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COG Cambridge Cognition Holdings Plc

54.50
-0.50 (-0.91%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Cambridge Cognition Holdings Plc LSE:COG London Ordinary Share GB00B8DV9647 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.50 -0.91% 54.50 54.00 55.00 54.50 54.50 54.50 1,010 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Pharmaceutical Preparations 12.61M -409k -0.0117 -46.58 18.99M

Cambridge Cognition Holdings PLC Half-year Report (3487R)

21/09/2017 7:00am

UK Regulatory


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TIDMCOG

RNS Number : 3487R

Cambridge Cognition Holdings PLC

21 September 2017

21 September 2017

Cambridge Cognition Holdings plc

("Cambridge Cognition" or the "Company")

Half Yearly Report

The neuroscience digital health company Cambridge Cognition Holdings plc, (AIM: COG, 'the Company'), which develops and markets software products to improve brain health, announces its unaudited Interim Results for the six months ended 30 June 2017.

Investment in commercial team reaps rewards with record sales pipeline

These results demonstrate growth in software and service revenues and continued advances in innovative products and technologies in line with the plans presented to shareholders in April 2016.

Financial Highlights

   --        Total revenue GBP3.21m (H1 2016: GBP3.26m) 
   --        Gross profit increased by 7.4% to GBP2.90m (H1 2016: GBP2.70m) 
   --        Loss before tax of GBP0.39m (H1 2016: GBP0.15m loss) 
   --        Adjusted* loss before tax of GBP0.29m (H1 2016: GBP0.11m loss) 
   --        Loss per share of 1.8p (H1 2016: 0.6p loss per share) 
   --        Cash balance of GBP1.82m at 30 June 2017 (H1 2016: GBP1.38m) 

*Adjusted for share-based payments charge

Operational Highlights

-- Quality of earnings and revenue mix improved: revenues excluding hardware up 5% at GBP3.14m (H1 2016: GBP2.99m) Service revenues up 57% at GBP1.79m (H1 2016: GBP1.14m)

   --        Sales order pipeline increased by 65% to record levels 
   --        As expected, administrative expenses increased by GBP0.38m, including investment in sales infrastructure and science and development costs 
   --        CANTAB data used in landmark EBBINGHAUS study presented by Amgen 
   --        Cognition Kit joint venture successfully advanced from pilot to phase 1 study 
   --        New intellectual property using automatic speech recognition technology 

Commenting on the results Steven Powell, Chief Executive Officer of Cambridge Cognition, said: "These results demonstrate that our strategic shift to providing value added services, either alongside our core products or on a standalone basis, is gaining momentum. Over the last two years we have renewed our commitment to invest in our science and technology base and the resulting innovations will meet the ever increasing demand for near patient health solutions and drive future business growth."

Enquiries:

 
 Cambridge Cognition Holdings     www.cambridgecognition.com 
  plc 
 Steven Powell, Chief Executive           Tel: 01223 810 700 
  Officer 
 Nick Walters, Chief Financial 
  Officer 
 
 finnCap Ltd (Nomad and Joint             Tel: 020 7220 0500 
  Broker) 
 Geoff Nash/ Simon Hicks                 (Corporate Finance) 
 Alice Lane                              (Corporate Broking) 
 
 Dowgate Capital Stockbrokers             Tel: 020 3903 7715 
  Limited (Joint Broker) 
 David Poutney/ James Serjeant 
 
 IFC Advisory Ltd (Financial              Tel: 020 3053 8671 
  PR and IR) 
 Tim Metcalfe/ Graham Herring/ 
  Miles Nolan 
 

CHIEF EXECUTIVE OFFICER'S REVIEW

The revenue for the first half of 2017 was in line with expectations and broadly similar to H1 2016, which included two major contracts with a significant impact on revenue. To have matched the 2016 result demonstrates that steps have been taken to shape a broader revenue base and we are less dependent on one-off large contracts as the Company has been in the past. Furthermore, the Company is well placed to build on this solid foundation when contracts currently in negotiation come through in the second half and beyond.

The main area of year-on-year revenue growth is services, which has grown 57% on the same period last year. Gross margins also increased by 7.4% which partly offset the investment in the sales and marketing team after the financing in H1 2016.

