REG - Cambridge Cognition - Trading Update

Cambridge Cognition HoldingsAnnouncement

10/12/2024 07:00

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RNS Number : 4095P  Cambridge Cognition Holdings PLC  10 December 2024

 

 

10 December 2024

 

Cambridge Cognition Holdings plc

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

Trading update for year ending 31 December 2024 and an early outlook for 2025

 

Cambridge Cognition Holdings plc (AIM: COG), the brain health software group,
announces a trading update for the year ending 31 December 2024.

Highlights

·     Revenue for year ending 31 December 2024 expected to be not less
than £10.0m and adjusted EBITDA close to breakeven

 

·     Greater revenue visibility into 2025 with a strengthened order
book of £13.5m and a growing sales pipeline of over £34m

 

·     Cash expected to be approximately £1m at the year end and
expected to increase during 2025

 

Trading Update

The Company reports that, following the operational reorganisation at the end
of Q3 2024, the highest levels of both sales orders and book-to-bill ratio
this year was recorded in October. Encouragingly, sales orders secured during
the second half of 2024 included an increasing number of multi-product
contracts, particularly including eCOA, AQUA and voice recognition, which were
brought into the portfolio through the Winterlight and eClinicalHealth
acquisitions. In addition, there is an increasing number of repeat orders from
top-tier pharmaceutical customers.

However, with most of these new sales orders secured in Q4 2024, much of the
revenue will be recognised in 2025 or later. As a result, the Board now
expects revenues for the year ending 31 December 2024 to be not less than
£10.0m (2023: £13.5m) and adjusted EBITDA to be close to breakeven (2023:
adjusted EBITDA loss of £1.0m).

The Group's contracted sales order book has increased for the first time since
September 2023 with significant new business added in Q4 2024. The order book
is expected to continue to rise through to the end of the year to
approximately £13.5m, with at least £6.5m of this expected to be recognised
in revenue in 2025. These secured sales orders together with the sales
pipeline, which currently stands at over £34m, means that the Board expects
2025 will show a significant uplift in revenues compared with 2024 together
with a sustainable profitable EBITDA.

Having made operational savings during 2024 the Company continues to manage
working capital carefully.  As a result, cash is expected to be approximately
£1m at year end and the Board expects this to increase during 2025 as further
new orders are secured and billing commences on the contracts. When this is
considered together with the contracted order book and growing sales pipeline,
the Board anticipates delivering value enhancing, sustained profitability in
2025 and beyond.

The Board recognises the commitment and achievement of Rob Baker and Alex
Livingstone-Learmonth as Joint Managing Directors and the whole of the senior
leadership team who are leading the business into an era of profitability and
value creation. It confirms that the Company has commenced a process to
identify a new permanent CEO and will make a further update in due course.

 

Enquiries:

 Cambridge Cognition Holdings plc                    Tel: 012 2381 0700

 Dr Steven Powell, Chairman

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

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

 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)

 David Poutney / James Serjeant                      Tel: 020 3903 7715

 

Notes to Editors

About Cambridge Cognition

Cambridge Cognition is a leading technology company specializing in digital
health products that advance brain health research and treatment. The Company
offers three core products: CANTAB® assessments, which provide scientifically
validated, highly sensitive, precise, and objective measures of cognitive
function correlated to neural networks; A flexible and proven eCOA platform,
with a large library of instruments, enabling efficient study set up and
scalable data capture; and Quality Assurance Tools that ensure data integrity
by automatically detecting deviations in administration and scoring, saving
time and money. Together, these products improve clinical trial outcomes,
enable early patient identification, and enhance global efficiency in
healthcare and pharmaceuticals.

For further information visit: https://cambridgecognition.com/
(https://cambridgecognition.com/)

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

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