REG - IXICO plc - Financial Results for year ended 30 September 2025
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RNS Number : 7331K IXICO plc 09 December 2025
IXICO plc
("IXICO", the "Company" or the "Group")
Financial Results for year ended 30 September 2025 and Notice of AGM
09 December 2025, IXICO plc (AIM: IXI) - London, UK. IXICO, a global leader
in neuroscience imaging and biomarker analytics, using its AI-driven platform
to help advance drug development in neurological disorders, announces its
audited results for the year ended 30 September 2025 ("FY25").
Execution of the Group's Innovate Lead Scale strategy across the year has
delivered a strong financial performance with 13% revenue growth and a 21%
reduction in EBITDA loss. Commercial traction has further accelerated into
FY26, resulting in a 27% increase to the order book since the FY25 year-end.
Financial Highlights:
· Revenues grew 13% to £6.5 million (2024: £5.8 million)
reflecting new contract and contract extension wins.
· Gross margin grew to 49% (2024: 47%) reflecting operational
leverage within the business partly offset by an expanded operational
footprint in North America designed to support further future growth in this
market.
· EBITDA losses reduced 20% to £1.3 million (2024: £1.7 million)
reflecting revenue growth in the year of £0.7 million, partly offset by
targeted investments designed to sustain and accelerate future revenue growth.
· Closing order book of £13.8m (2024: £15.3 million). In the
two months since the period-end, the order book has grown to £17.7 million
(as at 30 November 2025) reflecting a further acceleration of the contract win
rate seen in the second half of the year.
· Closing, debt-free, cash of £3.5 million (2024: £1.8 million).
Cash was augmented by £3.7 million net of fees from an oversubscribed capital
raise completed in Q1 of the financial year end.
· Closing balance sheet value (net assets) of £11.7 million (2024:
£9.5 million) that includes long-term assets that will underpin the Group's
further expansion.
Operational & Commercial Highlights:
· Successful diversification of revenues with new and existing
clients across therapeutic areas, clinical phases and geographies.
· Commercial partnership and collaboration activity increased with
large CRO, imaging device manufacturers and clinical data management
organisations.
· Expansion of the proprietary IXI™ AI-powered platform into new
industry verticals, generating a new revenue stream in blood-based biomarker
diagnostic validation.
· Continued scientific and technology innovation equipping IXI™
with novel algorithms to deliver differentiated analysis capabilities, with a
particular focus on the Alzheimer's disease and Parkinson's disease markets.
· Access and use rights to the Global Alzheimer's Platform (GAP)
BioHermes data set covering 1,000 participants across 30 global sites, and
including MRI, PET and Blood Based Biomarker data.
· Expansion of the Group's scientific and operational footprint in
North America.
Post Period Highlights:
· £1.2 million combined value clinical trial contract wins - a new
blood-based biomarker contract and a contract extension in Alzheimer's disease
(15 October 2025).
· £3.5 million global Phase 3 clinical trial contract win in
Huntington's disease (17 November 2025).
· Appointment of Professor Michael Weiner and Professor Joanna
Wardlaw, two leading global experts in the field of Alzheimer's and
cerebrovascular disease as advisors to the Company (01 December 2025).
Bram Goorden, CEO of IXICO, said: "2025 has been a pivotal year for IXICO
witnessing a strong return to growth, an extension of our leadership in
neuroimaging and promising early progress from the Innovate Lead Scale
strategy. The continued development of scientific capabilities through our
next-generation IXI™ platform uniquely places IXICO to deliver impact to
biopharma and diagnostics partners, helping accelerate the development of
much-needed treatments for neurodegenerative disease. The commercial
momentum experienced in FY25 has continued into the new financial year, and
together with our incredible group of people and a clear strategy to advance
precision medicine, we enter 2026 with confidence and excitement."
The full 2025 Annual Report and Accounts is available on the Company's
website.
Notice of AGM
IXICO announces that its 2026 Annual General Meeting ("AGM") will be held at
CCT Venues Smithfield, Two East Poultry Avenue, Smithfield, London EC1A 9PT on
23 January 2026 at 10:30 GMT. The Notice of AGM will be sent to shareholders
on or before 20 December 2025 and at the same time will be made available on
the Company's website in accordance with AIM Rule 20.
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
Grant Nash, Chief Financial Officer
James Chandler, Chief Business Officer
Cavendish Capital Markets Limited +44 (0) 20 7220 0500
(Nominated Adviser and Sole Broker)
Giles Balleny, Isaac Hooper (Corporate Finance)
Nigel Birks (Healthcare Specialist Sales)
Harriet Ward (Corporate Broking)
Michael F Johnson (Sales)
About IXICO www.IXICO.com (http://www.IXICO.com)
IXICO is a global leader in neuroscience imaging and biomarker analytics,
using its proprietary AI-driven platform to help advance the treatment of
neurological disorders and reduce the uncertainties associated with drug
discovery, development and monitoring. As a key part of the global
neurological disease research community, the Company has built a global
reputation and 20-year track record as an end-to-end Imaging Contract Research
Organisation (iCRO) working with leading pharma companies, innovative
biotech's, disease consortia and non-profit organisations. IXICO has supported
hundreds of neurological clinical trials, analysed hundreds of thousands scans
and built an expansive network of expert imaging centres around the world.
The IXICO Platform is tailor-made for neurological disease, reliably
processing data from global trials, precisely measuring key imaging biomarkers
associated with the identification, progression and treatment of diseases such
as Alzheimer's, Huntington's and Parkinson's. Image data is interrogated by
the Platform and IXICO's expert scientists translating complex data into
clinically meaningful while minimizing data variability and increasing
reproducibility.
Chair's Statement
Summary of Strategy & Progress
On behalf of the Board of IXICO plc, I am pleased to report a period of
significant technological, scientific, and commercial progress resulting in a
healthy return to revenue growth. The opportunity to create significant
shareholder value beyond the uplift in share price over the period, rests on
the continued execution of IXICO's clear growth strategy expanding and
diversifying existing therapeutic area activity while leveraging the Group's
technology advantage to enter new neuroscience revenue streams.
The core elements for growth can be summarised as:
· A rising global population impacted by neurological disease,
combined with a renewed focus by the biopharma industry(( 1 (#_ftn1) )) to
address this unmet need, particularly through precision medicine methods such
as biomarker research.
· A strategy successfully diversifying revenues in key therapeutic
areas of focus - retaining market dominance in Huntington's disease (HD) and
other rare neurological diseases while deepening and broadening existing
activities in Alzheimer's and Parkinson's diseases.
· A flexible differentiated AI-driven technology platform (IXI™)
that offers revenue expansion opportunities outside traditional clinical trial
activities, such as the acceleration of activity in post market assessment and
into blood-based biomarker diagnostics similar to those IXICO has undertaken
in the period.
· Continued innovation in scientific products and services by
refining existing approaches and creating advanced new methods to assess how
developmental drugs act on brain biomarkers.
These growth elements, and the associated progress, relate to the focused
execution of the Innovate Lead Scale strategy that the leadership team
outlined during its successful capital raise in October 2024. The core
deliverables of that strategy were to extend the use of the IXI™ Platform in
new ways and markets, strengthen commercial operations, increase the
visibility of the Group, and enlarge its market opportunity whilst deepening
market penetration.
The Board are pleased to report that the Group has made strong progress in
delivering all elements of this strategy, providing confidence that the
approach is working and will deliver its full impact over the medium term.
This progress is evidenced by a 13% year-on-year rise in revenues and a
growing pipeline of new contract opportunities.
People
At the heart of IXICO's success is the quality and dedication of its people.
The team brings together world-class expertise in neuroscience, imaging
science, AI, technology development and clinical operations, consistently
translating complex challenges into meaningful insights that drive progress
for our clients and partners.
As reported at the interim results in May 2025, and following the CEO change
in August 2024, the Group has strengthened its senior leadership and added
further commercial, scientific and operational roles that enable IXICO to
accelerate scientific innovation, expand its technology advantage and expand
commercial growth.
The Group continues to work hard creating an agile, highly collaborative
culture and maintaining IXICO's reputation as a trusted leader in
neuroimaging. As Chair, I would like to extend my thanks to, and
appreciation for, an extraordinarily dedicated group of people that
successfully manage to combine scientific rigour, technological innovation,
and patient-centred sensitivity to deliver the highest standards of service. I
would also like to offer my gratitude to our shareholders, partners, and
customers for their continued trust and support.
Board Activity & Governance
During the period, the Board has undertaken specific initiatives to support
the leadership team, ensure strategic accountability and capitalise on
commercial and market opportunities:
Executive and non-executive Board directors collectively performed a formal
Board evaluation to assess current and future needs, stewardship, and
processes with the help of a reputable independent assessment organisation.
This exercise proved particularly useful since the Board had welcomed Bram
Goorden as a new Director in 2024 and independently confirmed high
accountability and a productive working dynamic amongst all Board members. In
addition, regular Risk Review sessions are held which support strategic
prioritisation, measured using monthly KPI reports to track the Group's
Innovate-Lead-Scale strategy execution.
As an AIM-quoted group, the Board remains committed to high standards of
corporate governance that ensure the Group operates in a transparent and
ethical way, and which delivers value for employees, shareholders, and other
stakeholders. In particular, the Group works to adhere to the Quoted
Company Alliance Governance Code and has acted to deliver compliance with the
2023 updates to this Code. During the year, the activities of the Board have
aimed to secure financial stability, whilst balancing risk with the focused
pursuit of opportunities open to IXICO. Through the activities of the Audit
Committee, the Board, and the Leadership Team, the Group continues to
implement and maintain robust financial controls and reporting.
Summary & Outlook
The commercial momentum this year has been achieved despite a biopharma
industry backdrop of financial conservatism. Activity in neuroscience
R&D and clinical trials is relatively buoyant. For example, in AD alone
Alzheimer's UK recently published a report(( 2 (#_ftn2) )) stating that 138
drugs are being tested, representing a 9% increase from the previous year with
the number entering early-stage clinical trials jumping from 27 to 48.
However, broader biopharma industry wide challenges remain such as tariff
uncertainty, reduced investment and low risk appetite.
Therefore, while the Group remains optimistic, it is mindful of the macro
biopharma climate. The continued commercial momentum of IXICO will be achieved
not only by growing the scale of the Group's activities in the clinical trial
space as an iCRO, but by making further progress in leveraging IXICO's
technology platform to diversify revenues.
This approach not only complements the way IXICO has developed its
differentiated technology as a key driver for growth but is perfectly aligned
with the appetite from the biopharma industry for AI-led technology innovation
and a focus on biomarker measurement developments to deliver on the promise of
increasing precision within medicinal assessment.
Mark Warne
Non-Executive Chair
Chief Executive's statement
Progress Summary for 2025
2025 has been an important year, returning to revenue growth and expanding the
Group's unique position in the market. We celebrated our 20 years' anniversary
and delivered an oversubscribed capital raise enabling the Group to invest in
novel ways to innovate and access future revenue streams. As outlined below,
the Innovate Lead Scale strategy is starting to deliver commercial momentum,
revenue diversification and broader Platform capability.
Being the only global imaging CRO (iCRO) focussed exclusively on neurology,
IXICO holds a privileged and respected position as an AI-driven biomarker
analytics Group helping the biopharma industry understand and make the right
development decisions around the diagnosis and treatment of neurological
disease. The Group's mission remains clear: to advance medicine through
precision biomarker insights that accelerate the development, and delivery of
novel treatments for patients worldwide. This past year, which were also the
first twelve months for me at the helm of the company, has shown that IXICO is
more than ever at the right place at the right time with our proprietary
IXI(TM) platform allowing our clients to leverage precision medicine to
improve clinical trial outcomes for patients.
Neuroimaging is a key component in neurological clinical trials. Analyses
derived from radiology such as MRI and PET scans are the most effective
way to identify signals of efficacy and safety, especially early-on and to
enable biopharma companies to advance or fail fast through development
phases. The global neuroimaging market size was calculated to be USD 37
billion in 2023 and projected to surpass USD 56 billion by 2030 (6%
CAGR).(( 3 (#_ftn3) )) ( )As part of that total market, the global clinical
trial imaging market is estimated at USD 1.23 billion in 2024 and project to
reach USD 1.91 billion by 2030 (7% CAGR).(( 4 (#_ftn4) )) On approval of
therapies, there is a further need for precision biomarker analysis to bring
new treatments to market and continue to monitor the effectiveness and safety
of new medicines through 'post-marketing surveillance'.
In combination with deep human expertise, the IXI Platform (IXI™), a
proprietary neuro-imaging technology, enables IXICO to offer end-to-end
clinical trial services tools to address the growing market opportunity, from
clinical design, site set up and trial management to radiological imaging data
analysis and post regulatory approval drug assessment.
In October 2024, we set out and communicated the 'Innovate Lead Scale'
strategy which is designed to further advance the capability of the IXI™
Platform and expand its use in key therapeutic areas of high unmet need, in
particular Alzheimer's Disease (AD) and Parkinson's Disease (PD). In doing
so it has been our intention to increase IXICO's presence in markets
estimated at least three times the size of the Huntington's Disease (HD) and
other rare neurological disease market segments where IXICO remains the
dominant player.
The strategy also aimed to amplify the Group's profile, strengthen scientific
leadership activities, including via Key Opinion Leader (KOL) relationships,
that are critical to our credibility, and increase the geographic and
commercial scale of our operations By executing this strategy, the intention
is to extend market penetration and immediately restore topline revenue
growth, while in the medium term returning IXICO to profitability.
I am pleased to report tangible outcomes that show the strategy is working,
generating opportunities for growth, revenue diversification and market
differentiation. Relative to the same period last year revenue have increased
by 13% to £6.5m (2024: 5.8m), gross margin has increased to 48.7% (2024:
47.0%) and EBITDA losses have reduced to £1.3 million (2024: £1.7 million).
The positive commercial momentum is the result of four key drivers:
· New contracts with both new and existing clients across
therapeutic areas, clinical phases and geographies
· Scope extensions on existing contracts with existing clients.
