10 December 2024
Cambridge Cognition Holdings
plc
("Cambridge Cognition", the "Company" or the
"Group")
Trading update for year
ending 31 December 2024 and an early outlook for
2025
Cambridge Cognition Holdings plc
(AIM: COG), the brain health software group, announces a trading
update for the year ending 31 December 2024.
Highlights
· Revenue
for year ending 31 December 2024 expected to be not less than
£10.0m and adjusted EBITDA close to breakeven
· Greater
revenue visibility into 2025 with a strengthened order book of
£13.5m and a growing sales pipeline of over £34m
· Cash
expected to be approximately £1m at the year end and expected to
increase during 2025
Trading Update
The Company reports that, following
the operational reorganisation at the end of Q3 2024, the highest
levels of both sales orders and book-to-bill ratio this year was
recorded in October. Encouragingly, sales orders secured during the
second half of 2024 included an increasing number of multi-product
contracts, particularly including eCOA, AQUA and voice recognition,
which were brought into the portfolio through the Winterlight and
eClinicalHealth acquisitions. In addition, there is an increasing
number of repeat orders from top-tier pharmaceutical
customers.
However, with most of these new
sales orders secured in Q4 2024, much of the revenue will be
recognised in 2025 or later. As a result, the Board now expects
revenues for the year ending 31 December 2024 to be not less than
£10.0m (2023: £13.5m) and adjusted EBITDA to be close to breakeven
(2023: adjusted EBITDA loss of £1.0m).
The Group's contracted sales order
book has increased for the first time since September 2023 with
significant new business added in Q4 2024. The order book is
expected to continue to rise through to the end of the year to
approximately £13.5m, with at least £6.5m of this expected to be
recognised in revenue in 2025. These secured sales orders together
with the sales pipeline, which currently stands at over £34m, means
that the Board expects 2025 will show a significant uplift in
revenues compared with 2024 together with a sustainable profitable
EBITDA.
Having made operational savings
during 2024 the Company continues to manage working capital
carefully. As a result, cash is expected to be approximately
£1m at year end and the Board expects this to increase during 2025
as further new orders are secured and billing commences on the
contracts. When this is considered together with the contracted
order book and growing sales pipeline, the Board anticipates
delivering value enhancing, sustained profitability in 2025 and
beyond.
The Board recognises the commitment
and achievement of Rob Baker and Alex Livingstone-Learmonth as
Joint Managing Directors and the whole of the senior leadership
team who are leading the business into an era of profitability and
value creation. It confirms that the Company has commenced a
process to identify a new permanent CEO and will make a further
update in due course.
Enquiries:
|
Cambridge Cognition Holdings
plc
Dr Steven
Powell, Chairman
|
Tel: 012 2381
0700
|
|
Hudson Sandler (Financial PR and
IR)
Dan de Belder / Hattie Dreyfus /
Harry Griffiths
|
Tel: 020 7796
4133
cog@hudsonsandler.com
|
|
Panmure Liberum Limited (NOMAD and
Joint Broker)
Will Goode / Freddy Crossley / Mark
Rogers
Rupert Dearden
|
Tel: 020 7886
2968
(Corporate
Finance)
(Corporate
Broking)
|
|
Dowgate Capital Limited (Joint
Broker)
David Poutney / James
Serjeant
|
Tel: 020 3903
7715
|
|
|
Notes to Editors
About Cambridge Cognition
Cambridge Cognition is a leading
technology company specializing in digital health products that
advance brain health research and treatment. The Company offers
three core products: CANTAB® assessments, which provide
scientifically validated, highly sensitive, precise, and objective
measures of cognitive function correlated to neural networks; A
flexible and proven eCOA platform, with a large library of
instruments, enabling efficient study set up and scalable data
capture; and Quality Assurance Tools that ensure data integrity by
automatically detecting deviations in administration and scoring,
saving time and money. Together, these products improve clinical
trial outcomes, enable early patient identification, and enhance
global efficiency in healthcare and pharmaceuticals.
For further information
visit: https://cambridgecognition.com/
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.