22 August 2024
Cambridge Cognition Holdings
plc
("Cambridge Cognition", the "Company" or the
"Group")
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.
Enquiries:
|
Cambridge Cognition Holdings plc
Matthew Stork, Chief Executive
Officer
|
Tel: 012 2381 0700
press@camcog.com
|
|
Panmure Liberum Limited (NOMAD and Joint
Broker)
Will Goode / Freddy Crossley /
Mark Rogers
Rupert Dearden
|
Tel: 020 7886 2968
(Corporate Finance)
(Corporate Broking)
|
|
Dowgate Capital Limited (Joint
Broker)
David Poutney / Nicholas
Chambers
|
Tel: 020 3903 7715
|
|
Hudson Sandler (Financial PR and IR)
Dan de Belder / Hattie
Dreyfus
|
Tel: 020 7796 4133
cog@hudsonsandler.com
|
The information communicated in this
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No.
596/2014.
CHIEF EXECUTIVE OFFICER'S REVIEW
Business Review
During 2023 and early 2024, trading
conditions remained challenging globally for the pharmaceutical
sector, which has been impacted by inflationary trends and high
interest rates. Following a period of several years of
revenue growth, we responded by delivering two critical actions to
strengthen the business:
· increasing commercial capability with increased capacity and
deeper expertise and,
· reducing the cost base of the business without impairing
short-term growth potential.
Our objective is to deliver
sustainable profitability (which we define as "adjusted operating
profit") and sustained positive cashflow.
Increased commercial
capability
To drive commercial performance, the
Company recruited Alex Livingstone-Learmonth as Chief Commercial
Officer in the first quarter. Since his appointment he has
recruited new team members with considerable experience and
developed fresh contacts within the sector, increasing both the
number and value of opportunities in the sales pipeline.
While contracted sales orders were modest in the first half, we
expect to see an improvement as the year develops.
We are focusing our efforts on
product and service areas where we have a leading and/or highly
differentiated position, particularly cognitive assessments (CANTAB
and Winterlight), eCOA and AQUA, enabling the delivery of a
tailored solution to challenging clinical studies where we
demonstrate world-class domain expertise.
The recent acquisitions of Clinpal
and Winterlight are contributing to the growth of the business.
Combining the AQUA and Clinpal eCOA solutions with the Company's
leading position in digital cognitive assessments, CANTAB, has
given us a strong multi-product solution-oriented offering to meet
clients' clinical development needs.
These product launches, together
with the strengthening of the commercial operations, has led to a
deeper pipeline of new sales opportunities. We are confident
this will show increased sales orders in the second half of
2024.
Reduced cost base
The second major initiative
completed during the period has been to reduce the cost base to
improve operating margins and cash flow generation. Cost
savings will not impact on prospects for short-term growth or
operational delivery since they have been focused on integration
synergies, trimming medium and long-term R&D projects and
right-sizing operational and support teams. There has been a
moderate increase in spending on commercialisation and maintenance of the healthcare offering.
During late 2023 we reduced the cost
base by £1.5 million per annum. In the first half of 2024 we
completed a second review following integration of Clinpal and
Winterlight. This review reduced the cost base by an
additional £2.0 million per annum, resulting in combined annual
savings of £3.5 million per annum.
Financial results
As announced previously at the time
of the fundraising in May 2024 and in the trading update published
in July 2024, market conditions remained challenging in H1
2024. Revenue for the period was at a similar level to the
same period in 2023. Nevertheless changes to the Company's cost
base have delivered a significant positive improvement of £1.9
million at the adjusted operating profit level, with the adjusted
operating loss reduced from £2.0 million in H1 2023 to £0.1 million
for H1 2024.
The financial results for the period
can be summarised as:
· 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 £1.9 million 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)
Revenue is recognised as services
are delivered to clinical studies that are executed over several
years. This brings a degree of stability based on the
strength of the order book and underpins future revenue
generation.
This contracted order book provides
good visibility over revenues for the full year, which are expected
to be weighted to the second half of 2024. This is in line with
historic performance. At 30 June 2024 the order book was
£14.6 million (31 Dec 2024: £17.2 million), but is expected to
increase in H2.
In May 2024 we raised £2.6 million
by way of a placing of 6,561,057 new Ordinary Shares at 40 pence
each with participation from both certain existing and new
shareholders. We were delighted by the strong level of support
shown for the Placing. The funds raised enable us to grow
technical and business development activities; to explore
healthcare opportunities; for working capital purposes, including
expansion of the commercial team; continuation of core development
projects and provision of balance sheet strength.