· Expansion into new industry verticals such as the validation of
clinical diagnostics.
· Continual scientific innovation that facilitates a novel highly
advanced AI-driven product offering.
At the same time the Group has progressed global operational delivery
excellence and continued to deploy the next generation of IXI™, equipped
with the latest technology and algorithms to help address evolutions in
neurological R&D. The Group is almost 90 people strong, and every member
of the team knows exactly why they are here and how they want to contribute to
our mission to impact health.
The ambition is to grow long term revenues towards £20 million+ with a target
of reaching £10 million revenues in the medium term. Future revenues will
be supported by a continued expansion into the AD and PD serviceable markets,
improved pipeline to order book conversion achieved by differentiated and
novel analysis offerings, and expansion of the AI-driven platform into new
revenue streams targeting the larger market opportunities beyond the current
iCRO contract model.
Outlook for 2026
I have gained further confidence and witnessed firsthand how our offering as a
leading neuro-imaging platform makes us a preferred partner to both the
biopharma and diagnostics industries, which constitutes a solid foundation for
future application areas and revenue opportunities. By integrating advanced
AI-driven analytics, scientific excellence, and service quality, we are
building a next-generation platform for sustained growth and long-term value
creation beyond the current iCRO platform.
Having delivered revenue growth, general confidence within the Group is high
that we will continue to deliver on our path towards profitability and execute
the next phase of our transformation strategy as a global partner in precision
medicine to better treat neurodegenerative disease. That strategy will seek
further double-digit revenue growth and drive diversification across a mix of
platform modalities, clinical programs, disease areas, geographies, and
customer types, while continuing to differentiate via innovative scientific
products and scale technology into new complementary neuroscience market
verticals.
In 2026 the market should expect IXICO to consolidate the investments of the
past year which will have a full twelve-month impact on topline results, all
whilst selectively strengthening the team and increasing our footprint to
support further growth. I am very optimistic about the future of neurological
disease treatment for patients and the biopharma industry's progress towards
bringing new treatments to market.
We are operating on fertile ground, and it is rewarding for our people to have
the role that we are proud to play alongside our life science customers and
partners. Each "IXICAN" knows exactly why they have joined our Group, and it
is a great honour to work with such a team of experts driven by the wish to
excel, rooted in strong values and the desire to advance healthcare.
Bram Goorden
Chief Executive Officer
Business update
Commercial Review
During the period, IXICO announced a number of contract wins for global
imaging trial management and analysis and, in a new area for the Group, a
contract supporting the FDA-approval of a diagnostic blood-based biomarker.
In the clinical trial space, highlights included the separate announcements of
a Phase I and Phase II clinical trial in HD, a Phase I AD clinical trial and a
Phase Ib Friedrich's Ataxia trial. IXICO also announced it won a contract
supporting the approval of Fujirebio's 510(k) FDA clearance for a new
blood-based test that will help advance AD diagnosis and drug development,
marking an expansion in IXICO's capabilities beyond therapeutic clinical
trial assessment.
In July IXICO were particularly proud to announce the deepening of its
existing collaboration with the Global Alzheimer's Platform Foundation® (GAP)
through an agreement securing full data usage rights in GAP's landmark
Bio-Hermes-002 study, one of the most prominent global studies in AD research.
The agreement enables IXICO to accelerate its market differentiating vascular
biomarker analysis R&D program in AD and adjacent neurodegenerative
diseases; extend its product offering to support blood-based biomarker market
approval and use in AD; and deepen critical relationships with leading
biopharmaceutical companies in the AD space.
Further announcements made in the period included verification of the
superiority of IXICO's analysis technology in the development and validation
of imaging biomarkers for HD in conjunction with the Huntington's Disease
Imaging Harmonisation ("HD-IH") consortium. Also announced was a commercial
agreement with PETNET Solutions Inc, a Siemens Healthineers company to supply
diagnostic imaging agents to IXICO adding additional capability
to IXICO's Tracer Management service offering which provides customers with
use guidance, logistics and seamless integration of PET tracers into
neurological clinical trials.
This commercial activity has resulted in IXICO making progress towards a key
element of its strategy - to diversify revenue streams across therapeutic
areas. As at 30 September 2025, the Group's order book was 48% linked to HD,
23% linked to AD, 4% linked to PD and 25% linked to other rare neurological
conditions.
Resourcing for growth
IXICO has made resource additions strengthening commercial operations to
accelerate contract wins, expand global footprint and utilise the Group's
technology advantage. Hiring in the period has broadened expertise in the UK
and US-based teams, specifically within commercial, science, operations and
technology. Senior management has been expanded adding two new members to the
C-Suite in Mark Austin as Chief Technology Officer and James Chandler as Chief
Business Officer.
Science & Technology Review
One of IXICO's core strengths is its proprietary AI-powered platform IXI™,
designed specifically for neurological disease. IXI™ comprises a suite of
technologies and tool's purpose built to enable effective clinical trial
management and critical insights into the brain's structure, function, and
biochemical characteristics to assess the efficacy and safety of new drugs to
inform drug development decisions.
The IXI™ Platform is scalable, flexible, and fully compliant with global
regulatory frameworks, giving clients the confidence and ability to pursue
even the most complex clinical trial protocols. With its unparalleled
scalability, and compliance, the Platform empowers the delivery of reliable
imaging data for the most complex global trials.
IXI™ operates across the entire clinical trial workflow to deliver an
advanced set of disease specific clinical endpoints, from relevant PET / SPECT
tracers (e.g. amyloid, tau, FDG, TSPO, DAT) and MRI sequences (e.g.
structural, DTI, fMRI, MRS, ASL, QSM and neuromelanin), while minimising
variability and maintaining reproducibility. The approach enables research
scientists, using AI, to perform human-expert-equivalent analysis at a faster
pace with higher levels of consistency and replicability to support critical
R&D decision-making, including insights into patient eligibility, drug
safety, drug effect and efficacy.
The constituents of the platform are:
· An easily accessible modern web interface providing end-to-end
image data management, security, reading, analysis, and interpretation.
· A flexible and highly scalable cloud-based workflow engine
enabling integration of our complex image analysis workflows and integration
with other systems.
· Highly differentiated AI algorithms measuring existing and
previously inaccessible biomarkers at scale, with high precision
· AI-led accurate assessment of brain pathologies and
disease-specific symptoms, identifying over 150 brain structures and
quantifying changes in both whole-brain and regional volumes over the time
course of a clinical trial.
· Regional, AI-driven analysis of advanced MRI measures for
structure, function, perfusion, biochemistry, and tissue composition, as well
as molecular imaging markers.
For the management of clinical trials, the advantages of using the IXI™ are
that it facilitates precision insights by reducing image variability of brain
scan uploads compared to traditional radiology methods by automatically
checking scan quality and pseudonymising the scan. The advantage for analysis
is that IXI™ can validate measures of brain function and biochemical
characteristics across the identified brain regions. As many neurological
conditions involve the change in volume of specific brain regions or changes
in function or biochemical characteristics, this provides the trial sponsor
with information on the impact the proposed drug is having on disease
progression.
i) Technology Innovation and Roadmap
Traditionally, IXI™ has been used exclusively to aid the management and
imaging data analysis within clinical trials. Imaging remains the gold
standard to determine the neurological condition impacting an individual and
whether a neurological treatment is having the anticipated effect. While
imaging will continue to be the core function of the technology supporting
revenue growth via iCRO activities, IXICO is seeking ways to expand the
Platform's inherent scalability and aptitudes to open new revenue
opportunities.
IXICO defines this expansion of the Platform's capabilities as 'multimodal',
meaning different use cases and markets strictly within neurological disease
where IXI™ can be applied. Examples of this multimodal approach include the
validation of diagnostic blood tests, combinatorial blood-based biomarker and
imaging data analytics approaches for clinical trials, and, through
partnership models, supporting clinical decision making via the provision of
clinical insights and aiding patients suitability assessments and patient
stratification for clinical trials.
In the rapidly growing CNS precision medicine market, IXICO has made progress
using IXI™ to help biopharma companies validate new blood tests used for the
early detection, diagnosis, and monitoring of neurological disorders. It is
a great example of how the platform has been built to develop alongside the
rapid advances in neurological research.
Finally, important progress is being made in adding novel AI-driven features
to the platform, enabling automation, accuracy, and speed in biomarker
analytics. These developments open up new avenues toward partnerships with big
CROs and data companies who are seeking to access state-of-the-art technology
to serve their life sciences and clinical customer groups.
ii) Scientific Innovation and Roadmap
Another strength of IXICO is the depth of its scientific expertise. Our teams,
trained at leading global research institutions, are industry thought leaders
in their field pioneering the next generation of biomarkers that ensue IXICO
remains at the forefront of neuroscience research. The Group continues to
develop and refine new methods to assess how developmental drugs act on brain
function. During the period IXICO has made progress building a pipeline of
innovative new products to maximise its offering in AD and PD.
IXICO is rolling out a differentiated portfolio of vascular pathology
quantification products that identify and measure vascular abnormalities, a
common contributing factor in AD and other neurodegenerative diseases. The
first in a planned series of vascular biomarker algorithms developed during
the period measures white matter hyperintensities, a key marker of vascular
pathology that is traditionally assessed through radiology visual read.
The developed markers of vascular pathology enable the measurement of
down-stream damage linked to neuroinflammatory processes when it becomes
visible on conventional MRI. Separately, IXICO is developing tools for
AI-driven analysis of advanced diffusion MRI to measure microstructural
changes early in the disease process and help understand inflammatory
processes in their earliest stages.
In the emerging area of neuromelanin analysis, a dark pigment found in
specific brain regions associated with PD, IXICO has progressed its
neuromelanin imaging solution towards commercialisation. This is a major
achievement which enables IXICO to support exciting programs in the
neuro-psychiatry area. The Group expects important commercial wins to follow
these analysis investments that further strengthen its position at the
forefront of the MRI field.
Across AD and PD, IXICO has initiated partnerships with key scientific
consortia like the Global Alzheimer's Platform (GAP) that provide access to
unique datasets as well as a platform for further validation and positioning
of the developed biomarker analytics. The Group has added world-renowned
experts in both therapeutic indications to its scientific consultants,
supporting engagement with pharma sponsors in these key markets.
Such innovation will not only translate into new commercial opportunities but
also, importantly, showcase IXICO's neuroscience expertise with key decision
makers in the biopharma neurological disease community.
Operational Review
During 2025, IXICO supported 23 clients (2024: 25 clients) across 37 projects
(2024: 36 projects) within AD, PD, HD and other rare neurological indication
clinical trials. In this same period, and in relation to the projects
supported during the year, the Group delivered 31 contract extension or
protocol changes (2024: 26) totalling £2.7 million with an average
incremental contract value of £0.09 million (2024: £0.7 million with an
average incremental contract value of £0.03 million).
IXICO's operational capabilities have evolved within a culture focussed on
striving for the highest standards of service quality and client
satisfaction. The operational team is subdivided into functions of high
expertise, led by experienced individuals who have been working in, or close
to, the neurological imaging sector throughout their careers. The
consequence is that IXICO has a team who can stand alone as being entirely
focussed on optimising imaging analysis service delivery to neurodegenerative
disease clinical trials.
Neurodegenerative disease trials are difficult to compare to trials in other
disease areas. The complexity and inaccessibility of brain regions places a
high reliance on data derived from specialised capabilities, including imaging
and cognition. These trials are often bespoke and require complex scan
protocols supported by indication specific radiological requirements and
analysis capabilities.
The specialist skills required to design and support neurodegenerative trials
are not always available within biopharma companies, this is particularly the
case for biotechs. Our operational and scientific teams combine neurological
imaging backgrounds and operational experience of these hard-to-deliver trials
and therefore offer clients a level of value that cannot be easily replicated
by more generalist CROs. This is underlined by several partnership
agreements that the Group holds with large CROs to enable efficient
subcontracting of expert Imaging services by these CROs to the Group on behalf
of their biopharmaceutical clients.
It is for this reason IXICO stands shoulder to shoulder in terms of
operational reputation with its larger competitors. Boasting a client base
that includes constituents of the largest pharmaceutical companies in the
world, IXICO is seen as a highly credible and trusted partner for the delivery
of complex neuroimaging trials. Across 2025, 14% of IXICO's projects were
run for large pharma, 14% for mid pharma, 59% for small pharma/biotech and 13%
for non-commercial organisations.
During 2025, IXICO expanded its operational footprint in North America
ensuring that it can provide imaging site support on the ground in this key
section of the market. In addition, it broadened its site support offering
to ensure fifteen hours per day of calls coverage, implemented a new telephone
system to better manage 24/7 calls and developed its site support system to
further improve this element of its offering. Whilst IXICO has been
delivering global trials for many years, these investments provide clients,
and prospective clients, with greater visibility of the Group's strong global
trial credentials.
Neuroscience Market Review
IXICO is a proven, trusted, and well-respected company with a 20-year track
record operating in the active and attractive neuroscience imaging market as
an iCRO. The Group combines the use of its proprietary AI driven IXI™
precision medicine imaging platform and its human expertise to enable the
biopharma industry to deliver breakthrough insights and new innovative
treatments that are in high demand.
The Group's core expertise lies in:
· Clinical Trial Management: The seamless management and execution
of complex neurological clinical trials across all phases
· Medical Imaging Data Management: Turning data into clinically
meaningful insights, providing secure interpretable information about the
brain's structure, function, and biochemical characteristics
· Post Market Surveillance: Longitudinal studies monitoring
patient safety and optimal drug use
· Diagnostics validation: The analysis of imaging to validate new
diagnostic methods such as blood-based biomarkers.
In line with its Innovate Lead Scale strategy IXICO continues to broaden and
diversify its customer base, expanding the number of opportunities to
collaborate with clients on higher value later stage trials, while reducing
the risk associated with any single client or project.
As the significant demand for better neurological disease treatments grows,
driven by a historic unmet need and the increasing prevalence of neurological
disorders, the biopharma industry is accelerating its drug discovery and
development activity in this space. The last 12 months have seen positive
momentum and progress in the treatment and understanding of HD, AD and PD.
