13th Mar 2014 12:08
LONDON (Alliance News) - Cambridge Cognition Holdings PLC expressed confidence Thursday that it would return to growth in 2014, after it posted a widened pretax loss in 2013 due to lower revenue.
Cambridge Cognition provides computerised neuropsychological tests, particularly to enable early detection of dementia. It floated on AIM in April 2013.
The company posted a pretax loss of GBP3.0 million in 2013, widened from GBP1.6 million in the previous year, as revenue declined to GBP4.2 million from GBP5.7 million.
Revenue was hampered by a weaker performance from the company's clinical trials business, where sales of its Cantab Solutions declined to GBP2.5 million from GBP4.2 million. Cambridge Cognition said there were fewer new studies using cognitive assessments in 2013, and the timing of expected orders from pharmaceutical clients has shifted later.
Revenues in the company's academic business rose to GBP1.5 million from GBP1.4 million, and revenues from its newly launched iPad-based product Cantab Mobile rose to GBP158,000 from GBP98,000.
Cambridge said that 415 Cantab Mobile trial licenses are in use across the UK, and noted that it had seen an excellent trial conversion rate so far. The company raised GBP5.0 million in its initial public offering, which it planned to use to accelerate the roll out of the mobile product.
The company said it had seen a positive start to trading in the first quarter of 2014. Although its clinical trials business has seen a slow start, it has sped up as it signed contracts for new studies. Cambridge said it remains on track to deliver growth in this business in 2014.
Cambridge plans to launch three new products in the third quarter for both clinical and academic applications.
"We have worked hard to refocus the business on commercial success, and I am confident that we will return the business to growth in 2014," said Chief Executive Nick Kerton in a statement.
Shares in Cambridge Cognition were trading up 2.1% at 71.00 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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