At 30 June 2024 cash balances were
£3.4 million (31 December 2023: £1.9million).
As announced previously, recruitment
of a new CFO is progressing and we have added additional interim,
senior financial resource. Further updates will be made in due
course.
Outlook
The changes made to the commercial
team have resulted in an expanded pipeline of new business
opportunities. As a result, we have increasing confidence
that this will increase the long-term value of our contracted order
book and underpin future revenue generation.
We are beginning to see commercial
benefits in the roll out of AQUA and the expanded eCOA
product. Both of these are generating new business
opportunities.
Costs continue to be managed tightly
to support the existing product portfolio and grow the
business. We are now a more agile business, better positioned
to deliver profitability and cashflow as sales orders and revenue
accelerate. As a result of the actions taken during the year,
combined with our clear growth strategy, we expect to deliver
further success and value to our stakeholders.
Matthew Stork
Chief Executive Officer
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME
STATEMENT
For
the six months ended 30 June 2024
|
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
Note
|
£'000
|
£'000
|
£'000
|
|
Revenue
|
4
|
5,603
|
6,039
|
13,515
|
|
Cost of sales
|
|
(1,079)
|
(1,281)
|
(2,717)
|
|
Gross profit
|
|
4,524
|
4,758
|
10,798
|
|
Research and development
expense
|
|
(1,397)
|
(2,176)
|
(3,847)
|
|
Sales and marketing
expense
|
|
(1,159)
|
(1,881)
|
(2,983)
|
|
Administrative expense
|
|
(2,726)
|
(3,408)
|
(6,139)
|
|
Non-recurring items
|
5
|
(144)
|
(940)
|
(1,456)
|
|
Total operating expense
|
|
(5,426)
|
(8,405)
|
(14,425)
|
|
Other operating income
|
|
63
|
230
|
322
|
|
Operating loss
|
|
(839)
|
(3,417)
|
(3,305)
|
|
Adjusted operating loss
|
|
(108)
|
(2,060)
|
(1,128)
|
|
Adjusting
items1
|
5,
7
|
(731)
|
(1,357)
|
(2,177)
|
|
Operating loss
|
|
(839)
|
(3,417)
|
(3,305)
|
|
Interest receivable
|
|
12
|
6
|
16
|
|
Finance costs
|
|
(303)
|
(6)
|
(168)
|
|
Loss before tax
|
|
(1,130)
|
(3,417)
|
(3,457)
|
|
Tax credit/(expense)
|
|
10
|
106
|
(51)
|
|
Loss for the period
|
|
(1,120)
|
(3,311)
|
(3,508)
|
|
Other comprehensive (loss)/income
|
|
|
|
|
|
Items that may be reclassified
subsequently to profit or loss:
|
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
|
(165)
|
41
|
(210)
|
|
Items that may not be reclassified
subsequently to profit or loss:
|
|
|
|
|
|
Fair value movements in equity
investments
|
|
-
|
-
|
107
|
|
Total comprehensive loss for the period
|
|
(1,285)
|
(3,270)
|
(3,611)
|
|
Loss
per share (pence)
|
|
|
|
|
|
Basic
|
6
|
(3.2)
|
(9.6)
|
(10.1)
|
|
Diluted
|
6
|
(3.2)
|
(9.6)
|
(10.1)
|
All amounts are attributable to
equity holders in the parent.
The above results relate to
continuing operations.
1. Adjusting
items comprise amortisation of acquisition related intangible
assets of £276,000 (H1 2023: £282,000, 2023: £561,000),
non-recurring items of £144,000 (H1 2023: £940,000, 2023:
£1,456,000) and share-based payments of £311,000 (H1 2023:
£135,000, 2023: £160,000). See note 5 for further details on
non-recurring items and note 7 for intangible assets.
