Intelligent Ultrasound Group plc

Full-Year Trading Update

Intelligent Ultrasound Group plc (AIM: IUG), the 'classroom to clinic' ultrasound company, specialising in AI software and simulation, announces that it expects  FY2023 revenues to have increased by 10% to £11.2m (2022: £10.1m), with simulation related revenue declining slightly to £9.1m (2022: £9.4m) and clinical AI related revenues almost trebling to £2.0m (2022: £0.7m).

Financial highlights:

·    Group revenue for the year to 31 December 2023 grew by 10% to £11.2m (2022: £10.1m)

o FY2022 revenue figures included £2.0m of one-off orders from the NHS in the UK, so on an adjusted 'like-for-like'* basis, revenue in 2023 increased by 38% (2022 adjusted*: £8.1m)

·    The Group's simulation revenues declined by 3% to £9.1m (2022: £9.4m)

o FY2022 simulation revenue figures included £2.0m of one-off orders from the NHS in the UK, so on an adjusted 'like-for-like'* basis, revenue in 2023 increased by 23% (2022 adjusted*: £7.4m)

o Simulation revenue was approximately £1m behind expectations mainly due to lower-than-expected sales in Europe and China throughout the year and recognised revenue being slightly less than we anticipated in the final quarter of the year

·    The Group's clinical AI related products continue to gain traction and revenues almost trebled to £2.0m (2022: £0.7m)

o Revenue from women's health-related AI software sales, which included both GE HealthCare royalty income combined with non-GE HealthCare revenue from studies utilising our gestational age AI software, made up over half of our clinical AI related sales

·    Cash at bank on 31 December 2023 was £3.0m (30 June 2023: £3.3m)

Operational highlights:

·    GE Healthcare's SonoLyst software, which is powered by Intelligent Ultrasound's AI software, launched as a standard feature on the new Voluson Expert 22 and 20 range of women's health ultrasound machines in Q4 2023

·    ScanNav Anatomy Peripheral Nerve Block (PNB) AI software upgrades were released in UK and US market in Q2 2023

·    Liver images agreement signed with Dundee University in Q4 2023

·    ScanNav FetalCheck development programme announced for new gestational age AI product in Q4 2023

·    ScanTrainer Endometriosis simulator module released in Q2 2023

Outlook:

We remain positive about the outlook for the Group in 2024:

·    Clinical AI related sales continue to develop, and we anticipate sales broadly doubling during the year due to:

o GE HealthCare's SonoLystlive software, which is powered by Intelligent Ultrasound's ScanNav AI, is now a standard feature on the latest versions of the Voluson Expert Series portfolio of ultrasound machines, and is expected to generate growing and more forecastable revenues during the year

o Our Classroom to Clinic AI needling range is expected to continue its sales growth in the UK and the US, as the number of papers and supporting studies grows during the year

·    Simulation sales are expected to return to growth, broadly driven by the US and UK markets combined with a continued recovery in our reseller markets

The Group therefore expects revenue in 2024 to be between £14m to £17m and continues to anticipate reaching profitability with its current cash.

Stuart Gall, CEO at Intelligent Ultrasound said:

"We have had another positive year with GE HealthCare announcing the launch of SonoLystLive on the new Voluson Expert ultrasound machine range, our clinical AI revenues growing significantly, recent announcements on ScanNav FetalCheck, our new gestational age AI development programme and the signing of the liver data agreement with Dundee University and NHS Trust. Revenues from our clinical AI related products are expected to have almost trebled over the year, but our simulation revenues are expected to be 3% down on 2022, primarily due to lower than expected sales in China and Europe, combined with lower-than-expected recognised revenue in December. With cash at bank only reducing by £0.3m since 30 June, the business continues to forecast it will reach profitability with its current cash resources."

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

ENDS

Enquiries:

About Intelligent Ultrasound Group

Intelligent Ultrasound (AIM: IUG) is one of the world's leading 'classroom to clinic' ultrasound companies, specialising in real-time hi-fidelity virtual reality simulation for the ultrasound training market ('classroom') and artificial intelligence-based clinical image analysis software tools for the diagnostic medical ultrasound market ('clinic'). Based in Cardiff in the UK and Atlanta in the US, the Group has two revenue streams:

Simulation

Real-time hi-fidelity ultrasound education and training through simulation.  Our main products are the ScanTrainer obstetrics and gynaecology training simulator, the HeartWorks echocardiography training simulator, the BodyWorks Eve Point of Care and Emergency Medicine training simulator with Covid-19 module and the new BabyWorks Neonate and Paediatric training simulator. To date over 1,500 simulators have been sold to over 750 medical institutions around the world.

Clinical AI software

Deep learning-based algorithms to make ultrasound machines smarter and more accessible using our proprietary ScanNav ultrasound image analysis technology. Current products on the market utilising this technology are GE Healthcare's SonoLyst software that is incorporated in their Voluson Expert 22 and SWIFT ultrasound machines; ScanNav Anatomy PNB that simplifies ultrasound-guided needling by providing the user with real-time AI-based anatomy highlighting for a range of medical procedures; and NeedleTrainer that teaches real-time ultrasound-guided needling and incorporates ScanNav Anatomy PNB. 

www.intelligentultrasound.com

NOTE: ScanNav Anatomy PNB is CE approved and cleared for sale in the US by the FDA, but is not available for sale in any other territory requiring government approval for this type of product.