REG - Cambridge Cognition - Trading update for period ended 30 June 2025

Cambridge Cognition HoldingsAnnouncement

Thu 07:01

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RNS Number : 2836T  Cambridge Cognition Holdings PLC  31 July 2025

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31 July 2025

Cambridge Cognition Holdings plc

("Cambridge Cognition", the "Company")

Trading update for period ended 30 June 2025

Continued progress with significant growth in New Sales Orders & Order
Book

 

Cambridge Cognition Holdings plc (AIM: COG), the brain health software group
specialising in digital health products that advance brain health research and
treatment, announces a trading update for the six months ended 30 June 2025.

Highlights

·    New Sales Orders of £6.9m (H1 2024: £3.3m)

·    Order Book of £16.4m (30 June 2024: £14.6m, 31 December 2024:
£13.6m)

·    Revenue of £4.3m (H1 2024: £5.6m)

·    Adjusted EBITDA loss £0.4m (H1 2024: loss of £0.1m)

·    Operating Cash Flow outflow £0.3m (H1 2024: outflow £1.6m)

·    Cash of £0.4m (31 December 2024: £1.3m)

New Sales Orders and Order Book

As previously announced, the Company has emphasised the importance of growth
in New Sales Orders to drive the Order Book to generate revenue, cash and
ultimately deliver Adjusted EBITDA.  We reported good momentum in this
critical measure of performance in our financial updates in December 2024,
March 2025 and May 2025.

This focus on sales and marketing has resulted in a significant increase in
New Sales Orders in H1 2025 of £6.9m; an increase of 109% compared to the
same period in 2024.  At the date of this announcement New Sales Orders
totalled £7.7m, which is greater than the whole of 2024 (December 2024:
£7.4m).

At 30 June 2025, the Order Book of contracted business to be completed equated
to £16.4m (June 2024: £14.6m, December 2024: £13.6m).

Revenue, EBITDA and Cash

Despite the significant increase in New Sales Orders and Order Book, Revenue
recognised in H1 2024 was £4.3m (H1 2024: £5.6m), a decline year-on-year.
This was primarily the result of weak selling in 2024, which depleted the
Order Book.  However, with a strong and sustained Pipeline of potential
opportunities totalling £32.5m (31 December 2024: £34.2m), and an increasing
Order Book, the Board believes the Company is well positioned to deliver
Revenue growth over the next 18 months.

The Company continues to maintain tight cost control, as demonstrated by the
first half performance in both earnings and cash flow.  Despite the lower
Revenue, Adjusted EBITDA for the six months to 30 June 2025 was a loss of
£0.4m (H1 2024: loss £0.1m).  Over the same period Cash Flow from Operating
Activities was an outflow of £0.3m; a significant improvement from the same
period last year (H1 2024: outflow £1.6m).

With a growing Order Book, disciplined cost management, and a clear path to
increasing sales, the business is now well placed to deliver sustained
profitability and cash generation with modest increases in New Sales Orders
and Revenue.

Cash at 30 June 2025 was £0.4m (31 December 2024: £1.3m).  During the
period the Company continued to repay the venture debt facility and total
borrowings at 30 June 2025 were £1.5m (31 December 2024: £1.9m).  This
results in a net debt position of £1.0m (31 December 2024: net debt £0.6m).

Post period event

The Company was recently informed of the cancellation of two clinical studies
(with the same drug candidate), following the sponsor's decision that it will
not pursue development.  This is a rare event for the Company, and
importantly the client continues to engage Cambridge Cognition on other
ongoing studies.  This cancellation will reduce the Order Book by £0.8m and
is expected to have an impact on Cash generation in the second half.

Healthcare & Consumer Health

Earlier this year we set out that we would pursue partnerships and
collaborations with organisations active in the Healthcare and Consumer Health
markets to expand the Company's offering beyond Clinical Study and Academic
Research.

This is well underway, with encouraging progress being made across multiple
geographic markets. These efforts are expected to lead to agreements with
partners to integrate our products into broader healthcare offerings.  Whilst
there are no guarantees that these discussions will be result in formal
partnerships, we are optimistic and look forward to reporting further
developments.

Outlook

The Board has considered current market conditions, the impact of the weak
selling in 2023 and 2024, and the effect of the contract cancellation.
 Although we expect to see further growth in New Sales Orders and the Order
Book during the remainder of 2025, we now expect total Revenue for the year to
be in the region of £9.5 - 10.0m with a consequential impact on Adjusted
EBITDA.

The Board has also considered the outlook for 2026 based on several key future
revenue indicators.  The Pipeline of potential opportunities remains strong
at £32.5m at 30 June 2025.  The Order Book at 30 June 2025 is £16.4m.
 Importantly, approximately £5.8m of this Order Book is expected to be
recognised as Revenue in 2026.  With six months of further sales activity
still to come this financial year, we are confident that the Revenue
underpinned at the start of 2026 will be significantly higher than that at the
start of 2025.

Consequently, we are confident that the Company is on track to meet market
expectations for Revenue in 2026, and see significant improvement in
profitability and cash generation.

Rob Baker, Joint Managing Director and COO, commented:

"We are continuing to build the Order Book from the low point in September
2024. Our refreshed and expanded Commercial team is now delivering tangible
results and our focus is growing the Order Book to drive future Revenue and
Cash generation.

We are also encouraged by the initial responses as we expand our presence in
the professional healthcare and consumer health markets.

Our science and technology have the potential to support medical
professionals, positively impact the lives of patients and empower individuals
to better understand and manage their cognitive health."

 

Enquiries:

 

 Cambridge Cognition Holdings plc                    Tel: 012 2381 0700 

 Rob Baker, Joint Managing Director                  press@camcog.com (mailto:press@camcog.com)  

 and Chief Operating Officer

 Panmure Liberum Limited (NOMAD and Joint Broker)    Tel: 020 7886 2968

 Will Goode / Freddy Crossley / Mark Rogers          (Corporate Finance)

 Rupert Dearden                                      (Corporate Broking)

 Dowgate Capital Limited (Joint Broker)              Tel: 020 3903 7715 

 David Poutney / Amber Higgs                          

 Hudson Sandler (Financial PR and IR)                Tel: 020 7796 4133 

 Dan de Belder / Hattie Dreyfus / Jackson Redley     cog@hudsonsandler.com (mailto:cog@hudsonsandler.com)

                            

 

Notes to Editors

 

About Cambridge Cognition

 

Cambridge Cognition is a brain health software group specialising in digital
health products that advance brain health research and treatment.

Built on rich, curated data and deep technical expertise we are building a
strong global brand with scalable technology that will support the rising
world demand for diagnosing and treating brain health. The Company creates
shareholder value through organic sales growth, strategic partnerships, joint
ventures, and spinouts.  The Company has identified four market sectors:

·      Clinical Studies for new pharmaceuticals;

·      Academic Research for scientists to understand CNS disorders;

·      Healthcare to provide physicians with cognitive assessments to
allow them to diagnose and treat patients; and,

·      Consumer Health & Wellness to provide individuals access to
accurate, reliable, and meaningful data to assess their cognitive health.

For further information, visit: www.cambridgecognition.com
(http://www.cambridgecognition.com/)

 

END

 

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