PHYOF (PHYOF) Q2 2026 Earnings Report, Transcript and Summary

Good afternoon, and welcome to the IXICO plc investor presentation. [Operator Instructions] Before we begin, I'd like to submit the following poll, which I kindly ask you submit your responses to. I'd now like to hand over to the executive management team, Bram, good afternoon.

Good afternoon, and thank you for this introduction. I don't think Grant needs an introduction, CFO and Chief Operating Officer of the company; and then myself, Bram Goorden, Chief Executive Officer. We're reporting out our first half of the financial year '26 results, which we are very proud of. I hope you will agree with that as we go through this presentation. And as usual, we'll -- Grant and I will both present the numbers, some elements of our strategy, of course, as well, also following a recent capital raise, which I'm sure some of you might be interested in hearing what exactly we are doing with these proceeds and how this is going to change, we believe, also the trajectory of this company in the near and somewhat more distant future. So with that in mind, -- for many of you, probably the company doesn't require an introduction, but just to sort of level set, we consider ourselves the leading imaging CRO focused exclusively on neurology. And also with this recent capital raise, you will see that neurology is still very much going to remain our core market because we also know that we are operating on fertile ground when we talk about neurology. One thing that I do want to call out besides sort of the usual numbers that you see here to the right-hand side in terms of the size of our company, our customer base and obviously, more importantly, the data that we've been collecting throughout the past 20 years is that we have rebranded our technology platform calling it IXI. And some of you may have seen that we recently also published or publicized a new release of that IXI platform version 10, which, as you will see later during this presentation, comes with novel features, comes with additional capabilities, but also capacity and speed, which, of course, is very important for the customers that we're serving. So with that in mind, let me just sort of summarize for you what are the highlights of this first half of '26. And coming out of what we thought was a successful '25 already, we really see consistency now, we believe, in that financial performance of the company. I might remind you that we did a smaller capital raise a little bit over 12 months ago in order to really get that company into a new trajectory, especially focusing on some of the bigger disease areas in neurology as well. And so with that in mind, we have now got a revenue trajectory for H1 '26 of 23% growth compared to H1 '25. The guidance for the full year is 15%. So the first half of this year clearly is outperforming that trends. And that comes off an order book increase of 31% vis-a-vis the end of last year '25, and that is actually 38% compared to H1 of '25. And that order book, of course, is very important because everyone who knows our business and who knows the business of serving clinical trials for pharma and biotech knows that, that order book really gives visibility on future revenues for the company. And what it means for the immediate future, so the end of year '26 is that this order book now fuels 95% of the revenues, which are out there with a guidance of GBP 7.5 million. So it gives me definitely confidence that we will achieve at least that GBP 7.5 million guidance that we have in the market. And then again, reminding everyone that we did conclude recently a GBP 10 million capital raise, which obviously is a big number for the company that we are. And as you will see and as I will remind those who haven't seen the capital raise announcement yet, I'll give some more details on why we did this and how this is going to influence the investments as well for the company. Staying for a moment in those past 6 months and the -- what we believe excellent performance there. Pipeline diversity is one of the key drivers. And when we say pipeline diversity, obviously, we mean therapeutic areas first. You may remind that we focus especially on Alzheimer's and Parkinson's in addition to some of the rare neurodegenerative diseases, which we've always been focusing on. Grant will give some more details in a minute, but I'm very happy to report that especially Alzheimer's disease has really taken the forefront in our pipeline, representing in terms of volume around 50% of that pipeline. Obviously, that pipeline still needs conversion into order book, but that is very much the expectation for the foreseeable future. I also want to highlight multi-modality here. What we mean by multi-modality is that we've now really become a trusted partner, not only for biotech and pharma, but also for the diagnostic players. So that's sort of a bit of a different vertical in the life sciences industry, helping them validate some of their solutions, especially the blood-based biomarkers in the dementia space, so in the Alzheimer's space, which also translates for us in much shorter FDA validation trajectories and hence also revenue recognition for us as a company. Expanding of the geographic footprint. That was something that was central in that previous capital raise, so a little bit over 12 months ago, which also resulted in, I would say, more feet on the ground and a bigger footprint, especially stateside in the U.S. And it also resulted in me hiring my first executive direct report in the U.S. with my Chief Commercial Officer now based in Boston. And then significant KOL endorsement, I will come back to that, but we are in the business of, of course, commercially making a bigger impact into some of these important disease areas, but that comes with, of course, the endorsement of thought leaders and academics in that space. And you will see that our Chief Scientific Officer and Chief Medical Officer, Robin Wolz, has made major inroads there, and we now have some key opinion leaders around the table that really endorse also that innovation that we have brought on platform. And so to end this summary slide, which I think sort of really gives a good overview of the performance of the past 6 months, novel algorithms on platform. That was very much what we set out to do, especially in Parkinson's and Alzheimer's. I'll bring that to life in a minute. But then also the latest release of our platform with especially some of these new AI-driven capabilities that also increase the speed, as mentioned, and the capacity at which we can now analyze and treat neuroimaging analytics. And then the TechBio component, obviously, now that we have raised the money, we are in full execution mode and are starting to make some of these investments where we already validated the opportunity. So with that in mind, I'm going to pass the word to Grant, who will give you some more details.