GlobalData recently reported(( 5 (#_ftn5) )) a positive trend on new clinical
trials start-ups during the first half the year with an expected further surge
in the second half of 2025. Importantly, the report highlighted that sponsors
are looking for clinical partners who deliver deeper expertise in rare
diseases, biomarkers, and digital technologies, for example the ability to
combine advanced imaging, complex study design and global and multi-site
trials with consistent data quality.
For IXICO, this aligns with the industry expectation that specialist
providers in CNS imaging, rare diseases, and specialist biomarkers will be
increasingly critical in clinical development. That same report mentioned CNS
remains on a clear upward trend, with increasing volumes
in neurodegenerative, psychiatric, and rare neurological disorders.
As a company we were able to witness this trend with our current clients, for
example in Huntington's Disease where uniQure announced spectacular Phase II
data allowing the market to start thinking of a first approved therapy to
market. Additionally, IXICO participated in important Alzheimer's Disease and
Parkinson's Disease programs such as the landmark Bio-Hermes-002 study (which
is focussed on AD), fueled by the earlier described need from biopharma to
identify novel ways to increase clinical trial success.
Neurological disease is experiencing a sustained renaissance with the
potential to achieve more progress in neurological research over the next five
years than the previous fifty. This is where IXICO is very well positioned to
help bring precision medicine to trials and help design them for maximum
success
Alongside the significant morbidity and mortality effects on patients,
neurological conditions are placing an increasing pressure on many economies.
The Alzheimer's Association estimates that health and long term care costs for
people with dementia are projected to reach $384 billion in 2025.(( 6
(#_ftn6) )) , while the Parkinson's Foundation estimates the direct and
indirect costs of Parkinson's disease to increase to $61 billion by 2025.(( 7
(#_ftn7) )) As such, there is a growing need for better treatments for
such conditions, and IXICO believes the biopharmaceutical industry is
positively reacting to this trend and demonstrating significant scientific
progress in.
For example, in HD, PTC Therapeutics (now part of Novartis) met the primary
endpoint for Votoplam in the Phase 2 PIVOT-HD study(( 8 (#_ftn8) )) which is
now expected to move quickly towards late-stage development. Additionally,
uniQure's gene therapy AMT-130 reported progress(( 9 (#_ftn9) )) that could
enable an accelerated approval FDA filing and Roche continued its Phase II
trial of Tominersen after positive safety data.
AD trials also advanced with Eli Lilly's anti-amyloid Remternetug entering
Phase 3(( 10 (#_ftn10) )); Roche/Chugai's brain shuttle antibody
Trontinemab demonstrating rapid amyloid clearance(( 11 (#_ftn11) )) in Phase
1b/2a trails; and Eisai/Biogen's Lecenemab receiving FDA approval(( 12
(#_ftn12) )) for an autoinjector in the US (August 2025) and presentation of
new data at AAIC 2025 showing sustained benefits with continuous treatment for
early-stage Alzheimer's.
PD saw notable movement into late-stage testing with BlueRock Therapeutics, a
Bayer subsidiary, advancing stem-cell therapy Bemdaneprocel to Phase 3(( 13
(#_ftn13) )). While AskBio/Bayer published positive Phase 1b results for gene
therapy AB-1005(( 14 (#_ftn14) )) demonstrating the approach was safe, well
tolerated and showed signs of motor improvement in participants with mild to
moderate PD.
An exciting new development in neurological disease has been the emergence of
increasingly sensitive blood tests to diagnose AD, PD and related
neurodegenerative disorders. A major milestone in the progress of these
blood-based biomarkers was the FDA clearance of Fujirebio's test that detects
amyloid plaque, a development that IXICO played a key role in validating.
The broader market opportunity for neurological diagnostic blood tests, to be
used by doctors in healthcare settings and in clinical trials is set to grow
strongly. Neuroimaging will continue to play a key role in validating these
tests and IXICO has seen high interest from biopharma companies since the news
was announced of the Group's involvement in the approval of the Fujirebio
test.
As the demand for imaging biomarkers, advancements in imaging technology,
personalised medicine, and precision imaging in neurological disorders rises,
IXICO is well positioned to capitalise upon these market dynamics and expects
to benefit from the positive trends we see in the broad CNS precision medicine
market and particularly in the AD and PD clinical trial markets.
IXICO has been successfully operating in this market for a long time, which
has allowed it to develop deep relationships within the neurological
ecosystem. The Group continues to work with the world's top pharmaceutical
companies as well as smaller biopharma players and biotechs and therapy area
consortia operating at the forefront of drug discovery and development.
Financial review
Delivering on the Group's financial goals.
In late 2024, IXICO raised just over £4.0 million (£3.7 million net of fees)
to deliver the next phase of the Group's strategy. This strategy is focussed
on leveraging the significant latent value the Group has developed within its
science and technology platform following a substantial investment in this
technology over the past few years. The ambition of the strategy is to return
the Group to revenue growth and over the medium term, deliver improved
margins, profitability and cash generation.
During 2025, IXICO made strong early progress in the implementation of this
strategy, investing carefully in a small number of additional roles. We
believe this investment will enable IXICO to expand its voice in the market,
meaningfully differentiate the analytics offering, particularly in the
therapeutic areas of AD and PD, and increase the Group's geographic reach and
credentials as a global iCRO capable of delivering large late phase trials.
As at the end of the financial year, all the identified roles have been
recruited, meaning the full benefit of these investments will be realised as
we move into 2026.
Whilst the new investments were not expected to materially impact on 2025
financial performance, the Group has been able to deliver a return to revenue
growth, generating more than the 10% target set at the time of the capital
raise, despite a continued conservative macro-economic and biopharma market
backdrop.
This review includes a comparison of the financial KPIs used to compare
performance to the prior year, a summary of which is shown below:
KPI 2025 result 2024 result Movement
Revenue £6.5m £5.8m ↑
Gross profit £3.2m £2.7m ↑
Gross margin 48.7% 47.0% ↑
EBITDA loss (£1.3m) (£1.7m) ↑
Operating loss* (£2.6m) (£2.2m) ↓
Loss per share (1.85p) (4.14p) ↑
Order book £13.8m £15.3m ↓
Net assets £11.7m £9.5m ↑
Cash £3.5m £1.8m ↑
Non-current asset investments £1.1m £0.5m ↑
*Operating loss has been impacted in the year by a change in accounting for
the R&D tax credit scheme. See the Operating loss section which explains
this and shows that, on a like for like accounting basis, the Operating loss
reduces in the year.
Revenue
Revenue for the year of £6.5 million (2024: £5.8 million) represents a
year-on-year increase of 13%. This increase reflects solid contract bookings
towards the end of 2024 and since the Group announced its interims earlier
this year. This was combined with a successful diversification of revenues
into the validation of blood-based biomarkers (BBBs) which convert new
contract bookings into revenues on a shorter timeframe than is usual within
the Group's clinical trial support services.
When looking forwards to 2026, based on the strengthening of both the Group's
operational and commercial reach and the enhancement of its scientific voice
in the market during 2025, we anticipate a material uptick in new contract
wins as we go into our 2026 financial year supported by a stronger pipeline of
opportunities than we had at the equivalent time last year.
This groundwork, together with recovering levels of investment by biopharma
into clinical trial start-ups, provides confidence for further growth in 2026.
Gross profit
The Group reports gross profit of £3.2 million for the year (2024: £2.7
million). This equates to a gross margin of 48.7% (2024: 47.0%). This is a
strong gross margin, with the improvement reflecting the increase in revenues
and the relatively fixed cost base of the Group, partially offset by a
specific investment into operational capabilities on the ground in the US,
designed to strengthen the Group's credentials as a truly global provider of
clinical trial services.
Gross profit is driven by both the revenue volume itself as well as the mix of
revenues being delivered. Across 2025, approximately 55% of the Group's
revenues have been from phase I and phase II clinical trials (2024: 60%),
which tend to be lower margin than later phase trials. Positively, this
portfolio provides a strong base for future revenue growth, as those trials
which successfully move from early to late phase provide the Group with the
opportunity to continue providing services as these trials transition to
larger, later phase, more profitable trials.
As the Group moves into 2026, and an increasing number of projects are
deployed on our next generation technology platform, there will be an increase
in amortisation associated with the capital value of this platform (reflecting
the investments of prior periods, and the associated realisation of the
returns on these investments). The downward pressure this puts on gross
margin will be offset by the operational leveraging impact of revenue
growth. Consequently, we remain confident that with revenue growth, so gross
profit margins will continue to reflect the technology-enabled platform
approach IXICO has invested in, further differentiating these margins from
those of a classical CRO.
Earnings before interest, tax, depreciation, and amortisation ('EBITDA')
The Group delivered an EBITDA loss of £1.3 million in the year (2024: £1.7
million). This reflects the increase in revenues and gross profit, partially
offset by investments made following the capital raise with the purpose of
achieving long-term revenue growth and sustainable profitability. This is
aligned with the expectations set by the Group when raising capital and the
impact of investing ahead of the benefit of these investments becoming visible
via an increase in contracting levels and, by extension, sustained revenue
growth.
Looking forward to 2026, we will see the full-year impact of those investments
made during 2025 within the operating costs of the Group. The benefit of
these investments being an expected continued delivery of double-digit revenue
growth and strengthening gross margins.
During 2025, the UK Government issued a revised R&D tax credit scheme,
this has resulted in the R&D tax credit claim for 2025 being reported
after operating profit in the Income Statement (within the taxation line),
rather than in Other Income (which is where it was reported in the prior
year). We have elected to retain this credit within our reported EBITDA to
support both comparison between years and reflect that this is a recurring
element of the Group's income directly associated with its commercial
activities.
2025 2024
£000 £000
Profit attributable to equity holders (1,651) (2,001)
Depreciation of fixed assets 197 239
Amortisation of fixed assets 214 236
Interest on lease liabilities 19 21
Other interest payable - 3
Interest on cash held at bank (121) (85)
Taxation (excluding R&D tax credit) (4) (93)
EBITDA (1,346) (1,680)
Operating loss
Operating expenditure in the year reflected targeted investments following the
capital raise, alongside careful costs management, specifically:
· research and development expenses of £1.3 million (2024: £1.3
million) included the development of new algorithms to support image analysis
in new and existing therapeutic indications. In addition, the Group
capitalised £0.4 million of internal development expenditure primarily in
respect of its technology platform (2024: £0.3 million);
· sales and marketing expenses of £1.7 million (2024: £1.4
million) reflecting the investment in sales executives, marketing,
consultancy/key opinion leader engagement and conference attendance; and
· general and administrative expenses of £2.8 million (2024: £2.9
million) reflecting continued efforts to manage the Group's overhead costs
(including those associated with the Group's AIM listing).
Operating losses totalled £2.6 million (2024: £2.2 million) equating to an
operating loss margin of 39% (2024: 37%). Operating losses have increased
during the year, primarily due to the recategorisation of the Group's R&D
tax credit from Other Income to Taxation. This adjustment is driven by a
change in the UK R&D tax scheme during the year and the requirements as to
how this R&D tax credit is accounted. The following table shows the impact
on the 2025 Operating loss if this R&D tax credit had been accounted for
within Other Income, as it was in the prior year, and shows that, on a like
for like basis, Operating loss has decreased by £0.3 million.
2025 2024
£000 £000
Operating loss as reported in the Group's Income statement (2,554) (2,154)
R&D taxation credit reported within taxation 794 93
Operating loss on a like for like basis (1,760) (2,061)
Loss per share
The Group reports a loss per share of 1.85p (2024: 4.14p).
Order book
On 30 September 2025, the Group's orderbook totalled £13.8 million (2024:
£15.3 million), which takes account of £6.5 million of revenues delivered
during the financial year, £6.2 million of new and expanded multi-year
contracts secured during the year and £1.2 million of trial descopes due to
client trial failures or protocol changes and minor foreign exchange movement
in the year.
While the orderbook decrease is 9% across the year, the Group saw a marked
increase in new contract wins in the second half of the year, resulting in a
5% increase in the orderbook between 31 March 2025 and 30 September 2025.
Across the year, new contracts were won with 7 clients (2024: 11 clients) and
contract extensions with 12 clients (2024: 15 clients).
The improvement in new contract wins achieved in the second half of the
financial year continued and accelerated materially after the year end, with
contracts announced between 30 September 2025 and 30 November 2025 totalling
£4.7 million. This, alongside some smaller contract extension successes,
meant that at 30 November 2025, the Group had an orderbook total of £17.7
million which is an increase of 27% since 30 September 2025 and 16% since 30
September 2024.
Looking forward, the Group aims to report accelerated growth in orderbook on
an annual basis such that a sustainable level of at least 10% revenue growth
is achieved year on year.
2025 2024
£000 £000
Opening orderbook 15,260 14,753
New wins 6,193 8,947
Revenue (6,534) (5,766)
Net descoping, inflation and FX (1,086) (2,674)
Closing orderbook 13,833 15,260
Net assets
The Group's net asset position increased by £2.2 million to £11.7 million
across the year (2024: £9.5 million). This reflects the additional capital
raised and investment in data and technology assets designed to underpin
long-term future growth, partially offset by the losses reported.
Cash
The Group reported a cash balance on 30 September 2025 of £3.5 million (2024:
£1.8 million). The increase in cash reflects the capital raise in October
2024 of £3.7 million (net), offset by operating cash outflows after tax
receipts of £1.0 million in the year (2024: £1.7 million), £0.9 million
(2024: £0.4 million) of capitalised investment in data and technology assets
designed to support future market penetration and offerings and £0.2 million
(2024: £0.1 million) of lease payments on the Group offices.
Non-current asset investments
The Group capitalised £1.1 million of non-current assets in the year to 30
September 2025 (2024: £0.5 million). This increase in non-current assets
investment reflects a £0.8 million data acquisition (of which £0.3 million
is treated as a current asset) completed during the year directly aimed at
providing highly-contextualised data to support the development of new
vasculature analysis capabilities (further detailed within the Business Review
and note 15), as well as continued investment in the Group's technology
platform, both targeting further market penetration and expansion.
