REG - Cambridge Cognition - Trading Update

Cambridge Cognition HoldingsAnnouncement

30/01/2024 07:00

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RNS Number : 2725B  Cambridge Cognition Holdings PLC  30 January 2024

30 January 2024

 

Cambridge Cognition Holdings plc

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

 

Trading Update

 

Return to profitability in H2; above expectation bottom line performance

 

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 2023.

 

Key (Unaudited) highlights:

·         Revenue growth of 7% to £13.5 million (2022: £12.6
million)

·         Adjusted operating profit of £0.9 million in H2 (2023 H1:
loss of £2.1 million)

·         Adjusted operating loss of £1.2 million for the year
(2022: £0.1 million profit), better than market expectations

o  Full year adjusted operating loss reflects the impact of business
acquisitions and difficult H1 trading conditions

·         Cash balance of £3.2 million at 31 December 2023 (31
December 2022: £8.3 million)

 

2023 was a year of significant progress for the Company operationally
following the acquisitions of eClinicalHealth Limited ("Clinpal") at the end
of 2022 and Winterlight Labs Inc ("Winterlight") at the beginning of 2023.
Both of these acquisitions have now been fully integrated into the Group and
annualised cost savings in excess of £1.5 million have been realised.
Leveraging the unique capabilities of the acquired businesses, the Company
recently launched combined product offerings during the year including AQUA,
an Automated Quality Assurance solution derived from the Winterlight platform,
which strengthens the Company's product portfolio and provides additional
cross-selling opportunities. This contributed to a major contract win in
October 2023 for a sizeable later stage clinical trial valued at £1 million.

 

With revenue increasing 7% over the prior year to £13.5 million and following
the comprehensive integration and re-organisation mid-year, the Company made
an adjusted operating profit of £0.9 million in H2, improving the adjusted
operating loss from £2.1 million in H1 to £1.2 million at the end of the
year.  The H2 adjusted operating profit was better than expected due to
robust cost control. The contracted order book remained healthy at the end of
2023 at £17.2 million (£17.6 million at 31 December 2022), with at least
£8.0 million of the current contracted order book expected to be recognised
as revenue in 2024, subject to customer trial schedules.

 

Outlook

 

There has been considerable M&A activity by large pharmaceutical companies
in the central nervous system ("CNS") drug development sector recently and,
together with an improving global economic outlook, that is expected to prompt
further investment in CNS clinical trials. The Company is focused on
capitalising on this market opportunity, growing the order book and maximising
the benefits of the recent acquisitions to drive sustainable profitable
growth.

 

Matthew Stork, Chief Executive Officer of Cambridge Cognition, commented:

"Despite challenging market conditions during 2023, the Company has
strengthened its technology platforms and commercial offering and is
positioned to capitalise on the anticipated growth in the CNS drug development
market. We continue to focus on delivering profitable growth and driving
success over the medium-term."

 

 

The Company will announce its preliminary results for the year ended 31
December 2023 in April 2024.

 

 

The information communicated in this announcement contains inside information
for the purposes of the UK Market Abuse Regulations.

 

 

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

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

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

 

 

 

Notes to Editors

 

About Cambridge Cognition

 

Cambridge Cognition is a technology company developing digital health products
to better understand, detect and treat conditions affecting brain health. The
Company's software products assess cognitive health in patients worldwide to
improve clinical trial outcomes, identify and stratify patients early and
improve global efficiency in pharmaceutical and healthcare industries.

 

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

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