(Alliance News) - Ixico PLC shares dropped sharply on Wednesday, after it said delays to projects will result in lower annual revenue.

Shares in Ixico were down 19% to 6.89 pence each in London on Wednesday afternoon.

The neuroscience focused advanced analytics company said its financial first half has been marred by "longer contracting cycles and postponements of certain new contracts to later in the year" or the next one. Ixico's current financial year ends on September 30.

Ixico said delays to some project start dates are likely to mean revenue for financial 2024 will total GBP5.2 million to GBP5.9 million. Revenue in the prior year amounted to GBP6.7 million, so this will be as much as a 22% decline.

An "equivalent anticipated impact" is expected in financial 2025.

Chief Executive Giulio Cerroni said: "Whilst anticipating a challenging first half year of trading, we had expected higher levels of new contract bookings, especially from biotech sponsors, which have not yet materialised, primarily due to client-led delays. Since the start of the financial year, we have however seen a notable increase in the value and diversity of our eighteen-month opportunities pipeline. This recent increase in engagement across several large pharma and emerging biotech sponsors interested in applying Ixico's AI analytics tools across a broad range of CNS disorders, provides cause for optimism as we look forwards."

By Sophie Rose, Alliance News senior reporter

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