Unaudited Interim Results for the six months ended 30 June 2024

Cambridge Cognition Holdings plc (AIM: COG), which develops and markets digital solutions to assess brain health, announces its unaudited interim results for the six-month period ended 30 June 2024 (the “period”).

Financial highlights

Revenue is in line with the same period in 2023, which combined with a material reduction in costs, has reduced the adjusted operating loss significantly to £0.1 million (H1 2023: loss of £2.0 million):

• Revenue of £5.6m (H1 2023: £6.0m)
• Gross margin increased to 80.7% (H1 2023: 78.8%)
• R&D expense decreased 35.2% to £1.4m (H1 2023: £2.2m)
• Total operating expenditure decreased 35.3% to £5.4m (H1 2023: £8.4m)
• Adjusted operating loss reduced by £1.9m to £0.1m (H1 2023: loss £2.1m)
• Raised £2.6m to support the balance sheet and business development
• Cash balances of £3.4m at 30 June 2024 (31 December 2023 £3.2m)

Operational highlights

Following a challenging end to 2023 and tough trading conditions during the period, we executed two critical actions to strengthen the underlying business:

• Increased investment in the Group’s commercial capability to enable it to exploit the central nervous systems (“CNS”) clinical trials market through the combination of a clear product focus on cognitive assessments, CNS eCOA, and automated quality assurance solutions, and an expanded commercialisation team with deep sector experience and contacts.  The market is already large (estimated at $700 million in 2024) and is forecast to grow at 15% per annum from 2024 to 2029, and
• A significant reduction of the cost base in H1 2024 has created a more agile business, which is better positioned to deliver sustainable profitability and cashflow as sales orders and revenues accelerate. 

Commenting on the results, Matthew Stork, Chief Executive Officer of Cambridge Cognition, said:

"I’m pleased with the progress made during the first half as major steps were taken to strengthen our operation and business. The acquisitions of Clinpal and Winterlight are delivering new and expanded solutions and our recently enhanced commercial team is generating a growing pipeline of new business opportunities.  All these actions support our core objective to ensure we close 2024 with a secure balance sheet and a strong contracted order book of business to drive sustainable profitability and cashflow."

Investor webinar

Cambridge Cognition will host an online presentation and Q&A session at 16:00BST on 28 August 2024. This session is open to all existing and prospective shareholders. Those wishing to attend should email cog@hudsonsandler.com and they will be provided with log in details.

Participants will have the opportunity to submit questions during the session, but questions are welcomed in advance and may be sent to cog@hudsonsandler.com.