22 August 2024
Cambridge Cognition Holdings plc
("Cambridge Cognition", the "Company" or the "Group")
Unaudited Interim Results for the six months ended 30 June 2024
Cambridge Cognition Holdings plc (AIM: COG), which develops and markets digital solutions to assess brain health, announces its unaudited interim results for the six-month period ended 30 June 2024 (the "period").
Financial highlights
Revenue is in line with the same period in 2023, which combined with a material reduction in costs, has reduced the adjusted operating loss significantly to £0.1 million (H1 2023: loss of £2.0 million):
· Revenue of £5.6m (H1 2023: £6.0m)
· Gross margin increased to 80.7% (H1 2023: 78.8%)
· R&D expense decreased 35.2% to £1.4m (H1 2023: £2.2m)
· Total operating expenditure decreased 35.3% to £5.4m (H1 2023: £8.4m)
· Adjusted operating loss reduced by £1.9m to £0.1m (H1 2023: loss £2.1m)
· Raised £2.6m to support the balance sheet and business development
· Cash balances of £3.4m at 30 June 2024 (31 December 2023 £3.2m)
Operational highlights
Following a challenging end to 2023 and tough trading conditions during the period, we executed two critical actions to strengthen the underlying business:
· Increased investment in the Group's commercial capability to enable it to exploit the central nervous systems ("CNS") clinical trials market through the combination of a clear product focus on cognitive assessments, CNS eCOA, and automated quality assurance solutions, and an expanded commercialisation team with deep sector experience and contacts. The market is already large (estimated at $700 million in 2024) and is forecast to grow at 15% per annum from 2024 to 2029, and
· A significant reduction of the cost base in H1 2024 has created a more agile business, which is better positioned to deliver sustainable profitability and cashflow as sales orders and revenues accelerate.
Commenting on the results, Matthew Stork, Chief Executive Officer of Cambridge Cognition, said:
"I'm pleased with the progress made during the first half as major steps were taken to strengthen our operation and business. The acquisitions of Clinpal and Winterlight are delivering new and expanded solutions and our recently enhanced commercial team is generating a growing pipeline of new business opportunities. All these actions support our core objective to ensure we close 2024 with a secure balance sheet and a strong contracted order book of business to drive sustainable profitability and cashflow."
Investor webinar
Cambridge Cognition will host an online presentation and Q&A session at 16:00BST on 28 August 2024. This session is open to all existing and prospective shareholders. Those wishing to attend should email cog@hudsonsandler.com and they will be provided with log in details.
Participants will have the opportunity to submit questions during the session, but questions are welcomed in advance and may be sent to cog@hudsonsandler.com.
Enquiries:
|
Cambridge Cognition Holdings plc Matthew Stork, Chief Executive Officer |
Tel: 012 2381 0700 |
|
Panmure Liberum Limited (NOMAD and Joint Broker) Will Goode / Freddy Crossley / Mark Rogers Rupert Dearden |
Tel: 020 7886 2968 (Corporate Finance) (Corporate Broking) |
|
Dowgate Capital Limited (Joint Broker) David Poutney / Nicholas Chambers |
Tel: 020 3903 7715
|
|
Hudson Sandler (Financial PR and IR) Dan de Belder / Hattie Dreyfus |
Tel: 020 7796 4133
|
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
CHIEF EXECUTIVE OFFICER'S REVIEW
Business Review
During 2023 and early 2024, trading conditions remained challenging globally for the pharmaceutical sector, which has been impacted by inflationary trends and high interest rates. Following a period of several years of revenue growth, we responded by delivering two critical actions to strengthen the business:
· increasing commercial capability with increased capacity and deeper expertise and,
· reducing the cost base of the business without impairing short-term growth potential.
Our objective is to deliver sustainable profitability (which we define as "adjusted operating profit") and sustained positive cashflow.
