The information communicated in this announcement contains inside information for the purposes of the UK Market Abuse Regulations.
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Notes to Editors
About Cambridge Cognition
Cambridge Cognition is a technology company developing digital health products to better understand, detect and treat conditions affecting brain health. The Company's software products assess cognitive health in patients worldwide to improve clinical trial outcomes, identify and stratify patients early and improve global efficiency in pharmaceutical and healthcare industries.
For further information visit www.cambridgecognition.com