Consolidated statement of financial position
At
30 June 2024
|
|
|
At 30 June
2024
|
At 30 June
2023
|
At 31 December
2023
|
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
|
£'000
|
£'000
|
£'000
|
|
Assets
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Goodwill
|
|
3,575
|
3,682
|
3,653
|
|
Other intangible assets
|
7
|
3,727
|
4,404
|
4,089
|
|
Property, plant and
equipment
|
|
68
|
177
|
133
|
|
Investments
|
|
156
|
49
|
156
|
|
Trade and other
receivables
|
|
20
|
-
|
20
|
|
Total non-current assets
|
|
7,546
|
8,312
|
8,051
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
188
|
244
|
187
|
|
Trade and other
receivables
|
|
2,655
|
3,698
|
2,417
|
|
Current tax receivable
|
|
210
|
138
|
351
|
|
Cash and cash equivalents
|
|
3,434
|
1,891
|
3,222
|
|
Total current assets
|
|
6,487
|
5,971
|
6,177
|
|
Total assets
|
|
14,033
|
14,283
|
14,228
|
|
Liabilities
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
2,616
|
3,127
|
2,603
|
|
Deferred income on contracts with
customers
|
|
6,500
|
10,158
|
7,699
|
|
Loans and borrowings
|
|
879
|
-
|
566
|
|
Current tax payable
|
|
19
|
-
|
99
|
|
Total current liabilities
|
|
10,014
|
13,285
|
10,967
|
|
Non-current liabilities
|
|
|
|
|
|
Loans and borrowings
|
|
1,475
|
-
|
1,978
|
|
Total non-current
liabilities
|
|
1,475
|
-
|
1,978
|
|
Total liabilities
|
|
11,489
|
13,285
|
12,945
|
|
Equity
|
|
|
|
|
|
Share capital
|
8
|
417
|
349
|
350
|
|
Share premium
|
|
17,337
|
15,152
|
15,169
|
|
Other reserves
|
|
5,448
|
5,864
|
5,613
|
|
Own shares
|
|
(71)
|
(71)
|
(71)
|
|
Retained earnings
|
|
(20,587)
|
(20,296)
|
(19,778)
|
|
Total equity
|
|
2,544
|
998
|
1,283
|
|
Total liabilities and equity
|
|
14,033
|
14,283
|
14,228
|
Consolidated statement of changes in equity
At
30 June 2024
|
|
Share
capital
|
Share
premium
|
Other
reserve
|
Own shares
|
Retained
earnings
|
Total
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
At 1 January 2023
(audited)
|
312
|
11,151
|
5,823
|
(71)
|
(17,120)
|
95
|
|
Loss for the period
|
-
|
-
|
-
|
-
|
(3,311)
|
(3,311)
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
-
|
-
|
41
|
-
|
-
|
41
|
|
Total comprehensive income/(loss)
for the period
|
-
|
-
|
41
|
-
|
(3,311)
|
(3,270)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
Issue of new shares in relation to
business combination
|
34
|
3,966
|
-
|
-
|
-
|
4,000
|
|
Issue of new shares in relation to
exercise of employee share options
|
3
|
35
|
-
|
-
|
-
|
38
|
|
Credit to equity for share-based
payments
|
-
|
-
|
-
|
-
|
135
|
135
|
|
Transactions with owners
|
37
|
4,001
|
-
|
-
|
135
|
4,173
|
|
At 30 June 2023
(unaudited)
|
349
|
15,152
|
5,864
|
(71)
|
(20,296)
|
998
|
|
Loss for the period
|
-
|
-
|
-
|
-
|
(197)
|
(197)
|
|
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
-
|
-
|
(251)
|
-
|
-
|
(251)
|
|
Fair value movements on equity
investments
|
-
|
-
|
-
|
-
|
107
|
107
|
|
Total comprehensive income/(loss) for
the period
|
-
|
-
|
(251)
|
-
|
90
|
(341)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
Issue of new shares in relation to
exercise of employee share options
|
1
|
17
|
-
|
-
|
-
|
18
|
|
Credit to equity for share-based
payments
|
-
|
-
|
-
|
-
|
25
|
25
|
|
Post-combination
remuneration
|
-
|
-
|
-
|
-
|
309
|
309
|
|
Issue of warrants
|
-
|
-
|
-
|
-
|
274
|
274
|
|
Transactions with owners
|
1
|
17
|
-
|
-
|
608
|
626
|
|
At 31 December 2023
(audited)
|
350
|
15,169
|
5,613
|
(71)
|
(19,778)
|
1,283
|
|
Loss for the period
|
-
|
-
|
-
|
-
|
(1,120)
|
(1,120)
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
-
|
-
|
(165)
|
-
|
-
|
(165)
|
|
Total comprehensive loss for the
period
|
-
|
-
|
(165)
|
-
|
(1,120)
|
(1,285)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
Issue of new shares in relation to
equity fundraising
|
65
|
2,559
|
-
|
-
|
-
|
2,624
|
|
Transaction costs relating to issue
of share capital
|
-
|
(446)
|
-
|
-
|
-
|
(446)
|
|
Issue of new shares in relation to
exercise of employee share options
|
2
|
55
|
-
|
-
|
-
|
57
|
|
Credit to equity for share-based
payments
|
-
|
-
|
-
|
-
|
311
|
311
|
|
Transactions with owners
|
67
|
2,168
|
-
|
-
|
311
|
2,546
|
|
At
30 June 2024 (unaudited)
|
417
|
17,337
|
5,448
|
(71)
|
(20,587)
|
2,544
|
Consolidated statement of cash flows
For
the 6 months ended 30 June 2024
|
