14th Aug 2024 14:22
(Alliance News) - Intelligent Ultrasound Group PLC on Wednesday said a slump in sales in the UK and North American markets resulted in weaker financial performance in the first half.
The Cardiff, Wales-based ultrasound company specialises in artificial intelligence, software and simulation.
Pretax loss widened to GBP1.4 million in the first half that ended June 30 from GBP568,000 the previous year.
Revenue fell 22% to GBP4.5 million from GBP5.8 million, with cost of sales reducing by 15% to GBP2.0 million from GBP2.3 million.
In the UK, sales declined 58% to GBP800,000 while North American revenue fell 23% to GB2.2 million.
Post-period end, Intelligent Ultrasound announced in July that it agreed to sell its Clinical AI business to GE HealthCare Technologies Inc for an enterprise value of GBP40.5 million.
The sale, which excludes NeedleTrainer and NeedleTrainer Plus products, is due to complete in October following regulatory approval.
Chair Riccardo Pigliucci said: "The remaining Simulation Business had a difficult trading period in the first half of this year with a material decline in sales in the UK due to NHS budgeting constraints and a decline in the US due to delivery backlog and purchase order delays.
"However, going forward Simulation will be boosted by the inclusion of the NeedleTrainer range previously reported in our Clinical AI business, and the board will use the time between signing and completion to conduct a comprehensive review of the business."
The board expressed its intention to "make a material return of capital" once the review of the company's growth potential and capital requirements post-transaction is complete.
Intelligent Ultrasound shares were down 5.9% to 10.00 pence each in London on Wednesday afternoon.
By Elijah Dale, Alliance News reporter
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