TIDMCOG

RNS Number : 3792M

Cambridge Cognition Holdings PLC

21 September 2021

21 September 2021

Cambridge Cognition Holdings Plc

("Cambridge Cognition", the "Company" or the "Group")

Interim Results for the six months ended 30 June 2021

Cambridge Cognition Holdings Plc (AIM: COG), which develops and markets digital solutions to assess brain health, is pleased to announce its unaudited interim results for the six months ended 30 June 2021.

The Company had a strong and profitable first half, delivering revenues of GBP4.5 million, a 50% year-on-year growth. Order intake was above the Board's expectations at GBP8.6 million and this included two substantial orders outside the Company's core area of focus that totalled GBP3.6 million.

The Company is now delivering more clinical trial contracts than at any time in its history, which is reflected in a contracted order book at 30 June 2021 of GBP15.2 million, up 36% from 31 December 2020 and more than double the value at 30 June 2020. The order book contains contracts for clinical trials in which revenue will be recognised over one to six years, further increasing the long-term revenue base for the Company. The forward order pipeline provides a good platform for growth, though at this time does not include the unusually large orders seen in the last two half-year periods.

The direct impact of COVID-19 on the Company's operations has been minimal and the Company continued to deliver high levels of customer service while operating in a remote manner. The pandemic has accelerated interest in virtual clinical trials, with testing performed at home rather than in-clinic, and, as a result, orders for home testing solutions grew. We expect this trend to persist after the pandemic.

Looking forward, the Board believes the Company to be well positioned as a digital technology solutions provider, underpinned by a strong cash position. The Company will continue to take advantage of the growth in interest in developing new pharmaceuticals for Central Nervous Systems ("CNS") disorders and the market shift to virtual clinical trials, continuing to focus on commercial execution and investment in new products to expand the product offer for future growth.

Financial highlights

 
     --       50% year-on-year revenue growth to GBP4.5 million (H1 2020: 
               GBP3.0 million) 
     --       Gross margin maintained at 80% (H1 2020:81%) 
     --       Profit for the period GBP0.1 million (H1 2020: GBP0.4 million 
               loss) 
     --       0.3p basic and diluted earnings per share (H1 2020: 1.5p loss 
               per share) 
     --       Strong cash generation with cash balance of GBP4.2 million 
               (31 December 2020: GBP3.0 million) 
 

Operational highlights

 
     --       Increase in sales orders of 74% to GBP8.6 million (H1 2020: 
               GBP4.9 million) 
     --       Contracted order book of GBP15.2 million, up 36% since 31 December 
               2020 and more than double the value at 30 June 2020 (31 December 
               2020: GBP11.2 million, 30 June 2020: GBP7.4 million) 
     --       Launch of NeuroVocalix(TM), a digital voice cognition solution, 
               ready for clinical trials 
     --       Completed successful spin-out and venture financing of Monument 
               Therapeutics 
 

Commenting on the results Matthew Stork, Chief Executive Officer of Cambridge Cognition, said: "I am delighted with our performance over the first half of the year. We have continued to execute our growth strategy, achieving a number of firsts, including the highest order intake in a six-month period. The Company is well positioned to serve pharmaceutical companies, whose needs are changing as the benefits of virtual clinical trials are embraced globally. We continue to attract interest from a wide range of customers and remain confident in the outlook for the year."

Enquiries:

 
 Cambridge Cognition Holdings Plc                Tel: 01223 810 700 
 Matthew Stork, Chief Executive Officer            press@camcog.com 
 Michael Holton, Chief Financial Officer 
 
 finnCap Ltd (Nomad and Joint Broker)            Tel: 020 7220 0500 
 Geoff Nash / Simon Hicks                       (Corporate Finance) 
 Alice Lane / Charlotte Sutcliffe               (Corporate Broking) 
 
 Dowgate Capital Limited (Joint Broker)          Tel: 020 3903 7715 
 David Poutney / James Serjeant 
 
 IFC Advisory Ltd (Financial PR and              Tel: 020 3934 6630 
  IR) 
 Tim Metcalfe / Graham Herring / Zach      cog@investor-focus.co.uk 
  Cohen 
 

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

Overview

The Company delivered an exceptionally strong financial and operational performance in the first half of 2021, with a further considerable increase in secured orders and successful delivery of new contracts won in 2020 and early 2021. Progress against our strategy to focus on commercialisation of existing and newly developed products continues to be delivered.