Increased commercial capability
To drive commercial performance, the Company recruited Alex Livingstone-Learmonth as Chief Commercial Officer in the first quarter. Since his appointment he has recruited new team members with considerable experience and developed fresh contacts within the sector, increasing both the number and value of opportunities in the sales pipeline. While contracted sales orders were modest in the first half, we expect to see an improvement as the year develops.
We are focusing our efforts on product and service areas where we have a leading and/or highly differentiated position, particularly cognitive assessments (CANTAB and Winterlight), eCOA and AQUA, enabling the delivery of a tailored solution to challenging clinical studies where we demonstrate world-class domain expertise.
The recent acquisitions of Clinpal and Winterlight are contributing to the growth of the business. Combining the AQUA and Clinpal eCOA solutions with the Company's leading position in digital cognitive assessments, CANTAB, has given us a strong multi-product solution-oriented offering to meet clients' clinical development needs.
These product launches, together with the strengthening of the commercial operations, has led to a deeper pipeline of new sales opportunities. We are confident this will show increased sales orders in the second half of 2024.
Reduced cost base
The second major initiative completed during the period has been to reduce the cost base to improve operating margins and cash flow generation. Cost savings will not impact on prospects for short-term growth or operational delivery since they have been focused on integration synergies, trimming medium and long-term R&D projects and right-sizing operational and support teams. There has been a moderate increase in spending on commercialisation and maintenance of the healthcare offering.
During late 2023 we reduced the cost base by £1.5 million per annum. In the first half of 2024 we completed a second review following integration of Clinpal and Winterlight. This review reduced the cost base by an additional £2.0 million per annum, resulting in combined annual savings of £3.5 million per annum.
Financial results
As announced previously at the time of the fundraising in May 2024 and in the trading update published in July 2024, market conditions remained challenging in H1 2024. Revenue for the period was at a similar level to the same period in 2023. Nevertheless changes to the Company's cost base have delivered a significant positive improvement of £1.9 million at the adjusted operating profit level, with the adjusted operating loss reduced from £2.0 million in H1 2023 to £0.1 million for H1 2024.
The financial results for the period can be summarised as:
· Revenue of £5.6m (H1 2023: £6.0m)
· Gross margin increased to 80.7% (H1 2023: 78.8%)
· R&D expense decreased 35.2% to £1.4m (H1 2023: £2.2m)
· Total operating expenditure decreased 35.3% to £5.4m (H1 2023: £8.4m)
· Adjusted operating loss reduced by £1.9 million to £0.1m (H1 2023: loss £2.1m)
· Raised £2.6m to support the balance sheet and business development
· Cash balances of £3.4m at 30 June 2024 (31 December 2023 £3.2m)
Revenue is recognised as services are delivered to clinical studies that are executed over several years. This brings a degree of stability based on the strength of the order book and underpins future revenue generation.
This contracted order book provides good visibility over revenues for the full year, which are expected to be weighted to the second half of 2024. This is in line with historic performance. At 30 June 2024 the order book was £14.6 million (31 Dec 2024: £17.2 million), but is expected to increase in H2.
In May 2024 we raised £2.6 million by way of a placing of 6,561,057 new Ordinary Shares at 40 pence each with participation from both certain existing and new shareholders. We were delighted by the strong level of support shown for the Placing. The funds raised enable us to grow technical and business development activities; to explore healthcare opportunities; for working capital purposes, including expansion of the commercial team; continuation of core development projects and provision of balance sheet strength.
At 30 June 2024 cash balances were £3.4 million (31 December 2023: £1.9million).
As announced previously, recruitment of a new CFO is progressing and we have added additional interim, senior financial resource. Further updates will be made in due course.
Outlook
The changes made to the commercial team have resulted in an expanded pipeline of new business opportunities. As a result, we have increasing confidence that this will increase the long-term value of our contracted order book and underpin future revenue generation.
We are beginning to see commercial benefits in the roll out of AQUA and the expanded eCOA product. Both of these are generating new business opportunities.
