IXICO plc
Annual Report and Accounts 2023
Company registration number 03131723
Addresses and Advisers
IXICO plc
Registered office:
4th Floor, Griffin Court
15 Long Lane
London, EC1A 9PN
Tel: +44 (0)20 3763 7499
Website: www.IXICO.com
Registered number: 03131723
Domiciled in the United Kingdom
Registered in England and Wales
Statutory auditors
Grant Thornton UK LLP
Statutory Auditors
30 Finsbury Square
London, EC2A 1AG
Tel: +44 (0)20 7383 5100
Website: www.grantthornton.co.uk
Nominated adviser and broker
Cavendish Securities plc
1 Bartholomew Close
London, EC1A 7BL
Tel: +44 (0)20 7220 0500
Website: www.cenkos.com
Registrar
Equiniti Registrars Limited
Aspect House
Spencer Road
Lancing
West Sussex, BN99 6DA
Tel: +44 (0)871 384 2030
Website: www.equiniti.com
Legal advisers
Bristows LLP
100 Victoria Embankment
London, EC4Y 0DH
Tel: + 44 (0)20 7400 8000
Website: www.bristows.com
2
Contents
Addresses and Advisers .................................................................................................................................................. 2
Strategic report ................................................................................................................................................................. 4
Chair’s statement .............................................................................................................................................................................. 4
Chief Executive’s statement ............................................................................................................................................................. 6
Stakeholder engagement ............................................................................................................................................................... 12
Our ESG journey ............................................................................................................................................................................ 15
Financial review .............................................................................................................................................................................. 18
Risk management ........................................................................................................................................................................... 21
Corporate Governance Report ...................................................................................................................................... 26
Statement of Directors’ Responsibilities ......................................................................................................................................... 29
Audit Committee Report ................................................................................................................................................................. 30
The Board of Directors ................................................................................................................................................................... 32
Board activities and timeline ........................................................................................................................................................... 33
Directors’ Report ............................................................................................................................................................................. 35
Directors’ Remuneration Report ..................................................................................................................................................... 39
Financial Statements ...................................................................................................................................................... 41
Independent Auditor’s Report ......................................................................................................................................................... 41
Consolidated Statement of Comprehensive Income ...................................................................................................................... 53
Consolidated Statement of Financial Position ................................................................................................................................ 54
Company Statement of Financial Position ...................................................................................................................................... 55
Consolidated Statement of Changes in Equity ............................................................................................................................... 56
Company Statement of Changes in Equity ..................................................................................................................................... 57
Consolidated Statements of Cash Flows ........................................................................................................................................ 58
Notes to the financial statements ................................................................................................................................................... 59
3
IXICO plc
Strategic Report for the year ended 30 September 2023
Strategic report
Chair’s statement
This is my last statement as Chair as, after ten years on the Board and seven as Chair, I will step down at the AGM in
January 2024 and be succeeded by my fellow non-executive director, Mark Warne.
I am proud of all that the Group has achieved over the last decade. IXICO now leads the market in neurological image
analysis capabilities. We support academic and industry partnerships investigating and illuminating disease progression
in the challenging conditions of Huntingdon’s disease (HD) and Alzheimer’s disease (AD) and have seamlessly
delivered image analysis services to the world’s largest HD clinical trial.
This year, Eisai announced FDA approval for a drug to treat AD and Eli Lilly reported positive late stage trial results that
together, by showing disease modification benefits, herald a new era for neurological drug development. Such positive
progress towards mechanisms that slow, halt and potentially even reverse the progression of AD, coupled with the
global epidemic of dementia and the rapid growth in associated international healthcare costs, creates a compelling
investment case for the biopharma industry generally and IXICO in particular.
Despite the currently challenging neurological disease clinical trials market, typified by high profile drug failures and
decades of research to achieve even minor progress, IXICO has progressed in its technical, scientific and operational
capabilities and is strongly positioned to scale. In the last few months, we have streamlined our cost base whilst
sharpening our focus on the growth opportunity ahead. The next generation TrialTracker platform is now production
ready and our recent investments in IT infrastructure provide the Group with the highest levels of data security and
resilience.
Overview
Our purpose is to advance medicine and human health in neuroscience by converting raw imaging data, captured as
part of the clinical trial process, into clinically meaningful information. We accurately measure changes (which can be
very small) in biomarkers relevant to diseases of the brain. By doing so, our data analytics services provide objective
insights into the efficacy and safety of the drugs being trialled and so deliver greater efficiency and accuracy to the
clinical development process. These services are underpinned by our TrialTracker end-to-end technology platform
which supports the capture, management, analysis and reporting of data on behalf of each clinical trial in a seamless,
centralised, regulatory compliant system that removes the need for travel to global imaging sites.
A step backwards to move forwards.
It has been an especially challenging year for the biopharmaceutical industry and the clinical trials service providers that
support it. Across the Contract Research Organization (CRO) market we have seen fewer clinical trial initiations as
large pharma companies scrutinise their existing trial pipelines. Meanwhile, biotech companies, facing tight capital
market conditions, are making cash conservation their primary priority. Consequently, cost restructuring and market
consolidation have been widely reported.
