Trading Update

Expected FY21 financial performance of £8.7m revenues and c. £1.2m EBITDA thereby maintaining strong EBITDA margin performance.

IXICO plc (AIM: IXI), the data analytics company delivering insights in neuroscience, announces a trading update, confirming that, despite a challenging business environment, it expects to deliver £8.7m in FY21 revenues, resulting in earnings before interest, tax, depreciation, and amortisation ('EBITDA') of approximately £1.2m. This maintains EBITDA margin in line with the prior year (FY20: 14%).

Further to the Company's announcements on 23 March 2021 and 26 April 2021, following the news of its largest client's decision to cease dosing on its Huntington's Disease phase III and open label extension trials, the Board is now able to provide an update on the expected impact of these trials on full year trading.  The significant descope in service requirements on these trials and the continued impact of COVID-19 on new bookings are expected to result in a reduced revenue performance compared to the first half of the year with full-year revenues of £8.7m (FY20: £9.5m revenues) and EBITDA of approximately £1.2m (FY20: £1.3m EBITDA). 

Outlook

Whilst the challenges outlined above continue to impact the Company beyond the current financial year, the Company has successfully grown its pipeline of new opportunities across a diversified range of therapeutic neurological indications with both current and prospective new clients.  Consequently, the Company's focus is on converting these identified opportunities into signed contracts, whilst simultaneously delivering its strong order book (£19.5m at 30 June 2021). In parallel the Company's strong cash position enables it to continue investing to ensure it can scale and convert the available medium- and long-term market opportunity in the neurological disease clinical trials market.

 

Giulio Cerroni, CEO of IXICO, commented: "Having grown rapidly over recent years, we acknowledge that we are not immune to the industry wide impacts of COVID-19 and the unexpected developments on our largest client's trials. Despite these short-term challenges, the resilience that we've built in our business over the last few years continues to enable the delivery of strong profit margins. As clinical trials delayed due to the COVID-19 crisis are initiated and by ensuring commercial execution of our growing pipeline, we anticipate returning to a double-digit revenue growth trajectory as our 2022 financial year progresses. Consequently, we will continue to focus on our clients' needs, and invest appropriately to deliver the medium- and long-term market growth opportunities that are available to us."

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 (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 /

Mob: 07980 541 893 / 07584 391 303 /

Alice Woodings

07407 804 654

 About IXICO

IXICO is dedicated to delivering insights in neuroscience. Our mission is to transform the progression of our biopharmaceutical clients' neurological therapeutic pipelines through the application of novel imaging and digital biomarkers.

IXICO's data analytics services are used by the global biopharmaceutical industry to interpret data from brain scans and digital biosensors to enable better trial design, site qualification, patient selection and clinical outcomes. We provide technology-enabled services across all phases of clinical evaluation. Our integrated digital platform provides a scalable and secure infrastructure for the capture and analysis of regulatory compliant clinical data to enable clients to make rapid, better informed decisions. IXICO is also collaborating with partners to develop new analytical techniques and companion digital health products targeted at improving patient outcomes.

More information is available on www.IXICO.com


Date: 06/08/2021