IXICO plc (AIM: IXI), the data analytics company delivering insights in neuroscience, announces a trading update, confirming that the impact of COVID-19 has been modest and that IXICO expects to maintain double-digit revenue growth across FY21.
On 14 April 2020, due to the uncertainty around the level and duration of disruption from COVID-19 to global clinical trials, the Company stated that it was not able to provide clarity regarding the outlook for 2020. In this same communication the Company promised to provide further updates once there was greater visibility on the trading environment.
The Board is now pleased to confirm that the impact of COVID-19 on the Company's expected financial performance for FY20 has been modest, and it is confident of achieving at least £9.1m revenues and £0.9m earnings before interest, tax, depreciation and amortisation ('EBITDA') with positive operating cash for the year ended 30 September 2020. This would represent a fourth consecutive year of revenue growth of 20% or more and an increase in EBITDA margin from 6% to 10% compared to the prior year, despite COVID-19 disruptions to clinical trial timelines.
The Board also expects the Company to continue to maintain double-digit revenue growth across FY21 whilst continuing to invest to ensure the Company is ready to scale as those clinical trials delayed due to the COVID-19 crisis are initiated.
Giulio Cerroni, CEO of IXICO, commented: "I am delighted that the impact of COVID-19 on our expected revenue growth has been minimised by fully leveraging the capabilities of our technology platform. Our remote access business model, which utilises our proprietary TrialTracker® platform, coupled with our centralised artificial intelligence data analytics capabilities has mitigated any potential material disruption to our business operations. Whilst the industry continues to adjust to the many consequences of the pandemic, at IXICO, we continue to focus on ensuring we are well-positioned to meet our clients' needs. Although we see the impact of some new trials being postponed, we are using this time to prepare for what we expect to be a rapid initiation of additional client studies towards the end of 2020 and across 2021."