Orders received totalled GBP8.6 million (H1 2020: GBP4.9 million). These contracts included a number of major wins for CANTAB(TM) cognitive assessment software, many for at-home use. This is in line with our expectations of a market shift to virtual trials catalysed by the COVID-19 pandemic.

Around two-thirds of the Company's clinical trial orders came from existing customers, reflecting excellent customer service and the benefits of the Company's focus on commercialisation. These sales orders cover a range of cognitive assessments across various clinical trial phases, demonstrating the Company's ability to deliver against a spectrum of client needs with a broader portfolio.

As well as a record sales orders achievement in the first half, I am pleased to report more firsts for Cambridge Cognition in the period. These include:

 
     --    The achievement of a strategic goal by securing an evergreen 
            contract for post-marketing support for a newly licensed pharmaceutical 
            with a top twenty pharma company 
     --    Contract wins in a number of new therapeutic areas; examples 
            include a COVID-19 study measuring the impact of the virus 
            on cognition and an oncology study measuring the neurological 
            effects of brain metastases and chemotherapy agents 
     --    The Company's largest funded clinical trial, assessing many 
            thousands of patients at home with a mixture of longer web-based 
            assessments and high-frequency, quick assessments on mobiles 
     --       The provision of NeuroVocalix(TM), a unique digital voice solution 
               that can conduct common verbal cognitive tests on our regulatory-compliant 
               clinical trial platform 
 

Cambridge Cognition is focused on successful operational delivery to meet today's customer needs, while investing, as is critical for a growing technology business, to meet their future requirements. During the period, the business continued to invest through R&D initiatives and increased headcount across the business to deliver against an increased sales order book whilst looking to drive future growth.

Financial results

Sales orders of GBP8.6 million (H1 2020: GBP4.9 million) contributed to further growth in the Company's contracted order book, which has more than doubled from GBP7.4 million at 30 June 2020 to GBP15.2m at 30 June 2021. The contracted order book represents confirmed orders that are not yet recognised as revenue.

Revenue, which is recognised as software products and associated services are used, grew to GBP4.5 million (H1 2020: GBP3.0 million), a 50% increase and ahead of our initial forecasts for H1 2021. This represents further good growth from GBP2.2 million in H1 2019, a period not impacted by the pandemic.

The key components of revenue are shown in the table below:

 
 Revenue (GBPm)         H1 2021   H1 2020   H1 2019 
 Software & services      4.3       2.9       2.2 
                       --------  --------  -------- 
 Hardware                 0.2       0.1        - 
                       --------  --------  -------- 
 Total                    4.5       3.0       2.2 
                       --------  --------  -------- 
 

Software & services revenue increased by 47% to GBP4.3 million due to the increased number and value of contracts being delivered. Hardware revenue remains a small proportion of the sales mix, though may increase over time as it is possible that the Company supports more trials using wearables.

Gross profit rose by GBP1.1 million to GBP3.6 million (H1 2020: GBP2.5 million) and the gross profit margin of 80% was broadly in line with the prior year (H1 2020: 81%).

Administrative expenses increased by GBP0.7 million to GBP3.6 million (H1 2020: GBP2.9 million). Excluding the impact of foreign currency, administrative expenses increased by GBP0.4 million to GBP3.4 million (H1 2020: GBP3.0 million), reflecting investment in personnel and increased activity. Focused R&D remains important to continue to position the Company at the forefront of the sector, with R&D investment of GBP0.8 million remaining broadly in line with the prior year (H1 2020: GBP0.7 million) and reducing slightly as a percent of revenue.

The rise in gross profit, partially offset by increased administrative expenses, resulted in a profitable first half. Profit before tax, Profit for the period and EBITDA all rose by GBP0.5 million. Consequently, basic and diluted earnings per share improved to 0.3p (H1 2020: 1.5p loss on a basic and diluted basis).

The excellent sales order performance combined with higher level of revenues contributed to strong cash generation, with net cash inflow from operations of GBP1.2 million (H1 2020: GBP0.2 million outflow). This led to an overall improvement in cash to GBP4.2 million as at 30 June 2021.