Thank you, Bram. So we have had a strong first 6 months of the year. As Bram outlined, we set out a target that we would deliver at least 15% revenue growth year-on-year. For the first half of the year, we've delivered 23%, leaving revenues of GBP 3.9 million for the first 6 months of the year and following the trend that we set last year for delivering on that growth based on the investments that we made in our Innovate, Lead, Scale strategy following the raise that we did back in 2024. The growth in revenue has primarily been driven by the signing of new contracts and signing contract extensions, and you'll see more detail on that when I come to the order book in a moment. Positively, with the revenue growth, we also see, as expected, increase in gross margin, 53% gross margin for the first half of the year, again, an increase on the same period last year. Our gross margin is driven by revenue volume because we have a relatively fixed cost base, which means that you see operational leverage coming through quickly as revenues increase. Also, we see gross margin accretion coming from sales mix and with increased numbers of projects in Phase II, Phase III, which tend to come with higher portions of our automated analysis work that drives higher margins, and we would expect that to continue going forward. And both the increased revenues and increased margin deliver improved EBITDA performance with a loss of GBP 0.5 million for the first 6 months of this year, reducing our losses on prior periods. That is increased revenues, increased margin, offset partially by some of the investments that we made in the last 18 months in that capital raise to drive revenue growth, but also sustained revenue growth. And so what we see is the first full period with those costs coming through, and we reduced our losses despite that investment. Having just now raised further capital for our TechBio strategy, we will be making some further investments, which we expect to drive revenues further and quicker in coming years, but in the short term will impact on EBITDA. Moving to the next slide and looking at our financial position, you can see that our cash position at the end of the half was GBP 1.7 million, which was obviously augmented soon after the period end by GBP 9.4 million net proceeds from the capital raise, meaning that at the end of April, we had a strong cash position of GBP 10.8 million, which is sufficient for us to make the investments that we need to make and drive those future increases in revenue profitability and value for shareholders. In terms of capital investment in the period, we have retained as we have done over the last couple of years since our new IXI platform was launched back at the end of '23, we have kept the investment at around about GBP 300,000 per half. You see that again in this half of the year with additional investment of about GBP 100,000 in IT infrastructure and about GBP 100,000 in a refurb of our office, which has actually been largely funded by our landlord as part of the deal of extending our lease, which we have now done. So in terms of our net asset position, we continue to have a strong net asset position of GBP 10.7 million at the end of the half. That is made up of just under GBP 8 million of long-term assets, which is our platform, the algorithms we run on that platform and also the data assets that we've acquired and built over the last few years. Working capital of GBP 3.3 million augmented just after the end of the period with the capital raise. And we still continue to be debt-free and have a very small amount of long-term liabilities, which essentially linked only to the lease of the office of about GBP 0.5 million. So then go to the next slide. And what you'll see here is the breakdown of our order book. I really want to emphasize the improvement and growth that we've seen in this order book in the last 6 months, where the order book, as