REG - Kooth PLC - Kooth Half Year Trading Update

KoothAnnouncement

25/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240725:nRSY6841Xa&default-theme=true

RNS Number : 6841X  Kooth PLC  25 July 2024

25 July 2024

Kooth plc

 

("Kooth" or the "Company" or the "Group")

 

Half Year Trading Update

 

Kooth (AIM: KOO), a global leader in youth digital mental well-being,
announces an unaudited trading update for the half year ended 30 June 2024.

 

In the US, which now accounts for approximately 70% of the Group's revenue,
Kooth's service went live in California in January 2024, delivering its new
app Soluna to ensure the best possible behavioral health care to the State's
13-25 year olds. Soluna was specifically highlighted by the Governor of
California, Gavin Newsom, during his 'State of the State' address in June
2024, citing its benefit in engaging more kids, earlier, in prevention and
screening.

 

Following six months of service in the State, Kooth has seen:

·    Sign-ups in every one of California's 58 counties

·    53% of service users coming from communities most disproportionality
impacted by health and economic inequalities

·    Higher engagement with self-guided therapy compared to existing
geographies where Kooth operates

·    Positive feedback from youth engaging in coaching: 95% of service
users would recommend Soluna to a friend

 

These points highlight the opportunity for Kooth's services to deliver health
equality where it is commissioned. In addition to the Company's work in
California, Kooth is nearing the launch of its partnership with Aetna Better
Health to pilot its services in Illinois to support youth in low-income
families that qualify for Medicaid. The company is continuing to deliver
services in Pennsylvania and is engaging in contract extension negotiations.
The Company has a strong pipeline of new business in the US and anticipates
new contracts being signed in late 2024.

 

In the UK, Kooth remains NHS England's largest single access provider for
mental health support for under 18s. This is despite challenging
macro-economic conditions in the UK and the NHS more specifically which have
been noted before, and the additional disruption caused by the UK General
Election on 4 July 2024. Following the election of a Labour Government, which
made plain its focus on mental health in both its manifesto and the recent
King's Speech, Kooth believes that renewed focus will be placed on this
important area. The Company continues to prepare for the launch of Soluna in
the UK which it anticipates for Q2 2025.

 

Kooth's balance sheet has strengthened during the period, with net cash as at
30 June 2024 of £14.9 million (FY23: £11.0 million) and an undrawn $9.5m
working capital credit facility, ensuring the Company is well-placed to
continue investing in its platform and pipeline to deliver long-term growth.

 

Trading for the year to date is in line with expectations, though Kooth notes
that current exchange rates may impact revenue in the second half. This is not
anticipated to influence margin or profitability.

 

The Group's half year results in respect of the six months to 30 June 2024
will be announced in September 2024.

 

Tim Barker, Chief Executive Officer of Kooth, said:

"We have made significant strategic progress in the first half of 2024 and I
would like to thank everyone at Kooth who ensured that we were able to make
the January launch of Soluna in California, a key milestone in our ongoing
development, along with the diversification of our US offering with the
announcement of our partnership with Aetna. We have strengthened our cash
balance during the period and this will help ensure that we are able to
deliver services to our existing partners and also support us as we look to
engage with our growing pipeline."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018. The person responsible for this
announcement is Sanjay Jawa, CFO.

 

ENDS

 

 Enquiries:
 Kooth plc                                               investorrelations@k (mailto:investorrelations@kooth.com) ooth
                                                         (mailto:investorrelations@kooth.com) .com (mailto:investorrelations@kooth.com)
 Tim Barker, CEO
 Sanjay Jawa, CFO

 Stifel, Nominated Adviser & Sole Broker                 +44 (0) 20 7710 7600
 Ben Maddison, Nick Harland, Erik Anderson, Ben Good

 FTI Consulting, Financial PR                            Kooth (mailto:Kooth@fticonsulting.com) @fticonsulting.com
                                                         (mailto:Kooth@fticonsulting.com)
 Ben Atwell, Alex Shaw

 

About Kooth plc:

 

Kooth (AIM:KOO) is a global leader in youth digital mental well-being. Our
mission is to provide accessible and safe spaces for everyone to achieve
better mental health. Our platform is clinically robust and accredited to
provide a range of therapeutic support and interventions. All our services are
predicated on easy access to make early intervention and prevention a reality.

 

Kooth is a fully safeguarded and pre-moderated community with a library of
peer and professional created content, alongside access to experienced online
counsellors. There are no thresholds for support and no waiting lists.

 

Kooth is the longest standing digital mental health provider to hold a UK-wide
accreditation from the British Association of Counselling and Psychotherapy
(BACP) and according to NHS England data for 2022/23 is now the largest single
access provider for mental health support for under 18s.

 

In 2021, Kooth began executing on its international expansion strategy, with
an initial focus on the US market. This focus is due to the growing
recognition of the importance of improving youth mental health in this key
global healthcare market, with 1-in-6 people aged 6-17 experiencing a mental
health disorder each year.

 

For more information, please visit www.k (http://www.koothplc.com) ooth
(http://www.koothplc.com) plc.com (http://www.koothplc.com) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAFXLAFSLEFA