Cambridge Cognition Holdings PLC (AIM:COG) shares fell more than 20% in Thursday’s dealings, after reporting what analysts described as only a ‘slightly light’ performance.
The company, which focuses on tests and technologies for brain health, reported new sales orders of £6.9 million for the six months to 30 June, and, the order book rose to £16.4 million up from £13.6 million at the end of 2024.
Revenue in the period was £4.3 million, down from £5.6 million a year earlier. Earnings (adjusted EBITDA) were marked at a £0.40 million loss, and in operating cash terms, it reported a £0.3 million outflow.
It ended the half year with £0.4 million on the balance sheet, down from £1.3 million at the end of December. Net debt stood at £1 million pounds.
Cambridge Cognition said it expects full-year revenue of £9.5 to £10 million, with around £5.80 million of the current order book rolling into 2026.
Also, the company told investors it was recently informed of the cancellation of two clinical studies, for the same drug candidate, after the sponsor opted not to pursue development.
“This is a rare event for the company, and importantly, the client continues to engage Cambridge Cognition on other ongoing studies,” it said.
It reduces the order book by £0.8 million, which will impact cash generation in the second half of 2025.
Cambridge Cognition shares dropped 24% to 24.61p.
London stockbroker Panmure Liberum repeated a ‘Buy’ recommendation, which comes with a price target of 56p.
“The lead time between signing new contracts and revenue [is] making it difficult for the company to drive faster growth in the near term,” analyst Julie Simmonds said in a note.
“More encouragingly, new sales orders continue to show good momentum, and the order book continues to increase, giving confidence the recovery is ongoing - albeit we now expect EBITDA breakeven in H2, rather than FY profitability.”