Our R&D teams continue to make considerable progress across a number of projects to expand our testing capabilities and increasingly deploy digital solutions to take testing closer to the patient. This is exemplified through our increasing use of wearables and web based testing and the development of novel testing technology such as automatic speech recognition. Our pipeline of development projects has expanded over the past year and is focused on delivering new innovation into our commercial offering, while continuing to be managed within the financial constraints of the Company.

Financial Results

Our core high-margin software and services revenues grew by 5%. The quality of earnings and revenue mix is improved. Growth in service revenue of 57% is pleasing as this is the area of the business that has been a particular focus for growth. These services include contract development and data analytics. Also in line with our stated strategy is the return to an underlying decline in low margin hardware sales after the deviation seen in H1 2016 due to fulfillment of a single large order.

 
             H1 2017   H1 2016     % 
              GBPm      GBPm     Change 
            --------  --------  ------- 
 Software       1.36      1.84   (26.1) 
 Services       1.79      1.14     57.0 
 Hardware       0.06      0.28   (78.6) 
 Total          3.21      3.26    (1.5) 
----------  --------  --------  ------- 
 

Software revenues declined by 26.1%. This reflects the strategic change from a small number of large contracts to a smaller number of earlier phase projects which will ultimately provide a firmer foundation for consistent future revenue growth. Software revenue will continue to exhibit some variability because it is recognised through the implementation of a contract which varies in both size and duration.

Service revenues increased by GBP0.65m to GBP1.79m, or 57% compared to H1 2016. This increase is a result of a number of factors. First, a higher percentage of the revenues from our wearables and CANTAB Recruit products are classified as services. Second, we are conducting more value added services within our clinical studies as we perform more scientific analyses and trial design work for our customers. Finally, we are being increasingly commissioned for standalone pieces of scientific consultancy, which, while still comparatively low in value, is exposing us to a greater number of customers and sits well with our reputation as an innovative partner. This shift to good quality, high margin and repeat business is a welcome move and one which will help to drive our recurring revenue, giving us greater visibility as we continue to build the business.

Hardware revenues have, as expected, significantly reduced after a one-off increase in 2016. Our cloud-based CANTAB Connect software products can now be installed and operated on devices that customers own or source themselves. While we remain happy to supply hardware with software pre-installed, this is required less frequently. We expect hardware to make a minimal contribution going forward with only the occasional exception such as reported last year.

Following the successful equity placing in April 2016, we employed the funds raised to expand the sales team both in Europe and the USA. The result of this exercise has been reflected in a 65% increase in the opportunity pipeline to record levels. We do not expect the full benefits of this investment to materialise until later this year and into 2018.

Gross profit grew by 7.4% to GBP2.90m (H1 2016: GBP2.70m) which outstripped revenue growth given the increase in higher margin services revenues and the reduction in lower margin hardware sales. Gross margin for the period has increased to 90.3% from 82.8%.

Total administrative costs for the period (incorporating sales and marketing, R&D and general administration) increased by GBP0.38m (13.0%) to GBP3.31m (H1 2016 GBP2.93m). This increase is driven by a 37% increase in sales and marketing costs and an 8.4% increase in R&D costs. These increases in functional costs were mitigated in part by a 13.9% reduction in general administrative support costs. Our share-based payments expense also increased in the period as we have widened ownership in the employee share option scheme to ensure that all staff are properly incentivised and focused on our longer term goals.

These investments have directly contributed to a reduced EBITDA and pre tax result. EBITDA was a loss of GBP0.35m (H1 2016: GBP0.11m loss). Losses before tax were GBP0.39m (H1 2016: GBP0.15m loss). As a result, loss per share was 1.8p (H1 2016: 0.6p loss).

Net cash outflow from operations during the period was GBP0.55m, a small increase from a similar seasonal outflow of GBP0.53m for the first half of the prior year. The net cash balance at 30 June 2017 was GBP1.82m (as at 31 December 2016: GBP2.38m; 30 June 2016 GBP1.38m), an increase of GBP0.44m on the same period last year.

Operational Review

As reported in last year's strategic report, we identified that we could realise efficiency gains in sales by combining the previously separate business units of Pharmaceutical Clinical Trials and Academic Research into a single product group. This reorganisation was completed with effect from 1(st) January 2017 and our Operational Review is no longer categorised along these lines.

