Cambridge Cognition Holdings PLC Trading Update and Notice of Results (3976D)
February 19 2020 - 1:00AM
UK Regulatory
TIDMCOG
RNS Number : 3976D
Cambridge Cognition Holdings PLC
19 February 2020
Cambridge Cognition Holdings plc
("Cambridge Cognition", the "Company" or the "Group")
Trading Update
and Notice of Results
Cambridge Cognition Holdings plc (AIM: COG), which develops and
markets digital solutions to assess brain health, announces a
trading update for the year ended 31 December 2019.
As announced at the interim results on 19 September 2019, the
first half of 2019 generated lower sales from the core business
than expected due to short-term market factors, including a merger
of two large customers leading to delays in finalising contracts,
reduction in safety testing of two drug classes and a dip in trial
initiations for Alzheimer's drugs. This weakness continued into the
third quarter, but the fourth quarter and early 2020 has seen a
return to significant growth. The detailed measures taken to
overcome the mid-year market challenges are paying off with
GBP4.1million of orders already booked for delivery and recognition
in 2020.
The preliminary results for the year ended 31 December 2019 are
expected to be released on 24 March 2020 and the key figures,
subject to audit, are expected to be:
-- Revenue of GBP5.04 million (2018: GBP6.13 million)
-- Post tax loss for the year of GBP2.90 million (2018: GBP1.44 million loss)
-- Cash balance of GBP0.90 million at 31 December 2019 (31 December 2018: GBP1.11 million)
-- Contracted order book of GBP5.68 million (31 December 2018: GBP6.08 million).
2019 was a year of transition for the Company. The current
strength of the order book demonstrates the enormous potential for
our products despite sales in the core business being lower than
originally expected, as signalled at the time of our interim
results. The Company continued to deliver on its strategy to become
a digital health business with multiple product lines. The Company
is targeting the fast growth, overlapping electronic clinical
outcomes assessment (eCOA) and digital health markets for central
nervous systems disorders.
Sales of digital solutions doubled from 2018 to 2019 with a
large GBP1.3 million order taken early in the year. The Company
also completed the development and took orders for two new
solutions in 2019. NeuroVocalix(TM), its patented automatic
voice-based system for measuring cognition, completed a
proof-of-concept trial with data from 2,868 people in Q2 2019. The
Company's new, configurable eCOA product was launched in Q4
2019.
With a shift in focus from research and development to
commercialisation throughout the latter half of 2019, together with
the launch of these new products and an expected improvement in its
core business, the Company is positioned for growth in 2020. While
sales and marketing spend is being increased, R&D and overall
administrative costs are being significantly reduced and the
Company continues to expect to achieve profitability in Q4 2020 and
to deliver further growth in subsequent years.
The Company today will separately announce a GBP1.4 million
equity placing in which the Directors intend to participate.
Enquiries:
Cambridge Cognition Holdings plc Tel: 01223 810 700
Matthew Stork, Chief Executive Officer press@camcog.com
Nick Walters, Chief Financial Officer
finnCap Ltd (Nomad and Joint Broker) Tel: 020 7220 0500
Geoff Nash/ Simon Hicks (Corporate Finance)
Alice Lane/ Manasa Patil (Corporate Broking)
Dowgate Capital Limited (Joint Broker) Tel: 020 3903 7715
David Poutney/ James Serjeant
IFC Advisory Ltd (Financial PR and Tel: 020 3934 6630
IR)
Tim Metcalfe/ Graham Herring/ Zach
Cohen
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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