The technology platform, equipped with the Group's leading analysis
algorithms, positions the Group to further enhance its services into clinical
trials as well as adjacent markets such as post-market and clinical safety
assessments in a robust, secure and regulatory-compliant centralised manner.
Grant Nash
Chief Financial Officer
Consolidated Statement of Comprehensive Income
for the years ended 30 September 2025 and for 30 September 2024
30-Sep-25 30-Sep-24
Notes £000 £000
Revenue 5 6,534 5,766
Cost of sales (3,351) (3,055)
Gross profit 3,183 2,711
Other income 7 15 781
Operating expenses
Research and development expenses (1,328) (1,337)
Sales and marketing expenses (1,665) (1,396)
General and administrative expenses (2,759) (2,913)
Total operating expenses 10 (5,752) (5,646)
Operating loss (2,554) (2,154)
Finance income 121 85
Finance expense (16) (25)
Loss on ordinary activities before taxation 10 (2,449) (2,094)
Taxation 11 798 93
Loss attributable to equity holders for the period (1,651) (2,001)
Other comprehensive income/(expense):
Items that will be reclassified subsequently to profit or loss
Foreign exchange translation differences - (2)
Movement in fair value of cash flow hedges 22 28 32
Cash flow hedges recycled to revenue 22 (28) (5)
Total other comprehensive income - 25
Total comprehensive expense attributable
to equity holders for the period (1,651) (1,976)
Loss per share (pence)
Basic loss per share 12 (1.85) (4.14)
Diluted loss per share 12 (1.85) (4.14)
Consolidated Statement of Financial Position
as at 30 September 2025 and 30 September 2024
30-Sep-25 30-Sep-24
Notes £000 £000
Assets
Non-current assets
Property, plant and equipment 13 167 313
Intangible assets 14 7,183 6,374
Trade and other receivables 16 255 9
Total non-current assets 7,605 6,696
Current assets
Trade and other receivables 16 1,896 2,213
Current tax receivables 11 801 492
Cash and cash equivalents 3,537 1,787
Total current assets 6,234 4,492
Total assets 13,839 11,188
Liabilities and equity
Non-current liabilities
Trade and other payables 17 15 -
Lease liabilities 18 30 150
Total non-current liabilities 45 150
Current liabilities
Trade and other payables 17 1,908 1,410
Lease liabilities 18 149 164
Total current liabilities 2,057 1,574
Total liabilities 2,102 1,724
Equity
Ordinary shares 20 927 484
Share premium 20 88,056 84,802
Merger relief reserve 20 1,480 1,480
Reverse acquisition reserve 20 (75,308) (75,308)
Cash flow hedge reserve 20,22 - -
Foreign exchange translation reserve 20 (97) (97)
Capital redemption reserve 20 7,456 7,456
Accumulated losses 20 (10,777) (9,353)
Total equity 11,737 9,464
Total liabilities and equity 13,839 11,188
Company Statement of Financial Position
as at 30 September 2025 and 30 September 2024
30-Sep-25 30-Sep-24
Notes £000 £000
Assets
Non-current assets
Investments in Group undertakings 15 6,092 5,865
Trade and other receivables 16 3,252 2,224
Total non-current assets 9,344 8,089
Current assets
Trade and other receivables 16 58 39
Cash and cash equivalents 2,484 681
Total current assets 2,542 720
Total assets 11,886 8,809
Liabilities and equity
Current liabilities
Trade and other payables 17 66 45
Total current liabilities 66 45
Equity
Ordinary shares 20 927 484
Share premium 20 88,056 84,802
Merger relief reserve 20 1,480 1,480
Capital redemption reserve 20 7,456 7,456
Accumulated losses 20 (86,099) (85,458)
Total equity 11,820 8,764
Total liabilities and equity 11,886 8,809
Parent Company Income Statement
As permitted by Section 408 of the Companies Act 2006, the income statement of
the Company is not presented as part of these financial statements. The
Company's loss for the financial year was £868,000 (2024: £991,000).
Consolidated Statement of Changes in Equity
for the years ended 30 September 2025 and 30 September 2024
Foreign Cash
Merger Reverse exchange flow Capital
Ordinary Share relief acquisition translation hedge redemption Accumulated
shares premium reserve reserve reserve reserve reserve Losses Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 October 2023 484 84,802 1,480 (75,308) (95) (27) 7,456 (7,360) 11,432
Total comprehensive income
Loss for the year - - - - - - - (2,001) (2,001)
Other comprehensive income/(expense)
Foreign exchange translation - - - - (2) - - - (2)
Movement in fair value of cash flow - - - - - 32 - - 32
Cash flow hedges recycled to revenue - - - - - (5) - - (5)
Total comprehensive income/(expense) - - - - (2) 27 - (2,001) (1,976)
Transactions with owners
Charge in respect of share options - - - - - - - 8 8
Total transactions with owners - - - - - - - 8 8
Balance at 30 September 2024 484 84,802 1,480 (75,308) (97) - 7,456 (9,353) 9,464
Total comprehensive income
Loss for the year - - - - - - - (1,651) (1,651)
Other comprehensive income/(expense)
Foreign exchange translation - - - - - - - - -
Movement in fair value of cash flow - - - - - 28 - - 28
Cash flow hedges recycled to revenue - - - - - (28) - - (28)
Total comprehensive income/(expense) - - - - - - - (1,651) (1,651)
Transactions with owners
Issue of shares 426 3,623 - - - - - - 4,049
Transaction costs incurred on share issue - (369) - - - - - - (369)
Charge in respect of share options - - - - - - - 227 227
Exercise of share options 17 - - - - - - - 17
Total transactions with owners 443 3,254 - - - - - 227 3,924
Balance at 30 September 2025 927 88,056 1,480 (75,308) (97) - 7,456 (10,777) 11,737
Company Statement of Changes in Equity
for the years ended 30 September 2025 and 30 September 2024
Capital
Ordinary Share Merger relief redemption Accumulated
shares premium reserve reserve losses Total
£000 £000 £000 £000 £000 £000
Balance at 1 October 2023 484 84,802 1,480 7,456 (84,475) 9,747
Loss and total comprehensive expense for the year - - - - (991) (991)
Transactions with owners
Charge in respect of share options - - - - 8 8
Exercise of share options - - - - - -
Total transactions with owners - - - - 8 8
Balance at 30 September 2024 484 84,802 1,480 7,456 (85,458) 8,764
Loss and total comprehensive expense for the year - - - - (868) (868)
Transactions with owners
Issue of shares 426 3,623 - - - 4,049
Transaction costs incurred on share issue - (369) - - - (369)
Charge in respect of share options - - - - 227 227
Exercise of share options 17 - - - - 17
Total transactions with owners 443 3,254 - - 227 3,924
Balance at 30 September 2025 927 88,056 1,480 7,456 (86,099) 11,820
Consolidated Statements of Cash Flows
for the years ended 30 September 2025 and 30 September 2024
30-Sep-25 30-Sep-24
£000 £000
Cash flows from operating activities
Loss for the financial year (1,651) (2,001)
Finance income (121) (85)
Finance expense 16 25
Taxation (798) (93)
Depreciation of fixed assets 197 239
Amortisation of intangibles 214 236
Research and development expenditure credit - (405)
Share option charge 227 8
(1,916) (2,076)
Changes in working capital
Decrease/(increase) in trade and other receivables 258 (559)
Increase in trade and other payables 161 351
Cash used in from operations (1,497) (2,284)
Taxation received 490 553
Taxation paid - (1)
Net cash used in operating activities (1,007) (1,732)
Cash flows from investing activities
Purchase of property, plant and equipment (51) (34)
Purchase of intangible assets including staff costs capitalised (819) (437)
Finance income 124 94
Net cash used in from investing activities (746) (377)
Cash flows from financing activities
Issue of shares 3,697 -
Repayment of lease liabilities (194) (134)
Net cash generated from/(used in) from financing activities 3,503 (134)
Movements in cash and cash equivalents in the period 1,750 (2,243)
Cash and cash equivalents at start of year 1,787 4,031
Effect of exchange rate fluctuations on cash held - (1)
Cash and cash equivalents at end of year 3,537 1,787
Notes to the financial statements
1. Presentation of the financial statements
a. General information
IXICO plc (the 'Company') is a public limited company incorporated in England
and Wales and is admitted to trading on the AIM market of the London Stock
Exchange under the symbol IXI. The address of its registered office is 4th
Floor, Griffin Court, 15 Long Lane, London EC1A 9PN.
The Company is the parent of the subsidiaries detailed in note 15, together
referred to throughout as 'the Group'. The Group is an established provider of
technology-enabled services to the global biopharmaceutical industry. The
Group's services are used to select participants for clinical trials and
assess the safety and efficacy of new drugs in development within the field of
neurological disease.
b. Basis of preparation
The consolidated financial statements have been prepared on a going concern
basis and in accordance with international accounting standards in conformity
with the requirement of the Companies Act 2006.
The consolidated financial statements comprise a Statement of Comprehensive
Income, a Statement of Financial Position, a Statement of Changes in Equity, a
Statement of Cash Flows, and accompanying notes. These financial statements
have been prepared under the historical cost convention modified by the
revaluation of certain financial instruments.
The consolidated financial statements are presented in Great British Pounds
('£' or 'GBP') and are rounded to the nearest thousand unless otherwise
stated. This is the predominant functional currency of the Group, and is the
currency of the primary economic environment in which it operates. Foreign
currency transactions are accounted in accordance with the policies set out
below.
The Company has elected to use Financial Reporting Standard - 'The Reduced
Disclosure Framework' (FRS101). In preparing these financial statements the
Company has taken advantage of all disclosure exemptions conferred by FRS 101.
Therefore, these financial statements do not include:
· A statement of cash flows and related notes;
· The requirements of IAS 24 'Related Party Disclosures' to
disclose related party transactions entered in to between two or more members
of the group as they are wholly owned within the group;
· The effect of future accounting standards not adopted;
· Paragraphs 45(b) and 46 to 52 of IFRS 2, 'Share-based payment'
(details of the number and weighted average exercise prices of share options,
and how the fair value of goods or services received was determined);
· Paragraphs 91 to 99 of IFRS 13, 'Fair value measurement'
(disclosure of valuation techniques and inputs used for fair value measurement
of assets and liabilities).
· Disclosures in relation to impairment of assets
· IFRS 7, 'Financial instruments: Disclosures'.
c. Basis of consolidation
The consolidated financial statements incorporate the accounts of the Company
and its subsidiary companies adjusted to eliminate intra-Group balances and
any unrealised gains and losses or income and expenses arising from
intra-Group transactions. The Company's subsidiaries are detailed in note 15.
When necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with the Group's
accounting policies.
The Group controls a subsidiary when the Group is exposed to, or has rights
to, variable returns from its involvement with a subsidiary and has the
ability to affect those returns through its power over a subsidiary. In
assessing control, potential voting rights that are currently exercisable or
convertible are taken into account.
1. Presentation of the financial statements continued
The results of subsidiary companies are included in the consolidated financial
statements from the date that control commences until the date that control
ceases. The assets and liabilities of foreign operations are translated into
GBP at exchange rates prevailing at the end of the reporting period. Income
statements and cash flows of foreign operations are translated into GBP at
average monthly exchange rates which approximate foreign exchange rates at the
date of the transaction. Foreign exchange differences arising on retranslation
are recognised directly in a separate translation reserve.
d. Going concern
The Group completed a £4 million oversubscribed capital raise in October 2024
which was supported by both existing and new institutional investors
confirming strong alignment to the Group's strategy. Over the subsequent
period, the Group has deployed this capital in line with the investments
proposed and as were laid out to investors during the raise process. As the
Group moves into its next financial year, it anticipates that the impact of
these investments will drive increased contract bookings, driven by the
specific investment decisions the Group has taken in the pursuit of its
strategy, complemented by a general improvement in the clinical trials market
arising from increased investment by the biopharmaceutical industry into
neurodegenerative disease drug candidates.
The Group has net assets of £11.7 million, including a £3.5 million cash
balance. During the year the Group secured £6.2 million of new contracts
providing it with good visibility of future revenues across a diversified
portfolio of clients and projects. The group has an orderbook of £13.8
million at the year end and has secured further contracts since the year end
of £5.1 million.
In assessing going concern, management has prepared detailed sensitised
forecasts which consider different scenarios through to December 2026 and
beyond. These include the risk to current projects and expected future sales
pipelines. The Directors have considered these forecasts, alongside the
Group's existing cash balances and as well as the ability for the Group to
mitigate costs and/ or attract additional capital as and when required. After
due consideration of these forecasts, as well as the review completed by the
Audit Committee (including a review of a reverse stress test), the Directors
concluded that the Group has adequate financial resources to continue in
operation for the foreseeable future.
2. New and amended accounting standards and interpretations
a. Adoption of new accounting standards for the year ended 30
September 2025
For the preparation of these financial statements the following new or amended
standards are mandatory for the first time for the financial year beginning 1
October 2024:
Amendments to IFRS16 Leases: Lease Liability in a Sale and Leaseback
(effective 1 January 2024)
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments:
Supplier Finance Arrangements (effective 1 January 2024)
Amendments to IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current, and Non-current Liabilities with
Covenants (effective 1 January 2024)
The adoption of these standards has not had a material impact on the financial
statements.
b. Accounting developments affecting financial statements in
subsequent periods
The following standards and interpretations relevant to the Group are in issue
but are not yet effective and have not been applied in the preparation of the
financial statements:
Amendments to IAS 21: Lack of Exchangeability (effective 1 January 2025)
Amendments to the Classification and Measurement of Financial Instruments
(effective 1 January 2026)
Annual Improvements to IFRS Accounting Standards - Volume 11 (effective 1
January 2026)
Amendments to IFRS 18: Presentation and Disclosure in Financial Statements
(effective 1 January 2027)
Amendments to IFRS 19: Subsidiaries without Public Accountability: Disclosures
(effective 1 January 2027)
b. Accounting developments affecting financial statements in
subsequent periods continued
The directors do not expect adoption of these standards to have a material
impact on the financial statements and will adopt each standard as and when
they become effective. The Amendments to IFRS 18 will have a presentational
impact on the Consolidated Statement of Comprehensive Income, but no impact on
the total comprehensive income.
