Cambridge Cognition's sales up after investments in marketing

Cambridge Cognition’ half-year revenues grew and losses were more than halved as the neuroscience software and hardware company's invested in marketing and development.

For the six months ended 30 June, revenue increased by 11.3% to £3.26, compared to the same period last year.

The AIM listed company’s high-margin software and services grew 12.3% and the hardware revenue increased year-on-year due to a fulfilment of a large contract.

The underlying trend for hardware sales remained downwards, as growth in connect cloud based software reduced the company’s reliance on lower margin hardware.

Revenue from the pharmaceutical clinical trial business was up 17.3% to £2.24m and revenue from the academic research business rose 4.2% to £1m, which won its largest ever order from an international biobank.

Earnings before interest, tax, depreciation and amortisation (EBITDA) losses reduced by 57% to £110,000 and loss before tax narrowed by 46% to £150,000, with loss per share reduced to 0.6p from 1.7p.

Cash balance at the end June was £1.38m, an 81.5% increase from December 2015.

In April, the company raised £1.25m from a share placing, which the company invested in sales, marketing and for technology products in the pipeline.

During the six months the company restructured and strengthened the US and Europe sales infrastructure and launched its first online testing product which led the company to secure its first pharmaceutical collaboration for the testing product.

Chief executive Steven Powell, said: "The results from the first half of the year reflect the significant advances that have been made in marketing of our core products and technology developments that have resulted in the launch of our online and wearable platforms.

“Our products and technologies are now aligned with all stages of our customers' drug development cycle and the commercial focus is now set to maximise the opportunities presented by existing sales channels."

Shares in Cambridge Cognition Holdings were down 5.88% to 72p at 0906 BST.