New contract wins of £15m spark revenue growth at Ixico

Ixico has achieved a 32% increase in annual revenues after expanding the range of medical imaging services that it provides, the company said on Monday.

For the year ended 30 September, the neuroscience-focused data science outfit saw its revenue jump 32% to £5.4m and secured a number of new multi-year projects which are worth a combined total of more than £15m, including a £9.1m contract to deliver services in a Phase III trial.

The new projects include the supply of new services and wearable biosensor projects, from which Ixico has received preliminary revenue.

Meanwhile, total income increased by 25% to £6.0m, up from £4.8m in 2017, while other income was in line with the prior year at £0.6m.

The AIM traded company had net cash of £7.9m at 30 September, after an over-subscribed placing in May to raise funds for a new commercially-led growth strategy.

Notable cash inflows also included a research and development tax credit receipt of £0.4m and reimbursement of grant costs.

Analysts at Shore Capital said that the company was “comfortably” ahead of its forecasts having achieved revenue growth of more than 25% for two years running.

“We remain enthused by Ixico’s progress and view momentum in new contract wins as evidence of continuing success from its renewed focus on a commercially-led growth strategy,” said the broker in a note to clients on Monday.

Full preliminary results for the year will be released on 4 December.

IXICO’s shares were up by 2.73% at 28.25p at 0821 BST.