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Intelligent Ultrasound Group plc (AIM: IUG), the ultrasound artificial intelligence (AI) software and simulation company, announces that Group revenue for the period to 30 June 2021 is expected to be £3.6m (H1 2020: £2.5m). The expected increase of over 40% is mainly due to a strong recovery by the Group’s simulation division, as well as a small contribution from the Group’s clinical AI division.

Simulation sales from the Group’s direct sales team, which together cover the UK and USA, are expected to have grown by nearly 50% to £2.8m (2020: £1.9m), helped by strong sales from the Group’s ScanTrainer and BodyWorks simulators, which incorporate the free of charge Covid-19 lung training module that was developed in response to the pandemic in early 2020. Sales in the Rest of the World, that are made through the Group’s reseller network, are expected to have grown by over 30% to £0.8m (H1 2020: £0.6m).

The Group’s clinical AI division is in the early stages of commercialising its first AI products – the ScanNav Anatomy Peripheral Nerve Block system, that received CE approval in March and was launched for sale in the UK in April, and the ScanNav Assist software that is integrated into GE Healthcare’s SonoLyst software on its Voluson SWIFT ultrasound machines. The division expects to recognise nominal revenue of £0.1m from its AI product range, with AI revenue expected to accelerate once the longer than anticipated Covid restrictions relax and face-to-face medical exhibitions and congresses re-start later in the year.

Although the planned increases in R&D, office and warehouse expansion, and higher group insurance costs were mostly offset by an increase in gross profit, the operating loss for the period is expected to increase to approximately £2.3m (2020: loss of £2.0m).

Cash at bank at 30 June 2021 is expected to be approximately £6.0m (31 December 2020: £8.8m). The expected £2.8m reduction in cash includes an increase in working capital of £1.0m since 31 December 2020.

Stuart Gall, CEO of Intelligent Ultrasound Group plc, commented: “This has been an excellent start to the year, with a strong simulation division sales performance, a small early-stage revenue contribution from our first AI products, and encouraging product development in both simulation and AI. We are, however, conscious that the pandemic is still restricting medical exhibitions, hospital access and budgets and that our new AI products are launching into new markets that need both time to accept the product and time to roll out and build to significant revenue.

“2021 is therefore expected to be a year where we will continue to invest heavily in R&D, but also focus on generating the compelling key opinion leader study data that will enable the acceptance and subsequent sales potential of AI in ultrasound to be realised from 2022 onwards. We remain confident that we can continue to build a successful ‘Classroom to Clinic’ ultrasound business in this exciting sector of the market.”

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information, please contact:

 

Intelligent Ultrasound Group plc	www.intelligentultrasound.com
Stuart Gall, CEO Helen Jones, CFO	Tel: +44 (0)29 2075 6534
Cenkos Securities- Nominated Advisor and Broker	Tel: +44 (0)20 7397 8900
Giles Balleny (Corporate Finance) Michael Johnson / Julian Morse (Sales)
Walbrook PR	Tel: +44 (0)20 7933 8780 or [email protected]
Anna Dunphy / Paul McManus	Mob: +44 (0)7876 741 001/ Mob: +44 (0)7980 541 893