Through 2016, we expanded our CANTAB range of products to address all stages of the clinical drug development cycle from Phase I clinical trials to post approval market analysis. This included the introduction of CANTAB Recruit to accelerate patient recruitment in CNS trials together with the Cognition Kit joint venture for developing wearables for measuring cognitive performance in everyday life.

In March 2017 Amgen published the results of their EBBINGHAUS study. We were proud to be involved in this study both through use of our software and also through working with Amgen on scientific analysis. This was a landmark study, given both the number of participants and time points and was focused on cardiovascular disease highlighting that the use of CANTAB software is not limited to cognitive assessment in the CNS field alone.

We also reported in March 2017 that we had added web based testing to our product offering which has enabled researchers to run testing of trial participants remotely. A highly significant innovation, it allows studies to gather digital cognitive biomarkers at frequent time-points for more accurate and rapid data to aid earlier decision-making and conduct large-scale research projects virtually, reducing the overall running costs of studies using proven neuropsychological assessments.

As part of this move to patient centric technology advancements, we also announced results of the first move away from touch screen testing toward a new delivery format. We have an ongoing programme to use automated voice recognition technology to monitor patient response to pain and depression treatments. To ensure that we can continue to innovate within the constraints of our financial resources we were pleased to report recently that we have been awarded grant funding of GBP0.3m from Innovate UK to advance our work in biomarkers in this field. We expect this project to conclude and commence commercialisation in late 2018.

While continuing to build our core product business through all stages of clinical development we have also answered a market demand to make our technologies available in other formats; often for use in non-clinical trial applications. We have therefore launched CANTAB Prime, which utilises modular software architecture to apply existing product components within the customer framework enabling the collection, analysis and reporting of cognitive measures from within third party platforms. CANTAB Prime can offer a 'white-label' solution to a multitude of users across our spectrum of customers who wish to incorporate our products and knowledge into their own systems for collecting and analysing data. CANTAB Prime will open up new opportunities previously closed to us in particular where users were not willing to adopt a product that stood in isolation outside their core systems. This approach will enable us to work in partnership with technology companies outside of our core, existing pharmaceutical market to address broader healthcare opportunities.

In order to streamline our operations in the US, the decision was taken earlier this year to relocate our base in Salt Lake City to a new site in Boston. Exiting our old lease was achieved with minimal disruption and cost to the Company. Though it is early days, the office is now in a well established knowledge quarter and we expect to be well placed to recruit talent, as well as further drive our sales in what will be an increasingly important market for the Company.

Future developments aside, we have been pleased with the progress of some of our more recent innovations. CANTAB Recruit, web based testing and the wearables projects, notably the Cognition Kit project with Takeda, have added over GBP0.5m to our sales since launch, mainly as higher margin service revenues. We see this as an important example of how the demands of the market, and our ability to meet those demands, is evolving. The partnership with Takeda is looking at patients with Major Depressive Disorder (MDD). This represents a first move into this important area, and also exemplifies the combination of clinical trial, research and healthcare application that we believe will characterise much of our future market.

Outlook

With modest investments in commercial infrastructure and R&D activity we have transitioned to an improved blend of product and service revenues. Both the sales pipeline and the innovation pipeline are stronger than in recent history at a time when there is substantial appetite for both neuroscience and digital health solutions. We expect a strong second half to 2017 as we continue to convert our order pipeline and we are confident in the growth potential of Cambridge Cognition into 2018 and beyond.

Steven Powell

Chief Executive Officer

21 September 2017

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

For the six months ended 30 June 2017

 
                                       6 months    6 months        Year 
                                          to 30       to 30       to 31 
                                           June        June    December 
                                           2017        2016        2016 
                                      Unaudited   Unaudited     Audited 
                               Note     GBP'000     GBP'000     GBP'000 
                                     ----------  ----------  ---------- 
 
