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.
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.
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 NeedleGuideArtificial 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 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.
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 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.