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31
December
2023
|
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
Note
|
£'000
|
£'000
|
£'000
|
|
Net
cash flows used in operating activities
|
9
|
(1,583)
|
(3,499)
|
(4,967)
|
|
Investing activities
|
|
|
|
|
|
Acquisition of subsidiary, net of
cash acquired
|
|
-
|
(3,002)
|
(3,002)
|
|
Interest received
|
|
12
|
6
|
16
|
|
Purchase of property, plant and
equipment
|
|
-
|
(31)
|
(33)
|
|
Net
cash flow generated from/(used in) investing
activities
|
|
12
|
(3,027)
|
(3,019)
|
|
Financing activities
|
|
|
|
|
|
Proceeds from share issue
|
|
2,624
|
-
|
-
|
|
Transaction costs arising on issue
of shares
|
|
(446)
|
-
|
-
|
|
Proceeds from borrowings, net of
fees incurred
|
|
-
|
-
|
3,054
|
|
Proceeds from exercise of share
options
|
|
57
|
38
|
56
|
|
Repayment of borrowings
|
|
(131)
|
-
|
(116)
|
|
Interest payments
|
|
(303)
|
-
|
(109)
|
|
Net
cash flows generated from financing activities
|
|
1,801
|
38
|
2,885
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
230
|
(6,488)
|
(5,101)
|
|
Cash and cash equivalents at start
of period
|
|
3,222
|
8,322
|
8,322
|
|
Exchange differences on cash and
cash equivalents
|
|
(18)
|
57
|
1
|
|
Cash and cash equivalents at end of period
|
|
3,434
|
1,891
|
3,222
|
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1.
General information
Cambridge Cognition Holdings plc
('the Company') and its subsidiaries (together, 'the Group')
develops and markets digital solutions to assess brain
health for sale worldwide, principally in
the UK, the US and Europe.
The Company is a public limited
company listed on the AIM market of the London Stock Exchange
(symbol: COG) and is incorporated and domiciled in the UK. The
address of its registered office is Tunbridge Court, Tunbridge
Lane, Bottisham, Cambridge, CB25 9TU.
The condensed consolidated interim
financial statements were approved by the Board of Directors for
issue on 21 August 2024. The condensed consolidated interim
financial statements do not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006.
Statutory accounts of the Group for
the year ended 31 December 2023 were approved by the Board of
Directors on 31 May 2024 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was
unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under section 498 of the Companies
Act 2006.
The condensed consolidated interim
financial statements together with the comparative information for
the six months ended 30 June 2023 have not been audited.
2.
Accounting policies
2.1
Basis of preparation
As explained in note 2.1 of the
Group's 2023 Annual Report, the Group made the following changes in
presentation of the Consolidated Statement of Comprehensive Income
and Consolidated Statement of Financial Position, which have
resulted in restatements of prior period balances:
· Consolidated
Statement of Comprehensive Income: the Group previously combined
Research and development expense, Sales and marketing expense and
Administrative expense into Administrative expense (excluding
non-recurring items). These have been separately presented to
better present the nature of the expenditure. The overall operating
loss for the period ended 30 June 2023 remains
unchanged.
· Consolidated
Statement of Financial Position: the Group previously combined
Goodwill and Other intangible assets within Intangible assets.
These have been separately presented due to their materiality. The
overall total and net asset balance at 30 June 2023 remain
unchanged.
2.2
Going concern
The Group's forecasts and
projections, taking account of reasonably possible changes in
trading performance, support the conclusion that there is a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future, a
period of not less than twelve months from the date of this
report. The Directors believe that the Group will remain a
going concern for the foreseeable future. The Group therefore
continues to adopt the going concern basis in preparing its
condensed consolidated interim financial statements.
2.3
Accounting policies
The accounting policies adopted in
the preparation of the condensed consolidated interim financial
statements are consistent with those followed in the preparation of
the Group's consolidated financial statements for the year ended 31
December 2023.
3.