Bram mentioned, has grown 31% since the end of the financial year, 38% since the end of March last year, leaving us in a recent record order book of GBP 18.1 million. What that GBP 18.1 million order book does for us is, firstly, it gives us 95% visibility of revenues that we have in the market guidance, the revenues we have in the market for this year. So we have GBP 7.5 million guidance in the market for this year, 95% of that is covered by contracts as of now. But it also gives us good visibility of base revenues for next year and year after, which gives us confidence that the growth that we've seen in the last couple of years can be sustained going forward, at least at that 15% growth per year basis. And then when you look at the graph on the right-hand side of this slide, what you see here is how that order book has evolved over the last 12 months. You can see that we started at GBP 13.1 million. We've recognized GBP 7.2 million of revenues over the last 12 months. There's been about GBP 400,000 of small descopes of trials of FX. But then very significantly, we have signed GBP 12.6 million of new contracts or contract extensions in that period. That is a book-to-bill ratio of 1.75, which is an impressive metric by any standard and is a mix of new contracts, bringing new clients as well as existing new contracts with existing clients into the business as well as extending existing contracts, bringing us back to that GBP 18.1 million order book. Now on the next slide, you see that same order book split in 3 different ways. And the reason that we show this is to give some visibility on how that order book is made up and why we are so pleased to have an order book of this strength at this point in our strategic development. So you see here that the graph on the left, the GBP 18.1 million order book split by projects and relative project size, showing that our biggest project at 19% of our order book value indicates we continue to have a very diversified order book despite the fact we continue to grow. So we're growing and we maintain the diversification, which derisks the order book, but also brings in a greater opportunity to win more trials and extended trials as those trials that we have already contracted move from Phase I to Phase II and move from Phase II to Phase III. And it is exactly that trend of movement in our order book that we -- partly explains the growth in the order book in the last 6 months. You can see that in the middle graph, where you see that the proportion of Phase IIs and Phase IIIs compared to the same order book at the end of September has increased materially. And that is in part because we've had Phase Is that have been successful, and we've been succeeded in winning the Phase IIs that follow that on. We've also been successful in having Phase IIs moving to Phase IIIs, which really underlines the potential that we have in our order book as we gain more projects that we can deliver on. We have as well won new contracts that have come in and augmented that as well. And then on the right, you see the number of projects in our order book, which is split by therapeutic indication. About 20% of the order book in AD, about just under 5% in PD, which have been areas that we've been focusing investment on recently with the balance being in our areas of real strength, HD and other rare neurological conditions. Very positively, these bigger market opportunities in AD and PD, whilst we haven't got those yet in our order book, since the period end, we have won a further AD contract, which is increasing the number of AD contracts we have. Plus, as Bram already mentioned, we have a pipeline that is increasingly weighted towards those AD opportunities. So we would expect to see continued order book growth over the coming months, but also increase in number of projects within AD and then more slowly coming PD. So I'll then pass back to Bram for some more detail.

