Cambridge Cognition Holdings Plc (LON:COG), which develops and markets digital solutions to assess brain health, has announced a positive trading update for the six months ended 30 June 2021.
The Company enjoyed a strong performance in the first half of 2021, delivering significant growth in revenues, in particular from digital solutions for clinical trials. Order intake was above the Board’s expectations at £8.6 million. This includes £6.4 million of substantial orders announced previously, of which two were unusually large orders that totalled £3.6 million.
The contracted order backlog was £15.2 million on 30 June 2021, up 36% from 31 December 2020 and more than double the value at 30 June 2020. The order backlog contains several large contracts for clinical trials in which revenue will be recognised over three to six years, further increasing the long-term revenue base for the Company.
The direct impact of COVID-19 has been minimal, and the business has functioned normally while continuing to operate in a fully remote manner. The growth in interest in virtual clinical trials as a result of the pandemic continues and more orders for home testing solutions were taken.
The unaudited financial highlights for the six months ended 30 June 2021 are:
· Increase in sales orders of 74% to £8.6 million (H1 2020: £4.9 million)
· Growth in revenue of 50% to £4.5 million (H1 2020: £3.0 million)
· Increase in contracted order backlog of 36% since the last year end to £15.2 million (31 December 2020: £11.2 million)
· Adjusted EBITDA positive at £0.2 million (H1 2020: £0.3 million loss)
· Continued improvement in cash balances to £4.2 million (31 December 2020: £3.0 million)
The outlook remains positive and the Company remains on track to be profitable in 2021. The Company has an attractive forward pipeline of opportunities, although, at this time, without the rare, one-off opportunities highlighted in the previous two half-year periods. With increasing investment in commercial activities and continued product development, the Company is well positioned for further year-on-year revenue growth. The rising cash balance provides the business with further opportunities to invest for future growth.
Notice of Results
The interim results for the six months ended 30 June 2021 will be announced on 21 September 2021.
Cambridge Cognition will conduct a live presentation and Q&A session for investors on the same day at 5:30 pm BST. The presentation is open to all existing and potential shareholders. Those wishing to attend should email [email protected] and they will be provided with log in details. There will be the opportunity for participants to ask questions at the end of the presentation. Questions can also be emailed to the above address ahead of the presentation.
