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Cambridge Cognition PLC on Tuesday reported a big drop in profit, even as revenue grew significantly.
The Cambridge-based brain health assessment software provider said its pretax profit fell 81% to £16,000 in the first half of the year from £84,000 last year.
Despite this, the company reported that revenue grew 31% to £5.9 million in six months that ended June 30 from £4.5 million a year before, but cost of sales more than kept pace and administrative expenses grew by 34% to £4.7 million from £3.5 million.
Looking forward, Cambridge Cognition said its outlook is positive and ‘well positioned for further year-on-year growth.’ The company noted a qualified pipeline of opportunities, increasing investment in commercial activities, and an attractive contracted order book.
The order book stood at £18.6 million at June 30, up from £17.1 million at December 31 2021, giving the company ‘visibility over future revenues’.
Additionally, Cambridge Cognition's cash balance rose to £8.6 million from £6.8 million, giving the opportunity to make ‘considered investments as opportunities arise’, it said.
Chief Executive Officer Matthew Stork said: ‘I am delighted with our continued progress over the last six months. Our contracted order book is at its highest level and, along with a healthy sales order pipeline and strong cash generation, puts us in a great position to continue to invest in strategies to grow the business further.’
Shares in Cambridge Cognition were trading 5.8% lower at 130.00 pence each in London on Tuesday morning.
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