 Revenue                        5         3,209       3,264       6,876 
 Cost of sales                            (308)       (566)       (986) 
                                     ----------  ----------  ---------- 
 Gross Profit                             2,901       2,698       5,890 
 Administrative expenses                (3,307)     (2,925)     (5,860) 
 Other income                                20          82          86 
                                     ----------  ----------  ---------- 
 (Loss)/ Profit before 
  tax                           5         (386)       (145)         116 
 Income tax                                 (3)           -         106 
                                     ----------  ----------  ---------- 
 (Loss)/ Profit for the 
  period                                  (389)       (145)         222 
                                     ==========  ==========  ========== 
 
 Attributable to: 
 Equity holders in the 
  parent                                  (368)       (118)         272 
 Non-controlling interest                  (21)        (27)        (50) 
                                     ----------  ----------  ---------- 
                                          (389)       (145)         222 
                                     ==========  ==========  ========== 
 
 Earnings per share (pence)     6 
 Basic and diluted                        (1.8)       (0.6)         1.4 
 
 
 (Loss)/ Profit for the period          (389)   (145)   222 
 
 Other comprehensive income 
  - items that may be reclassified 
  subsequently to profit or 
  loss 
 Exchange differences on translation 
  of foreign operations                    24    (12)     4 
 
 Total comprehensive income 
  for the period                        (365)   (157)   226 
                                       ======  ======  ==== 
 

Consolidated statement of financial position

At 30 June 2017

 
                                            At 30       At 30       At 31 
                                             June        June    December 
                                             2017        2016        2016 
                                        Unaudited   Unaudited     Audited 
                                Note      GBP'000     GBP'000     GBP'000 
                                       ----------  ----------  ---------- 
 Assets 
 Non-current assets 
 Goodwill                                     352         352         352 
 Property, plant and 
  equipment                                   109         112         117 
                                       ----------  ----------  ---------- 
 
 Total non-current assets                     461         464         469 
 
 Current assets 
 Inventories                                   40          62          37 
 Trade and other receivables                2,003       2,706       2,177 
 Cash and cash equivalents                  1,823       1,375       2,384 
                                       ----------  ----------  ---------- 
 
 Total current assets                       3,866       4,143       4,598 
                                       ----------  ----------  ---------- 
 
 Total assets                               4,327       4,607       5,067 
                                       ==========  ==========  ========== 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                   1,700       2,180       2,206 
 
 Total liabilities                          1,700       2,180       2,206 
                                       ----------  ----------  ---------- 
 
 Equity 
 Share capital                                205         204         204 
 Share premium account                      7,552       7,517       7,517 
 Other reserves                             6,009       5,969       5,985 
 Own shares                                  (45)        (49)        (47) 
 Retained earnings                       (11,094)    (11,187)    (10,748) 
                                       ----------  ----------  ---------- 
 Equity attributable 
  to parent                                 2,627       2,454       2,911 
 Non-controlling interest                       -        (27)        (50) 
                                       ----------  ----------  ---------- 
 
 Total equity                               2,627       2,427       2,861 
                                       ----------  ----------  ---------- 
 
 Total liabilities and 
  equity                                    4,327       4,607       5,067 
                                       ==========  ==========  ========== 
 
 