Costs continue to be managed tightly to support the existing product portfolio and grow the business. We are now a more agile business, better positioned to deliver profitability and cashflow as sales orders and revenue accelerate. As a result of the actions taken during the year, combined with our clear growth strategy, we expect to deliver further success and value to our stakeholders.
Matthew Stork
Chief Executive Officer
For the six months ended 30 June 2024
|
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
Note |
£'000 |
£'000 |
£'000 |
|
Revenue |
4 |
5,603 |
6,039 |
13,515 |
|
Cost of sales |
|
(1,079) |
(1,281) |
(2,717) |
|
Gross profit |
|
4,524 |
4,758 |
10,798 |
|
Research and development expense |
|
(1,397) |
(2,176) |
(3,847) |
|
Sales and marketing expense |
|
(1,159) |
(1,881) |
(2,983) |
|
Administrative expense |
|
(2,726) |
(3,408) |
(6,139) |
|
Non-recurring items |
5 |
(144) |
(940) |
(1,456) |
|
Total operating expense |
|
(5,426) |
(8,405) |
(14,425) |
|
Other operating income |
|
63 |
230 |
322 |
|
Operating loss |
|
(839) |
(3,417) |
(3,305) |
|
Adjusted operating loss |
|
(108) |
(2,060) |
(1,128) |
|
Adjusting items1 |
5, 7 |
(731) |
(1,357) |
(2,177) |
|
Operating loss |
|
(839) |
(3,417) |
(3,305) |
|
Interest receivable |
|
12 |
6 |
16 |
|
Finance costs |
|
(303) |
(6) |
(168) |
|
Loss before tax |
|
(1,130) |
(3,417) |
(3,457) |
|
Tax credit/(expense) |
|
10 |
106 |
(51) |
|
Loss for the period |
|
(1,120) |
(3,311) |
(3,508) |
|
Other comprehensive (loss)/income |
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
Exchange differences on translation of foreign operations |
|
(165) |
41 |
(210) |
|
Items that may not be reclassified subsequently to profit or loss: |
|
|
|
|
|
Fair value movements in equity investments |
|
- |
- |
107 |
|
Total comprehensive loss for the period |
|
(1,285) |
(3,270) |
(3,611) |
|
Loss per share (pence) |
|
|
|
|
|
Basic |
6 |
(3.2) |
(9.6) |
(10.1) |
|
Diluted |
6 |
(3.2) |
(9.6) |
(10.1) |
All amounts are attributable to equity holders in the parent.
The above results relate to continuing operations.
1. Adjusting items comprise amortisation of acquisition related intangible assets of £276,000 (H1 2023: £282,000, 2023: £561,000), non-recurring items of £144,000 (H1 2023: £940,000, 2023: £1,456,000) and share-based payments of £311,000 (H1 2023: £135,000, 2023: £160,000). See note 5 for further details on non-recurring items and note 7 for intangible assets.