Operational review

The Company's above expectation sales orders performance in H1 2021 demonstrated continued strong commercial execution. Over the period, the business expanded its marketing and sales team to increase coverage and support sales of the growing product offering.

As with most technology businesses, continued R&D investment in products is essential to support further growth in the future. Progress has been good through the first half of 2021 with developments in:

 
     --    Prototypes of new tests designed for use primarily on mobile 
            phones 
     --    Services supporting multiple clinical trials with wearable 
            devices, providing richer data for clients 
     --    Platform development to enable the delivery of a solution for 
            a newly licensed pharmaceutical 
     --    The production release, further development and planned clinical 
            validation of NeuroVocalix(TM) 
     --    Movement of our infrastructure to Amazon Web Services in multiple 
            geographies 
 

Providing a high level of customer service remains an important element of our offering. Making operational improvements has been important over the period and we have continued to deliver projects on time for customers and received excellent customer feedback. We are now working on over 30% more projects with a 20% increase in service staff compared to June 2020.

Corporate development

During the period, the Company completed the spin-out of Monument Therapeutics Limited ("Monument"), a drug development company applying digital phenotyping to CNS disorders which Cambridge Cognition had been incubating since 2018, with early-stage research supported by two Innovate UK grants. Monument applies a novel drug development strategy, leveraging digital assessments of cognition, to match patients with new pharmaceutical treatments.

To develop these programmes as an independent company, Monument secured GBP2.6 million in funding from a consortium of investors led by Catapult Ventures and Neo Kuma Ventures. Cambridge Cognition retained a 36.9% shareholding and agreed a licence for the use of several of the Company's gold-standard cognitive assessments, including CANTAB(TM), for patient stratification. Upon successful commercialisation of its drug development programmes, Monument will pay royalties to Cambridge Cognition.

Cambridge Cognition is yet to finalise the accounting treatment for Monument. Costs incurred by Cambridge Cognition prior to the spin-out have been disclosed as "Investment" and "Cost of investment" in the balance sheet and cash flow, respectively, for the purposes of this Report.

Board changes

As previously announced, Michael (Mick) Holton, CFO, was appointed as a Board Director at the AGM. Nick Walters, former CFO, continued as an Executive Director until the AGM to conduct a handover with Mick. We are pleased to have Mick on board and are grateful to Nick for seven years' dedicated service.

Outlook

The clinical trials market that the Company serves is large and evolving rapidly, with many drivers of change supporting potential future growth. The market for electronic clinical outcomes assessments is estimated at over US$1bn p.a. and growing at 15%, a trajectory which may increase in pace as a result of:

 
  --    a catalytic effect of the COVID-19 pandemic, with growing evidence 
         that this is likely to be accelerating a move to more virtual 
         clinical trials; and 
  --    technological innovation enabling real-world testing and data 
         capture, which often has meaningful advantages over testing 
         and data captured in-clinic 
 

Cambridge Cognition's core strength is in supporting clinical trials for CNS disorders, though the Company, at times, wins contracts in other therapy areas based on its technology, reputation and levels of service. Pharmaceutical companies are investing more in therapeutics for CNS disorders, with a 20% increase in number of industry sponsored clinical trials from 2020 to 2021, likely underpinned by exciting new drug developments and the approval of a new drug for Alzheimer's disease.

The Company remains firmly on track and we continue to trade in line with market expectations. We continue to see potential for growth for both clinic-based and virtual assessments for cognition, whether for recognised solutions such as CANTAB(TM), or for newer high-frequency digital or voice-based assessments and for electronic Clinical Outcomes Assessment solutions for CNS disorders in clinical trials.

With increasing investment in commercial activities, continued product development, a rising cash balance and supportive shareholder base, the Company is well positioned for further revenue growth. We remain excited about the potential for the future.