3. Material accounting policies
3.1 Revenue
Revenue is principally derived from service revenue. Revenue comprises the
transaction price, being the amount of consideration the Group expects to be
entitled to in exchange for transferring promised goods or services to a
customer in the ordinary course of business net of value-added tax, returns,
rebates and discounts and after eliminating sales within the Group.
In determining whether to recognise revenue, the Group follows a 5-step
process:
1. Identifying the contract with a client;
2. Identifying the performance obligations;
3. Determining the transaction price;
4. Allocating the transaction price to the performance obligations; and
5. Recognising revenue when/as performance obligation(s) are satisfied.
All services provided to clients are agreed at the inception of a project
through contracts, wherein the transaction price is determined and agreed for
each performance obligation in the schedule of work. The transaction price
agreed at the outset is not variable or subject to any refunds or warranties,
and this is consistent across all revenue streams. A critical part of the
contract is a detailed schedule of work that provides the list of services to
be provided by the Group. Under the requirements of IFRS 15 - Revenue from
Contracts with Customers, the Group is required to identify individual and
distinct performance obligations within each contract. This represents a
judgement, and the Group has considered whether each individual service
provided meets these requirements in its own right and in the context of the
contract, by assessing in particular the level of interrelationship between
each type of service and the nature of the contract entered in to with
clients.
The Group has identified performance obligations within each of the revenue
streams as set out below. The transaction price associated to each performance
obligation is allocated based on their relative stand-alone selling price.
Revenue is recognised once the performance obligation is met for each distinct
service. Deferred income and advanced payments are recognised where
consideration is received before all performance considerations have been
completed. They are then released in line with contractual terms which dictate
which performance obligations they relate to. In some instances, the Group
invoices in advance of work being completed, a corresponding contract
liability is therefore created to account for this. The Group also invoices on
completion of contractual milestone. In these instances, accrued income is
recognised until the invoices are issued to reflect the Group's right to
compensation for these completed but not invoiced performance obligations.
Revenue types
The Group's contracts comprise a variety of performance obligations. These
obligations are all considered streams of a single revenue type, being service
revenue. Most of the Group's revenue is recognised at a point in time; the
Group recognises this revenue once control is passed to the client, or once
the service has been delivered on behalf of the client.
3.1 Revenue continued
The Group's most significant streams of service revenue are outlined below and
have the respective recognition criteria:
Service type Performance obligations Revenue recognition policy
Project & site set up This service type includes the initial project set up documentation, such as Revenue for this service is recognised at a point in time once the Group has
scientific protocols and operational guides, and close out activities such as delivered the relevant material on behalf of the client.
Training materials and delivery scientific reports. Where a tangible product is created, the performance
obligation is met once the item is transferred to the client.
Scientific reports
For training materials and delivery, revenue is recognised at the point in
time when a site has completed its training.
In respect of training, materials are prepared in advance and provided to
clients as tools for site training. Site training is provided either through
live online training or through a self-paced training module. The performance
obligation is met once each individual site has completed the training.
Project management Each contract requires various project management activities. These services The services provided for project and site management represents a provision
are provided throughout the duration of a contract. Site management services of ongoing services. As the fee is charged monthly to the client over the
Site management are provided throughout the duration of a site being operational and would duration for which management services are provided, revenue for these items
typically be shorter than the project management cycle. For both activities, is recognised over a series of points in time across the contract.
the costs and time spent delivering these services are generally spread evenly
over the project lifetime. As such the performance obligation is met when the
specific service is provided each month.
TrialTracker configuration and access The TrialTracker platform delivers a robust and comprehensive set of The deployment of TrialTracker is recognised over time as the platform is
centralised imaging services designed to efficiently manage the complex configured for the customer. This is because an asset is being created that
imaging workflow, including image upload, quality control, reading and has no alternative use for the Group and there is an enforceable entitlement
analysis. The platform also allows for reporting and data transfer. This to receive payment for the work completed to date.
involves the initial configuration and deployment of TrialTracker, and access
granted to client trial sites for upload of clinical information.
The ongoing access fee is charged monthly to the client and so revenue is
recognised over a series of points in time across the contract.
Due to the lack of interrelationship between the two distinct services
provided, each are recognised independently. The performance obligations for
each are:
· The performance obligation for deployment is met over a period of
time during the configuration and development of TrialTracker.
· The performance obligation for ongoing access to TrialTracker for
the upload of data by client trial sites is recognised over the duration of
the project once TrialTracker is deployed.
Data management and quality control Ensuring data are managed appropriately and that the data are of a high In respect of data quality control, revenue will be recognised at the point in
quality is critical in the delivery of the Group's service. The data time when data is quality checked.
management and imaging teams work in collaboration to ensure ongoing integrity
of data.
The services provided for data management represents a provision of ongoing
services.
The data will go through a series of quality control reviews prior to being
used in the Group's performance of reading and analysis. Therefore, the
performance obligation is met once the data is quality checked.
As the fee is charged monthly to the client over the duration for which data
management is required, revenue for these items is recognised over a series of
points in time across the contract.
Data management is an ongoing service performed throughout the duration of a
project whilst data is being received and managed on a project. The respective
costs and time spent delivering this service is generally spread evenly over
the duration in which data is being managed and as such the performance
obligation is met when the specific service is provided each month.
Data management and quality control (continued)
Data reading and analysis The Group provides data analysis services across a range of biomarkers, Revenue from reading and analysis of clinical data is recognised at the point
providing high-quality, clinically meaningful data. The performance obligation in time when the work is complete.
for these services is met once the analysis is completed.
Licence revenue Revenue relating to licencing is entirely attributable to TrialTracker. Each Revenue for both the licencing and support are recognised on a straight-line
agreement will grant the user rights to access the software for their own use basis over the duration of the contract and is therefore recognised over time.
and receive associated technical support during the licence period. Licence revenue in the current year is not material.
The granting of the licence and its associated support are distinct
performance obligations and are met on a straight-line basis over the contract
term.
Change orders
Throughout the duration of a contract, the client may request additional
services or service changes to be made. For revenue recognition purposes, the
Group treats a change order or contract modification to a client agreement as
a separate contract, if both:
· the scope changes due to the addition, or reduction, of
'distinct' services; and
· the price change reflects the services stand-alone selling prices
('SSP') under the circumstances of the modified contract.
The revenue recognition for the change order is applied in the same way as the
original contract, as detailed above, with the original client agreement
remaining unchanged.
3.2 Other income
Government grants and assistance
A government grant is recognised only when there is reasonable assurance that
the Group will comply with any conditions attached to the grant and the grant
will be received. The grants are recognised as income over the period
necessary to match them with the related costs, for which they are intended to
compensate, on a systematic basis. The Group recognises grant income as an
item of other income.
Research and Development Expenditure Credit ('RDEC')
In the prior year, the Group has elected to take advantage of the RDEC
introduced in the Finance Act 2013. A company may surrender corporation tax
losses on research and development expenditure incurred on or after 1 April
2013 for a corporation tax refund. Relief is given as a taxable credit on 13%
of qualifying research and development expenditure, with the rate increasing
to 20% for expenses incurred from 1 April 2024. The Group recognised research
and development expenditure credit as an item of other income, taking
advantage of the 'above the line' presentation, and was recognised in the year
for which the research and development relates.
3.3 Research and development expenditure
In all instances across the Group, research expenditure is expensed through
the income statement. For development expenditure, items will be expensed
where the recognition criteria for internally generated intangible assets is
not met.
The main criteria used to assess this, as required under IAS 38 - Intangible
Assets, are:
- Demonstrating technical feasibility of completing the intangible
asset;
- Intention to complete the asset;
- Ability to use or sell the asset in order to generate future
economic benefit;
- Availability of adequate technical or other resources to complete
development; and
- Ability to measure reliably the expenditure attributable to the
asset.
It was determined that the Group continued to meet the above criteria in
respect of specific developments to its TrialTracker platform and data
analytics service offering. As a result, associated development costs are
capitalised in the year and an intangible asset is recognised as set out in
note 14.
3.4 Share-based payments
Equity-settled share-based payments are measured at the fair value of the
equity instruments at the grant date. The fair value determined at the grant
date of the equity-settled share-based payment is expensed on a straight-line
basis over the performance period, based on the Group's estimate of equity
instruments that will eventually vest. At each reporting date, the Group
revises its estimate of the number of equity instruments expected to vest as a
result of the effect of any non-market-based performance conditions.
Any changes that impact the original estimates, for example the effect of
employees who have left the Group in the year and have forfeited their
options, is recognised in the Consolidated Statement of Comprehensive Income
such that the cumulative expense reflects the revised estimate, with a
corresponding adjustment to equity reserves.
Details regarding the determination of the fair value of equity-settled
share-based transactions are set out in note 21 of the consolidated financial
statements.
3.5 Employee benefits
All employee benefit costs are recognised in the Consolidated Statement of
Comprehensive Income as they are incurred. These principally relate to holiday
pay and contributions to the Group defined contribution pension plan.
The assets of the Group pension scheme are held separately from those of the
Group in independently administered pension funds. The Group does not offer
any other post-retirement benefits.
3.6 Leased assets
A lease is defined as a contract that gives the Group the right to use an
asset for a period of time in exchange for consideration. The Group identifies
from the contract the total length and cost of the lease contract, and
determines whether it meets the definition of a right-of-use asset.
Recognition of a right-of-use asset is met if it is longer than 12 months and
of a high value. For those leases that do not meet these criteria, the rental
charge payable under these leases are charged to the Consolidated Statement of
Comprehensive Income on a straight-line basis over the lease term.
The initial recognition and subsequent measurement of right-of-use asset
leases are:
Initial recognition
At the commencement date, the Group measures the lease liability at the
present value of future lease payments, discounted using the Group's
incremental borrowing rate. The Group also recognises a right-of-use asset
which is measured at cost, which is made up of the initial measurement of the
lease liability, any initial direct costs and an estimate of any costs to
reinstate the asset to its original condition.
3.6 Leased assets continued
Subsequent measurement
The lease liability is reduced for payments made and increased for interest
accrued, and is remeasured for any modifications made to the lease. The
right-of-use asset is depreciated on a straight-line basis over the expected
lease term. The asset is also assessed for impairment when such indicators
exist.
On the statement of financial position, right-of-use assets are included in
property, plant and equipment and lease liabilities are shown separately.
Please see note 18 for more information.
3.7 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and, where appropriate, less provisions for impairment. The initial
recognition and subsequent measurement of property, plant and equipment are:
Initial recognition
Property, plant and equipment is initially recognised at acquisition cost,
including any costs directly attributable to bringing the assets to the
location and condition necessary for them to be capable of operating. In most
circumstances, the cost will be its purchase cost, together with the cost of
delivery.
Subsequent measurement
An asset will only be depreciated once it is ready for use. Depreciation is
charged so as to write off the cost of property, plant and equipment, less its
estimated residual value, over the expected useful economic lives of the
assets.
Depreciation is charged on a straight-line basis as follows:
- Office buildings over expected lease term
- Leasehold improvements shorter of 5 years or the lease term
- Fixtures and fittings 3 years
- Equipment 3 years
The disposal or retirement of an asset is determined by comparing the sales
proceeds with the carrying amount. Any gains or losses are recognised within
the Consolidated Statement of Comprehensive Income.
3.8 Intangible assets
Acquired intangibles
Intangible assets that are acquired through business combinations are
recognised as intangible assets if they are separable from the acquired
business or arise from contractual or legal rights. These assets will only be
recognised if they are also expected to generate future economic benefits and
their fair value can be reliably measured.
Initial recognition
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is
their fair value at the date of acquisition.
Subsequent measurement
Following capitalisation, the intangible assets are carried at cost less any
accumulated amortisation, and where appropriate, less provisions for
impairment.
Intangible assets are amortised using the straight-line method over their
estimated useful economic life as follows:
- Intangibles acquired through business combinations 5 years
- Computer software 3 years
- Data acquisition 5 years
Amortisation is charged to the Consolidated Statement of Comprehensive Income
and is included within cost of sales for those items directly related to
project activities, or otherwise within general and administrative expenses.
3.8 Intangible assets continued
Internally generated intangible assets
Intangible assets that are capitalised internally are deemed to have met the
recognition criteria set out in IAS 38. These items relate to research and
development costs and are considered in note 3.3.
Initial recognition
Internally generated intangible assets are initially recognised at cost once
the recognition criteria of IAS 38 are met.
Subsequent measurement
Any assets that are not yet ready for use will be capitalised as assets under
construction and will not be amortised. Once the asset is ready for use,
amortisation will begin. The amortisation rates adopted are based on the
expected useful economic life of the projects to which they relate, with the
charges recognised in accordance with how the Group receives the benefit from
the technology. The assets useful economic life is as follows:
- Internally generated technology 3 - 5 years
- Proprietary clinical trial platform 15 years based on revenue generated by the asset
3.9 Impairment of non-current assets
Each category of non-current assets is reviewed for impairment annually when
under construction or when there is an indication that an asset may be
impaired, being when events or changes in circumstances indicate that the
carrying value may not be recoverable. An impairment loss is recognised in the
Consolidated Statement of Comprehensive Income for the amount by which the
asset's carrying value exceeds its recoverable amount.
The recoverable amount is the higher of an asset's fair value less cost to
sell and value in use. Non-financial assets, other than goodwill, which have
suffered an impairment are reviewed for possible reversal of the impairment at
each reporting date.
3.10 Investments in Group undertakings
Investments in Group undertakings are initially recognised at cost and
subsequently measured at cost less any impairment provision. Investments are
subject to an annual impairment review, with any impairment charge being
recognised through the Consolidated Statement of Comprehensive Income.
Additions to investments are amounts relating to share options for the
services performed by employees of the subsidiaries of the Company and are
classified as capital contributions within note 15.