Consolidated statement of financial position
At 30 June 2024
|
|
|
At 30 June 2024 |
At 30 June 2023 |
At 31 December 2023 |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
£'000 |
£'000 |
£'000 |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Goodwill |
|
3,575 |
3,682 |
3,653 |
|
Other intangible assets |
7 |
3,727 |
4,404 |
4,089 |
|
Property, plant and equipment |
|
68 |
177 |
133 |
|
Investments |
|
156 |
49 |
156 |
|
Trade and other receivables |
|
20 |
- |
20 |
|
Total non-current assets |
|
7,546 |
8,312 |
8,051 |
|
Current assets |
|
|
|
|
|
Inventories |
|
188 |
244 |
187 |
|
Trade and other receivables |
|
2,655 |
3,698 |
2,417 |
|
Current tax receivable |
|
210 |
138 |
351 |
|
Cash and cash equivalents |
|
3,434 |
1,891 |
3,222 |
|
Total current assets |
|
6,487 |
5,971 |
6,177 |
|
Total assets |
|
14,033 |
14,283 |
14,228 |
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
2,616 |
3,127 |
2,603 |
|
Deferred income on contracts with customers |
|
6,500 |
10,158 |
7,699 |
|
Loans and borrowings |
|
879 |
- |
566 |
|
Current tax payable |
|
19 |
- |
99 |
|
Total current liabilities |
|
10,014 |
13,285 |
10,967 |
|
Non-current liabilities |
|
|
|
|
|
Loans and borrowings |
|
1,475 |
- |
1,978 |
|
Total non-current liabilities |
|
1,475 |
- |
1,978 |
|
Total liabilities |
|
11,489 |
13,285 |
12,945 |
|
Equity |
|
|
|
|
|
Share capital |
8 |
417 |
349 |
350 |
|
Share premium |
|
17,337 |
15,152 |
15,169 |
|
Other reserves |
|
5,448 |
5,864 |
5,613 |
|
Own shares |
|
(71) |
(71) |
(71) |
|
Retained earnings |
|
(20,587) |
(20,296) |
(19,778) |
|
Total equity |
|
2,544 |
998 |
1,283 |
|
Total liabilities and equity |
|
14,033 |
14,283 |
14,228 |
Consolidated statement of changes in equity
At 30 June 2024
|
|
Share capital |
Share premium |
Other reserve |
Own shares |
Retained earnings |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
At 1 January 2023 (audited) |
312 |
11,151 |
5,823 |
(71) |
(17,120) |
95 |
|
Loss for the period |
- |
- |
- |
- |
(3,311) |
(3,311) |
|
Other comprehensive income |
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
41 |
- |
- |
41 |
|
Total comprehensive income/(loss) for the period |
- |
- |
41 |
- |
(3,311) |
(3,270) |
|
Transactions with owners |
|
|
|
|
|
|
|
Issue of new shares in relation to business combination |
34 |
3,966 |
- |
- |
- |
4,000 |
|
Issue of new shares in relation to exercise of employee share options |
3 |
35 |
- |
- |
- |
38 |
|
Credit to equity for share-based payments |
- |
- |
- |
- |
135 |
135 |
|
Transactions with owners |
37 |
4,001 |
- |
- |
135 |
4,173 |
|
At 30 June 2023 (unaudited) |
349 |
15,152 |
5,864 |
(71) |
(20,296) |
998 |
|
Loss for the period |
- |
- |
- |
- |
(197) |
(197) |
|
Other comprehensive income/(loss) |
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
(251) |
- |
- |
(251) |
|
Fair value movements on equity investments |
- |
- |
- |
- |
107 |
107 |
|
Total comprehensive income/(loss) for the period |
- |
- |
(251) |
- |
90 |
(341) |
|
Transactions with owners |
|
|
|
|
|
|
|
Issue of new shares in relation to exercise of employee share options |
1 |
17 |
- |
- |
- |
18 |
|
Credit to equity for share-based payments |
- |
- |
- |
- |
25 |
25 |
|
Post-combination remuneration |
- |
- |
- |
- |
309 |
309 |
|
Issue of warrants |
- |
- |
- |
- |
274 |
274 |
|
Transactions with owners |
1 |
17 |
- |
- |
608 |
626 |
|
At 31 December 2023 (audited) |
350 |
15,169 |
5,613 |
(71) |
(19,778) |
1,283 |
|
Loss for the period |
- |
- |
- |
- |
(1,120) |
(1,120) |
|
Other comprehensive loss |
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
(165) |
- |
- |
(165) |
|
Total comprehensive loss for the period |
- |
- |
(165) |
- |
(1,120) |
(1,285) |
|
Transactions with owners |
|
|
|
|
|
|
|
Issue of new shares in relation to equity fundraising |
65 |
2,559 |
- |
- |
- |
2,624 |
|
Transaction costs relating to issue of share capital |
- |
(446) |
- |
- |
- |
(446) |
|
Issue of new shares in relation to exercise of employee share options |
2 |
55 |
- |
- |
- |
57 |
|
Credit to equity for share-based payments |
- |
- |
- |
- |
311 |
311 |
|
Transactions with owners |
67 |
