Trading and IUL integration update

RNS Number : 7804A

Medaphor Group PLC

03 January 2018

 

MedaPhor Group plc

("MedaPhor" or the "Group" or the "Company")

Trading and IUL integration update

MedaPhor Group plc (AIM: MED), the intelligent ultrasound software and simulation company, announces an update on trading and the integration of the artificial intelligence business, Intelligent Ultrasound Limited ("IUL"), which was acquired by the Company in October 2017.

Trading update

The Company can confirm that Group turnover for the year to 31 December 2017, which was generated entirely by the Group's simulation businesses, is expected to grow by 27% to £4.2m (2016: £3.3m). The loss for the year before tax, share based payment charges and amortisation arising on the acquisition of intangible fixed assets acquired with IUL, is expected to be around £2.9m (2016: Loss, £2.4m).

Cash at 31 December 2017 was £4.2m.  

Intelligent Ultrasound

Integration of IUL into the Group has progressed well and, as was announced on 23 November 2017, the Group has been awarded a £0.5m Innovate UK grant to part fund the development of the NeedleGuide^TM Artificial Intelligence ("AI")  guided augmented reality imaging device. The NeedleGuide device will combine existing technology, developed by MedaPhor, with expertise brought to the Group through the acquisition of IUL to increase the use of ultrasound-guided needling in hospitals.

IUL's ScanNav^TM software, which aims to automatically identify and grade ultrasound images using deep-learning technology, is now in Limited First Release ("LFR") at a major UK hospital with a view to rolling out the LFR at a number of other sites during 2018.

Discussions with ultrasound machine manufacturers continue to progress but, as no software licensing/supply deal was signed by 31 December 2017, the contingent deferred consideration of £258,000 to the vendors of IUL, which was to be satisfied by the issue of further shares and warrants in the Company, will not now become payable.

Outlook

The Board is encouraged by the early success of the NeedleGuide grant award following the integration of the AI software business acquired with IUL and the Group is on track to launch the first AI based ScanNav^TM software into the ultrasound scanning market by the end of 2018. Despite a difficult UK and European market, the ultrasound simulation business has a healthy pipeline of potential orders in the US and Asia and the Board is looking forward to progressing the Group's exciting AI product development programme during 2018 and beyond.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulations which came into effect on 3 July 2016.

Enquiries:

MedaPhor Group plc		www.medaphor.com
Stuart Gall, CEO		Tel: [phone]
Cenkos Securities		Tel:  [phone]
Camilla Hume/Bobbie Hilliam (Nominated Advisor)
Michael Johnson / Julian Morse (Corporate Broking)
Walbrook PR	Tel: [phone] or [e-mail]
Paul McManus / Anna Dunphy	Mob: [phone] / Mob: [phone]

About MedaPhor (www.medaphor.com)

MedaPhor (AIM: MED), the intelligent ultrasound software and simulation company, develops advanced hi-fidelity ultrasound training simulators, artificial intelligence (AI) image analysis software and augmented reality (AR) needle guidance systems for medical practitioners.

Based in Cardiff and Oxford in the UK and Atlanta in the US, MedaPhor is split into two divisions:

Ultrasound Simulation and Training

Focuses on hi-fidelity ultrasound education and training through simulation.  Products include the ScanTrainer^TM OBGYN and General Medical simulator training platform and the HeartWorks^TM echocardiography simulator.  Over 500 MedaPhor simulators have been sold to over 300 medical institutions in over 30 countries around the world.

Ultrasound Clinical Support

Focuses on developing AI algorithms to make ultrasound machines smarter and more accessible. ScanNav^TM uses deep-learning based algorithms to automatically identify and grade ultrasound images to provide guidance, assessment and audit of obstetric scanning.  NeedleGuide^TM aims to simplify ultrasound-guided needling with AR needle guidance and automated needle tip tracking.

 

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