Critical accounting judgements and key sources of estimation
uncertainty
There have been no changes to the
Group's significant judgements and estimates since the year ended
31 December 2023.
4.
Segmental information
The analysis of revenue by product
type is as follows:
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£'000
|
£'000
|
£'000
|
|
Software
|
2,693
|
2,872
|
6,532
|
|
Services
|
2,781
|
2,891
|
6,364
|
|
Hardware
|
129
|
276
|
619
|
|
|
5,603
|
6,039
|
13,515
|
5.
Non-recurring items
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£'000
|
£'000
|
£'000
|
|
Acquisition and integration of
Clinpal
|
(28)
|
214
|
570
|
|
Acquisition and integration of
Winterlight
|
68
|
459
|
662
|
|
Restructuring
|
103
|
267
|
224
|
|
|
143
|
940
|
1,456
|
Non-recurring items are included on
the consolidated income statement within administrative
expenses.
Acquisition and integration
of Clinpal
The Group acquired Clinpal in
October 2022, as detailed in note 15.1 of the Group's 2023 Annual
Report. As a result of the departure of a member of the Clinpal
team in 2024 the Group reversed the related charge for retention
payments. The Group will continue to accrue for retention payment
amounts for the relevant members of staff who remain with the
business until 31 December 2024.
Acquisition and integration
of Winterlight
The Group acquired Winterlight Labs
Inc in January 2023, as detailed in note 15.2 of the Group's 2023
Annual Report. Costs in the six months to 30 June 2024 relate to
retention awards for key staff. This expense is anticipated to
continue until July 2024.
Restructuring
The Group completed a significant,
multi-department restructuring exercise in the six months to 30
June 2024. No further expense is anticipated in relation to this
exercise.
6.
Loss per share
Calculation of loss per share is
based on the following loss and numbers of shares:
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£'000
|
£'000
|
£'000
|
|
Loss attributable to owners of the Company for the purposes
of:
|
|
|
|
|
Basic and diluted loss per
share
|
(1,120)
|
(3,311)
|
(3,508)
|
|
|
|
|
|
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
'000
|
'000
|
'000
|
|
Weighted average number of shares for the purposes
of:
|
|
|
|
|
Basic and diluted loss per
share
|
35,342
|
34,347
|
34,586
|
The diluted loss per share is
considered to be the same as the basic loss per share. Potential
dilutive shares are not treated as dilutive where they could result
in an increased loss per share.
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
Pence
|
Pence
|
Pence
|
|
Loss per share
|
|
|
|
|
Basic and diluted loss per
share
|
(3.2)
|
(9.6)
|
(10.1)
|
See note 8 for details of the total
number of shares in issue.
7.
Goodwill and Other intangible assets
|
|
Acquisition related
intangible assets
|
|
|
|
|
Goodwill
|
Technology based
assets
|
Marketing based
assets
|
Customer based
assets
|
Licences
|
Total
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Cost
|
|
|
|
|
|
|
|
At 1 January 2023
(audited)
|
482
|
955
|
-
|
-
|
40
|
1,477
|
|
Acquired in business
combinations
|
3,314
|
3,055
|
520
|
308
|
-
|
7,197
|
|
Exchange adjustment
|
(114)
|
(105)
|
(18)
|
(11)
|
-
|
(248)
|
|
At 30 June 2023
(unaudited)
|
3,682
|
3,905
|
502
|
297
|
40
|
8,426
|
|
Exchange adjustment
|
(29)
|
(26)
|
(4)
|
(3)
|
-
|
(62)
|
|
At 31 December 2023
(audited)
|
3,653
|
3,879
|
498
|
294
|
40
|
8,364
|
|
Exchange adjustment
|
(78)
|
(73)
|
(13)
|
(7)
|
-
|
(171)
|
|
At
30 June 2024 (unaudited)
|
3,575
|
3,806
|
485
|
287
|
40
|
8,193
|
|
Amortisation and impairment
|
|
|
|
|
|
|
|
At 1 January 2023
(audited)
|
-
|
32
|
-
|
-
|
24
|
56
|
|
Amortisation charge
|
-
|
249
|
17
|
16
|
3
|
285
|
|
Exchange adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
|
At 30 June 2023
(unaudited)
|
-
|
281
|
17
|
16
|
27
|
341
|
|
Amortisation charge
|
-
|
247
|
16
|
16
|
4
|
283
|
|
Exchange adjustment
|
-
|
(1)
|
-
|
(1)
|
-
|
(2)
|
|
At 31 December 2023
(audited)
|
-
|
527
|
33
|
31
|
31
|
622
|
|
Amortisation charge
|
-
|
245
|
16
|
15
|
3
|
279
|
|
Exchange adjustment
|
-
|
(9)
|
(1)
|
-
|
-
|
(10)
|
|
At
30 June 2024 (unaudited)
|
-
|
763
|
48
|
46
|
34
|
891
|
|
Net
book value
|
|
|
|
|
|
|
|
At 1 January 2023
(audited)
|
482
|
923
|
-
|
-
|
16
|
1,421
|
|
At 30 June 2023
(unaudited)
|
3,682
|
3,624
|
485
|
282
|
13
|
8,086
|
|
At 31 December 2023
(audited)
|
3,653
|
3,352
|
465
|
263
|
9
|
7,742
|
|
At
30 June 2024 (unaudited)
|
3,575
|
3,043
|
437
|
241
|
6
|
7,302
|
8.
