IXICO releases financial results for the year ended 30 Sept 2021

IXICO plc (AIM: IXI) announces its results for the year ended 30 September 2021, delivering a year of significant growth in profitability despite notable headwinds to trading.

Highlights

Financial 

  • EBITDA* of £1.7 million; 34% increase on prior year (2020: £1.3 million) reflecting solid revenue performance in a challenging trading environment, careful management of discretionary costs and positive one-time impacts;
  • £9.2 million of revenues (2020: £9.5 million); despite full year of COVID-19 and revenue being adversely impacted by largest client's decision to descope its Huntington's disease (HD) Phase III trials;
  • Gross margin of 65.6% (2020: 66.6%) reflects sustained strong margin achievement.
  • Operating profit of £1.2 million (2020: £0.9 million);
  • Profit per share of 3.30 pence (2020: 2.02 pence);
  • Closing cash of £6.7 million (2020: £7.9 million), incorporating long-term technology investments of £2.2 million (2020: £1.1 million);
  • Contracted order book of £18.8 million (2020: £21.7 million) net of £7.1 million descope of Phase III HD trials in the year; and
  • Net assets increase to £11.2 million (2020: £9.1 million) reflecting strengthened working capital and capitalised investments.

*Earnings before interest, tax, depreciation, and amortisation

Commercial and Operational

16 new projects won across 14 clients, 9 of whom are new to IXICO;

  • Equates to £13.8 million of additional multi-year contracts across all phases of clinical development thereby substantially replenishing the contracted order book;
  • Further strengthened our partnership with the Global Alzheimer's Platform ('GAP') in their Bio-Hermes program. Sponsors of the study include, Lilly, AbbVie, Merck, Biogen, Gates Ventures and the Alzheimer's Drug Discovery Foundation;
  • Partnership with Microsoft to support significant investment in our Azure cloud-based next generation TrialTracker platform to provide scalable cutting-edge technology underpinning IXICO's proprietary analytics offering; and
  • Appointment of Romina Oxborough as SVP Operations in September 2021, bringing over 20 years of senior clinical trials experience to the Group, further strengthening our focus on client satisfaction and operational scale up.

Giulio Cerroni, CEO of IXICO, said: "2021 has been another significant year in IXICO's development as a premium imaging technology services partner to the global biopharmaceutical industry. I look back with immense pride on how we have continued to progress our societal purpose of supporting our clients' efforts to develop new therapies across a widening range of neurodegenerative conditions. In delivering strong revenues at continued high gross profit margins and a record level of EBITDA profitability, we have once again demonstrated the resilience and value generating potential of our business model.

The FDA's approval of Aducanumab highlights the importance, and potential commercial value, of being able to objectively measure small changes in brain regions when developing drugs to address complex neurological conditions. IXICO is perfectly placed to support this requirement with our well established, proprietary imaging data analytics capabilities. This, alongside our strategy to diversify and build our client base and continue to invest in our market-leading platform and analysis technologies, provides us with significant opportunities for long-term growth."

Notice of AGM

IXICO also announces that its 2022 Annual General Meeting ("AGM") will be held at CCT Venues Smithfield, Two East Poultry Avenue, Smithfield, London EC1A 9PT on 20 January 2022 at 10.30am.

The full Annual Report and Accounts, along with Notice of AGM, will be posted to shareholders on 17 December 2021 and at the same time will be made available on the Company's website in accordance with AIM Rule 20.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR)

For further information please contact:

IXICO plc

+44 20 3763 7499

Giulio Cerroni, Chief Executive Officer

 

Grant Nash, Chief Financial Officer

 

Cenkos Securities plc (Nominated adviser and sole broker)

+44 20 7397 8900

Giles Balleny / Max Gould (Corporate Finance)

 

Michael F Johnson (Sales)               

 

Walbrook PR Ltd

+44 (0)20 7933 8780

Paul McManus / Lianne Applegarth /

 

Alice Woodings

IXICO@walbrookpr.com

 


Date: 07/12/2021