2,168 |
- |
- |
311 |
2,546 |
|
At 30 June 2024 (unaudited) |
417 |
17,337 |
5,448 |
(71) |
(20,587) |
2,544 |
Consolidated statement of cash flows
For the 6 months ended 30 June 2024
|
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
Note |
£'000 |
£'000 |
£'000 |
|
Net cash flows used in operating activities |
9 |
(1,583) |
(3,499) |
(4,967) |
|
Investing activities |
|
|
|
|
|
Acquisition of subsidiary, net of cash acquired |
|
- |
(3,002) |
(3,002) |
|
Interest received |
|
12 |
6 |
16 |
|
Purchase of property, plant and equipment |
|
- |
(31) |
(33) |
|
Net cash flow generated from/(used in) investing activities |
|
12 |
(3,027) |
(3,019) |
|
Financing activities |
|
|
|
|
|
Proceeds from share issue |
|
2,624 |
- |
- |
|
Transaction costs arising on issue of shares |
|
(446) |
- |
- |
|
Proceeds from borrowings, net of fees incurred |
|
- |
- |
3,054 |
|
Proceeds from exercise of share options |
|
57 |
38 |
56 |
|
Repayment of borrowings |
|
(131) |
- |
(116) |
|
Interest payments |
|
(303) |
- |
(109) |
|
Net cash flows generated from financing activities |
|
1,801 |
38 |
2,885 |
|
Net increase/(decrease) in cash and cash equivalents |
|
230 |
(6,488) |
(5,101) |
|
Cash and cash equivalents at start of period |
|
3,222 |
8,322 |
8,322 |
|
Exchange differences on cash and cash equivalents |
|
(18) |
57 |
1 |
|
Cash and cash equivalents at end of period |
|
3,434 |
1,891 |
3,222 |
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General information
Cambridge Cognition Holdings plc ('the Company') and its subsidiaries (together, 'the Group') develops and markets digital solutions to assess brain health for sale worldwide, principally in the UK, the US and Europe.
The Company is a public limited company listed on the AIM market of the London Stock Exchange (symbol: COG) and is incorporated and domiciled in the UK. The address of its registered office is Tunbridge Court, Tunbridge Lane, Bottisham, Cambridge, CB25 9TU.
The condensed consolidated interim financial statements were approved by the Board of Directors for issue on 21 August 2024. The condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts of the Group for the year ended 31 December 2023 were approved by the Board of Directors on 31 May 2024 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements together with the comparative information for the six months ended 30 June 2023 have not been audited.
2. Accounting policies
2.1 Basis of preparation
As explained in note 2.1 of the Group's 2023 Annual Report, the Group made the following changes in presentation of the Consolidated Statement of Comprehensive Income and Consolidated Statement of Financial Position, which have resulted in restatements of prior period balances:
· Consolidated Statement of Comprehensive Income: the Group previously combined Research and development expense, Sales and marketing expense and Administrative expense into Administrative expense (excluding non-recurring items). These have been separately presented to better present the nature of the expenditure. The overall operating loss for the period ended 30 June 2023 remains unchanged.
· Consolidated Statement of Financial Position: the Group previously combined Goodwill and Other intangible assets within Intangible assets. These have been separately presented due to their materiality. The overall total and net asset balance at 30 June 2023 remain unchanged.
2.2 Going concern
The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, support the conclusion that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than twelve months from the date of this report. The Directors believe that the Group will remain a going concern for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its condensed consolidated interim financial statements.
2.3 Accounting policies
The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's consolidated financial statements for the year ended 31 December 2023.
3. Critical accounting judgements and key sources of estimation uncertainty
There have been no changes to the Group's significant judgements and estimates since the year ended 31 December 2023.