Consolidated statement of changes in equity

For the 6 months ended 30 June 2017

 
                               Share      Share      Other       Own    Retained   Non-controlling 
                             capital    premium    reserve    shares    earnings          Interest     Total 
                             GBP'000    GBP'000    GBP'000   GBP'000     GBP'000           GBP'000   GBP'000 
-------------------------  ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Balance at 1 January 
  2016                           170      6,412      5,981      (51)    (11,099)                 -     1,413 
 Total comprehensive 
  income for the 
  period                           -          -       (12)         -       (118)              (27)     (157) 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Issue of new share 
  capital                         34      1,219          -         -           -                 -     1,253 
 Share issue costs                 -      (114)          -         -           -                 -     (114) 
 Transfer on allocation 
  of shares in trust               -          -          -         2         (2)                 -         - 
 Credit to equity 
  for share based 
  payments                         -          -          -         -          32                 -        32 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Transactions with 
  owners                          34      1,105          -         2          30                 -     1,171 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Balance at 30 
  June 2016                      204      7,517      5,969      (49)    (11,187)              (27)     2,427 
 Balance at 1 July 
  2016                           204      7,517      5,969      (49)    (11,187)              (27)     2,427 
 Total comprehensive 
  income for the 
  period                           -          -         16         -         390              (23)       383 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Transfer on allocation 
  of shares in trust               -          -          -         2         (2)                 -         - 
 Credit to equity 
  for share based 
  payments                         -          -          -         -          51                 -        51 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Transactions with 
  owners                           -          -          -         2          49                 -        51 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Balance at 31 
  December 2016                  204      7,517      5,985      (47)    (10,748)              (50)     2,861 
-------------------------  ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Balance at 1 January 
  2017                           204      7,517      5,985      (47)    (10,748)              (50)     2,861 
 Total comprehensive 
  income for the 
  period                           -          -         24         -       (368)              (21)     (365) 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Issue of new share 
  capital                          1         35          -         -           -                 -        36 
 Transfer on allocation 
  of shares in trust               -          -          -         2         (2)                 -         - 
 Credit to equity 
  for share based 
  payments                         -          -          -         -          95                 -        95 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Transactions with 
  owners                           1         35          -         2          93                 -       131 
                           ---------  ---------  ---------  --------  ----------  ----------------  -------- 
 Transfer of accumulated 
  loss on acquisition 
  of non-controlling 
  interest                                                                  (71)                71         - 
 Balance at 30 
  June 2017                      205      7,552      6,009      (45)    (11,094)                 -     2,627 
 

Consolidated statement of cash flows

For the 6 months ended 30 June 2017

 
                                            6 months    6 months        Year 
                                               to 30       to 30       to 31 
                                                June        June    December 
                                                2017        2016        2016 
                                           Unaudited   Unaudited     Audited 
                                    Note     GBP'000     GBP'000     GBP'000 
---------------------------------  -----  ----------  ----------  ---------- 
 
 Net cash flows from operating 
  activities                         7         (547)       (527)         473 
 Investing activities 
 Purchase of property, plant 
  and equipment                                 (29)         (3)        (44) 
                                          ----------  ----------  ---------- 
 
 Net cash flow used in investing 
  activities                                    (29)         (3)        (44) 
 
 Financing activities                  - 
 Proceeds from the issue 
  of share capital net of 
  costs                                           36       1,139       1,139 
                                          ----------  ----------  ---------- 
 
 Net cash flows from financing 
  activities                                      36       1,139       1,139 
 
 Net (decrease)/ increase 
  in cash and cash equivalents                 (540)         609       1,568 
 Cash and cash equivalents 
  at start of period                           2,384         756         756 
 Exchange differences on 
  cash and cash equivalents                     (21)          10          60 
                                          ----------  ----------  ---------- 
 
 Cash and cash equivalents 
  at end of period                             1,823       1,375       2,384 
                                          ==========  ==========  ========== 
 
 

NOTES TO THE INTERIM FINANCIAL STATEMENT

1. General information

Cambridge Cognition Holdings plc ('the Company') and its subsidiaries (together, 'the Group') develops and markets near patient technologies for the assessment of brain health for sale worldwide, principally in the UK, the US and Europe.

The Company is a public limited company listed on the Alternative Investment Market ('AIM') of the London Stock Exchange (symbol COG) and is incorporated and domiciled in the UK. The address of its registered office is Tunbridge Court, Tunbridge Lane, Bottisham, Cambridge, CB25 9TU.

The condensed consolidated interim financial statements were approved by the Board of Directors for issue on 21 September 2017.

The condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

Statutory accounts of the Group for the year ended 31 December 2016 were approved by the Board of Directors on 28 March 2017 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.

The condensed consolidated interim financial statements together with the comparative information for the six months ended 30 June 2017 have been reviewed, not audited.

2. Basis of preparation

Going concern basis

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, support the conclusion that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than twelve months from the date of this report. The Group therefore continues to adopt the going concern basis in preparing its condensed consolidated interim financial statements.

3. Accounting policies

The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's consolidated financial statements for the year ended 31 December 2016.

During the period, the Group purchased all of the non-controlling interest in CANTAB Corporate Health Limited, a company of which the Group previously owned 70%. The accumulated losses of CANTAB Corporate Health have been bought directly into the Group's equity.

4. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

The following are the critical judgements that the directors have made in the process of applying the Group's accounting policies.