Yes. Thank you, Grant. So hopefully, you will all agree that these are numbers that sort of prove that the strategy, which we call Innovate, Lead, Scale is really coming to fruition and that we've got that tangible progress as some of the analysts are calling it. I wanted to highlight this one for a moment because in the lead component of that strategy, as mentioned before, none of the innovation can come to market and can help pharma or biotech clients if it is not endorsed and supported by major key opinion leaders. And so you see here on this slide that we've actually added 6 more key opinion leaders or one institution, the Michael J. Fox Foundation, which probably doesn't need introducing in the Parkinson's space as endorsing bodies or individuals. For those who are familiar with the Alzheimer's space with the Parkinson's space, they will recognize those names. These are really figures that are shaping the trends and who are listening to. And so we're very honored and pleased that Robin has managed to motivate these key opinion leaders to work with us to inform especially that innovation in, for example, the vascular dementia space, but also when we talk about neuromelanin as one of the markers, which we are very excited about in the Parkinson's space. And I'll show you in a minute why I'm calling out these 2 who are on our road map. But so in general, very happy that these individuals are spending time helping us shape our innovation road map, but then also working with the broader space, especially in Alzheimer's and Parkinson's, spreading some of that innovation that we are now bringing to our customers. Those 6 individuals are added to Fredrik and Lynn, who have been working with us since a longer time, who are instrumental to our organization. And so together with them, we now feel that we have some very strong shoulders to stand on. To the right-hand side, you see sort of the scale of that footprint. I've been pressing and stressing that a lot over the past 12 months in terms of expanding that footprint, especially state side. You see that we've put this little purple bubble there in the Boston area that is really also highlighting that indeed, I do now have that commercial executive presence in the U.S. as well. But in addition to that, we see that the epicenter of a lot of our customer activity remains, of course, in that region. And then maybe calling out the blue bubble, so to speak, to the right-hand side of that map, we do see much more activity in the Eastern Hemisphere in the Asia region as well, which, of course, also informs us to continue to expand our footprint there. So I talked already about some of that innovation that is coming on platform. And you may have seen this road map before in some of the prior presentations. So with the previous capital raise, we especially doubled down efforts in the Alzheimer's and the Parkinson's space. In the dementia or Alzheimer's space, we're especially focusing on vascular biomarkers, but also on inflammatory or inflammation biomarkers, which are instrumental, not only in dementia, but also in some other neurodegenerative disease areas. And then in the Parkinson's space, neuromelanin was one of the key topics. And as you see here, all of these biomarkers have either come as algorithms on platform or are being introduced on platform so that they now can become commercial reality also in these collaborations that we are more and more landing into our order book. But we've also highlighted now on the bottom of this slide sort of more the technology road map. And what we mean by that is that we are going to focus more also on how we actually further automate and standardize our platform. And that is going to be very important as we enter into what we call the TechBio strategy, where the whole idea is that our IXI platform is going to become a much more productized version of the offering that we have been developing for 2 decades now, obviously, very much augmented and AI native and how this is actually going to what I like to call, live also in the hands of other users, and I'll bring that to life in a minute. So when we talk about the TechBio strategy, we're basically talking about changing the trajectory of our revenue and of course, also in our mind of the underlying enterprise value for the company. And you see on this teal line here, the projected growth for us as an iCRO business, which is very much the heart of who we are and also of who we are going to remain in the foreseeable future. We're projecting a 15% revenue growth trajectory. Clearly, with the 23% now in this first half, we're overachieving that. But we will definitely make sure that 15% is the minimum. And so our guidance for this year very much stays the same and is already being projected now for the following year as well. With the capital raise and starting to invest now in the TechBio area, we want to go on that blue line that you see here on this chart, which basically will, at the one hand, increase revenues, increase growth. And those revenues will also become, if you wish, more sound revenues as they're highly relying on analytics and therefore, are going to present higher margins and will also be represented through different size of contracts, whereby they will become recurring revenues. And again, I'll bring that to life through a concrete example, which I think will be more illustrative. So when we talk about the TechBio strategy, we're basically talking about expanding our addressable market. If you look at the left-hand side of this slide, these are some of the investments that have been made into the platform over the past years in order to be that scalable IXI that we call it now that mostly lives a little bit as a hidden gem, I should say, in our organization, supporting the services which we deliver to some of the biggest biopharma programs that are out there in the space of neurodegenerative disease. That gives us access to what we call a bespoke iCRO market, which we estimate at $100 million. So if you look at our growth, it is very much because we're now deeper penetrating that market. And obviously, we do see margin for further growth there. But with the TechBio strategy, we want to accelerate that by expanding into sort of that second band that you see here, which is sort of a three to fourfold addressable market. And that is by partnering together with some of these ecosystem partners, which are mainly the bigger CROs, clinical research organizations, but also data players, software providers into that clinical trial market space. By partnering with those partners, we can address a market that is 4x the size of the ones that we