Cambridge Cognition Holdings plc (LON:COG), which develops and markets digital solutions to assess brain health, has announced a positive trading update and notice of results for the year ended 31 December 2020, together with details of a forthcoming change to the Company’s board.
Trading Update and Notice of Results
The Company had a successful year in 2020, delivering significant growth in revenues from digital solutions for clinical trials by executing its strategy of increased focus on commercialisation. Order intake for the year closed at a record £12.70 million, up 158% on the previous year’s order intake of £4.93 million. This maintains the growth trajectory reported in the interim results. The contracted order backlog was £11.17 million at 31 December 2020 (£5.69 million at 31 December 2019) of which at least £6.0 million is expected to be recognised as revenue in 2021 subject to customer delivery schedules and COVID-19 impacts.
The strong sales performance is due to improved commercial execution across a wider portfolio of products and increased cross-selling of combinations of the Company’s core product, CANTAB™, together with newer electronic Clinical Outcomes Assessment (“eCOA”) and digital solutions for frequent, remote testing of patients beyond clinics. The 2020 performance is accentuated by two large one-off orders that, together, totalled £3.1 million. Such large single orders are outside of the scope of normal business and may not be repeated every year.
COVID-19 had a mixed impact on the business over the year. It did cause delays to some orders and revenue recognition as some clinical trials were temporarily suspended, but the pandemic also provided an impetus for an industry shift towards evaluating virtual clinical trials, which has created opportunities for the Company’s cloud-based solutions.
The preliminary results for the year ended 31 December 2020 were slightly ahead of market expectations and will be released on 23 March 2021. Financial Highlights on the basis of unaudited figures are:
· Growth in revenues of 34% to £6.74 million (2019: £5.04 million)
· Increase in contracted order backlog of 96% to £11.17 million (2019: £5.69 million)
· Loss for the year of £0.44 million (2019: £2.90 million loss)
· Cash balance of £3.05 million at 31 December 2020 (31 December 2019: £0.90 million)
The substantial contracted order backlog provides the Company with a solid foundation for 2021. While there remains some uncertainty relating to timing of customers’ clinical trials due to the COVID-19 pandemic, the Company is well positioned for continued growth in the dynamic, expanding market for digital solutions for clinical trials.
Nick Walters has resigned his position as CFO to pursue other business interests. Nick has played a key role in the development of the Company for seven years, during which time he has overseen many operational improvements. Nick will remain an Executive Director of the Company until the AGM, expected to be towards the end of May 2021, and we wish him all success in his future projects.
Cambridge Cognition Holdings has appointed Michael (Mick) Holton as CFO, effective immediately. Mick has had an extensive career in finance, most recently as interim CFO at AIM quoted Biome Technologies plc. Prior to that, he was CFO at Infinis, an energy generator, and held senior finance roles at Alliance Boots (now part of Walgreens Boots Alliance) and Kidde plc (now part of United Technologies Corporation). Mr. Walters will provide a smooth transition to Mr. Holton through to the AGM.
Online Q&A Session
Matthew Stork, Cambridge Cognition’s CEO, will be hosting an online Q&A session regarding the latest developments with the Company at 12.30 p.m. GMT today. This session is open to all existing and prospective shareholders, and equity analysts. Those wishing to attend should email COG@investor-focus.co.uk for access details. Participants will have the opportunity to submit questions during the session, but questions are welcomed in advance and may be submitted to COG@investor-focus.co.uk.