Cambridge Cognition Holdings plc (LON:COG), which develops and markets digital solutions to assess brain health, has announced its unaudited interim results for the six months ended 30 June 2020.
The first half of 2020 saw strong progress in executing the Company’s strategy of an increased focus on commercialisation. This was demonstrated by £4.93 million of contract wins in the first half of 2020, an increase of 87% on the same period in 2019. Further contracts have been secured post period end with orders from 1 January 2020 to 31 August 2020 now standing at £8.36 million. The spread of contracts won across the product portfolio demonstrates that the Company’s product strategy is delivering with revenues increasing materially over H1 2019 and losses cut significantly. While a number of contracted clinical trials have been delayed by COVID-19, this was offset by the commencement of new contracts as the business showed resilience in the period due to the strength and diversity of the product offering.
Financial Highlights
· Revenues up 39% to £3.01 million (H1 2019: £2.17 million)
· Administrative expenses reduced by 18% to £2.90 million (H1 2019: £3.54 million)
· Loss before tax reduced by 75% to £0.43 million (H1 2019: £1.74 million loss)
· Loss per share of 1.5 pence per share (H1 2019: loss of 7.7 pence per share)
· Operational cash outflow reduced by over 85% to £0.16 million (H1 2019: £1.23 million)
· Cash balance of £1.96 million at 30 June 2020 (31 December 2019: £0.90 million)
· Raised £1.28 million after costs in an equity fundraising in March 2020
Operational Highlights
· New orders confirmed in the period increased 87% to £4.93 million (H1 2019: £2.64 million)
· Contracted order backlog up 30% since the end of 2019 to £7.38 million at 30 June 2020 (31 December 2019: £5.69 million, 30 June 2019: £6.34 million)
· Major contract wins across all product families and at all stages of clinical development
· Operational delivery slowed by the COVID-19 pandemic, but financial impact offset by revenue from increased order backlog
· Cut operating expenses in line with commitments set at the beginning of the year
· R&D spend of £0.77 million (H1 2019: £0.89 million) and two significant grant awards notified totalling £0.48 million, the majority of which will be recognised over three years
Commenting on the results Matthew Stork, Chief Executive Officer of Cambridge Cognition, said:
“The first half of 2020 has seen a strong performance as we have executed our strategy, albeit in difficult circumstances, given the COVID-19 pandemic. Our team adapted quickly to working remotely and has maintained a high level of customer service and interaction. Orders increased significantly in the period: we matched the full year order intake for 2019 in the first half of 2020 and have continued to win new business since period end. Although a number of clinical trials were delayed because of COVID-19, the financial impact was more than compensated for by the new contract wins. Together with the equity fundraising in March, the order growth has enabled us to improve our cash position and we are well placed to continue to grow through the rest of the year and on towards profitability.”
