IXICO PLC (AIM:IXI, OTC:PHYOF) told the City its underlying earnings (EBITDA) for the current financial year will be more than £1.2mln - materially ahead of forecasts.
This will result in a strengthened cash position, which as of March 31 was £5.8mln.
However, the neuro-imaging specialist cautioned that the cessation of a clinical trial programme will impact its full-year 2023 performance.
“This will mean that, whilst the company expects weaker revenues in the next year, it is able to leverage the continued strengthening of its balance sheet and strong, debt-free, cash position to continue the delivery of its strategic investment plans alongside a continued careful management of expenditure,” investors were told in a trading statement alongside IXICO’s interim results.
“The company consequently expects a short-term return to EBITDA losses, reflecting a temporary discontinuity in the growth path that the company has achieved over the last six years.”
For the six months ended March 31, the group generated underlying earnings of £500,000 on revenues of £3.9mln. It signed £3.8mln-worth of contracts and has an order book worth £12.6mln.