IXICO plc Trading update for H1 2020 (1170K)
20 April 2020 - 4:00PM
UK Regulatory
TIDMIXI
RNS Number : 1170K
IXICO plc
20 April 2020
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR)
20(th) April 2020
IXICO plc
("IXICO" or the "Company")
Trading update for H1 2020
33% revenue growth; GBP4.6m revenues for the 6 months to 31
March 2020
Strong closing cash balance of GBP6.7m
GBP15.3m order book at 31 March strengthened further to GBP22.5m
as at 20 April 2020
IXICO plc (AIM: IXI), the data analytics company delivering
insights in neuroscience, today provides an update ahead of results
for the six months ended 31 March 2020.
Highlights:
-- Revenues expected to be GBP4.6m for 6 months to 31 March 2020
(2019: GBP3.4m), representing 33% growth;
-- Strong cash balance of GBP6.7m as at 31 March 2020; and
-- Order book* of GBP15.3m at 31 March 2020 strengthened further
to GBP22.5m as at 20 April 2020.
A strong order book and cash position together with a backlog of
revenue generating projects which are being undertaken during the
COVID-19 "lock down" underpin the Company's confidence that it is
well-placed to manage through the unprecedented current environment
and retain its growth momentum over the medium and long term.
As announced on 14 April, the Company signed a significant
additional contract in Huntington's disease ('HD'), with a contract
value worth GBP10.5m, after the period end. This open label
extension study will incorporate patients from existing HD trials
that the Company is already delivering for the same client and for
which it will only receive one fee. The reported contract value for
this study is based on the maximum number of scans that are planned
to be conducted during the trial, assuming all patients from
current studies are enrolled and undergo advanced MRI scans at all
timepoints. The nature of the study, and its interwovenness with
the other HD studies that the client is conducting, means that the
number of completed advanced MRI scans received by IXICO may be
lower than this maximum number. Consequently, in seeking to take a
prudent approach to order book valuation, the Company has decided
to reduce the value of its order book for these HD contracts to
only that portion of the total contract revenues which it has a
high level of confidence will be delivered. As a result, the order
book as at 20 April is reported at GBP22.5m (Sep-19 GBP15.9m) which
equates to a reduction to full contract values of approximately
GBP3.3m.
The Company's first half results will be released on 20 May
2020.
Giulio Cerroni, CEO of IXICO, said: "I would like to thank all
our staff for their outstanding efforts and commitment in
responding rapidly to the impacts of the COVID-19 pandemic. By
leveraging IXICO's proprietary software technology, our proven
remote-access business model has enabled us to minimize disruption
to our service levels and continue to deliver image analysis
services to our existing portfolio of clinical trial projects.
Despite the COVID-19 headwinds, we are delighted to be able to
report a seventh consecutive reporting period of greater than 20%
revenue growth whilst building a record order book for the Company
in these unprecedented times. This is testament to the increasing
market adoption of our proprietary technology services and the
highly committed and effective teamwork demonstrated by all our
staff.
"Given the revenue growth momentum, strong balance sheet and
record order book, we are in a robust position to manage the
short-term headwinds of COVID-19 and to continue to pursue our key
investments for the medium and longer term. Whilst COVID-19
presents uncertainty in the near term, our focus remains on
ensuring our Company is well placed to support our clients through
the pandemic and in the future when clinical trials reinitiate and
the ramp up in demand is expected to accelerate."
* Order book is contracted but unrecognised revenue
For further information please contact:
IXICO plc +44 (0) 20 3763 7498
Giulio Cerroni, Chief Executive Officer
Grant Nash, Chief Financial Officer
Cenkos Securities PLC (Nominated adviser
and sole broker) +44 (0) 20 7397 8900
Giles Balleny / Max Gould (Corporate Finance)
Michael F Johnson / Russell Kerr (Sales)
Optimum Strategic Communications +44 (0) 203 922 0891
Mary Clark / Supriya Mathur / Manel Mateus
IXICO@optimumcomms.com
About IXICO
IXICO's purpose is to advance medicine and human health by
turning data into clinically meaningful information, providing
valuable new insights in neuroscience.
Our goal is to be a leading proponent in the use of AI in
clinical development, to improve biopharma R&D productivity
through the adoption of breakthrough data analytics in precision
healthcare. Through the deployment of novel AI algorithms, we
analyse and interpret brain scans and digital biosensor data to
enable better trial design, patient selection and ultimately
clinical outcomes across all phases of clinical evaluation. Our
data analytics services are deployed on some of the most important
clinical trials in neuroscience, providing valuable insights to
disease progression and patient safety, enabling our clients to
make better informed decisions earlier in the clinical development
pathway.
More information is available on www.IXICO.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 or visit www.rns.com.
END
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