Cambridge Cognition Holdings PLC (AIM:COG) shares leapt 20% after the brain health software group reported a sharp increase in new sales orders and a stronger order book in its interim results.
New sales orders rose to £6.9 million for the six months to 30 June, more than double the prior year’s £3.3 million, while the order book swelled to £16.4 million from £14.6 million a year earlier.
Revenue fell 23% to £4.3 million as the impact of weak selling in 2024 carried through, while the adjusted EBITDA loss increased to £0.4 million from £0.1 million last year.
However, operating cash outflow improved to £0.3 million from £1.6 million, and cash at the period end stood at £0.4 million, with the company announcing plans to raise £1.1 million via a share placing at a 4.8% premium to the market price to strengthen working capital.
"The first half of 2025 has shown clear progress following last year’s commercial reset. We have set the foundations for long-term success," said Rob Baker, joint managing director and chief operating officer.
"With an expanded service offering and recognition in landmark studies, we are confident that Cambridge Cognition is on track to deliver growth and achieve our core objective of sustained profitability and cash flow to deliver shareholder value."
Cambridge Cognition, according to its website, develops digital technology solutions for cognitive assessments, electronic questionnaires and scales, and decentralised clinical trial solutions for drug trials.
Its digital assessments are targeted to specific cognitive domains, with increased data points compared to traditional assessments, making them more sensitive to subtle changes in cognition. For drug development, the company says it can help distinguish small effects by different drugs.