REG - IXICO plc - Trading Update

IXICOAnnouncement

29/09/2023 07:00

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RNS Number : 0829O  IXICO plc  29 September 2023

29 September 2023

IXICO plc

("IXICO" or the "Company")

 

Trading update for the year ending 30 September 2023

 

IXICO plc (AIM: IXI), the medical imaging advanced analytics company
delivering insights in neuroscience, announces a trading update for the year
ending 30 September 2023 ("FY23") and updated outlook for 2024 ("FY24").

 

Trading update 2023:

 

FY23 earnings performance is anticipated to be in line or slightly ahead of
market expectations despite a small shortfall in revenues caused by delays in
the timing of new client trial initiations.

 

·    Full year FY23 revenue expected to be £6.5 million (2022: £8.6
million). This reduction on the prior period principally reflects the final
year of impact of the previously announced early cessation of large client
trials coupled with some delays in new client trial initiations.

.

·    Year-end order book anticipated to have grown to at least £14.5
million (2023 H1: £13.3 million).

 

·    Cash remains strong with year-end cash expected to be at least £4.0
million (2023 H1: £5.0 million) and the Company remains debt-free.

 

·    Earnings before interest, tax, depreciation, and amortisation
('EBITDA') expected to improve on current expectations of £1.0 million loss
(2022: £1.5 million profit).

 

The Company intends to announce its audited results for the year ended 30
September 2023 in December 2023.

 

Current trading and Outlook:

 

The Company continues to see a near term challenging trading environment
resulting from a sector-wide contraction in the number of new clinical trials
commencing during 2023. The Board sees this as a challenge caused by the
tightening of the funding environment worldwide but expects a return to market
growth due to strong scientific and clinical progress in neurological drug
development, particularly within Alzheimer's disease and gene therapies.
  This supports the Board's confidence in accelerated numbers of new
clinical trial starts across 2024, albeit that these will largely benefit
later years.

 

Consequently, the Board expects IXICO's financial performance across FY24 to
be broadly flat on FY23, with a reduced level of cash utilisation compared to
FY23, ahead of a return to double digit revenue growth in FY25 and beyond.
The Company continues to manage its costs carefully while focusing investment
in its priority areas of image analysis innovation and business development to
take advantage of the anticipated growth in new commercial opportunities.

 

Giulio Cerroni, Chief Executive Officer of IXICO, commented: "I am proud of
IXICO's achievements reflected by the strengthening of the orderbook since the
half year. Given the significant and growing unmet need  for new therapies
across a wide range of neurological diseases, I remain confident of the runway
for growth for IXICO's specialist neuroimaging services, underpinned by the
increasing inclusion of imaging biomarkers in neurodegeneration clinical
trials."

 

This announcement contains inside information as stipulated under the retained
EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR")
which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.
The information is disclosed in accordance with the Company's obligations
under Article 17 of the UK MAR.

 

For further information please contact:

 

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

 Grant Nash, Chief Financial Officer

 Cavendish Securities PLC (Nominated adviser and sole broker)                        +44 (0) 20 7397 8900
 Giles Balleny / Charlie Combe (Corporate Finance)
 Michael F Johnson / Tamar Cranford Smith (Sales)

 

About IXICO

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) and
follow us on Twitter @IXICOnews

 

 

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