REG - IXICO plc - Trading Update

IXICOAnnouncement

25/04/2022 07:00

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RNS Number : 1260J  IXICO plc  25 April 2022

25 April 2022

IXICO plc

("IXICO" or the "Company")

 

Half-year Trading update

 

First six months of trading in line with expectations and confirmation of 2022
market expectations

 

IXICO plc (AIM: IXI), the medical imaging advanced analytics company
delivering intelligent insights in neuroscience, today provides a trading
update ahead of its interim results for the six months ended 31 March 2022.

 

Key metrics:

 

·    Revenues expected to be £3.9m for six months to 31 March 2022 (H1
2021: £4.9m);

·    Contracted order book of £12.6m as at 31 March 2022 (H1 2021:
£19.0m);

·    Strong cash balance of £5.8m (H1 2021: £7.0m), debt free, and
operating cash generative;

·    Positive earnings before interest, tax, depreciation and amortisation
to 31 March 2022 (H1 2021: £0.9m);

·    Across the first six months of the year, the Company has performed in
line with its expectations and the Board continues to expect to deliver a
stronger second six months to meet market expectations for FY22.

 

The extended impact of COVID-19 and the lost multi-year revenue from the
previously reported halting of certain large client trials over the last
twelve months has interrupted the Company's five-year record of continuous
revenue growth at the half-year point. Nonetheless, the Company continues to
diversify its order book of contracted clients and the Board remains confident
that it will achieve market guidance for the full year.

 

IXICO continues to invest in its proprietary AI technology platform and
scientific capabilities as it pursues scale.  Continued growth in investment
by the global pharmaceutical industry in a wide range of neurological
indication disease treatments, coupled with the increasing focus on imaging
biomarkers to support and de-risk patient recruitment, safety and drug
efficacy in clinical trials, favours IXICO's business across the medium and
long term. These market drivers, coupled with the aging population, underpin
the Company's continued investment in supporting these hard to address, and
societally significant, neurological and rare disease areas.

 

The Company's first half results will be released on 24 May 2022.

 

Giulio Cerroni, CEO of IXICO, said: "I am satisfied with IXICO's performance
over the past six months, delivering positive EBITDA and positive operating
cash, given the challenges we have faced with the halting of several important
client trials representing significant multi-year revenue opportunities. The
results delivered do not reflect the growth opportunity we see in front of us,
rather a necessary period of consolidation as we continue to diversify our
contracted order book.

 

IXICO is well placed for the future with a leading scientific offering in the
neurological disease area where there is an urgent search for efficacious
drugs to address the growing dementias epidemic.  Having focussed investments
on our science and technology offering we are, despite recent challenges,
better placed than ever to achieve scale across the medium and long term to
support our clients in their critical endeavours. I would like to thank the
entire team at IXICO for their hard work and commitment."

 

 

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 (MAR) as amended by The Market Abuse (Amendment)
(EU Exit) Regulations 2019

 

For further information please contact:

 

 IXICO plc
 Giulio Cerroni, Chief Executive Officer           +44 (0)20 3763 7499

 Grant Nash, Chief Financial Officer

 Cenkos Securities PLC (Nominated adviser and sole broker)                         +44 (0)20 7397 8900
 Giles Balleny / Max Gould (Corporate Finance)
 Michael F Johnson / Tamar Cranford-Smith (Sales)

About IXICO | Advanced Analytics | Intelligent Insights.

IXICO is dedicated to delivering insights in neuroscience to help transform
the advancement of investigational therapies for neurological diseases, such
as Huntington's disease, Parkinson's disease and Alzheimer's disease. The
Company's purpose is to advance medicine and human health by turning data into
clinically meaningful information, providing valuable new insights in
neuroscience by supporting pharmaceutical companies across all phases of CNS
clinical research. IXICO's goal is to be a leading advocate of artificial
intelligence in medical image analysis.

 

IXICO has developed and deployed breakthrough data analytics, at scale,
through its remote access technology platform, to improve the return on
investment in drug development and reduce risk and uncertainty in clinical
trials for the Company's pharmaceutical clients.

 

More information is available on www.IXICO.com (http://www.IXICO.com)

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