Matthew Stork

Chief Executive Officer

21 September 2021

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

For the six months ended 30 June 2021

 
                                             6 months      6 months        Year to 
                                           to 30 June    to 30 June    31 December 
                                                 2021          2020           2020 
                                            Unaudited     Unaudited        Audited 
                                   Note       GBP'000       GBP'000        GBP'000 
                                         ------------  ------------  ------------- 
 
 Revenue                            5           4,500         3,010          6,741 
 Cost of sales                                  (885)         (559)        (1,324) 
                                         ------------  ------------  ------------- 
 Gross profit                                   3,615         2,451          5,417 
 Administrative expenses                      (3,529)       (2,900)        (6,093) 
 Other income                                       -            26             32 
 Finance costs                                    (2)           (5)            (5) 
                                         ------------  ------------  ------------- 
 Profit / (loss) before tax                        84         (428)          (649) 
 Tax                                                -             4            211 
                                         ------------  ------------  ------------- 
 Profit / (loss) for the period                    84         (424)          (438) 
                                         ============  ============  ============= 
 
 
 Earnings / loss per share (pence)    6 
 Basic                                    0.3   (1.5)   (1.5) 
 Diluted                                  0.3   (1.5)   (1.5) 
 

All amounts are attributable to equity holders in the parent.

 
 Profit / (loss) for the period             84   (424)   (438) 
 
 Other comprehensive income - items 
  that may be reclassified subsequently 
  to profit or loss: 
 
   Exchange differences on translation 
   of foreign operations                    51   (153)      93 
                                          ----  ------  ------ 
 Total comprehensive income / (expense) 
  for the period                           135   (577)   (345) 
                                          ====  ======  ====== 
 

Consolidated statement of financial position

At 30 June 2021

 
                                       At 30 June   At 30 June   At 31 December 
                                             2021         2020             2020 
                                        Unaudited    Unaudited          Audited 
                                          GBP'000      GBP'000          GBP'000 
                                      -----------  -----------  --------------- 
 Assets 
 Non-current assets 
 Intangible assets                            376          382              379 
 Property, plant and equipment                105           69              138 
  Investment                       7           49            -                - 
 
 Total non-current assets                     530          451              517 
 
 Current assets 
 Inventories                                  138           47               51 
 Trade and other receivables                5,025        2,529            2,648 
 Cash and cash equivalents                  4,168        1,959            3,047 
                                      -----------  -----------  --------------- 
 
 Total current assets                       9,331        4,535            5,746 
                                      -----------  -----------  --------------- 
 
 Total assets                               9,861        4,986            6,263 
                                      ===========  ===========  =============== 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                   9,600        5,163            6,206 
 
 Total liabilities                          9,600        5,163            6,206 
                                      -----------  -----------  --------------- 
 
 Equity 
 Share capital                                312          312              312 
 Share premium                             11,151       11,151           11,151 
 Other reserves                             6,162        5,865            6,111 
 Own shares                                  (78)         (81)             (78) 
 Retained earnings                       (17,286)     (17,424)         (17,439) 
                                      -----------  -----------  --------------- 
 
 Total equity / (shareholders' 
  deficit)                                    261        (177)               57 
                                      -----------  -----------  --------------- 
 
 Total liabilities and equity               9,861        4,986            6,263 
                                      ===========  ===========  =============== 
 

Consolidated statement of changes in equity

 
                              Share      Share      Other       Own    Retained 
                            capital    premium    reserve    shares    earnings     Total 
                            GBP'000    GBP'000    GBP'000   GBP'000     GBP'000   GBP'000 
------------------------  ---------  ---------  ---------  --------  ----------  -------- 
 Balance at 1 January 
  2020                          242      9,943      6,018      (81)    (17,066)     (944) 
 Loss for the period              -          -          -         -       (424)     (424) 
 Other comprehensive 
  expense                         -          -      (153)         -           -     (153) 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Total comprehensive 
  expense for the 
  period                          -          -      (153)         -       (424)     (577) 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Issue of new share 
  capital                        70      1,330          -         -           -     1,400 
 Share issue costs                -      (122)          -         -           -     (122) 
 Credit to equity 
  for share-based 
  payments                        -          -          -         -          66        66 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Transactions with 
  owners                         70      1,208          -         -          66     1,344 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Balance at 30 June 
  2020                          312     11,151      5,865      (81)    (17,424)     (177) 
 Balance at 1 July 
  2020                          312     11,151      5,865      (81)    (17,424)     (177) 
 Loss for the period              -          -          -         -        (14)      (14) 
 Other comprehensive 
  income                          -          -        246         -           -       246 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Total comprehensive 
  income / (expense) 
  for the period                  -          -        246         -        (14)       232 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Transfer on allocation 
  of shares held 
  in trust                        -          -          -         3         (3)         - 
 Credit to equity 
  for share-based 
  payments                        -          -          -         -           2         2 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Transactions with 
  owners                          -          -          -         3         (1)         2 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Balance at 31 December 
  2020                          312     11,151      6,111      (78)    (17,439)        57 
------------------------  ---------  ---------  ---------  --------  ----------  -------- 
 Balance at 1 January 
  2021                          312     11,151      6,111      (78)    (17,439)        57 
 Profit for the 
  period                          -          -          -         -          84        84 
 Other comprehensive 
  income                          -          -         51         -           -        51 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Total comprehensive 
  income for the 
  period                          -          -         51         -          84       135 
 Credit to equity 
  for share-based 
  payments                        -          -          -         -          69        69 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Transactions with 
  owners                          -          -          -         -          69        69 
                          ---------  ---------  ---------  --------  ----------  -------- 
 Balance at 30 June 
  2021                          312     11,151      6,162      (78)    (17,286)       261 
                          ---------  ---------  ---------  --------  ----------  -------- 
 

