Intelligent Ultrasound Group plc (AIM: MED), the ultrasound artificial intelligence (AI) software and simulation company, announces its unaudited preliminary results for the year ended 31 December 2019, showing another excellent year of progress for the Group during which its Clinical AI Division signed its first AI software agreement with a major ultrasound manufacturer and its Simulation Division continued to grow sales.
· Revenue from simulation sales grew 11% to £5.9m (2018: £5.3m)
· Gross profit up 22% to £3.5m (2018: £2.8m)
· R&D expenditure increased to £2.7m (2018: £1.9m)
· Strengthened the balance sheet in August 2019 with a placing and open offer which raised £5.8m after expenses
· Year-end cash plus investments (short term deposits), at £7.3m (2018: cash of £5.6m) and no debt1
· Current cash of £6.2m
1excluding IFRS 16 lease liabilities
· Signed first long-term AI software licence and co-development agreement with one of the world’s leading ultrasound equipment manufacturers
· Strong contribution from North America with revenue up 53% to £2.6m (2018: £1.7m)
· Signed marketing partnership with Fujifilm SonoSite, Inc. in North America for ultrasound training and services
· Commenced alliance with Mediscan Systems to use AI and simulation to improve patient care in India and enhance the Group’s ultrasound scan image library to over 4 million images (2018: 1 million images)
· Commenced regulatory approval process and commercial discussions for ScanNav AnatomyGuide’s Peripheral Nerve Block AI software
Post year end:
· Received ISO13485:2016 medical device accreditation
· Launched COVID-19 simulation training system
Commenting on the results, Riccardo Pigliucci, Chairman of Intelligent Ultrasound said:
“2019 has been another year of excellent progress by the Group and I would like to thank both our staff and our shareholders for enabling this to happen. The Clinical AI Division has performed particularly well, signing its first licensing agreement for ScanNav with a major OEM and progressing commercial discussions for its second AI software product. The reception for our products in development at trade shows is particularly encouraging. The Simulation Division has also worked hard to continue growing revenue.
However, it would be wrong to ignore the recent spread of the COVID-19 virus that is currently impacting all regions in which the Group operates, and we have therefore implemented a number of cost-saving measures that will enable the Group’s EBITDA for FY2020 to remain in line with expectations. The outlook for the medium and long term remains unchanged, with the Group expected to have sufficient funds to continue its simulation and AI business activities for the next twelve months, when the revenues from its first AI software licence agreement are expected to be generated.
We remain an ambitious Group that is excited about bringing our first AI software products to market and continuing the growth of the business over the coming years.”