Ixico Regulatory News (IXI)

25 April 2022

IXICO plc

("IXICO" or the "Company")

Half-year Trading update

First six months of trading in line with expectations and confirmation of 2022 market expectations

IXICO plc (AIM: IXI), the medical imaging advanced analytics company delivering intelligent insights in neuroscience, today provides a trading update ahead of its interim results for the six months ended 31 March 2022.

Key metrics:

· Revenues expected to be £3.9m for six months to 31 March 2022 (H1 2021: £4.9m); 

· Contracted order book of £12.6m as at 31 March 2022 (H1 2021: £19.0m);

· Strong cash balance of £5.8m (H1 2021: £7.0m), debt free, and operating cash generative;

· Positive earnings before interest, tax, depreciation and amortisation to 31 March 2022 (H1 2021: £0.9m);

· Across the first six months of the year, the Company has performed in line with its expectations and the Board continues to expect to deliver a stronger second six months to meet market expectations for FY22.

The extended impact of COVID-19 and the lost multi-year revenue from the previously reported halting of certain large client trials over the last twelve months has interrupted the Company's five-year record of continuous revenue growth at the half-year point. Nonetheless, the Company continues to diversify its order book of contracted clients and the Board remains confident that it will achieve market guidance for the full year.

IXICO continues to invest in its proprietary AI technology platform and scientific capabilities as it pursues scale. Continued growth in investment by the global pharmaceutical industry in a wide range of neurological indication disease treatments, coupled with the increasing focus on imaging biomarkers to support and de-risk patient recruitment, safety and drug efficacy in clinical trials, favours IXICO's business across the medium and long term. These market drivers, coupled with the aging population, underpin the Company's continued investment in supporting these hard to address, and societally significant, neurological and rare disease areas.

The Company's first half results will be released on 24 May 2022.

Giulio Cerroni, CEO of IXICO, said: "I am satisfied with IXICO's performance over the past six months, delivering positive EBITDA and positive operating cash, given the challenges we have faced with the halting of several important client trials representing significant multi-year revenue opportunities. The results delivered do not reflect the growth opportunity we see in front of us, rather a necessary period of consolidation as we continue to diversify our contracted order book.

IXICO is well placed for the future with a leading scientific offering in the neurological disease area where there is an urgent search for efficacious drugs to address the growing dementias epidemic. Having focussed investments on our science and technology offering we are, despite recent challenges, better placed than ever to achieve scale across the medium and long term to support our clients in their critical endeavours. I would like to thank the entire team at IXICO for their hard work and commitment."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR) as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019

For further information please contact:

About IXICO | Advanced Analytics | Intelligent Insights.

IXICO is dedicated to delivering insights in neuroscience to help transform the advancement of investigational therapies for neurological diseases, such as Huntington's disease, Parkinson's disease and Alzheimer's disease. The Company's purpose is to advance medicine and human health by turning data into clinically meaningful information, providing valuable new insights in neuroscience by supporting pharmaceutical companies across all phases of CNS clinical research. IXICO's goal is to be a leading advocate of artificial intelligence in medical image analysis.

IXICO has developed and deployed breakthrough data analytics, at scale, through its remote access technology platform, to improve the return on investment in drug development and reduce risk and uncertainty in clinical trials for the Company's pharmaceutical clients.

More information is available on www.IXICO.com