26 Oct 2022 07:00
26 October 2022
DeepMatter Group Plc
Trading update
DeepMatter Group Plc (AIM: DMTR, "Deepmatter", the "Group"), the digital chemistry data and software company, announces that after the nine months of the financial year and having now signed a material agreement with Merck (see separate statement), the Group expects revenue for the current financial year to be no less than £1.5m, an increase of over 50% year on year (2021: £1.0m).
DeepMatter has secured three strategically important multi-year collaborations during the current financial year and as anticipated continues to see a strengthening of its sales pipeline following a strong first half. The Merck collaboration has the potential to become one of the Group's largest to date.
These collaborations bring future revenue visibility and opportunities to grow the revenue opportunity from existing customers as well as new customers. They include technology access fees, collaboration fees and royalties.
As stated in the Group's H1 results, DeepMatter is investing in product enhancements, strengthening its team, pursuing machine learning (ML) and artificial intelligence (AI) based R&D activities that create new intellectual property (IP). It also continues to assert its IP rights which have the potential to contribute to long term value creation. The Directors remain in regular contact with the Group's major shareholders who are supportive. Deepmatter held cash balances of £0.7m at 30 September 2022, with costs remaining in line with those reported at the time of Group's H1 results.
Additionally, ChemIntelligence, which DeepMatter acquired in June 2022, has been selected by Bayer CropScience, the world's second largest agrochemical company, to provide its capabilities in Bayer's LifeHub Lyon in La Dargoire Research Centre (CRLD).
The inclusion of ChemIntelligence in the LifeHub should accelerate the safe design and more effective development of chemical crop protection products using its artificial intelligence expertise and intellectual property.
Mark Warne, CEO of DeepMatter, commented:
"After a solid H1, we are now on course to increase our year on year revenues by some 50% and importantly are seeing increasing customer interest and the potential for recurring royalty revenues. These revenues which are recognised over the life of contracts, providing us with growing visibility.
"With our strengthening relations with Merck and other international blue chip organisations plus our investment programme, we are leading the digitalisation of chemistry space and driving the market shift. Our vision is to provide the digital data that enables all molecules to be made efficiently and safely as well as sustainably."
For more information contact
DeepMatter Group Plc
Mark Warne, Chief Executive 0141 548 8156
Fraser Benson, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser and Broker) Bobbie Hilliam 020 7523 8000
Meare Consulting Adrian Duffield 07990 858548
About DeepMatter Group plc
DeepMatter's SmartChemistry® platform enables scientists across a range of industries, including pharma, biotech, agri-science, scientific publishers and contract research organisations (CROs), to easily capture, access and exploit the vast amounts of data created in chemical reactions.
DeepMatter integrates its proprietary chemistry data and proprietary software to significantly improve productivity, efficiency, discovery, safety and sustainability of chemical reactions for its customers.
DeepMatter's SmartChemistry® platform capitalises on the combination of its cloud technology, low cost-sensors, connectivity to laboratory hardware and high-performance computing trends such as artificial intelligence (AI).
Visit: www.deepmatter.io and follow @deepmattergroup
Prior to this announcement's release, the statement contained inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR) (Market Abuse Regulation).