3.11 Trade and other receivables
Trade and other receivables are initially recognised at fair value and
subsequently stated at amortised cost using the effective interest method,
less any expected credit losses. The Group makes use of a simplified approach
in accounting for trade and other receivables as well as contract assets and
records the loss allowance as lifetime expected credit losses. These are the
expected shortfalls in contractual cash flows, considering the potential for
default at any point during the life of the financial instrument. In
calculating, the Group uses its historical experience, external indicators and
forward-looking information to calculate the expected credit losses.
The Group assess impairment of trade receivables on an individual basis as
they possess individual credit risk characteristics based on each client.
Refer to note 16 for further information on aging of trade receivables and an
analysis of any expected credit losses.
The Group recognises commission payments as incremental costs from obtaining a
contract. Those that are paid immediately are capitalised under IFRS 15 and
amortised over 3 years (2024: 3 years), being the average length of contracts
entered into by the Group, as opposed to using a tailored time period for each
project. Management reviews this assessment annually to determine that there
are no material variances. Those not paid immediately are accrued over a
period of time as this element of the commission payment requires the
respective employee to remain in service for a specific period. Commission
assets.
3.12 Taxation
Current tax
Current tax represents amounts recoverable within the United Kingdom and is
provided at amounts expected to be recovered using the tax rates and laws that
have been enacted at the Statement of Financial Position date.
Research and development credits
The group receives credits for its research and development activities. The
recognition of the research and development credits are recognised based on
the nature of the scheme the expenditure qualifies under. The policy for the
RDEC Scheme is detailed in note 3.2. Credits received under the Enhanced
R&D Intensive Support Scheme are reportable as a tax credit in the period
in which the relevant expenditure is incurred.
Deferred taxation
Deferred tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements in accordance with
IAS 12 - Income taxes. Deferred tax liabilities are recognised for all taxable
temporary differences. A deferred tax asset is recognised only to the extent
that it is probable that sufficient taxable profit will be available in future
years to utilise the temporary difference. Deferred tax is not accounted for
if it arises from initial recognition of an asset or liability in a
transaction, other than a business combination, that at the time of the
transaction affects neither the accounting, nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the Statement of Financial Position date
and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred tax assets and liabilities are offset only when there is a legally
enforceable right to set off current tax assets against current tax
liabilities, they relate to income taxes levied by the same taxation authority
and the Group intends to settle these on a net basis.
Deferred tax assets are recognised to the extent it is probable that the
underlying tax loss or deductible temporary difference will be utilised
against future taxable income. This is assessed based on the Group's forecast
of future operating results, adjusted for significant non-taxable income and
expenses and specific limits on the use of any unused tax loss or credit. As
such, the Group does not recognise any deferred tax assets, see note 19.
3.13 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand with original
maturities at inception of 3 months or less.
3.14 Foreign currency translation
Transactions denominated in foreign currencies are translated into Great
British Pounds at actual rates of exchange prevailing at the date of
transaction. Monetary assets and liabilities expressed in foreign currencies
are translated into Great British Pounds at rates of exchange prevailing at
the end of the financial year. All foreign currency exchange differences are
taken to the Consolidated Statement of Comprehensive Income in the year in
which they arise.
Non-monetary items are not retranslated at year end and are measured at
historical cost (translated using the exchange rates at the transaction date),
except for non-monetary items measured at fair value which are translated
using the exchange rates at the date when fair value was determined.
3.15 Trade and other payables
Trade and other payables are non-interest-bearing, unless significantly
overdue, and are initially recognised at fair value and subsequently stated at
amortised cost.
3.16 Provisions, contingent assets and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of a past event, it is probable that an outflow of
economic resources will be required from the Group and amounts can be
estimated reliably. The timing of such outflows may still be uncertain. Such
provisions are measured at the estimated expenditure required to settle the
present obligation based on the most reliable estimate available at the
reporting date, discounted to the present value where material.
3.16 Provisions, contingent assets and contingent liabilities continued
Any reimbursement that the Group is virtually certain to collect from a third
party in relation to the related provision will be recognised as a separate
asset.
Liabilities are not recognised where the outflow of economic resources is not
probable, but are instead disclosed as contingent liabilities.
3.17 Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received,
net of direct issue costs.
3.18 Financial instruments
Financial assets and financial liabilities are recognised on the Consolidated
Statement of Financial Position when the Group or the Company becomes a party
to the contractual provisions of the instrument. Debt and equity instruments
are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangement.
The Group utilises one type of derivative financial instrument - forward
contracts used for the purposes of hedging. These are designated as cash flow
hedges and held at fair value with changes held in the cash flow hedge
reserve. On crystallisation the gain or loss is recycled to revenue to reflect
the risks being hedged. The ineffective portion of the hedging instrument is
recognised in the profit or loss account immediately.
Further information relating to financial instruments and the policies adopted
by the Group to manage risk is found in note 22.
4. Significant management judgement in applying accounting policies
and estimation uncertainty
When preparing the consolidated financial statements, the Directors make a
number of judgements, estimates and assumptions about the recognition and
measurement of assets, liabilities, income and expenses.
Significant management judgements
The following are significant management judgements in applying the accounting
policies of the Group that have the most significant effect on the
consolidated financial statements.
Capitalisation of internally developed software
Distinguishing the research and development phases of a new software product
and determining whether the requirements for the capitalisation of development
costs are met requires judgement. Management will assess whether a project
meets the recognition criteria as set out in IAS 38 based on an individual
project basis. More detail is included in note 3.3 as to the specific
considerations given to each project when determining whether to capitalise
internally developed software. Where the criteria are not met, the research
and development expenditure will be expensed in the Consolidated Statement of
Comprehensive Income. Where the recognition criteria are met, the items will
be capitalised as an intangible asset.
During the year ended 30 September 2025, research and development expenses
totalled £1,734,000 (2024: £1,659,000). Of this amount, £406,000 (2024:
£322,000) was capitalised as an intangible asset relating to employee costs.
The balance of expenditure being £1,328,000 (2024: 1,337,000) is recognised
in the Consolidated Statement of Comprehensive Income as an expense.
Recovery of deferred tax assets
Deferred tax assets have not been recognised for deductible temporary
differences and tax losses. The Directors consider that there is not
sufficient certainty that future taxable profits will be available to utilise
those temporary differences and tax losses. Further information on the Group's
deferred tax asset can be found in note 19 of the consolidated financial
statements.
Estimation uncertainty
Information about estimates and assumptions that have the most significant
effect on recognition and measurement of assets, liabilities, income and
expenses is provided below. Changes to these estimations may result in
substantially different results for the year.
4. Significant management judgement in applying accounting policies
and estimation uncertainty continued
Share-based payments
The Group measures the cost of equity-settled transactions with employees by
reference to the fair value of the equity instruments at the date at which
they are granted. The fair value of the options granted is measured using an
option valuation model, taking into account the terms and conditions upon
which the options were granted. Details of the estimations used in determining
the fair value of the options in issue are detailed in note 21. In line with
IFRS 2, management assess whether non-market conditions will be achieved and
adjusts appropriately.
Useful lives of depreciable assets
The useful lives of depreciable assets are determined by management at the
date of purchase based on the expected useful lives of the assets. These are
subsequently monitored and reviewed annually and where there is objective
evidence of changes in the useful economic lives, these estimates are
adjusted. Any changes to these estimates may result in significantly different
results for the period.
The Group amortises its newly developed proprietary clinical trial platform
(TTNx) in accordance with its anticipated usage pattern. The platform's useful
life has been estimated at 15 years. Amortisation is applied on an escalating
basis, aligned with the increasing utilisation of the platform as additional
clinical trials are deployed on the platform. Once the platform reaches an
equivalent operational capacity to the existing platform, defined as
accommodating the number of trials supported by the previous platform, a
straight-line amortisation method will be adopted for the remainder of its
useful life.
5. Revenue
An analysis of the Group's revenue by type is as follows:
2025 2024
£000 £000
Service revenue 6,534 5,766
All material revenue streams derived by the Group relate to the delivery of
services in support of clinical trials. As such, all revenue is deemed to
belong to one stream, being service revenue.
Revenue derived from services provided over time do not constitute a material
portion of revenue and therefore disclosure distinguishing between revenue
recognised at a point in time versus over time is not made.
As at 30 September 2025, £54,000 (2024: £22,000) is held in contract
liabilities within trade and other payables at the beginning of the period.
This amount also includes performance obligations relating to advance payments
that were not yet complete at the end of the prior year. Advance payments are
charged to clients to de-risk start-up activities and are recognised at a
point in time once an activities performance obligation is met. At 30
September 2025, £1,210,000 (2024: £532,000) of advanced payments were
recognised on the balance sheet.
6. Segmental information
The Board considers there to be only one core operating segment for the
Group's activities. This is based on the Group's development, commercial and
operational delivery teams operating across the entirety of the Group, which
is primarily based in the United Kingdom. The projects undertaken by the Group
are managed by project managers, who receive inputs for each project from
other team members. Performance information is reported as a single business
unit to the management team.
The information gathered for each project is subsequently reported to the
Group's Chief Executive Officer, who is considered to be the chief operating
decision-maker. This information is used for resource allocation and
assessment of performance. Therefore, the entirety of the Group's revenue and
assets can be attributed wholly to this operating segment with reference to
the Consolidated Statement of Comprehensive Income and Consolidated Statement
of Financial Position.
6. Segmental information continued
During the year ended 30 September 2025, the Group had two clients (2024:
three clients) that exceeded 10% of total revenue. In 2025, the individual
percentage revenue associated with these clients was 22% (£1,417,000) and 12%
(£795,000). In 2024, the individual percentage revenue associated with the
three largest clients were 13% (£771,000), 13% (£742,000) and 13%
(£729,000).
Geographical information
The Group's revenue can be categorised by country, based on the location of
the contracting client. Sometimes clients of the Group, which include global
biopharmaceutical companies with offices in multiple locations across the
world, request the Group to contract directly with their regional offices in
the United Kingdom or European locations. In such circumstances the associated
revenues are reported as being based in the contracting location even though
much of the operational execution of the contract will include entities or
partners of the client based elsewhere in the world.
2025 2024
£000 £000
United States of America 2,873 2,365
United Kingdom 1,787 1,330
Netherlands 623 742
Denmark 407 124
Switzerland 398 500
Ireland 304 557
Other - Europe 136 148
Rest of world 6 -
Revenue 6,534 5,766
As the Group is domiciled in the United Kingdom, the entirety of the revenue
originates from this location.
7. Other income
Items of other income principally relate to government grants received. Grants
are recognised as income over the period required to match them with the
related costs, for which they are intended to compensate, on a systematic
basis.
The Group also recognises Research and Development Income ('R&D income')
as other income.
2025 2024
£000 £000
Grant income 15 376
R&D income - 405
Other income 15 781
8. Auditor's remuneration
2025 2024
£000 £000
Audit services
- Group and Parent Company 59 51
- subsidiary companies 39 34
Total audit fees 98 85
Audit-related assurance services 8 8
Total auditor's remuneration 106 93
9. Employees and Directors
The average monthly number of persons (including Executive and Non-Executive
Directors) employed by the Group was:
2025 2024
Number Number
Administration 14 15
Operations, research and development 65 66
Average total persons employed 79 81
The aggregate remuneration of employees in the Group was:
2025 2024
£000 £000
Wages and salaries 5,478 5,474
Social security costs 703 671
Other pension costs 307 279
Share-based payments charge 227 8
Total remuneration for employees 6,715 6,432
Employee costs capitalised (472) (322)
Net employee costs 6,243 6,110
The Group operates a defined contribution pension scheme for employees. The
assets of the scheme are held separately from those of the Group in
independently administered funds. The amounts outstanding at 30 September 2025
in respect of pension costs were £48,000 (2024: £40,000).
The remuneration of the Group's Directors is set out in the Directors'
Remuneration Report on pages 43 - 45, as well as in note 23 under related
party transactions.
The Company did not directly employ any staff and therefore there is no cost
recognised in respect of staff costs.
10. Loss on ordinary activities before taxation
The Group's loss on ordinary activities before taxation has been achieved
after charging:
2025 2024
£000 £000
Research and development expenses 1,277 1,304
Research and development related amortisation 51 33
Sales and marketing expenses 1,638 1,347
Amortisation of commission assets 27 49
Expenses relating to lease of low-value assets 1 1
Depreciation of tangible assets 198 239
Amortisation of intangible assets 28 15
Foreign exchange loss 38 52
Other administrative expenses 2,494 2,606
Total operating expenses 5,752 5,646
Interest income from cash held at bank (121) (85)
Interest incurred on finance leases 19 22
Interest due on overdue taxation (3) 3
5,647 5,586
There is a further amortisation charge of £134,000 (2024: £188,000)
recognised in cost of sales for those items directly related to project
activities. The total amortisation charge for the year is £214,000 (2024:
£236,000).
11. Taxation
The tax charge for each period can be reconciled to the result per the
Consolidated Statement of Comprehensive Income as follows:
2025 2024
£000 £000
Loss on ordinary activities before taxation (2,449) (2,094)
Loss before tax at the effective rate of corporation tax
in the United Kingdom of 25% (2024: 25%) (612) (524)
Effects of:
Expenses not deductible for tax purposes 3 (13)
Origination and reversal of temporary differences 38 (51)
Research and development uplifts net of losses surrendered for tax credits (223) 520
Overseas taxation 1 1
Prior period adjustment (5) (26)
Tax credit for the period (798) (93)
The tax credit for each period can be reconciled as follows:
2025 2024
£000 £000
ERIS research and development credit (794) (172)
Deduction for corporation tax on RDEC - 104
Overseas taxation 1 1
Prior period adjustment (5) (26)
Tax credit for the period (798) (93)
In the prior year, the Group elected to take advantage of the RDEC, introduced
in the Finance Act 2013 whereby a company may surrender corporation tax losses
on research and development expenditure incurred on or after 1 April 2013 for
a corporation tax refund. In the current year, the Group qualified under the
Enhanced R&D Intensive Support Scheme. The policies for the schemes are
reported 3.2 and 3.12 respectively.
