Cambridge Cognition Holdings PLC (LON:COG), which develops and markets digital solutions to assess brain health, today announced its unaudited Interim Results for the six months ended 30 June 2019.
As announced in the trading update on 27 August 2019, the first half of 2019 generated lower sales than expected, but there was solid growth in the Company’s order book and strong progress with new digital and voice-based solutions, which further strengthens the Company’s position for the medium-term. In H1, sales were lower in the core clinical trials business due to short-term market factors, including a merger of two large customers leading to delays in finalising contracts, reduction in safety testing of two drug classes, and a dip in trial initiations for Alzheimer’s drugs. The quality of our core technology and the scale of our order book gives us much confidence in the future growth of the Company.
Financial Highlights
· Revenue of £2.17 million (H1 2018: £2.75 million)
· Loss before tax of £1.74 million (H1 2018: £1.02 million loss)
· Loss per share of 7.7 pence per share (H1 2018: loss of 5.0 pence per share)
· Cash balance of £2.06 million at 30 June 2019 (31 December 2018: £1.11 million)
Operational Highlights
· Contracted order book of £6.34 million (31 December 2018: £6.08 million, 30 June 2018: £5.95 million, £4.01 million 31 December 2017)
· Major digital solution contract win of £1.3 million in March 2019
· Considerable commercial and scientific advances with the NeurovocalixTM voice-based platform
· Development of electronic Clinical Outcomes Assessment (eCOA) upsell for existing clients
· Commercial team realigned to drive the core clinical trials business and digital health
· Expenditure is being managed to match orders and forecast cash-flow; operational efficiencies were put in place as a result of a business review and further efficiencies are planned
· R&D spend of £0.89 million (H1 2018: £0.71 million) following fund raising
Commenting on the results, Matthew Stork, Chief Executive Officer of Cambridge Cognition, said: “As announced in our trading update on 27 August 2019, trading in the core business in H1 has been challenging. However, R&D investment in recent years has helped deliver first half successes across a number of areas. Following a recent strategic review, conducted since I joined the Company in March 2019, we have refocused on the high-value clinical trials market, concentrating on sales of CANTAB™ with eCOA add-on sales and digital and voice-based cognitive assessment solutions. The strengths of the Company in providing biomarkers and supporting clinical trials for central nervous systems disorders puts us in a great position to thrive in the growing digital market.”