4. Segmental information
The analysis of revenue by product type is as follows:
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Software |
2,693 |
2,872 |
6,532 |
|
Services |
2,781 |
2,891 |
6,364 |
|
Hardware |
129 |
276 |
619 |
|
|
5,603 |
6,039 |
13,515 |
5. Non-recurring items
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Acquisition and integration of Clinpal |
(28) |
214 |
570 |
|
Acquisition and integration of Winterlight |
68 |
459 |
662 |
|
Restructuring |
103 |
267 |
224 |
|
|
143 |
940 |
1,456 |
Non-recurring items are included on the consolidated income statement within administrative expenses.
Acquisition and integration of Clinpal
The Group acquired Clinpal in October 2022, as detailed in note 15.1 of the Group's 2023 Annual Report. As a result of the departure of a member of the Clinpal team in 2024 the Group reversed the related charge for retention payments. The Group will continue to accrue for retention payment amounts for the relevant members of staff who remain with the business until 31 December 2024.
Acquisition and integration of Winterlight
The Group acquired Winterlight Labs Inc in January 2023, as detailed in note 15.2 of the Group's 2023 Annual Report. Costs in the six months to 30 June 2024 relate to retention awards for key staff. This expense is anticipated to continue until July 2024.
Restructuring
The Group completed a significant, multi-department restructuring exercise in the six months to 30 June 2024. No further expense is anticipated in relation to this exercise.
6. Loss per share
Calculation of loss per share is based on the following loss and numbers of shares:
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Loss attributable to owners of the Company for the purposes of: |
|
|
|
|
Basic and diluted loss per share |
(1,120) |
(3,311) |
(3,508) |
|
|
|
|
|
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
'000 |
'000 |
'000 |
|
Weighted average number of shares for the purposes of: |
|
|
|
|
Basic and diluted loss per share |
35,342 |
34,347 |
34,586 |
The diluted loss per share is considered to be the same as the basic loss per share. Potential dilutive shares are not treated as dilutive where they could result in an increased loss per share.
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
Pence |
Pence |
Pence |
|
Loss per share |
|
|
|
|
Basic and diluted loss per share |
(3.2) |
(9.6) |
(10.1) |
See note 8 for details of the total number of shares in issue.
7. Goodwill and Other intangible assets
|
|
Acquisition related intangible assets |
|
|
|||
|
|
Goodwill |
Technology based assets |
Marketing based assets |
Customer based assets |
Licences |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Cost |
|
|
|
|
|
|
|
At 1 January 2023 (audited) |
482 |
955 |
- |
- |
40 |
1,477 |
|
Acquired in business combinations |
3,314 |
3,055 |
520 |
308 |
- |
7,197 |
|
Exchange adjustment |
(114) |
(105) |
(18) |
(11) |
- |
(248) |
|
At 30 June 2023 (unaudited) |
3,682 |
3,905 |
502 |
297 |
40 |
8,426 |
|
Exchange adjustment |
(29) |
(26) |
(4) |
(3) |
- |
(62) |
|
At 31 December 2023 (audited) |
3,653 |
3,879 |
498 |
294 |
40 |
8,364 |
|
Exchange adjustment |
(78) |
(73) |
(13) |
(7) |
- |
(171) |
|
At 30 June 2024 (unaudited) |
3,575 |
3,806 |
485 |
287 |
40 |
8,193 |
|
Amortisation and impairment |
|
|
|
|
|
|
|
At 1 January 2023 (audited) |
- |
32 |
- |
- |
24 |
56 |
|
Amortisation charge |
- |
249 |
17 |
16 |
3 |
285 |
|
Exchange adjustment |
- |
- |
- |
- |
- |
- |
|
At 30 June 2023 (unaudited) |
- |
281 |
17 |
16 |
27 |
341 |
|
Amortisation charge |
- |
247 |
16 |
16 |
4 |
283 |
|
Exchange adjustment |
- |
(1) |
- |
(1) |
- |
(2) |
|
At 31 December 2023 (audited) |