The following is a reconciliation between the tax charge and the tax
receivable within the Consolidated Statement of Financial Position:
2025 2024
£000 £000
Current tax receivable at start of period 492 549
Current period credit 798 497
Corporation tax repayment (489) (554)
Current tax receivable at end of period 801 492
The tax credit for each period can be reconciled to the current period credit
recognised in tax receivable within the Consolidated Statement of Financial
Position in each period as follows:
2025 2024
£000 £000
Tax credit for the year 794 93
R&D credit - 405
Overseas taxation (1) (1)
Prior period adjustment 5 -
Current period credit 798 497
12. Earnings per share
The calculation of basic and diluted earnings per share ('EPS') of the Group
is based on the following data:
2025 2024
Earnings
Earnings for the purposes of basic and diluted EPS, being net profit
attributable to the owners of the Company (£000)
(1,651) (2,001)
Number of shares
Weighted average number of shares for the purposes of basic EPS 89,465,185 48,309,181
Weighted average number of shares for the purposes of diluted EPS 89,465,185 48,309,181
Basic earnings per share is calculated by dividing earnings attributable to
the owners of the Company by the weighted average number of shares in issue
during the year. The diluted EPS is calculated by dividing earnings
attributable to the owners of the Company by the weighted average number of
shares in issue taking into account the share options outstanding during the
year. For the year ended to 30 September 2025, there was no dilutive effect as
the share options in issue would have decreased the loss per share.
The basic and diluted earnings per share for the Group and Company is:
2025 2024
Basic earnings per share (1.85p) (4.14p)
Diluted earnings per share (1.85p) (4.14p)
13. Property, plant and equipment
Group
Office Leasehold Fixtures and
building improvement fittings Equipment Total
Cost £000 £000 £000 £000 £000
At 1 October 2023 777 192 5 1,191 2,165
Additions - 3 1 30 34
Disposals - - - (10) (10)
At 30 September 2024 777 195 6 1,211 2,189
Additions - 13 - 38 51
Disposals - - - (34) (34)
At 30 September 2025 777 208 6 1,215 2,206
Accumulated depreciation
At 1 October 2023 481 176 5 985 1,647
Charge for the period 101 14 0 124 239
Disposals - - - (10) (10)
At 30 September 2024 582 190 5 1,099 1,876
Charge for the period 102 6 - 89 197
Disposals - - - (34) (34)
At 30 September 2025 684 196 5 1,154 2,039
Net book value
At 30 September 2024 195 5 1 112 313
At 30 September 2025 93 12 1 61 167
The tangible right-of-use asset is held within the office building category.
At 30 September 2025, the carrying amount of the right-of-use asset was
£93,000 (2024: £195,000).
Company
At 30 September 2025 and 30 September 2024, the Company had no property, plant
and equipment.
14. Intangible assets
Group
Other Internally developed technology Next generation TrialTracker platform
Right-of-use asset Other acquired intangibles
Total
£000 £000 £000 £000 £000
Cost
At 1 October 2023 - 342 785 5,700 6,827
Additions 39 - 20 404 463
Impairment - (32) (218) - (250)
At 30 September 2024 39 310 587 6,104 7,040
Additions 41 493 86 403 1,023
Disposals - - - - -
At 30 September 2025 80 803 673 6,507 8,063
Accumulated amortisation
At 1 October 2023 - 188 492 - 680
Amortisation 2 52 163 19 236
- (32) (218) - (250)
At 30 September 2024 2 208 437 19 666
Amortisation 23 57 82 52 214
Disposals - - - - -
At 30 September 2025 25 265 519 71 880
Net book value
At 30 September 2024 37 102 150 6,085 6,374
At 30 September 2025 55 538 154 6,436 7,183
Amortisation is charged to the Consolidated Statement of Comprehensive Income
and is included within cost of sales for those items directly related to
project activities, research and development for those items directly related
to the research activities of the company or otherwise within general and
administrative expenses.
Internally developed technology
The Group has capitalised research and development costs during the year in
relation to the development of its proprietary TrialTracker software.
Development includes TrialTracker platform upgrades as well as additional
algorithm development. The costs capitalised include time and expenses in
relation to staff costs. In recognising these assets, the Group has applied
the recognition criteria of IAS 38 relating to internally generated intangible
assets, where costs in relation to the development phase must be capitalised
under certain circumstances. More information in relation to this is included
in the accounting policies of the Group in notes 3 and 4.
Company
At 30 September 2025 and 30 September 2024, the Company had no intangible
assets.
15. Investments
The consolidated financial statements of the Group as at 30 September 2025 and
at 30 September 2024 include:
Name of subsidiary Class of share Country of incorporation Principal activities
Directly held:
IXICO Technologies Limited Ordinary United Kingdom Data collection and analysis of neurological diseases
Indirectly held:
IXICO Technologies Inc. Ordinary United States Sales and marketing
The Company and Group has no investments other than the holdings in the above
subsidiaries that are all 100% owned. The carrying amounts of the investments
in subsidiaries for the Company are:
2025 2024
£000 £000
Investments in subsidiary undertakings
At beginning of the period 5,865 5,857
Capital contribution 227 8
Total investments at end of the period 6,092 5,865
The capital contribution represents the charge in the year for share-based
awards issued by the Company to employees of IXICO Technologies Limited and
IXICO Technologies Inc.
16. Trade and other receivables
Group Company
2025 2024 2025 2024
Current receivables £000 £000 £000 £000
Trade receivables 1,456 1,634 - -
Less provision for bad and doubtful debts - - - -
Net carrying amount of trade receivables 1,456 1,634 - -
Other taxation and social security - - 7 15
Prepayments and accrued income 366 518 44 22
Commission assets 14 24 - -
Other receivables 60 37 7 2
Current receivables 1,896 2,213 58 39
Non-current receivables
Prepayments and accrued income 243 - - -
Commission assets 12 9 - -
Amounts due from subsidiary undertakings - - 3,252 2,224
Non-current receivables 255 9 3,252 2,224
Total trade and other receivables 2,152 2,222 3,310 2,263
All amounts are classified as short-term and are expected to be received
within one year. The average credit period granted to clients ranges from 30
to 90 days (2024: 30 to 90 days).
Included within Group prepayments and accrued income is £243,000 (2024:
£nil) of non-current accrued income, which is not anticipated to be
recognised within the next 12 months.
A provision for expected credit losses is made when there is uncertainty over
the ability to collect the amounts outstanding from clients. This is
determined based on specific circumstances relating to each individual client.
The Directors consider that there are immaterial credit losses (2024:
immaterial credit losses) due to the calibre of customers the Group has and so
the carrying amount of trade and other receivables approximates their fair
value.
Within the Company, there are expected to be immaterial credit losses (2024:
immaterial credit losses) from subsidiary companies due to the level of cash
available in the subsidiaries and expected future earnings. The amounts due
from subsidiary undertakings was reclassified to a non-current asset in the
year as the Group does not expect to recover these balances within the next 12
months.
16. Trade and other receivables continued
As at the year-end, the ageing of trade receivables which are past due but not
impaired is as follows:
Group Company
2025 2024 2025 2024
£000 £000 £000 £000
Amounts not past due 1,396 1,486 - -
Past due:
Less than 30 days 60 69 - -
Between 31 - 60 days - 8 - -
Between 61 - 90 days - 18 - -
More than 90 days - 52 - -
Total trade receivables 1,456 1,634 - -
The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in note 22.
17. Trade and other payables
Group Company
2025 2024 2025 2024
£000 £000 £000 £000
Current liabilities
Trade payables 75 83 8 2
Other taxation and social security 92 180 - -
Contract liabilities 1,191 591 - -
Accrued expenses 550 553 58 43
Other payables - 3 - -
1,908 1,410 66 45
Non-current liabilities
Accrued expenses 15 - - -
Total trade and other payables 1,923 1,410 66 45
Trade payables and accrued expenses principally comprise amounts outstanding
for trade purchases and ongoing costs. No interest is charged on the trade
payables. The Group's policy is to ensure that payables are paid within the
pre-agreed credit terms and to avoid incurring penalties and/or interest on
late payments.
The fair value of trade and other payables approximates their current book
values.
Reconciliation of liabilities arising from financing activities
The only liabilities affecting financing activities arise solely from the
recognition of the lease liability:
£000
Lease liability as at 1 October 2023 387
Leases acquired in the year 39
Cash-flow: Repayment of lease (134)
Non-cash: Interest charge 22
Lease liability as at 30 September 2024 314
Leases acquired in the year 41
Cash-flow: Repayment of lease (195)
Non-cash: Interest charge 19
Lease liability as at 30 September 2025 179
18. Leases
All lease liabilities are presented in the statement of financial position as
follows:
2025 2024
£000 £000
Current 149 164
Non-current 30 150
179 314
The Group uses leases throughout the business for office space and IT
equipment. With the exception of short-term leases and leases of low value,
each lease is reflected on the balance sheet as a right-of-use asset in
property, plant and equipment and a lease liability.
Each lease generally imposes a restriction that, unless there is a contractual
right for the Group to sublet the asset to another party, the right-of-use
asset can only be used by the Group. For leases over office buildings, the
Group must keep those properties in a good state of repair.
The Group has identified one lease relating to the office building, and two
leases relating to software licences that meet the definition of a
right-of-use asset. There is no option to purchase on either lease, and
payments are not linked to an index. The remaining lease terms range between 8
- 27 months (2024: 20 - 34 months). The office building lease can be extended
at the end of this term.
The Group has elected to not recognise a lease liability for short-term
leases, being 12 months or less, or for leases of low value. Payments for
these are expensed on a straight-line basis.
Right-of-use asset and lease liability
Asset Depreciation Carrying amount
2025 £000 £000 £000
Office building 558 (465) 93
Software licence 80 (25) 55
638 (490) 148
Asset Depreciation Carrying amount
2024 £000 £000 £000
Office building 777 (582) 195
Software licence 39 (2) 37
816 (584) 232
Additional information on the right-of-use asset is as follows:
The various elements recognised in the financial statements are as follows:
2025 2024
£000 £000
Statement of Comprehensive Income
Depreciation charge in the year 102 101
Amortisation charge in the year 23 2
Interest expense on lease liability 19 22
Low value leases expensed in the year 1 1
Statement of Cash Flows
Capital repayments on lease agreements 194 134
18. Leases continued
The undiscounted maturity analysis of lease liabilities for the office
building is as follows:
Within 1 year 1 - 2 years 2 - 3 years Total
30 September 2025
Lease payments 157 27 4 188
Finance charges (8) (1) - (9)
Net present values 149 26 4 179
30 September 2024
Lease payments 181 143 12 337
Finance charges (17) (6) - (23)
Net present values 164 138 12 314
At 30 September 2025, the Group's commitment to short-term and low-value
leases was £nil (2024: £nil).
19. Deferred tax
Deferred tax asset (unrecognised)
Group Company
2025 2024 2025 2024
£000 £000 £000 £000
Tax effect of temporary differences:
Tax allowances in excess of depreciation 1,812 1,615 (1) (1)
Accumulated losses (18,135) (17,963) (3,778) (3,579)
Losses on financial instruments debited to equity 1 1 - -
Accelerated commission charge 1 1 - -
Deductible temporary differences - (2) - -
Deferred tax asset (unrecognised) (16,321) (16,348) (3,779) (3,580)
The unrecognised deferred tax asset predominantly arises due to unused tax
losses carried forward that have originated but not reversed at the
Consolidated Statement of Financial Position date and from transactions or
events that result in an obligation to pay more tax in the future or a right
to pay less tax in the future.
The unrecognised deferred tax asset is measured on an undiscounted basis at
the tax rates that are expected to apply in the periods in which temporary
differences will reverse. Based on tax rates and laws enacted or substantively
enacted at the latest balance sheet date, the rate when the above temporary
differences are expected to reverse is currently 25% (2024: 25%).
20. Issued capital and reserves
Ordinary shares and share premium
The Company has one class of ordinary shares. The share capital issued has a
nominal value of £0.01 and each share carries the right to one vote at
shareholders' meetings and all shares are eligible to receive dividends. Share
premium is recognised when the amount paid for a share is in excess of the
nominal value.
The Group and Company's opening and closing share capital and share premium
reserves are:
Group and Company
Ordinary Share Share
shares capital premium
Number £000 £000
Authorised, issued and fully paid
At 30 September 2024 48,351,373 484 84,802
Issue of shares 42,621,508 426 3,623
Transaction costs incurred on share issue - - (369)
Share options exercised 1,695,717 17 -
At 30 September 2025 92,668,598 927 88,056
20. Issued capital and reserves continued
Exercise of share options
During the period, the following share options were exercised:
Key management personnel Other employees Total Exercise price Value
Date of exercise Shares Shares Shares Pence £000
10-Oct-24 200,000 - 200,000 1.0 2
10-Oct-24 - 1,495,717 1,495,717 1.0 15
At 30 September 2025 200,000 1,495,717 1,695,717 - 17
This resulted in an increase in share capital of £16,957.
Other reserves
Accumulated losses
This reserve relates to the cumulative results made by the Group and Company
in the current and prior periods.
Merger relief reserve
In accordance with Section 612 'Merger Relief' of the Companies Act 2006, the
Company issuing shares as consideration for a business combination, accounted
at fair value, is obliged, once the necessary conditions are satisfied, to
record the share premium to the merger relief reserve.
Reverse acquisition reserve
Reverse accounting under IFRS 3 'Business Combinations' requires that the
difference between the equity of the legal parent and the issued equity
instruments of the legal subsidiary, pre-combination, is recognised as a
separate component of equity.
Capital redemption reserve
This reserve holds shares that were repurchased and cancelled by the Company.
Foreign exchange translation reserve
This reserve represents the impact of retranslation of overseas subsidiaries
on consolidation.
Cash flow hedge reserve
This reserve represents the movement in designated hedging instruments in the
year that have not yet crystallised.
21. Share-based payments
Certain Directors and employees of the Group hold options to subscribe for
shares in the Company under share option schemes. There are 2 distinct
structures to the share options in operation in the Group. Both structures
relate to a single scheme outlined in the EMI Share Option Plan 2014, which
was subsequently renewed and updated in 2024 (the EMI Share Option Plan 2024).