Consolidated statement of cash flows

For the 6 months ended 30 June 2021

 
                                                        6 months      6 months        Year to 
                                                      to 30 June    to 30 June    31 December 
                                                            2021          2020           2020 
                                                       Unaudited     Unaudited        Audited 
                                              Note       GBP'000       GBP'000        GBP'000 
                                                    ------------  ------------  ------------- 
 
 Net cash flows from operating activities      8           1,236         (163)          1,010 
 Investing activities 
 Interest on bank deposits                                     -             2              4 
 Purchase of property, plant and 
  equipment                                                 (38)          (22)           (42) 
 Cost of investment                            7            (49)             -              - 
                                                    ------------  ------------  ------------- 
 
 Net cash flow used in investing 
  activities                                                (87)          (20)           (38) 
 
 Financing activities 
 Proceeds from the issue of share 
  capital net of costs                                         -         1,278          1,278 
 Lease payments                                             (36)          (57)          (113) 
                                                    ------------  ------------  ------------- 
 
 Net cash flows from financing activities                   (36)         1,221          1,165 
 
 Net increase in cash and cash equivalents                 1,113         1,038          2,137 
 Cash and cash equivalents at start 
  of period                                                3,047           901            901 
 Exchange differences on cash and 
  cash equivalents                                             8            20              9 
                                                    ------------  ------------  ------------- 
 
 Cash and cash equivalents at end 
  of period                                                4,168         1,959          3,047 
                                                    ============  ============  ============= 
 
 

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 quoted 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 September 2021. 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 2020 were approved by the Board of Directors on 27 May 2021 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 2020 have not been audited.

2. Basis of preparation

Going concern basis

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 also believe that the Group is able to survive the consequences of reasonably forecastable impacts of a resurgence of the COVID-19 pandemic. The Group therefore continues to adopt the going concern basis in preparing its condensed consolidated interim financial statements.

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 2020.

4. Critical accounting judgments and key sources of estimation uncertainty

In the application of the Group's accounting policies the Directors are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

The following are the critical judgments that the Directors have made in the process of applying the Group's accounting policies.

Revenue recognition

Judgments may be required in recognising revenue and cost. These judgments include:

 
  --    The extent to which, and the way in which, contracts are separated 
         into their component parts and the values attributed to those 
         parts; 
  --    Whether software licences are granted to allow the customer 
         the benefit of use of our intellectual property over a period 
         of time (including benefitting from future maintenance and 
         improvements) or whether that right is given as the intellectual 
         property exists at the point of time the licence is granted. 
         In the case of the former, software is recognised over the 
         period of use, for the latter revenue is recognised when the 
         licence commences and the customer is able to use the software; 
  --    The adoption of the portfolio approach for lower value sales 
         and the recognition criteria applied; 
  --    Where performance obligations are satisfied over time, the 
         length of time remaining for performance, and whether this 
         needs revising over time; and 
  --    The length of time for performance also dictates the initial 
         deferral and subsequent recognition of commissions in cost 
         of sales. 
 

Goodwill

The Group reviews the carrying value of its goodwill balances by carrying out impairment tests on at least an annual basis. These tests require estimates to be made of the value in use of its CGUs which are dependent on estimates of future cash flows and long-term growth rates of the CGUs.

Capitalisation of development costs

The point at which development costs meet the criteria for capitalisation is critically dependent on management judgment of the probability of future economic benefits.

