IXICO sees full-year earnings more than double amid record revenues

IXICO PLC (LON:IXI) saw its full-year earnings more than double as revenues hit record levels thanks to multi-year contracts for phase III clinical trials.

Results for the year ended September 30, 2020, showed the artificial intelligence (AI) data analytics firm reported underlying earnings (EBITDA) of £1.3mln, up from £0.5mln in the prior year, while revenues rose to £9.5mln from £7.6mln.

WATCH: IXICO signs contract to provide neuroimaging services for clinical trial for Huntington’s disease

The company also reported a 36% increase in its contracted order book to a record level of £21.7mln, adding that it has secured net £15.4mln of additional multi-year contracts across all phases of clinical development, including its single largest contract signed in April in Huntington’s disease (HD) for £10.5mln.

Looking ahead, IXICO said that while the coronavirus (COVID-19) pandemic had created “short-term delays to new clinical trial start ups”, it saw the coming year as “an opportunity for the group to focus on investing for a rapid initiation of clinical trials as the pandemic subsides, whilst continuing to grow”.

“Effective investment at this time will position the group well for continued high growth as more normal times resume”, the firm added.

“2020 has been a fourth successive year of greater than 25% revenue growth for IXICO and one in which we have demonstrated the resilience of our business model. In addition, the group has more than doubled its EBITDA profitability to £1.3mln, generated significant operational cashflows, strengthened the balance sheet and increased its contracted order book by 36% to £21.7mln”, IXICO chief executive Giulio Cerroni said in the results statement.

“I am delighted with these financial achievements, but even more so, I am proud of the way that IXICO has responded to the COVID-19 pandemic and continued to provide valuable new insights in clinical development to our global pharmaceutical clients. Our dedicated employees adapted rapidly to the changing circumstances and redoubled their focus and efforts on supporting our clients, who in turn continue to look to IXICO for neuroimaging expertise across a wide range of therapeutic areas in new clinical trials scheduled to commence during 2021 and beyond.

“With a record order book and a clear investment programme, the group is well-positioned for the year ahead”, he added.