Trading Update & Board Change

Cambridge Cognition Holdings Plc (AIM: COG), which develops and markets digital solutions to assess brain health, is pleased to announce an update on trading for the six months ended 30 June 2024 (the "Period").

Over the course of the first half of 2024, the Company executed measures to accelerate sustainable profitability (defined as "adjusted operating profit"). Development and operational costs have been reduced substantially and funds raised to drive profitable growth.  Investment in research and development is continuing on projects with near term benefits, and investment has also been made to enhance the Company’s commercial capability. 

The unaudited financial highlights for the six months ended 30 June 2024 are:

• Revenue of £5.6m (H1 2023 £6.0m)
• Adjusted operating loss of £0.1m (H1 2023 loss of £2.1m)
• Cash balance £3.4m as at 30 June 2024 (31 December 2023 £3.2m)

Contracts executed during the Period were mostly with existing customers and included clinical trials for CNS disorders, oncology, and rare diseases.  Encouragingly, the Company was also awarded a contract with a new top ten pharmaceutical client.  The contracted order book at the end of June 2024 of £14.6m (31 December 2023: £17.2m) provides good visibility over revenues for 2024 which are expected to be second half weighted, consistent with 2023’s full year performance.

During the Period the Company raised net proceeds of approximately £2.2 million from a Placing, Subscription and Open Offer of new shares.  The cash will be deployed primarily for growth and technical and business development activities.

Matthew Stork, Chief Executive Officer of Cambridge Cognition, commented:

“We have worked hard during the first half of the year to successfully reduce costs and increase our commercial capabilities across the business. Encouragingly, the Company has a healthy forward pipeline of opportunities including multi-contract opportunities with three large customers. This gives us confidence that, as trading conditions continue to improve, Cambridge Cognition is very well placed to continue to win market share and remains on track to achieve profitability in 2024.”

Board Change

As announced in May, Stephen Symonds will step down from his position as Chief Financial Officer (CFO) and his departure is confirmed for the end of July 2024.  The Board wish him well for the future. Recruitment of a new CFO Is progressing well, and in the meantime additional senior financial resources are being provided to support the Group Financial Controller and the Board.