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IXICO cheers with earnings expectations upgrade

Snapshot

  • Provides data analytics services to interpret brain scans
  • AI-based algorithms aid neurological disease trials

Quick facts: IXICO PLC

Price: 81.8 GBX

AIM:IXI
Market: AIM
Market Cap: £38.52 m
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What IXICO does

IXICO PLC’s (LON:IXI) data analytics services are used by the global biopharmaceutical industry to interpret data from brain scans and digital biosensors to enable better trial design, site qualification, patient selection and clinical outcomes.

The company’s digital platform and Artificial Intelligence (AI) software manages and helps interpret images from MRI (magnetic resonance imaging) and PET (positron emission tomography) scanners as well as collating and making sense of real-world data from wearable biosensors.

 

How it is doing

In August the firm raised earnings expectations for the current fiscal year as it benefits from continued operational leverage, generated by revenue growth and investments made to drive scale and efficiency.

Revenues for the year to the end of September 2020 are estimated to be in line with, or slightly ahead of, current market expectations, representing growth of more than 20% compared to the prior year.

Underlying earnings (EBITDA) are expected to be materially ahead of current market expectations.

 

What the boss says: Giulio Cerroni, chief executive

"We are delighted to see continued momentum in the accessing of revenue driven operational leverage, building on the company's maiden year of profitability in 2019 and strong first half-year results to 31 March 2020.”

“In the context of the challenging market environment created by Covid-19, this increase in profitable growth, alongside our strong balance sheet and positive operating cash flows, whilst remaining fully committed to our investment plans, is a fantastic achievement.” 

 

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What the broker says

Analysts at Cenkos Securities reinstated the 'buy' recommendation in August.

"In this current period of high uncertainty, we believe IXICO offers the opportunity to invest in a high growth, high forward visibility, profitable business with positive operating cash flow and a strong balance sheet."

"With a confident stance on near-term growth and strong mid- to long-term prospects based on the potential in the biopharmaceutical CNS disease pipeline, we believe the outlook for IXICO looks exceptionally strong."

 

Inflexion points

  • Paused activity to restart after coronavirus outbreak
  • Margins are increasing as more companies use its AI-based algorithms
  • Working also with smaller biotechs as well as large pharmas

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Watch

IXICO CEO 'delighted' with stronger than anticipated second half growth

IXICO PLC's (LON:IXI) Giulio Cerroni caught up with Proactive London's Katie Pilbeam after announcing they've raised earnings expectations for the current fiscal year. He says revenues for the year to the end of September 2020 will be in line with, or slightly ahead of, current market...

4 weeks, 1 day ago

2 min read