Ixico jumps as new contract wins help to slash losses

Data analytics outfit Ixico leapt on Tuesday after narrowing its full-year loss and increasing revenue by securing £15m of new and expanded multi-year client contracts.

For the year ended 30 September Ixico, which assists pharmaceutical companies with analysis of data from brain scans and other procedures, achieved revenue at actual exchange rates of £5.4m, an increase of 32% over the prior year, thus reducing its loss before tax and operating loss from £1.9m to £0.8m across the same time frame.

With £15m of new and expanded multi-year client contracts won the company achieved record revenue in its core imaging business.

Ixico cited increased project volumes, improved productivity and cost control as the drivers behind a reduced EBITDA loss of £0.6m, down from £1.4m, while gross margins increased to 58.8% from 56.4%.

Chief executive Giulio Cerroni said: "2018 has been another year of significant progress in which we have delivered on our financial commitments, whilst continuing to invest in the long-term future of the company. We have reported record revenues with underlying growth of 41%, further improved gross profit performance and reduced operating losses."

Cash and cash equivalents at the year-end stood at £7.9m, up from £2.4m at the same point the year before, after the company completed a placing of £5.5m and achieved neutral operating cash flows.

Ixico said in a statement that the funds from the placing will be used to invest in people, products, processes and IT infrastructure needed to further accelerate its commercially-led growth strategy.

"With a successful capital placing to invest in new market and product development, we go into the new financial year with increased commercial traction, ambitious growth plans and a strengthened organisation focused on delivering technology-driven data analytics to our global biopharmaceutical clients," said Cerroni.

The AIM-traded company continued the good momentum post-year-end, with the extension of a contract with a top 10 pharmaceutical giant, which has increased in value from $2.7m to $5.1m over a six-year period to cover a significantly higher number of patients at various international study sites. Ixico uses technology to help select include patients for clinical trials and to assess the safety and efficacy of new drugs in development.

Ixico’s shares were up 19.15% at 28.00p at 0829 GMT.