IUG Intelligent Ultrasound Group Plc

TIDMIUG

RNS Number : 1368F

Intelligent Ultrasound Group PLC

14 July 2021

Intelligent Ultrasound Group plc

(the "Group")

Trading update

Solid growth in H1 2021

Intelligent Ultrasound Group plc (AIM: IUG), the ultrasound artificial intelligence (AI) software and simulation company, announces that Group revenue for the period to 30 June 2021 is expected to be GBP3.6m (H1 2020: GBP2.5m). The expected increase of over 40% is mainly due to a strong recovery by the Group's simulation division, as well as a small contribution from the Group's clinical AI division.

Simulation sales from the Group's direct sales team, which together cover the UK and USA, are expected to have grown by nearly 50% to GBP2.8m (2020: GBP1.9m), helped by strong sales from the Group's ScanTrainer and BodyWorks simulators, which incorporate the free of charge Covid-19 lung training module that was developed in response to the pandemic in early 2020. Sales in the Rest of the World, that are made through the Group's reseller network, are expected to have grown by over 30% to GBP0.8m (H1 2020: GBP0.6m).

The Group's clinical AI division is in the early stages of commercialising its first AI products - the ScanNav Anatomy Peripheral Nerve Block system, that received CE approval in March and was launched for sale in the UK in April, and the ScanNav Assist software that is integrated into GE Healthcare's SonoLyst software on its Voluson SWIFT ultrasound machines. The division expects to recognise nominal revenue of GBP0.1m from its AI product range, with AI revenue expected to accelerate once the longer than anticipated Covid restrictions relax and face-to-face medical exhibitions and congresses re-start later in the year.

Although the planned increases in R&D, office and warehouse expansion, and higher group insurance costs were mostly offset by an increase in gross profit, the operating loss for the period is expected to increase to approximately GBP2.3m (2020: loss of GBP2.0m).

Cash at bank at 30 June 2021 is expected to be approximately GBP6.0m (31 December 2020: GBP8.8m). The expected GBP2.8m reduction in cash includes an increase in working capital of GBP1.0m since 31 December 2020.

Stuart Gall, CEO of Intelligent Ultrasound Group plc, commented: "This has been an excellent start to the year, with a strong simulation division sales performance, a small early-stage revenue contribution from our first AI products, and encouraging product development in both simulation and AI. We are, however, conscious that the pandemic is still restricting medical exhibitions, hospital access and budgets and that our new AI products are launching into new markets that need both time to accept the product and time to roll out and build to significant revenue.

"2021 is therefore expected to be a year where we will continue to invest heavily in R&D, but also focus on generating the compelling key opinion leader study data that will enable the acceptance and subsequent sales potential of AI in ultrasound to be realised from 2022 onwards. We remain confident that we can continue to build a successful 'Classroom to Clinic' ultrasound business in this exciting sector of the market."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information, please contact:

 
Intelligent Ultrasound Group                                        www. intelligentultrasound.com 
 plc 
Stuart Gall, CEO                                                          Tel: +44 (0)29 2075 6534 
 Helen Jones, CFO 
 
Cenkos Securities - Nominated Advisor                                     Tel: +44 (0)20 7397 8900 
 and Broker 
Giles Balleny (Corporate Finance) 
Michael Johnson / Julian Morse 
 (Sales) 
 
Walbrook PR                       Tel: +44 (0)20 7933 8780 or intelligentultrasound@walbrookpr.com 
Anna Dunphy / Paul McManus                                     Mob: +44 (0)7876 741 001 / Mob: +44 
                                                                                   (0)7980 541 893 
 
 

About Intelligent Ultrasound Group

Intelligent Ultrasound (AIM: IUG) develops artificial intelligence-based clinical image analysis software tools for the diagnostic medical ultrasound market and hi-fidelity virtual reality simulators for the ultrasound training market. Based in Cardiff in the UK and Atlanta in the US, the Group operates two divisions:

Clinical AI Division

Focusses on developing deep learning-based algorithms to make ultrasound machines smarter and more accessible. Products in the market include:

ScanNav Assist

ScanNav Assist uses machine-learning based algorithms to automatically identify and grade ultrasound images. GE Healthcare's SonoLyst software on their Voluson SWIFT ultrasound machine incorporates the ScanNav Assist AI technology and has received 510(k) clearance from the FDA for sale in the USA. SonoLyst is the world's first fully integrated AI tool that recognises the 20 views recommended by the International Society of Ultrasound in Obstetrics and Gynaecology mid-trimester practice guidelines for fetal imaging.

ScanNav Anatomy

ScanNav Anatomy Peripheral Nerve Block (PNB) uses machine-learning based algorithms to simplify ultrasound-guided needling by providing the user with real-time AI-based anatomy highlighting software for a range of medical procedures. ScanNav Anatomy has received CE approval and has also been submitted for FDA regulatory approval.

ScanNav Anatomy PNB is currently not available for sale in the US or any other territory requiring government approval for this type of product.

Simulation Division

Focusses on hi-fidelity ultrasound education and training through simulation. Its main products are the ScanTrainer OBGYN training simulator, the HeartWorks echocardiography training simulator, the BodyWorks Eve Point of Care and Emergency Medicine training simulator with Covid module and the new AI-based Anatomy PNB training simulator. To date over 1,000 simulators have been sold to over 600 medical institutions around the world.

www.intelligentultrasound.com

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July 14, 2021 02:00 ET (06:00 GMT)

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