IP : Intelligent Ultrasound Group plc - Unaudited Preliminary Results for the Year Ended 31 December 2019

Intelligent Ultrasound Group plc (AIM: MED), the ultrasound artificial intelligence (AI) software and simulation company, announces its unaudited preliminary results for the year ended 31 December 2019, showing another excellent year of progress for the Group during which its Clinical AI Division signed its first AI software agreement with a major ultrasound manufacturer and its Simulation Division continued to grow sales.

Financial highlights:

• Revenue from simulation sales grew 11% to £5.9m (2018: £5.3m)
• Gross profit up 22% to £3.5m (2018: £2.8m)
• R&D expenditure increased to £2.7m (2018: £1.9m)
• Strengthened the balance sheet in August 2019 with a placing and open offer which raised £5.8m after expenses
• Year-end cash plus investments (short term deposits), at £7.3m (2018: cash of £5.6m) and no debt¹
• Current cash of £6.2m

¹excluding IFRS 16 lease liabilities

Operational highlights:

• Signed first long-term AI software licence and co-development agreement with one of the world's leading ultrasound equipment manufacturers
• Strong contribution from North America with revenue up 53% to £2.6m (2018: £1.7m)
• Signed marketing partnership with Fujifilm SonoSite, Inc. in North America for ultrasound training and services
• Commenced alliance with Mediscan Systems to use AI and simulation to improve patient care in India and enhance the Group's ultrasound scan image library to over 4 million images (2018: 1 million images)
• Commenced regulatory approval process and commercial discussions for ScanNav AnatomyGuide's Peripheral Nerve Block AI software

Post year end:

• Received ISO13485:2016 medical device accreditation
• Launched COVID-19 simulation training system

Commenting on the results, Riccardo Pigliucci, Chairman of Intelligent Ultrasound said:

'2019 has been another year of excellent progress by the Group and I would like to thank both our staff and our shareholders for enabling this to happen. The Clinical AI Division has performed particularly well, signing its first licensing agreement for ScanNav with a major OEM and progressing commercial discussions for its second AI software product. The reception for our products in development at trade shows is particularly encouraging. The Simulation Division has also worked hard to continue growing revenue.

'However, it would be wrong to ignore the recent spread of the COVID-19 virus that is currently impacting all regions in which the Group operates, and we have therefore implemented a number of cost-saving measures that will enable the Group's EBITDA for FY2020 to remain in line with expectations. The outlook for the medium and long term remains unchanged, with the Group expected to have sufficient funds to continue its simulation and AI business activities for the next twelve months, when the revenues from its first AI software licence agreement are expected to be generated.

'We remain an ambitious Group that is excited about bringing our first AI software products to market and continuing the growth of the business over the coming years.'

Enquiries:

Intelligent Ultrasound Group plc	www.intelligentultrasound.com Tel: [phone]
Stuart Gall, CEO Helen Jones, CFO
Cenkos Securities - Nominated Advisor and broker	Tel: [phone]
Giles Balleny / Cameron MacRitchie (Corporate Finance) Michael Johnson / Julian Morse (Sales)
Walbrook PR	Tel: [phone] [e-mail]
Anna Dunphy / Paul McManus	Mob: [phone] / Mob: [phone]

About Intelligent Ultrasound Group ( www.intelligentultrasound.com )

Intelligent Ultrasound (AIM: MED) develops artificial intelligence-based clinical image analysis software tools for the diagnostic medical ultrasound market and hi-fidelity virtual reality simulators for the ultrasound training market. Based in Cardiff and Oxford in the UK, Atlanta in the US and with representation in Beijing in Asia, the Group operates two divisions:

Clinical AI Division

Focusses on developing deep learning-based algorithms to make ultrasound machines smarter and more accessible. Products in development include ScanNav which uses machine-learning based algorithms to automatically identify and grade ultrasound images to provide scan assessment and audit of protocol-based ultrasound scanning; and AnatomyGuide, which aims to simplify ultrasound-guided needling by providing the user with real-time AI-based needle guidance software for a range of medical procedures.

Simulation Division

Focusses on hi-fidelity ultrasound education and training through simulation. Its three main products are the ScanTrainer OBGYN training simulator, the HeartWorks echocardiography training simulator and the BodyWorks Eve Point of Care and Emergency Medicine training simulator. To date over 850 simulators have been sold to over 500 medical institutions around the world.

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