The scheme is open, by invitation, to both Executive Directors and employees.
Participants are granted share options in the Company which contain vesting
conditions. These are subject to the achievement of individual employee and
Group performance criteria as determined by the Board. The vesting period
varies by award and the conditions approved by the Board. Options are usually
forfeited if the employee leaves the Group before the options vest.
Total share options outstanding have a range of exercise prices from £0.01 to
£0.70 per option and the weighted average contractual life is 8.9 years
(2024: 5.5 years). The total charge for each period relating to employee
share-based payment plans for continuing operations is disclosed in note 9 of
the consolidated financial statements.
21. Share-based payments continued
30 October 2024
Share options totaling 3,320,058 were granted on 30 October 2024 in two
separate awards. 2,780,058 share options were awarded to the Executive
Directors with an exercise price of £0.01 and have performance conditions
linked to retention and share price growth over 3 years. 540,000 share
options were awarded to employees of the Group with an exercise price of
£0.09 and have a performance condition linked to retention over 3 years.
04 December 2024
Share options totaling 500,000 were granted on 04 December 2024 to an employee
of the group with an exercise price of £0.01 and have performance conditions
linked to retention and share price growth over 3 years.
07 February 2025
Share options totaling 7,413,488 were granted on 07 February 2025 to the
Executive Directors of the group with an exercise price of £0.01 and have
performance conditions linked to share price growth and a business exit within
a 3-year period.
13 June 2025
Share options totaling 850,000 were granted on 13 June 2025 to employees of
the group with a weighted average exercise price of £0.03 and have
performance conditions linked to retention and share price growth over 3
years.
For all options issued, the final valuation was based on the Monte Carlo
method, with the following inputs:
30-Oct-24 30-Oct-24 04-Dec-24 07-Feb-25 13-Jun-25
Executive Directors Employees
Weighted average share price £0.09 £0.09 £0.12 £0.12 £0.12
Weighted average exercise price £0.01 £0.09 £0.01 £0.01 £0.01
Expected volatility 53.8% 53.8% 57.5% 50.6% 53.0%
Expected life 10 years 10 years 10 years 10 years 10 years
Expected dividend yield 0% 0% 0% 0% 0%
Risk-free interest rate 4.11% 4.11% 4.22% 4.49% 4.56%
Details of the share options under the scheme outstanding during the period
are as follows:
2025 2024
Number Weighted average exercise price Number Weighted average exercise price
Outstanding at start of the period 3,034,505 £0.12 3,529,681 £0.15
Granted 12,083,546 £0.02 - -
Exercised (1,695,717) £0.01 - -
Lapsed (286,397) £0.19 (495,176) £0.34
Outstanding at end of the period 13,135,937 £0.04 3,034,505 £0.12
Exercisable at end of the period 1,082,390 £0.29 2,459,504 £0.10
22. Financial risk management
In common with all other areas of the business, the Group is exposed to risks
that arise from the use of financial instruments. This note describes the
Group's objectives, policies and processes for managing those risks and the
methods used to measure them.
The main risks arising from the Group's financial instruments are liquidity,
interest rate, foreign currency and credit risk. The Group's financial
instruments comprise cash and various items such as trade receivables and
trade payables, which arise directly from its operations.
22. Financial risk management continued
Categories of financial instruments
2025 2024
£000 £000
Financial assets held at amortised cost
Trade and other receivables excluding prepayments 1,273 1,845
Cash and cash equivalents 3,537 1,787
4,810 3,632
Financial liabilities held at amortised cost
Trade and other payables excluding statutory liabilities 721 745
Lease liabilities 179 314
900 1,059
Fair value of financial assets and liabilities
There is no material difference between the fair values and the carrying
values of the financial instruments held at amortised cost because of the
short maturity period of these financial instruments or their intrinsic size
and risk.
Liquidity risk management
Liquidity risk is the risk that the Group will not be able to meet its
obligations as they fall due through having insufficient resources. The Group
monitors its levels of working capital to ensure that it can meet its
liabilities as they fall due. Ultimate responsibility for liquidity risk
management rests with the Board, which has built an appropriate framework for
the management of the Group's short-, medium- and long-term funding and
liquidity requirements.
The principal current asset of the business is cash and cash equivalents and
is therefore the principal financial instrument employed by the Group to meet
its liquidity requirements. The Board ensures that the business maintains
surplus cash reserves to minimise any liquidity risk.
The financial liabilities of the Group and Company are due within 3 months
(2024: 3 months) of the Consolidated Statement of Financial Position date,
with the exception of the lease liability. Further analysis of the lease
liability is provided in note 18. All other non-current liabilities are due
between 1 to 3 years after the period end. The Group does not have any
borrowings or payables on demand which would increase the risk of the Group
not holding sufficient reserves for repayment.
Market risk
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market interest
rate. The Group operates an interest rate policy designed to minimise interest
costs and reduce volatility in reported earnings.
The Group holds all cash and cash equivalents with institutions with a
recognised high credit rating. Interest rates on current accounts are
floating. Changes in interest rates may increase or decrease the Group's
finance income.
The Group does not have any committed interest-bearing borrowing facilities
and consequently there is no material exposure to interest rate risk in
respect of financial liabilities.
Foreign currency risk management
Foreign currency risk is the risk that the fair value of future cash flows of
a foreign currency exposure will fluctuate because of changes in foreign
exchange rates.
The Group's exposure to the risk of changes in foreign exchange rates relates
to the Group's overseas operating activities, primarily denominated in US
Dollars, Euros and Swiss Francs. There is also an investment by the Company in
a foreign subsidiary. The Group's exposure to foreign currency changes for all
other currencies is not material. The Group seeks to minimise the exposure to
foreign currency risk by matching local currency income with local currency
costs where possible. The Group utilises US Dollar forward contracts to
mitigate the risk of US Dollar fluctuations on client contracts. It agrees
forward contracts based on forecasts of its US Dollar inflows and applies
hedge accounting to minimise currency risk.
22. Financial risk management continued
The Group enters into forward contracts to sell US Dollars at regular
intervals and applies hedge accounting to these contracts. Under hedge
accounting, unrealised gains or losses are recognised in other comprehensive
income and the cash flow hedge reserve, with the ineffective portion being
recognised in the profit and loss as soon as they occur. The gains or losses
arising on these are allocated to revenue on settlement. The item hedged was a
portion of highly probable forecast US Dollar inflows. The hedged item is the
receipt of US Dollars, and the hedging instrument is the sale of a portion of
these. The Group has determined that a 1:1 ratio exists between the instrument
and items as the underlying risks of both are the same - the exchange rate of
USD:GBP. The Group uses the dollar offset method to monitor effectiveness,
which compares the change in fair value of the underlying derivative and the
change in fair value of future cash flows. Ineffectiveness can arise due to
the counterparties credit risk and inaccurate forecasting, which could leave
the Group over hedged. In the year some ineffectiveness arose where the
Group's actual inflows were below that of the hedging instrument. This
ineffective portion was recognised in general and administrative expenses.
The hedging transactions in the year had the following effect on the Group's
results:
Without hedge accounting Hedging movements 2025
£000 £000 £000
Statement of Comprehensive Income
Revenue 6,506 28 6,534
Gross profit 3,155 28 3,183
General and administrative expenses (2,759) - (2,759)
Profit for the year (1,679) 28 (1,651)
Total other comprehensive expense - - -
Total comprehensive income attributable to equity holders for the period (1,679) 28 (1,651)
Statement of financial position
Accumulated losses (10,777) - (10,777)
Without hedge accounting Hedging movements 2024
£000 £000 £000
Statement of Comprehensive Income
Revenue 5,761 5 5,766
Gross profit 2,706 5 2,711
General and administrative expenses (2,881) (32) (2,913)
Profit for the year (1,974) (27) (2,001)
Total other comprehensive expense (2) 27 25
Total comprehensive income attributable to equity holders for the period (1,976) - (1,976)
Statement of financial position
Derivative financial liabilities (9,353) - (9,353)
The carrying amounts of the Group's foreign currency denominated monetary
assets and monetary liabilities as at 30 September are as follows:
2025 2024
US Dollar exposure USD'000 USD'000
Balance at end of period
Monetary assets 622 587
Monetary liabilities (53) (16)
Total exposure 569 571
2025 2024
Euro exposure EUR'000 EUR'000
Balance at end of period
Monetary assets 45 36
Monetary liabilities (5) (73)
Total exposure 40 (37)
22. Financial risk management continued
2025 2024
Swiss Franc exposure CHF'000 CHF'000
Balance at end of period
Monetary assets 53 57
Monetary liabilities (36) (22)
Total exposure 17 35
The Company had no foreign currency exposure at the year-end (2024: nil).
Foreign currency sensitivity analysis
As at 30 September 2025, the sensitivity analysis assumes a +/-10% change of
the USD/GBP, EUR/GBP and CHF/GBP exchange rates, which represents management's
assessment of a reasonably possible change in foreign exchange rates (2024:
10%). The sensitivity analysis was applied on the fair value of financial
assets and liabilities.
2025 2024
10% weaker¹ 10% stronger 10% weaker 10% stronger
£000 £000 £000 £000
US Dollar (42) 42 (43) 43
Euro (4) 4 3 (3)
Swiss Franc (2) 2 (3) 3
(48) 48 (43) 43
(1) 10% weaker relates to the Great British Pound strengthening against the
currency and therefore the Group would be in a weaker monetary position.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group. The Group's
financial assets are cash and cash equivalents and trade and other
receivables. The carrying value of these assets represents the Group's maximum
exposure to credit risk in relation to financial assets.
The Group's credit risk is primarily attributable to its trade receivables.
The amounts presented in the Consolidated Statement of Financial Position are
net of allowances for any expected credit losses, estimated by the Group's
management based on prior experience and their assessment of the current
economic environment, and any specific criteria identified in respect of
individual trade receivables. An allowance for expected credit losses is made
where there is an identified loss event, which, based on previous experience,
is evidence of a reduction in the recoverability of future cash flows. There
are no outstanding expected credit losses identified at 30 September 2025
(2024: nil).
Prior to entering into an agreement to provide services, the Group makes
appropriate enquiries of the counterparty and independent third parties to
determine creditworthiness. The Group has not identified any significant
credit risk exposure to any single counterparty or Group of counterparties as
at the period end.
The Group and Company continually reviews client credit limits based on market
conditions and historical experience. Any provision for impairment, as well as
the ageing analysis of overdue trade receivables, is set out in note 16.
The Group and Company's policy is to minimise the risks associated with cash
and cash equivalents by placing these deposits with institutions with a
recognised high credit rating.
Capital risk management
The Group considers capital to be shareholders' equity as shown in the
Consolidated Statement of Financial Position, as the Group is primarily funded
by equity finance and is not yet in a position to pay a dividend. The Group
had no borrowings at 30 September 2025 (2024: £nil).
The objectives when managing capital are to safeguard the Group's ability to
continue as a going concern in order to provide returns for shareholders and
for other stakeholders. In order to maintain or adjust the capital structure
the Group may return capital to shareholders or issue new shares.
23. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Remuneration and transactions of Directors and key management personnel
Key management remuneration:
2025 2024
£000 £000
Short-term employee benefits 1,245 1,147
Post-employment benefits 57 28
Other long-term benefits 28 (24)
Share-based payments 209 (7)
Total remuneration 1,539 1,144
Key management includes Executive Directors, Non-Executive Directors and
senior management who have the responsibility for managing, directly or
indirectly, the activities of the Group.
The aggregate Directors' remuneration, including employers' National Insurance
and share-based payments' expense, was £684,000 (2024: £875,000) and
aggregate pension of £46,000 (2024: £21,000). Further detail of Directors'
remuneration is disclosed in the Directors' Remuneration Report on pages 43 -
45.
Transactions with group companies
The Company is responsible for financing and setting Group strategy. The
Company's subsidiaries carry out the Group's research and development
strategy, employ all employees, including the Executive Directors, and manage
the Group's intellectual property. As a result, a management charge is made
between the subsidiaries and the Company for the services provided by the
subsidiaries on behalf of the Company. Similarly, as share options are issued
in the Company for employees of the subsidiaries, a charge is made between the
Company and its subsidiaries.
Intercompany balances are unsecured and are interest bearing at 6%, with no
fixed date of repayment but are repayable on demand. The intercompany balance
also includes specific funding provided by the Company, which attracts a 0%
interest rate.
Outstanding balances related to subsidiary undertakings are disclosed in note
16. During the year, the following transactions occurred with related parties:
2025 2024
£000 £000
Charges from subsidiaries:
Management recharge from subsidiaries 565 625
Net interest charged (115) (125)
Charges to subsidiaries:
Share option charge 227 8
1 (#_ftnref1) Grand View Research. Neurology Clinical Trials Market
2025-2030. Global neurology clinical trials market is projected to grow from
$5.84 billion in 2022 to $8.42 billion by 2030 (CAGR) of 6.3%.
2 (#_ftnref2) Alzheimer's UK 'Annual Review' June 2025
3 (#_ftnref3) Coherent Market Insights 2024
4 (#_ftnref4) Grand View Research. Clinical Trial Imaging Market (2025-2030)
5 (#_ftnref5) GlobalData, 'Clinical Trials Surge in H1 2025 Webinar',
September 2025.
6 (#_ftnref6) Alzheimer's Association. 'Alzheimer's Disease Facts and
Figures'. 2025
7 (#_ftnref7) Parkinsons Foundation. Statistics Fact Sheet
8 (#_ftnref8) Press release, PTC Therapeutics 05 May 2025
9 (#_ftnref9) Press release, uniQure 24 September 2025
10 (#_ftnref10) Medpath
11 (#_ftnref11) Press release, Roche 28 July 2025
12 (#_ftnref12) Press release, Biogen 29 August 2025.
13 (#_ftnref13) Press release, BlueRock Therapeutics 13 January 2025
14 (#_ftnref14) Press release, AskBio 27 May 2025
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