Cambridge Cognition Holdings plc (LON:COG), which develops and markets digital solutions to assess brain health, has announced a trading update for the year ended 31 December 2022.
Unaudited highlights for the year ended 31 December 2022
- Revenue ahead of market expectations: 25% growth in revenues to £12.6 million (2021: £10.1 million)
- Increase in contracted order book to £17.6 million at 31 December 2022 (31 December 2021: £17.1 million), increasing to £20.1 million post-period end after acquisitions
- Profit after tax for the year, before acquisition costs, of £0.2 million (2021: £0.5 million)
- Cash balance of £8.3 million at 31 December 2022 (31 December 2021: £6.8 million)
The Company made significant progress, with strong organic revenue growth during 2022, and broadened the Company’s platform and revenue opportunities further through the acquisition of eClinicalHealth Limited in October 2022 and the acquisition of Winterlight Labs Inc, subsequent to the year end, in January 2023.
Revenue growth was ahead of market expectations at 25% in 2022 with earnings in line with market expectations. The acquisition of Clinpal did not contribute materially to trading results in 2022. Order intake for the year closed at £13.1 million, up 8% on the previous year’s order intake of £12.1 million, excluding £3.6 million of large one-off orders taken in 2021. Order growth continued across the expanded product offering, driven in part by the continued demand for virtual clinical trials. The contracted order book remained healthy at the end of 2022 at £17.6 million (£17.1 million at 31 December 2021), together with a further £2.5 million added post year end with the acquisition of Winterlight, bringing the total contracted order book to £20.1 million. At least £9.5 million of the current contracted order book is expected to be recognised as revenue in 2023, subject to customer trial schedules. This gives approximately 60% visibility on market forecast revenues for 2023.
The market for virtual clinical trials for central nervous system disorders is large – larger than for any other therapeutic area – with around 250 being started every year1. The acquisition of Clinpal in October 2022 has strengthened the Company’s position in this rapidly growing market, combining its CNS expertise with Clinpal’s end-to-end virtual capability. From this strengthened position, the Company has continued to grow its total addressable market with the acquisition of Winterlight and its voice technology in January 2023. The market for voice biomarkers for all conditions is reported to be growing at 66% per annum and, starting from a modest base, is predicted to be around US$220 million by 20262.
With Cambridge Cognition’s gold-standard cognitive assessments, Winterlight’s leading vocal biomarker technology, and Clinpal’s end-to-end virtual platform, the combined Company is well positioned for further considerable growth.
The Company expects to announce its results in April 2023.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
References.
1. GlobalData. Virtual trials run by pharma by therapeutic area Jan 2021 – Aug 2022
2. Coherent Market Insights, 2019
