Cambridge Cognition Services Revenue up 57%

Cambridge Cognition (LON: COG) has put out its interims today which highlight the Group's transitional shift to provide value-added services is gaining traction.

Revenue from Services was up 57%, while total Revenue was £3.21m versus H1 16's £3.26m. A loss before tax of £0.39m was reported, however, up against the £0.11m loss in the same period last year.

Losses per share also swelled to 1.8p versus the 0.6p per share in H1 16.

Commenting on the results Steven Powell, Chief Executive Officer of Cambridge Cognition, said: 

"These results demonstrate that our strategic shift to providing value-added services, either alongside our core products or on a standalone basis, is gaining momentum. Over the last two years we have renewed our commitment to invest in our science and technology base and the resulting innovations will meet the ever-increasing demand for near-patient health solutions and drive future business growth."

COG has enjoyed significant share growth this year, with today's share price of c. 152p more than double that of 2017's opening price of 70.5p.

Looking towards the future, Management went on to say:

With modest investments in commercial infrastructure and R&D activity we have transitioned to an improved blend of product and service revenues. Both the sales pipeline and the innovation pipeline are stronger than in recent history at a time when there is substantial appetite for both neuroscience and digital health solutions."

They also said they expect a "strong second half to 2017."

With a current market cap of £33m, COG currently trades at a PE ratio of 40x versus the industry's 21x, with the market clearly baking in a lot of future growth for the cognitive assessment software company.