are operating in now. And as mentioned, it is also going to generate a different type of revenue, and I'll bring that to life again in a minute. As we do that, we believe that our platform will be shaped such that it is more standardized, more automated at the end of the day, more packaged as a product that we believe can live also in the hands of other users and as such, really becomes a device that we also think can be validated by FDA to operate in the clinical decision support space. It is today already operating on some of the major hardware operators in the neuroradiology space. And so for us, we believe it is a small step from there to start to serve also information for neuroradiologists and clinicians closer to the patient side. I do want to manage expectations that obviously, such processes require time, require diligent preparation, which is why the result and the entry into that market is not foreseen earlier than in the next coming 24 months. And this is just to give you a little flavor. I'm not going to go into all the details here on how we're now starting to use the proceeds and organize ourselves to start to access these different opportunities that I've just been highlighting in the previous slide. So you basically see 3 major blocks here. The first one is the bigger gray box to the upper left-hand side, which we call a little bit the no-brainer because it is going to further fuel our iCRO growth trajectory. It is very much around the themes of automation and standardization, so squarely where we want to bring our products, but we also know that these efforts are going to immediately help with the efficiencies and also with margins at the end of the day for our current business, which is why we didn't want to make wait with some of these investments and why we are bringing resources on board now to accelerate that technology road map and accelerate some of these investments, which we wanted to make, which brings me to the second box, which is then starting to unlock this ARR, the annual recurring revenue opportunity. And that is really productizing parts of our platform and starting to partner those with other players in the ecosystem. So not commercializing them as a service to pharma and biotech, but commercializing them actually as licensable products to those that serve the biotech and pharma markets. I want to make sure that we properly validate commercial opportunities that we don't go off to the races, so to speak, and develop products that are not being sought for. We have inbound interest. We have a major partnership with Medidata, which I will come back to that really informs some of this. But at the moment, I am giving the team the task to come forward with 2 to 3 products by the end of this year, which will be commercially validated before we put them on the road map. And then as mentioned, the third bucket here, which is this purple box on the upper right-hand side will then be that trajectory towards developing the platform as a software as a medical device. As mentioned, this takes a minimum of 18 months from a regulatory perspective, which is why starting in '27, we will go on that trajectory once we've also decided in which space we want to position that from a neurodegenerative disease area. So I mentioned already a couple of times that I was going to highlight things through an example. This is a deal which was recently closed with Medidata. I think for those who know the clinical trial space, Medidata, part of the Dassault group probably doesn't need an introduction. They serve 80% of all FDA-approved drug development programs, which means that they basically serve almost all big pharma companies and also clinical research organizations. And so for us, working together with Medidata makes a lot of sense at the one hand because obviously, it provides scale. It helps us expand the reach, which we have in our clinical trial space. But at the same time, it's also a way for us to now start to have our technology help another technology platform, which is the Rave platform of Medidata to better serve their clients. So Medidata is very much around data management, data capturing, data quality control. We are very much about analytics. So there's a very complementary collaboration here. And so at the moment, our technology teams are working hard on making sure that both systems work together so that we can together serve our clients with what we call a one-stop shop, which eventually will even result into single sign-on. This has been discussed with some of our main clients. This has also been discussed with some of Medidata's clients. And so I think we're all very excited about bringing this to life. And this will be for us also a first proof point to show that our platform, as I mentioned before, does not only live in the hands of our own experts, but can start to serve a broader community of those that serve the clinical development space. Just to sort of end with the team. When I did the capital raise, I made it very clear that this was not necessarily to bring more executives in the company. I'm actually very proud of the executive team that I've been able to shape over the past 12 months. When I came on board around 18 months ago, I could very much rely on a core team who are very much there still with Grant, Robin and Mark, who I promoted to Chief Technology Officer. With Grant and Robin, I expanded their remit. But then I was also very happy to welcome James and Tanya to the team, really creating that extra commercial muscle, I should say, both in the corporate development and the business development function. So I feel very well equipped with the current team that we have. We will, of course, solidify especially Mark's group, the technology group as we go into the TechBio area. There will be more corporate development efforts because this is not only about business development, but also about shaping new partnerships with Medidata beyond Medidata and with some of our major clinical research organization partnerships that we already have in place. The one thing that I want to highlight here on this slide is that obviously, we're supported by a nimble but very competent Board of Directors with 2 nonexecutive directors. We will be adding one independent director in the course of the next coming months to our Board as we want to make sure that this TechBio arena, as we call it, is properly represented also by a major expert with a proven track record. So we will obviously be very transparent with you all on those evolutions. And I think the entire Board is very excited about welcoming that extra expertise into a shareholder representation.

