REG - Cambridge Cognition - Trading Update

Cambridge Cognition HoldingsAnnouncement

31/01/2023 07:00

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RNS Number : 3267O  Cambridge Cognition Holdings PLC  31 January 2023

31 January 2023

 

Cambridge Cognition Holdings plc

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

 

Trading Update

 

Strong revenue growth with a complete solution for virtual CNS trials

 

Cambridge Cognition Holdings plc (AIM: COG), which develops and markets
digital solutions to assess brain health, is pleased to announce a trading
update for the year ended 31 December 2022.

 

Unaudited highlights for the year ended 31 December 2022

 

·         Revenue ahead of market expectations: 25% growth in
revenues to £12.6 million (2021: £10.1 million)

·         Increase in contracted order book to £17.6 million at 31
December 2022 (31 December 2021: £17.1 million), increasing to £20.1 million
post-period end after acquisitions

·         Profit after tax for the year, before acquisition costs, of
£0.2 million (2021: £0.5 million)

·         Cash balance of £8.3 million at 31 December 2022 (31
December 2021: £6.8 million)

 

The Company made significant progress, with strong organic revenue growth
during 2022, and broadened the Company's platform and revenue opportunities
further through the acquisition of eClinicalHealth Limited (trading as
"Clinpal") in October 2022 and the acquisition of Winterlight Labs Inc
("Winterlight"), subsequent to the year end, in January 2023.

 

Revenue growth was ahead of market expectations at 25% in 2022 with earnings
in line with market expectations.  The acquisition of Clinpal did not
contribute materially to trading results in 2022.  Order intake for the year
closed at £13.1 million, up 8% on the previous year's order intake of £12.1
million, excluding £3.6 million of large one-off orders taken in 2021.
Order growth continued across the expanded product offering, driven in part by
the continued demand for virtual clinical trials.  The contracted order book
remained healthy at the end of 2022 at £17.6 million (£17.1 million at 31
December 2021), together with a further £2.5 million added post year end with
the acquisition of Winterlight, bringing the total contracted order book to
£20.1 million.  At least £9.5 million of the current contracted order book
is expected to be recognised as revenue in 2023, subject to customer trial
schedules.  This gives approximately 60% visibility on market forecast
revenues for 2023.

 

The market for virtual clinical trials for central nervous system ("CNS")
disorders is large - larger than for any other therapeutic area - with around
250 being started every year(1).  The acquisition of Clinpal in October 2022
has strengthened the Company's position in this rapidly growing market,
combining its CNS expertise with Clinpal's end-to-end virtual capability.
 From this strengthened position, the Company has continued to grow its total
addressable market with the acquisition of Winterlight and its voice
technology in January 2023.  The market for voice biomarkers for all
conditions is reported to be growing at 66% per annum and, starting from a
modest base, is predicted to be around US$220 million by 2026(2).

 

With Cambridge Cognition's gold-standard cognitive assessments, Winterlight's
leading vocal biomarker technology, and Clinpal's end-to-end virtual platform,
the combined Company is well positioned for further considerable growth.

 

The Company expects to announce its results in April 2023.

 

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. GlobalData. Virtual trials run by pharma by therapeutic area Jan 2021 - Aug
2022

2. Coherent Market Insights, 2019

 

Enquiries:

 

 Cambridge Cognition Holdings Plc                      Tel: 012 2381 0700

 Matthew Stork, Chief Executive Officer                press@camcog.com (mailto:press@camcog.com)

 Stephen Symonds, Chief Financial Officer
 Panmure Gordon (UK) Limited (NOMAD and Joint Broker)  Tel: 020 7886 2968

 Freddy Crossley / Emma Earl                           (Corporate Finance)

 Rupert Dearden                                        (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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