REG - Cambridge Cognition - Trading Update

Cambridge Cognition HoldingsAnnouncement

27/01/2022 07:00

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RNS Number : 7590Z  Cambridge Cognition Holdings PLC  27 January 2022

27 January 2022

 

Cambridge Cognition Holdings plc

("Cambridge Cognition", the "Company" or the "Group")

 

Trading Update

 

Strong orders and revenue growth on adoption of virtual clinical trials and
broader product offering

 

Cambridge Cognition Holdings plc (AIM: COG), which develops and markets
digital solutions to assess brain health, is pleased to announce a positive
trading update for the year ended 31 December 2021.

 

Unaudited highlights for the year ended 31 December 2021

 

·         Growth in revenues of 50% to £10.1 million (2020: £6.7
million)

·         Increase in contracted order backlog of 51% to £17.0
million (31 December 2020: £11.2 million)

·         Profit after tax for the year of £0.5 million (2020: £0.4
million loss)

·         Cash balance of £6.8 million at 31 December 2021 (31
December 2020: £3.0 million)

 

The Company made excellent progress in 2021, delivering strong growth in
orders and revenues, together with moving into profitability with earnings
ahead of market expectations. Order intake for the year closed at £15.7
million, up 25% on the previous year's order intake of £12.7 million.  Order
growth continued to be driven by commercial execution, a broader product
offering and demand for virtual clinical trials.  The contracted order book
at the end of 2021 was £17.0 million (£11.2 million at 31 December 2020) of
which at least £7.5 million is expected to be recognised as revenue in 2022,
subject to customer delivery schedules.

 

The pandemic has provided a catalyst for the growth in adoption of virtual
clinical trials as pharmaceutical companies shift to measuring patients at
home more(1), which has been of benefit to the Company, but this has been
offset to a certain extent by some delays to trials(2), mostly due to more
cautious, slower patient recruitment. These trends are expected to continue in
2022.

 

The underlying market for the measurement of electronic outcomes in clinical
trials was reported to be growing at 17%(3) in 2021. The Company results were
ahead of this underlying market growth. The 2021 performance provides a strong
platform for further growth as the Company continues to develop and
commercialise its innovative digital assessments, primarily for clinical
trials.

 

The Company expects to announce its preliminary results in March 2022.

 

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.

 

References.

1.     McKinsey & Company. (2021).
https://www.mckinsey.com/industries/life-sciences/our-insights/no-place-like-home-stepping-up-the-decentralization-of-clinical-trials
(https://www.mckinsey.com/industries/life-sciences/our-insights/no-place-like-home-stepping-up-the-decentralization-of-clinical-trials)
 

2.     John Z. Xue et al., "Clinical trial recovery from COVID-19
disruption," Nature Reviews Drug Discovery, September 2020, Volume 19, pp.
662-3, nature.com. Monthly trial starts declined 50% from January 2020 to
April 2020, and 60% of investigators reported a significant reduction in trial
activities in May 2020.

3.     GrandView Research 2018 eCOA Report indicates a CAGR of 17%
2018-20225

 

Enquiries:

 

 Cambridge Cognition Holdings plc          Tel: 01223 810 700
 Matthew Stork, Chief Executive Officer    press@camcog.com
 Steven Powell, Chairman

 finnCap Ltd (Nomad and Joint Broker)      Tel: 020 7220 0500
 Geoff Nash/ Simon Hicks                   (Corporate Finance)
 Alice Lane/ Charlotte Sutcliffe           (Corporate Broking)

 Dowgate Capital Limited (Joint Broker)    Tel: 020 3903 7715
 David Poutney/ James Serjeant

 IFC Advisory Ltd (Financial PR and IR)    Tel: 020 3934 6630
 Tim Metcalfe/ Graham Herring/ Zach Cohen  COG@investor-focus.co.uk

 

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