WH Ireland has restated its bullish valuation of predictive analytics company Spectral MD Holdings Ltd (AIM:SMD) following its full-year 2022 results published today.
Spectral MD is developing an AI-driven predictive analytics platform called DeepView, a non-invasive, wound healing diagnostic for diabetic foot ulcers (DFU) and burn wound assessment.
WH Ireland pointed out some highlights in Spectral MD’s results, specifically the completion of adult enrolment in the burn AI study which secured US$8.2mln in funding, and progress made in the DFU clinical study due for completion in the second quarter.
Post-period DFU interim data showed a 5% improvement in day-one AI healing accuracy to 86%, noted WH Ireland.
“Cash is set to sustainably fund Specral MD through global regulatory approvals with reinforced prospects on our forecasts, comfortably allowing scale-up,” said analysts.
Due to adjustments in UK and European product launches, WH Ireland revised revenue forecasts for 2023 down slightly, from US$27.3mln to US$26.1mln.
EBITDA losses for 2023 have been recalibrated from -US$7.3mln to -US$9mln, while net cash has been forecast down from US$8.2mln to US$7.1mln.
WH Ireland reiterated its sum-of-the-parts fair valuation of 157p per share with a £214mln market capitalisation against the current market cap of £41.5mln.