- |
527 |
33 |
31 |
31 |
622 |
|
Amortisation charge |
- |
245 |
16 |
15 |
3 |
279 |
|
Exchange adjustment |
- |
(9) |
(1) |
- |
- |
(10) |
|
At 30 June 2024 (unaudited) |
- |
763 |
48 |
46 |
34 |
891 |
|
Net book value |
|
|
|
|
|
|
|
At 1 January 2023 (audited) |
482 |
923 |
- |
- |
16 |
1,421 |
|
At 30 June 2023 (unaudited) |
3,682 |
3,624 |
485 |
282 |
13 |
8,086 |
|
At 31 December 2023 (audited) |
3,653 |
3,352 |
465 |
263 |
9 |
7,742 |
|
At 30 June 2024 (unaudited) |
3,575 |
3,043 |
437 |
241 |
6 |
7,302 |
8. Share capital
|
|
Number |
£'000 |
|
At 1 January 2023 (audited) |
31,170,093 |
312 |
|
Issue of new shares for the acquisition of Winterlight Labs Inc |
3,445,595 |
34 |
|
Exercise of share options |
237,145 |
3 |
|
At 30 June 2023 (unaudited) |
34,852,833 |
349 |
|
Exercise of share options |
107,276 |
1 |
|
At 31 December 2023 (audited) |
34,960,109 |
350 |
|
Issue of new shares in relation to exercise of employee share options |
189,263 |
2 |
|
Issue of new shares in relation to equity fundraising |
6,561,057 |
65 |
|
At 30 June 2024 (unaudited) |
41,710,429 |
417 |
All ordinary shares are issued and fully paid and carry equal voting and distribution rights. There are no other classes of shares.
During the six months to 30 June 2024, the Company issued 189,263 (6 months to 30 June 2023: 237,145) ordinary shares of 1 pence each with a nominal value of £1,893 (6 months to 30 June 2023: £2,371) pursuant to the exercise of shares options.
On 18 and 19 June 2024, the Company issued 6,561,057 ordinary shares of 1 pence each with a nominal value of £65,611 as part of an equity fundraise. Directly associated transaction fees of £446,000 were incurred which have been offset against share premium.
9. Reconciliation of operating result to operating cash flows
|
|
6 months to 30 June 2024 |
6 months to 30 June 2023 |
Year to 31 December 2023 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Loss before tax |
(1,130) |
(3,417) |
(3,457) |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
40 |
46 |
97 |
|
Impairment of property, plant and equipment |
- |
3 |
3 |
|
Amortisation of intangible assets |
279 |
285 |
568 |
|
Share-based payments charge |
311 |
135 |
160 |
|
Finance costs |
303 |
- |
168 |
|
Acquisition related expenses deferred amounts |
- |
202 |
318 |
|
Interest receivable |
(12) |
(6) |
(16) |
|
Research and Development expenditure tax credit |
(13) |
- |
(73) |
|
Operating cash flows before movements in working capital |
(222) |
(2,752) |
(2,232) |
|
(Increase)/decrease in inventories |
- |
(28) |
29 |
|
Decrease/(increase) in trade and other receivables |
(230) |
1,242 |
2,235 |
|
Decrease/(increase) in trade and other payables |
(13) |
3 |
(445) |
|
Decrease in deferred income from contracts with customers |
(1,199) |
(1,963) |
(4,667) |
|
Cash used in operations before tax |
(1,664) |
(3,498) |
(5,080) |
|
Taxation credit/(expense) less tax paid |
81 |
(1) |
113 |
|
Net cash flows used in operations |
(1,583) |
(3,499) |
(4,967) |
The share-based payment charge has increased to £311,000 in the six months to 30 June 2024 (six months to 30 June 2023: £135,000) due to the extension of the life of historic vested options in order to align to the Group's standard 10-year option life. This resulted in a one-off charge of £226,000.
10. Copies of interim financial statements
Copies of the interim financial statements are available from the Company at its registered office at Tunbridge Court, Tunbridge Lane, Bottisham, Cambridge, CB25 9TU. The interim financial information document will also be available on the Company's website www.cambridgecognition.com.
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