Cambridge Cognition shares tumble after profit warning

Digital solutions developer Cambridge Cognition warned on Tuesday that interim losses looked set to widen after revenues dwindled and costs grew in the six months ended 30 June.

Cambridge Cognition saw losses widen 68.9% to £1.74m during the first half of the year, while revenues fell 21% to £2.17m.

While Cambridge Cognition reported a "strong" order book of £6.43m, up from £5.95m the previous year, the group also warned that with some "challenging" trading conditions in other units, full-year losses were expected to be around £2.8m, almost double the £1.44m loss in 2018.

The AIM-listed group said this was largely a result of the reduction in revenue and a 30% increase in research and development investment.

Chief executive Matthew Stork said: "Whilst trading has been difficult this year for the core product range, the company is taking steps to improve commercialisation and to improve sales in the second half of 2019 and beyond into 2020."

At 0915 BST, Cambridge Cognition shares were down 42.40% to 36p.