Perfect thank you both for your presentation. Sorry, you still got a bit to go, Bram.

We do, if you don't mind, but I'll keep it short. I just needed to catch my breath. No, very quickly, we have been trying to report not only numbers, but also very clear KPIs when we did the prior capital raise, and we did that across the drivers of Innovate, Lead, Scale. You see here that most of these are now really on green. I'm trying to stay honest and strict for ourselves, especially when it comes to pipeline and partnerships. We want to see always more of those, and we feel we've only gotten started. But we do feel that we've executed over the past 12 to 18 months on that initial strategic shift for the company. What you can expect moving forward is that we -- this is for '27 that we report out the same set of drivers, Innovate, Lead, Scale, but that we also add this productization component because as I think I have explained today, the whole idea is that our IXI platform starts to become a separate revenue driver towards a new set of clients as well. And so as you see here, Novel TechBio products on platform, strategic partnerships and then at the end of the day, the recurring revenue component in our top line are going to be KPIs that we will be tracking ourselves and, of course, reporting out to you all as well then. And I think with that, I just wanted to land on the slide which we started, hopefully, reiterating what we believe has been a clear or a great first half of '26, giving confidence for the second half of '26. But I think importantly, also making sure that we now have that solid foundation from which we can create also the next chapter for our company.

Brilliant. Thank you guys for your presentation this afternoon. [Operator Instructions] For your reference, a recording of today's presentation will be available on the Investor Meet Company platform shortly after the meeting has ended. But for now, guys, as you can see, there are a number of questions which have been submitted. Can I please ask you to read out the questions and give your responses where appropriate to do so, and I'll pick up for you at the end.

Sounds good. Bear with me because I see there's a long list here indeed, and we need to sort of go through them together. So if I don't immediately answer your question, I hope I don't offend you as I will have to pick and choose a few. When will IXICO be profitable and positive free cash flow? I think it's an important question that always comes back. So maybe Grant, we give a brief answer there.

Yes. So I think our expectation is that this company will be profitable and will be generating cash by '29. I think to emphasize though that you can already see today based on the iCRO model that we have that we are making good margins on growing revenues. And if we just wanted to get to profitability as quickly as possible, we could do that more quickly. But what we see here is an opportunity longer term that will deliver greater revenues, greater quality of revenues, greater EBITDA performance and ultimately greater value. So we are making the decisions deliberately to invest more over the next couple of years such that we can achieve that target. So we are, if you like, deliberately putting up profitability for the wider benefit of valuation of this business across the long term.

Thanks, Grant. I'm going to take the question, which always comes back, are you thinking about listing in the U.S.? Just for fun, no is the short answer. I think we're a proud listed U.K. company. Does A do full justice to the intrinsic value which we're building? Maybe not always, although I think today is a good day from what we're seeing, and we see quite a bit of chatter going on, which makes us happy as well. But no, I think we have a very clear trajectory. We've got a very supportive shareholder base here in the city, I should say. When I say here in the City, I mean London. And so that is also how we plan to further grow the company. I will also answer a final question from someone who goes by [indiscernible] here on the chat. Are you factoring any contracts being canceled? Always. There's always a clear part in the forecast, which is discounted for cancellations. We luckily haven't had any cancellations. We haven't had any contracts that delivered unsuccessful outcomes thus far. But as you may have seen from Grant's numbers, there was a small portion of descopes. And so we always keep that in mind, of course, in the forecast. And it's one of the reasons, frankly, also why we are shifting our strategy to not only be reliant on the CRO component of our business model, but to also look at other recurring revenues because, obviously, as long as we are a CRO, we do know that every project counts and that not every project, of course, makes it to an approvable product. But I think in the shorter term, it is very important that actually our order book is built on sufficiently or a sufficient number, I should say, of contracts. And that's what you've seen that we now have this very healthy mix so that even if there's a descope or cancellation, this doesn't immediately impact our revenue and that we can be confident about the forecast, which we're putting out there. Are you seeing larger or longer duration contracts from existing clients? Maybe I'll leave that with you, Grant, as I read the following on.

Yes. So what we are seeing is that as we have worked on some of these earlier phase contracts and those earlier phase contracts have moved to Phase II and Phase III that we have delivered successfully for those clients, and they have retained us as their imaging CRO. What that means is that we end up signing some higher value, longer-term contracts based on the fact that these are Phase II or Phase IIIs as compared to Phase I. And that is very positive and really underlines that pipeline and our order book. I think what is also true is that we are seeing increasingly some shorter-term contracts that enable relatively quick conversion of revenue from contracts to revenue based on clients asking us to do some reanalysis or analysis based on data that we already have, where we can give further insights into the data that they have collected. But also this multimodality piece that Bram talked about, where we are being asked by blood-based biomarker companies to support the validation of those blood-based biomarkers by comparing the results of those blood-based biomarkers to the gold standard imaging analysis that we are able to [indiscernible].

Thanks, Grant. I'll speed up a little bit because there's actually quite a few questions. Matt, I know you've got another question, how important is AI becoming within your imaging platform and workflow. It always has been. We're an AI native company actually since 20 years, starting from machine learning. We think it's now the market and our customers who are ready for something that we have always had on platform, and we do indeed see that, obviously, our algorithms being AI-driven do start to replace actually some of the things which in the past would have been done by human experts. So at the moment, we operate very much as a platform that augments neuroradiologists expertise, but there are already components within our workflow, which are fully AI-driven, whether they be quality control or upload of information to all the way to the actual analytics of the algorithms. [indiscernible] is asking whether the TechBio model will be SaaS. Indeed, SaaS is one of the components, but it will definitely be recurring in terms of also licensing and other types of models. Seth is asking, can you run through your revenue recognition for your trials and explain to what extent pricing is fixed? Maybe...

