IXICO plc Trading update for H1 2020 (1170K)

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                                        [phone] 
 Giulio Cerroni, Chief Executive Officer 
  Grant Nash, Chief Financial Officer 
 
 Cenkos Securities PLC (Nominated adviser 
  and sole broker)                                [phone] 
 Giles Balleny / Max Gould (Corporate Finance) 
 Michael F Johnson / Russell Kerr (Sales) 
 
 Optimum Strategic Communications                 [phone] 
 Mary Clark / Supriya Mathur / Manel Mateus 
 [e-mail] 
 

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

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April 20, 2020 02:00 ET (06:00 GMT)