IXICO plc Trading Update for year ended 30 September 2021 (3038P)
October 18 2021 - 2:00AM
UK Regulatory
TIDMIXI
RNS Number : 3038P
IXICO plc
18 October 2021
IXICO plc
("IXICO" or the "Company")
Trading Update for year ended 30 September 2021
GBP9.2 million revenues outperform market expectations
EBITDA profitability expected to be materially ahead of market
expectations
Strong GBP18.8 million order book and GBP6.7 million cash
position
IXICO plc (AIM: IXI), the AI data analytics company delivering
insights in neuroscience, announces a trading update for the year
ended 30 September 2021.
-- Full year revenue of GBP9.2 million (2020: GBP9.5 million)
ahead of GBP8.7 million market expectations. Year-on-year revenue
broadly flat despite full year of COVID-19 and lost revenue
resulting from largest client's announcement on 23 March 2021 to
cease dosing patients in its Huntington's Disease (HD) trials.
-- Year-end order book of GBP18.8 million (2020: GBP21.7
million), despite GBP7.1m adverse impact from the descoping of the
above HD trials.
-- Year-end cash of GBP6.7 million, (2020: GBP7.9 million)
reflecting more than GBP2 million technology investment to support
long term growth (including our next generation, Microsoft Azure
cloud-based, imaging data platform and proprietary AI data
analytics platform). The Company continues to be debt-free.
-- Earnings before interest, tax, depreciation, and amortisation
('EBITDA') expected to be materially ahead of market expectations
of GBP1.2 million and prior year (2020: GBP1.3 million). Key
contributors include strong trading in the final quarter, careful
management of discretionary costs and several positive one-time
impacts.
Outlook
Benefiting from a strong order book, and an improving business
outlook resulting from the initiation of new neuroimaging clinical
trials during the 2022 financial year, the Company expects a return
to revenue growth, albeit at a lower rate than recent historical
levels. In the coming year, the Company will continue to pursue its
investment plan to accelerate long-term sustained growth. Due to
these investments, and the one-time beneficial impacts on EBITDA
seen in 2021, the Company expects to see lower profitability in
2022.
The Company intends to announce its audited results for the year
ended 30 September 2021 in early December 2021.
Giulio Cerroni, Chief Executive Officer of IXICO, commented: "
2021 has been another significant year in IXICO's development as a
premium technology services partner to the global biopharmaceutical
industry. Despite a challenging business environment, we announced
contracts with several new clients, initiating early-stage clinical
trials contracts across a widened range of neurological therapeutic
indications. W e go into 2022 with an established track record of
delivery, substantiated by a 25% 5-year revenue CAGR, a further
year of growing profitability and a strengthened balance sheet.
"We recognise the potential for clients to prematurely terminate
late-stage clinical trials as part of the inherent challenge of
developing new treatments. However, with an ageing population and
the high unmet clinical need for new treatments for
neurodegenerative diseases such as Alzheimer's Disease,
Huntington's Disease, and other rarer neurological conditions, we
remain very confident in the medium- and long-term opportunity for
the scale up of our business.
"As we continue to build our commercial capabilities across the
coming year to further diversify our order book, I am excited by
the commercial partnerships, technology and operational investments
we are making which position us, even more ready to maximise on the
opportunity available to us."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR)
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)
Walbrook PR Ltd +44 ( 0)20 7933 8780 or IXICO@walbrookpr.com
Paul McManus / Lianne Applegarth /
Alice Woodings
About IXICO
IXICO is dedicated to delivering insights in neuroscience. Our
purpose is to advance medicine and human health by turning data
into clinically meaningful information, providing valuable new
insights in neuroscience and our goal is to be a leading proponent
of artificial intelligence in medical image analysis. We will
achieve this by developing and deploying breakthrough data
analytics, at scale, through our remote access technology platform,
to improve the return on investment in drug development and reduce
risk and uncertainty in clinical trials for our pharmaceutical
clients.
More information is available on www.IXICO.com and follow us on Twitter @IXICOnews
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