Yes. So we currently price our contracts on essentially a service delivery basis at the moment. So this is something that's currently very much part of the iCRO model. And what that means is that we sign a contract for several years based on pricing that can be increased based on inflation depending on the contract that we sign. But it is not specifically delivered driven by volume. So we don't give necessarily volume-based discounts based on the number of patients. So that is often why when we have bigger trials, we see greater margin because we have a greater proportion of the analysis comes from the trial and that is automated or semi-automated and comes at strong margins, which is why we see those improved margins.

Okay. I'll take Leonel's question even if it's financial. Will H2 finally turn to profit? Or is it significant CapEx still going to generate a loss? I'll let Grant keep me honest. I'm not sure that CapEx is the reason for a significant loss. I also don't think we are experiencing a significant loss. But I think what's more important, and Grant has mentioned that as well, we are rapidly moving towards profitability. Projected profitability before the capital raise in '28 with the capital raise because indeed, we have raised that capital to invest it and not to put it in our coffers. We're now cautiously saying that profitability might be in '29, although I have hopes that we can accelerate that. But I think the underlying message is that we prefer to now invest deeply into the technology space to then have much more sounder revenues later on, which will represent also much higher margins and will eventually lead to a much more profitable business, we think, than the CRO that it has been sort of for the past 10 years. So I'm using a lot of words to say that profitability as important as it is, and we will deliver on the promises that we've made also in our analyst note are not the major focus for H2 of this year, but will be for the following years. This is a longer one, so bear with me, just in terms of the sales cycle with 95% of the revenue covered for the year, what needs to happen for the remainder of the year to hit your guidance or possibly above? I assume it's conversion of some of the wider pipeline into contracted orders? Or are there trials with quick turnaround times? Frankly, Edward, you've answered your own question. I would say, indeed, you may have heard from Grant that we especially also serve some of the diagnostic players with the blood-based biomarkers where there are indeed some in the pipeline as well. And those are shorter turnaround projects, which we will then also be able to completely recognize in terms of revenue even in the coming months. Having said that, we also have, of course, a rich pipeline of other larger-scale biotech and biopharma products. And so it will require some of these deals to close and then set up revenues to be recognized. But everything is within the expectations of what has been forecasted, I should say. I'll maybe read Martin's question and let you answer it. Cavendish are forecasting GBP 7.5 million revenue for the year, which would mean GBP 3.6 million revenue for H2, less than GBP 3.9 million in H1. Is there a reason to think revenue may be lower in H2 than H1?

So honestly, the answer to that question is no. Look, we put out guidance or the analyst guidance at the beginning of the year based on our projections that we would do at least 15% revenue growth. We have had a strong first half of the year, as we discussed, 23% growth on prior year and obviously putting ourselves in a very strong position to deliver that GBP 7.5 million at this point. We've also confirmed that we've got 95% of that revenue already contracted. You can never be 100% sure, but that puts us in a position where we are very confident, as we've said in our release this morning that we will at least do revenue guidance this year. And as and when we know that, that changes, we will come back.

