Physiomics lowers forecasts amid contract delays
By Josh White
Date: Friday 03 May 2024
(Sharecast News) - Therapeutics and medicine-focussed mathematical modelling and data science company Physiomics said in an update on Friday that, despite a robust pipeline of potential new business, it had experienced delays in signing several large contracts.
The AIM-traded firm said that as a result, the total income for the financial year ending 30 June was now anticipated to range between £0.6m and £0.65m.
Physiomics said it was currently in the final negotiation stages for two projects - one with an existing client and the other with a potential new client - with a combined value expected to be around £0.35m.
While the board expected the contracts to be signed in the current financial year, the majority of the revenue from the projects was now projected to be recognised in the next period, ending 30 June 2025.
As a result, the board said it had also adjusted its expectations for 2025 revenues accordingly.
To date, the company said it had secured £0.23m of revenue for 2025, with expectations for that to increase to over £0.5m on signing the two new contracts.
"Whilst we are clearly disappointed that the execution of these two large contracts has been delayed, we have a high level of confidence that they will be signed before the end of this financial year," said chief executive officer Dr Pete Sargent.
"Assuming that is achieved, and taking account of the anticipated value of these two contracts, the company would then be going into its next financial year with one of its highest ever levels of signed projects."
At 1100 BST, shares in Physiomics were down 16.33% at 1.25p.
Reporting by Josh White for Sharecast.com.
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