Cambridge Cognition Holdings Plc (LON:COG), which develops and markets digital solutions to assess brain health, has announced its unaudited interim results for the six months ended 30 June 2021.
The Company had a strong and profitable first half, delivering revenues of £4.5 million, a 50% year-on-year growth. Order intake was above the Board’s expectations at £8.6 million and this included two substantial orders outside the Company’s core area of focus that totalled £3.6 million.
The Company is now delivering more clinical trial contracts than at any time in its history, which is reflected in a contracted order book at 30 June 2021 of £15.2 million, up 36% from 31 December 2020 and more than double the value at 30 June 2020. The order book contains contracts for clinical trials in which revenue will be recognised over one to six years, further increasing the long-term revenue base for the Company. The forward order pipeline provides a good platform for growth, though at this time does not include the unusually large orders seen in the last two half-year periods.
The direct impact of COVID-19 on the Company’s operations has been minimal and the Company continued to deliver high levels of customer service while operating in a remote manner. The pandemic has accelerated interest in virtual clinical trials, with testing performed at home rather than in-clinic, and, as a result, orders for home testing solutions grew. We expect this trend to persist after the pandemic.
Looking forward, the Board believes the Company to be well positioned as a digital technology solutions provider, underpinned by a strong cash position. The Company will continue to take advantage of the growth in interest in developing new pharmaceuticals for Central Nervous Systems (“CNS”) disorders and the market shift to virtual clinical trials, continuing to focus on commercial execution and investment in new products to expand the product offer for future growth.
Financial highlights
• 50% year-on-year revenue growth to £4.5 million (H1 2020: £3.0 million)
• Gross margin maintained at 80% (H1 2020:81%)
• Profit for the period £0.1 million (H1 2020: £0.4 million loss)
• 0.3p basic and diluted earnings per share (H1 2020: 1.5p loss per share)
• Strong cash generation with cash balance of £4.2 million (31 December 2020: £3.0 million)
Operational highlights
• Increase in sales orders of 74% to £8.6 million (H1 2020: £4.9 million)
• Contracted order book of £15.2 million, up 36% since 31 December 2020 and more than double the value at 30 June 2020 (31 December 2020: £11.2 million, 30 June 2020: £7.4 million)
• Launch of NeuroVocalix™, a digital voice cognition solution, ready for clinical trials
• Completed successful spin-out and venture financing of Monument Therapeutics
Commenting on the results Matthew Stork, Chief Executive Officer of Cambridge Cognition, said: “I am delighted with our performance over the first half of the year. We have continued to execute our growth strategy, achieving a number of firsts, including the highest order intake in a six-month period. The Company is well positioned to serve pharmaceutical companies, whose needs are changing as the benefits of virtual clinical trials are embraced globally. We continue to attract interest from a wide range of customers and remain confident in the outlook for the year.”