Recovery of deferred tax assets

Deferred tax assets have not been recognised for deductible temporary differences, share options and tax losses as management considers that there is not sufficient certainty that future taxable profits will be available to utilise those temporary differences and tax losses.

5. Segmental information

The analysis of revenue by product type is as follows:

 
                6 months 
              to 30 June     6 months to   Year to 31 December 
                    2021    30 June 2020                  2020 
                 GBP'000         GBP'000               GBP'000 
 
 Software          1,374           1,310                 2,751 
 Services          2,882           1,583                 3,679 
 Hardware            244             117                   311 
 
                   4,500           3,010                 6,741 
            ============  ==============  ==================== 
 
 

6. Earnings per share

Calculation of earnings / (loss) per share is based on the following profit / (loss) and numbers of shares:

 
                                                    6 months      6 months        Year to 
                                                  to 30 June    to 30 June    31 December 
                                                        2021          2020           2020 
                                                     GBP'000       GBP'000        GBP'000 
 Earnings 
 Earnings for the purposes of basic and 
  diluted earnings per share being net profit 
  / (loss) attributable to owners of the 
  Company                                                 84         (424)          (438) 
 
 
                                                        '000          '000           '000 
 Number of shares 
 Weighted average number of ordinary shares 
  for the purposes of basic EPS                       31,097        28,429         29,776 
 Effect of dilutive share options                      2,177             -              - 
                                                ------------  ------------  ------------- 
 Weighted average number of ordinary shares 
  for the purposes of diluted EPS                     33,274        28,429         29,776 
                                                ------------  ------------  ------------- 
 
 
 
                                  Pence     Pence     Pence 
 Earnings / (loss) per share 
 Basic                              0.3     (1.5)     (1.5) 
 Diluted                            0.3     (1.5)     (1.5) 
 

The basic weighted average number of shares excludes shares held by an Employee Benefit Trust. Fully diluted earnings per share is calculated after showing the effect of outstanding options in issue.

In prior periods presented, the effect of the options would be to reduce the loss per share, and hence the diluted loss per share is the same as the basic loss per share.

The number of shares in issue at 30 June 2021 was 31,170,903 (31 December 2020: 31,170,903).

7. Investment

On 30 June 2021, the Company completed the spin-out of Monument Therapeutics Limited ("Monument"). Monument secured GBP2.6 million in funding from a consortium of investors led by Catapult Ventures and Neo Kuma Ventures. Cambridge Cognition retained a 36.9% shareholding.

Cambridge Cognition is yet to finalise the accounting treatment for Monument. Costs incurred by Cambridge Cognition prior to the spin-out have been disclosed as "Investment" and "Cost of investment" in the balance sheet and cash flow, respectively, for the purposes of this Report.

8. Reconciliation of operating result to operating cash flows

 
                                             6 months      6 months 
                                           to 30 June    to 30 June       Year to 31 
                                                 2021          2020    December 2020 
                                              GBP'000       GBP'000          GBP'000 
 
 Profit / (loss) before tax                        84         (428)            (649) 
 Adjustments for: 
 Depreciation of property, plant 
  and equipment                                    70            70              132 
 Amortisation of software licences                  3             3                6 
 Share-based payments charge                       69            66               68 
 Finance costs                                      2             5                9 
 Interest received                                  -           (2)              (4) 
 Operating cash flows before 
  working capital movements                       228         (286)            (438) 
 Change in inventories                           (86)             6                2 
 Change in trade and other receivables        (2,416)         (917)          (1,010) 
 Change in trade and other payables             3,512         1,027            2,243 
                                         ------------  ------------  --------------- 
 Cash generated / (used) by operations          1,238         (170)              797 
 Taxation (paid) / received                       (2)             7              213 
                                         ------------  ------------  --------------- 
 
  Net cash flows from operations                1,236         (163)            1,010 
                                         ------------  ------------  --------------- 
 

9. 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 .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR FLFETAVIIFIL

(END) Dow Jones Newswires

September 21, 2021 02:00 ET (06:00 GMT)

Cambridge Cognition (LSE:COG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024 Haga Click aquí para más Gráficas Cambridge Cognition.
Cambridge Cognition (LSE:COG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024 Haga Click aquí para más Gráficas Cambridge Cognition.