Revenue recognition

Trading operations within the Group recognise revenue with regard to amounts chargeable to customers under service contracts. In making its judgement, management considers the detailed criteria for the recognition of revenue from the provision of continuous services set out in IAS 18 Revenue. The directors are satisfied that the significant risks and rewards are transferred and that recognition of the revenue over the duration of the contractual period is appropriate.

Goodwill

The Group reviews the carrying value of its goodwill balances by carrying out impairment tests at least on an annual basis. These tests require estimates to be made of the value in use of its CGUs which are dependent on estimates of future cash flows and long term growth rates of the CGUs.

Capitalisation of development costs

The point at which development costs meet the criteria for capitalisation is critically dependent on management judgment of the probability of future economic benefits.

Recovery of deferred tax assets

Deferred tax assets have not been recognised for deductible temporary differences, share options and tax losses as management considers that there is not sufficient certainty that future taxable profits will be available to utilise those temporary differences and tax losses.

Share-based payment transactions

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using either a Black-Scholes model or a Binomial Option model. The accounting estimates and assumptions relating to equity settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit and loss and equity.

5. Segmental information

The analysis of revenue by product type is as follows:

 
                6 months      6 months   Year to 31 
              to 30 June    to 30 June     December 
                    2017          2016         2016 
                 GBP'000       GBP'000      GBP'000 
 Software          1,357         1,847        3,837 
 Services          1,787         1,140        2,487 
 Hardware             65           277          552 
 
                   3,209         3,264        6,876 
            ============  ============  =========== 
 
 

6. Earnings per share

Calculation of loss per share is based on the following loss and numbers of shares:

 
                                        6 months   6 months        Year to 
                                           to 30      to 30    31 December 
                                            June       June           2016 
                                            2017       2016 
                                         GBP'000    GBP'000        GBP'000 
 Earnings 
 Earnings for the purposes of 
  basic and diluted earnings per 
  share being net loss attributable 
  to owners of the Company                 (368)      (118)            272 
 
 
                                            '000       '000           '000 
 Number of shares 
 Weighted average number of ordinary 
  shares for the purposes of basic 
  EPS                                     20,154     18,644         19,402 
                                       ---------  ---------  ------------- 
 Weighted average number of ordinary 
  shares for the purposes of diluted 
  EPS                                     20,154     18,644         19,473 
                                       ---------  ---------  ------------- 
 

The basic weighted average number of shares excludes shares held by an Employee Benefit Trust. Fully diluted earnings per share is calculated after showing the effect of outstanding options in issue. For both of the six month periods presented, the effect of the options would be to reduce the loss per share, and hence the diluted loss per share is the same as the basic loss per share. For the full year 2016, the impact of diluted shares was so minimal that there was no impact on EPS when rounded to 0.1 pence.

The number of shares in issue at 30 June 2017 was 20,472,735 (31 December 2016: 20,429,235).

7. Reconciliation of operating result to operating cash flows

 
                                 6 months      6 months        Year to 
                               to 30 June    to 30 June    31 December 
                                     2017          2016           2016 
                                  GBP'000       GBP'000        GBP'000 
 (Loss)/ Profit before 
  tax                               (386)         (145)            116 
 Adjustments for: 
 Depreciation                          36            32             68 
 Share-based payments 
  charge                               95            33             83 
 Operating cash flows 
  before working capital 
  movements                         (255)          (80)            267 
 Change in inventories                (2)           (4)             21 
 Change in trade and 
  other receivables                   180       (1,142)          (575) 
 Change in trade and 
  other payables                    (467)           611            567 
                             ------------  ------------  ------------- 
 Cash (used)/ generated 
  by operations                     (544)         (615)            280 
 Taxation (paid)/ received            (3)            88            193 
                             ------------  ------------  ------------- 
 
  Net cash flows from 
   operations                       (547)         (527)            473 
                             ------------  ------------  ------------- 
 

8. Copies of interim financial statements

Copies of the interim financial statements are available from the Company at its registered office at Tunbridge Court, Tunbridge Lane, Bottisham, Cambridge, CB25 9TU. The interim financial information document will also be available on the Company's website www.cambridgecognition.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR QBLFLDKFBBBE

(END) Dow Jones Newswires

September 21, 2017 02:00 ET (06:00 GMT)

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