Intelligent Ultrasound Group PLC (LON:MED) have given shareholders an update entailing progress on Wednesday.
The firm said that the ultrasound software and simulation company said that 2019 revenue is expected to be between the £5.7 million and £5.9 million ball park.
Shareholders will be pleased with this figure as it shows a 10% growth from a year ago.
Intelligent Ultrasound said it expects a recently-signed deal with Fujifilm (TYO:4901) SonoSite Inc to help increase future sales in the Simulation division’s point-of-care ultrasound training market.
When looking at the Clinical Artificial Intelligence division, the firm said it had a “very successful” year, with the firm meeting all its commercial and development milestones.
The firm said that it expects to report loss before interest, taxes, depreciation, and amortization of between £3.3 million and £3.4 million, widened compared to an Ebitda loss of £2.7 million in 2018.
The company had previously explained that it had invested heavily into research and development of its Clinical Artificial Intelligence division.
Stuart Gall, Group CEO, commented: “This has been a strong year for the Group. The Clinical Artificial Intelligence Division has performed particularly well, signing its first licensing agreement with a major OEM and progressing commercial discussions for its second AI software product. The reception the Company received at the annual Radiological Society of North America meeting (RSNA) in Chicago was also particularly encouraging. The Simulation Division has worked hard to continue growing revenue and we are confident of continuing the Group’s revenue growth in 2020.”
Progress for Intelligent Ultrasound
At the end of July, the firm saw increased sales and testing of its new AI based offerings within its IU Simulation Division and IU Clinical AI Division during the first half of 2019.
As the first half ended, the Company signed its first long-term licence and co-development agreement for their AI software with a leading ultrasound equipment manufacturer.
The Intelligent Ultrasound Group also formed an alliance with Mediscan Systems to use AI and simulation to improve patient care in India and develop the Group’s ultrasound scan image library.
It seems that the development for Intelligent Ultrasound has paid off following today’s update which has seem positive revenue growth.
Where do Medical Tech rivals stand?
Consort Medical (LON:CSRT) who also operate in the medical tech sector have seen a slower period of trading. Consort said that interim profit was bruised due to an incident at its Aesica Cramlington manufacturing facility.
Consort’s pretax profit for the six months ended October 31 was £1.2 million, far less than the £9.6 million profit posted the year before as revenue fell 4.3% to £146.0 million from £152.5 million.
The incident also dampened the performance of its active pharmaceutical ingredients and finished dose manufacturing unit, Aesica who saw revenues fall from £90.9 million to £81.1 million an 11% slump.
Additionally, AorTech (LON:AOR) have followed in the same footsteps as Consort in giving a modest update to shareholders in November.
The firm said in an update to shareholders said that it had widened its interim loss on costs. However, shareholders did get some consolidation with the fact that revenues had rose.
For the six months to the end of September, the biomaterials and medical devices firm said its pretax loss widened to £239,000 from £225,000 the year before. This was due to administrative expenses rising by 29% to £451,000 from £350,000, as a result of research & development activities.
However revenue, which comes from the licensing of AorTech’s polymer technology, grew by 27% to £299,000 from £236,000 the prior year.
Looking ahead, AorTech said progress over the period has been “very positive”, as the polymer business performs well and plans to developer it further come into place.
The medical technology sector is becoming more and more competitive, however shareholders of Intelligent Ultrasound can be pleased with the update provided today.
There will be optimism that the firm can carry forward strong trading across 2020 and deliver respectable figures across the year.
Shares of Intelligent Ultrasound Group trade at 10p (-7.27%). 8/1/20 15:04BST.
