Kooth (AIM: KOO), a leading digital mental health platform provider, announces audited final results for the financial year ended 31 December 2020.
· Excellent momentum for Kooth's digital mental health services in the public sector
― Children and Young People (CYP): contracted by 85% of NHS England CCGs
― Adult: 18 new contracts won in 2020. Over 1.5 million adults now have access to Kooth
· Good progress with strategy to broaden reach into the Corporate market (Kooth Work)
― Over 30,000 employees are currently covered by Kooth
― Partnership with Doctor Care Anywhere to combine physical and mental health care
― Hired new head of Corporate business to drive direct and channel growth
· First international pilot project secured for 2021 go-live
· Oversubscribed IPO on AIM in September 2020
― Raised £16 million to support growth strategies with a debt-free balance sheet
― Kooth grown to 306 employees from 234 in December 2019. Our engineering team has doubled in number over the same period
― £1.5 million invested in our technology platform to drive growth strategy
· Revenue and EBITDA for the financial year ahead of expectations, as announced in January 2021
· Revenue for the financial year of £13 million, up 50.3% from 2019 (£8.7 million)
· Annual Recurring Revenue (ARR) up 33% driven by fee uplifts from existing clients and new business in Adult and CYP
· Adjusted EBITDA for the financial year of £0.9 million (2019: £0.1 million)
· Significant improvement in gross margin to 60.9% (2019: 51.5%)
· High visibility of earnings
― More than 90% of revenue is generated from contracts of 12 months or longer
― 95% customer retention by revenue.
· Robust balance sheet with net cash of £7.8 million (2019: net debt of £5.2 million)
Current trading and outlook
The new financial year has started well with strong new business performance giving an ARR at 31 March 2021 of £15.9 million and we have added over 50 new practitioners in the first quarter.
Tim Barker, Chief Executive Officer of Kooth said:
"2020 was a transformational year for Kooth. We were proud to become the first digital mental health platform to list on the London Stock Exchange to support growing demand for mental health services, which was critical long before the pandemic. Our excellent performance in 2020 reflects momentum for our simple strategy: making effective, personalised mental healthcare available to all."
"We have invested in growing our team and refining our market-leading technology platforms, to ensure Kooth remains the leader in supporting children and young people via the NHS, and sustain good traction with the NHS and Corporate adult market. This, combined with current trading in line with our expectations supports our confidence of making further progress in 2021."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.