Share capital
|
|
Number
|
£'000
|
|
At 1 January 2023
(audited)
|
31,170,093
|
312
|
|
Issue of new shares for the
acquisition of Winterlight Labs Inc
|
3,445,595
|
34
|
|
Exercise of share options
|
237,145
|
3
|
|
At 30 June 2023
(unaudited)
|
34,852,833
|
349
|
|
Exercise of share options
|
107,276
|
1
|
|
At 31 December 2023
(audited)
|
34,960,109
|
350
|
|
Issue of new shares in relation to
exercise of employee share options
|
189,263
|
2
|
|
Issue of new shares in relation to
equity fundraising
|
6,561,057
|
65
|
|
At
30 June 2024 (unaudited)
|
41,710,429
|
417
|
All ordinary shares are issued and
fully paid and carry equal voting and distribution rights. There
are no other classes of shares.
During the six months to 30 June
2024, the Company issued 189,263 (6 months to 30 June 2023:
237,145) ordinary shares of 1 pence each with a nominal value of
£1,893 (6 months to 30 June 2023: £2,371) pursuant to the exercise
of shares options.
On 18 and 19 June 2024, the Company
issued 6,561,057 ordinary shares of 1 pence each with a nominal
value of £65,611 as part of an equity fundraise. Directly
associated transaction fees of £446,000 were incurred which have
been offset against share premium.
9.
Reconciliation of operating result to operating cash
flows
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year to 31 December
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£'000
|
£'000
|
£'000
|
|
Loss before tax
|
(1,130)
|
(3,417)
|
(3,457)
|
|
Adjustments for:
|
|
|
|
|
Depreciation of property, plant and
equipment
|
40
|
46
|
97
|
|
Impairment of property, plant and
equipment
|
-
|
3
|
3
|
|
Amortisation of intangible
assets
|
279
|
285
|
568
|
|
Share-based payments
charge
|
311
|
135
|
160
|
|
Finance costs
|
303
|
-
|
168
|
|
Acquisition related expenses
deferred amounts
|
-
|
202
|
318
|
|
Interest receivable
|
(12)
|
(6)
|
(16)
|
|
Research and Development expenditure
tax credit
|
(13)
|
-
|
(73)
|
|
Operating cash flows before movements in working
capital
|
(222)
|
(2,752)
|
(2,232)
|
|
(Increase)/decrease in
inventories
|
-
|
(28)
|
29
|
|
Decrease/(increase) in trade and
other receivables
|
(230)
|
1,242
|
2,235
|
|
Decrease/(increase) in trade and
other payables
|
(13)
|
3
|
(445)
|
|
Decrease in deferred income from
contracts with customers
|
(1,199)
|
(1,963)
|
(4,667)
|
|
Cash used in operations before tax
|
(1,664)
|
(3,498)
|
(5,080)
|
|
Taxation credit/(expense) less tax
paid
|
81
|
(1)
|
113
|
|
Net
cash flows used in operations
|
(1,583)
|
(3,499)
|
(4,967)
|
The share-based payment charge has
increased to £311,000 in the six months to 30 June 2024 (six months
to 30 June 2023: £135,000) due to the extension of the life of
historic vested options in order to align to the Group's standard
10-year option life. This resulted in a one-off charge of
£226,000.
10.
Copies of interim financial statements
Copies of the interim financial
statements are available from the Company at its registered office
at Tunbridge Court, Tunbridge Lane, Bottisham, Cambridge, CB25 9TU.
The interim financial information document will also be available
on the Company's website www.cambridgecognition.com.