Half yearly report to 31 March 2020

IXICO plc (AIM: IXI), the AI data analytics company delivering insights in neuroscience, announces its unaudited interim results for the six months ended 31 March 2020.

Financial highlights:

·    Reported revenues of £4.6 million; 33.0% growth on H1 2019 (2019: £3.4 million)

·    Strong gross margin at 66.5% (2019: 66.3%)

·    Growth in earnings before interest, taxation, depreciation and amortisation ('EBITDA') to £0.7 million (2019: £0.1 million)*

·    EBITDA margin at 14.8% (2019: 4.0%)

·    Cash position of £6.7 million as at 31 March 2020 (2019: £7.5 million)

·    Profit per share of 1.01p (2019: 0.46p) 

Commercial and operational highlights:

·    Rapid extension of IXICO's remote business model and technology platform to enable all employees to be home-based in response to COVID-19 with no loss of service delivery;

·    Order book of £15.3 million at 31 March 2020, increased to over £22 million in April 2020 on signing contracts post-period end;

·    Existing projects across a range of Central Nervous System (CNS) indications provide a backlog of revenue-generating data analysis activity for the near term;

·    Appointment of US-based Chief Business Officer and expansion of commercial team to further build IXICO's presence in the key US biopharma market; and

·    Increasing deployment of AI for advanced data analytics driving operational leverage.

Post-period end highlight

·    Substantial contract win in the therapeutic area of Huntington's disease, with a contract value of £10.5 million

 

Giulio Cerroni, CEO of IXICO, commented: "In response to the COVID-19 pandemic, I would like to again recognise the agility and dedication of our team in their adoption of new ways of working while focusing on continued, reliable delivery of our data analytics services to our pharma clients in these uncertain times.  In the first six months of 2020, the Group has delivered another period of profitable growth.  In addition to revenues having increased by 33%, the Group has reported an EBITDA margin of 15% in the period, a significant step-change from the 4% margin seen in the same period last year. This shows the potential for the Group to sustain and expand its profitability in the medium to long term as its growing revenues and order book enable it to continue to benefit from operational leverage of its fixed cost base. Whilst we are likely to see some impact of COVID-19 headwinds in the coming months, and particularly across 2021, I am delighted to report that, thanks to the volume of work that we have on hand, and the strong growth trajectory that we have established over the past 3 years, there has been no requirement to change staffing levels or implement staff furloughs.

"The business fundamentals and opportunities remain strong, with our revenue growth momentum, strong balance sheet and order book supporting our ability to continue to pursue new near-term business opportunities whilst building on our strategic investments for the medium and longer term.  Whilst COVID-19 has resulted in some disruption to clinical trial timelines, we remain focused on supporting our clients through the pandemic and ensuring that we are well-positioned to manage the anticipated ramp up in demand as affected trials come back on stream and new trials are initiated later in 2020 and into 2021."

* The Group has adopted "IFRS 16 - Leases" for the first time during H1 of 2020 and, in accordance with the accounting policies adopted by the Group in applying the modified retrospective method, comparative figures for the six months ended 31 March 2019 have not been restated. The adoption of this standard positively impacted EBITDA by £0.1 million compared to the equivalent period in 2019.

A recording of the results presentation will be made available on the Company's website here:

https://ixico.com/investors/company-information/investor-videos/

For further information please contact:

IXICO plc

+44 (0)20 3763 7498

Giulio Cerroni, Chief Executive Officer

Grant Nash, Chief Financial Officer

 

Cenkos Securities PLC (Nominated adviser and sole broker)

+44 (0)20 7397 8900

Giles Balleny / Max Gould (Corporate Finance)

 

Michael F Johnson / Russell Kerr (Sales)

 

Walbrook PR Ltd

Tel: 020 7933 8780 or IXICO@walbrookpr.com

Paul McManus / Lianne Cawthorne / Alice Woodings

Mob: 07980 541 893 / 07584 391 303 / 07407 804 654


Date: 20/05/2020