27th Sep 2022 12:12
(Alliance News) - Kooth PLC on Tuesday reported a widened interim loss, despite revenue rising by 13%, and announced a significant contract win with the Pennsylvania state.
For the six months that ended on June 30, the London-based digital mental health platform recorded a 13% rise in revenue to GBP9.0 million from GBP8.0 million a year ago.
Recurring revenue was up 11% to GBP18.5 million from GBP16.6 million, with 22 new contracts obtained in the first half of 2022 "across all service lines in addition to a number of contract uplifts", Boku noted.
Pretax loss, however, widened to GBP571,000 from GBP145,000, as administrative expenses climbed by 19% to GBP6.8 million from GBP5.7 million a year ago.
Chief Executive Tim Barker said: "Our pipeline and strong retention rates support our confidence that group revenue for the full year will be in line with the range of market expectations. In the long-term, we anticipate that our robust balance sheet will continue to enable us to invest to meet increasing demand for Kooth's platform."
Looking ahead, Kooth said it expects to continue to invest in its technology platform, systems and talent in the second half of 2022. It is confident of meeting full-year market revenue expectations.
In a separate statement, Kooth said it agreed to the terms of a USD3.0 million contract with the US state of Pennsylvania.
It said the contract will see Kooth provide its platform to 30 school districts within Pennsylvania, and if, the pilot is successful, the contract would be extended to include more of the state's 500 school districts.
Kooth expects about one third of the contract value to be booked as revenue in 2022.
Barker added: "This government-funded contract is our first major contract win in the US and is an exciting opportunity to deliver personalised, effective mental health to support an entire school community in the United States."
Shares were up 2.1% at 117.40 pence each around Tuesday midday in London.
By Xindi Wei; [email protected]
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