Leonel is also asking how much of the target funding did you successfully raise in April? What are the immediate spending priorities with this funding? So 2 good questions. We were slightly oversubscribed. I think with GBP 10 million, we were ambitious, and we were delighted that shareholders and also new investors followed us. But I think for the size of company and with the aspiration that we have GBP 10 million was actually the number we wanted. And as mentioned, it was slightly oversubscribed, which obviously made us happy. What are the immediate spending priorities? I brought that to light a little bit, but the immediate priorities are actually making sure that we've got technology resources. And as you know, these days, technology resources are not only humans, but making sure that we can really ring-fence some of our technology resources to not -- to really build for the future and to not only deliver on deployment of the platform for the next customer, so to speak. And so it's very much around the one hand, making sure that technology is sufficiently resourced to productize the platform and to make sure that we deliver also on some of these partnerships. And then at the same time, corporate development where we want to generate more of these partnerships. The order book, Edward is asking, should we be concerned around there being less Phase 1 proportionally because we were emphasizing indeed a lot that there are now more Phase II or Phase II and Phase III trials are representing more of the order book. No, I don't think so. I think we should indeed always keep focusing on the influx of new Phase I trials. They are often smaller in terms of size, in terms of value, which is why you now see these Phase II and Phase IIIs taking over a bigger proportion. But you're absolutely right that our eye needs to keep on the ball on getting that new influx of Phase Is, and that is also happening. Maybe the only caveat that I should make is that not every Phase I trial in a clinical development program will require imaging. It is often in Phase II, whether that's Phase IIa, Phase IIb, that imaging really comes to life, which is also why that's really sort of our initial bread and butter. I think, Michael, I hope we've answered your question, when do you expect to be consistently profitable and cash generative? So I'm going to skip to the next one. I'm very hopeful about the collaboration with Medidata, and it demonstrates that IXICO is trusted and valued by major players. Can you give some background on how the 2 companies got together, please? That's a very good question. Those things don't happen overnight. What I can say is that it was inbound interest from Medidata since a while. It is very clear that Medidata is, of course, diversifying also the offering that they gave or that they provide to their customers. And that resulted, I should say, probably already a year ago now in very productive discussions, which we then managed to accelerate over the past months. But I should say that it's very much an inbound interest, which was shown, which also really strengthened that thesis of us wanting to do this with more partners. Can you talk a little bit about the tech stack that underpins the IXI platform? Can you maybe...

Yes. So we completely redesigned and redeveloped our platform a few years ago based on Microsoft Azure cloud infrastructure. We use Microsoft microservices in order to develop that, which allows us to have a very flexible, very extensible platform where we can build it and develop it in ways that are responsive to client demand, where we used that to date has meant that we've been able to be quite bespoke for some of our clients. But what we're looking to do going forward is how we can use that capability to provide actually very standardized automated offerings to specific partnership relationships. So hopefully, that answers that question.

Martin, I'm going to take your question on the AI and the large language models first. And then Grant, you can maybe answer Martin's question around cash and cash flow positive, which I think we've already touched upon. So in terms of do you see any risk from one of the AI large language models releasing something that displaces your offering? The answer is clearly no. I think the moat is not so much around AI only. It's also about the data that inform the AI. We have generated hundreds of thousands or collected hundreds of thousands of images of the brain over the past 2 decades onto the platform. We also continuously collaborate, for example, with the Global Alzheimer's Platform where we are part of the Bio-Hermes 001 and 002 initiatives. So we have access to these data that are so informative to training the algorithms at the end of the day and especially also because we operate in the rare CNS space, where obviously these images are not always easy to find because these patients are not always easy to find either. So as much as we shouldn't rest on our laurels, even if I've got a lot of confidence in the AI experts that I have here in the building, so to speak, it is very much also around the data that we have amassed over the past years. So then the question is when do you think the group as a whole becomes cash flow positive? And I think linked to that, do you have sufficient cash to get to your target of being cash flow in financial year '29.

So I mean, very briefly, as we said, we expect to be cash flow positive on a sustainable basis from '29. And yes, that was exactly the reason we did the raise that we did, but we wanted to make sure we raise sufficient to enable us to make the investments we believe are required to get to that position of cash flow generation and material cash flow generation and sustainable material profitability.

I should maybe add and I think this actually ends the questions. I hope we've answered most, if not all of the questions. If you want more detail really around the TechBio strategy, obviously, we will continue to report out to you. But I also invite you to go to our website and look at some of the previous webinars, if you wish, or shareholder meetings that we've had, especially also the Capital Markets Day, which we did at the end of the past calendar year, I think it was November 25, if I'm not mistaken, where we really laid out during 2.5 hours actually how we looked at the future and that strategy. We also have external experts who talk about their excitement and sort of endorsing, I would say, that thesis. And then obviously, you will also find more around the TechBio strategy on our website. But I think with that, we've concluded our part and obviously, always happy to answer any other questions through any channel.

Brilliant. Thank you both for answering those questions and for your presentation this afternoon. Ladies and gentlemen, could I ask that you don't close the session just yet as you'll now be automatically redirected to a page to give your feedback, which helps the company better understand your views and expectations. On behalf of the management team, we'd like to thank you for attending today's presentation. I wish you all a good afternoon.