In this context, IXICO has performed satisfactorily. Despite reduced revenues (which we communicated this time last
year) the Group has delivered an earnings performance in line with market expectations and retains a strong, debt-free,
cash balance.
As the Group looks to return to growth, we have carefully adjusted expectations based on the wider market challenges
and the Board took the important, but uncomfortable, decision to right-size our cost base. I thank the IXICO team for
the professional, sensitive and respectful way in which this was managed by all involved.
Governance and people
IXICO’s future depends on our people and the Board thanks all our employees for their hard work, dedication, and
flexibility in this particularly challenging year. We continue to promote our values – Aspiration, Ability, Agility and
Accountability – to augment our culture and align our team with our purpose. The Group uses the ten principles outlined
in the Quoted Companies Alliance (‘QCA’) Corporate Governance Code to ensure it maintains appropriate governance
arrangements and the Board conducts itself in a manner that places IXICO’s values and the QCA principles at the core
of our culture. The Board met formally thirteen times during the year with several additional ad-hoc meetings or calls to
discuss specific topics.
4
IXICO plc
Strategic Report for the year ended 30 September 2023
I am delighted that Dr Dipti Amin has joined us as a Non-Executive Director. An experienced NED with an executive
career that includes more than twenty years with IQVIA, where she occupied senior positions in compliance, drug safety
and medical affairs. Dipti brings significant additional pharmaceutical and CRO experience to the Board.
At the 2024 Annual General Meeting (‘AGM’), in accordance with the Company’s Articles of Association, Dipti Amin and
Mark Warne will stand for election, supported by the Board of Directors’ recommendation. I will retire from the Board on
the same date and Mark Warne will step up to the Board Chair position. I am delighted that Mark has agreed to do so,
thereby creating a smooth succession, and wish him, our fellow directors and the wider IXICO team the best of luck for
the future.
Shareholders
The Group has an impressive list of leading institutional investors, and we would like to thank all our shareholders for
their continued support and enthusiasm for IXICO’s important work.
Outlook
While we expect 2024 to be largely flat on 2023, we anticipate growth in our orderbook of client contracts should
position the Group for a return to double digit revenue growth in 2025.
IXICO is well positioned in its wider market which we expect to grow and therefore attract new investment in the global
pursuit of medical solutions to those neurological diseases so that impact the lives of millions of patients and impose
wider significant social and economic burdens. We are a small but important part of the solution to this high unmet
medical need and the Board is proud of the way that the Group approaches its business activities with this significant
responsibility held firmly at the front of mind.
Charles Spicer
Non-Executive Chair
4 December 2023
5
IXICO plc
Strategic Report for the year ended 30 September 2023
Chief Executive’s statement
Executive Summary
As I look back and reflect on 2023, it is with mixed feelings. On the one hand, the Alzheimer’s Disease (AD) research
landscape continues to experience a significant resurgence, with regulatory approvals for new therapies with
blockbuster potential imminent. After nearly two decades of high-profile disappointing results in Phase 3 trials, Biogen’s
Aducanumab approval in 2021 was followed in 2023 by the accelerated and then full FDA approval granted for Eisai’s
Lecanemab and positive Phase 3 readouts for Eli Lilly's Donanemab. Our view is that these major milestones will be a
trigger for more investment in neurological disease areas by the biopharmaceutical industry. With this favourable
backdrop, we took significant strides in 2023 in the delivery of our purpose of harnessing medical imaging data to
advance human health, investing to strengthen our position as a specialist provider of neuroscience imaging data
analytics solutions to the clinical trials industry.
Conversely, macro-economic impacts of a challenging political landscape, high global inflation, and continuing regional
conflicts resulted in the biopharmaceutical industry cutting back on development pipelines and/or delaying new clinical
trial start-ups. Like many other CRO companies supporting the clinical trials market, IXICO was not immune to the
financial impacts of these conditions, resulting in a weaker year of new contract bookings than had been anticipated.
Despite lower than planned revenues, I am pleased to report earnings that align with market expectations. However,
given that we expect the challenging business environment to continue across 2024, we recently took the difficult
decision to reduce headcount to right size our cost base as we reset the business for growth.
During the year we supported two important enhancements to neurological disease knowledge in AD and Huntington’s
disease (HD). We supported the Global Alzheimer’s Platform (GAP) by providing PET Amyloid visual reads for their
1,000 participant BioHermes trial, completing data transfers ahead of the requested timelines. The study was notable for
achieving a secondary recruitment target requiring a minimum of 20% of the study participants to be from traditionally
underrepresented populations, enabling IXICO to report on initial findings on differences between racial and ethnic
groups at the CTAD opening symposium (Boston, October 2023). We also led, alongside the CHDI Foundation, the
Huntington’s Disease Imaging Harmonization Consortium (HD-IH) in securing funding to ensure the full analysis of more
than 6,000 HD datasets using IXICO’s leading IXIQ.Ai analytics platform. We anticipate that the insights derived from
the work of the HD-IH consortium will create long term value to the biopharmaceutical partners to support them in their
clinical development programmes and to the broader HD research community.
We delivered seamlessly for our clients, providing image analysis services to more than 30 studies, broadening our
offering across therapeutic indications whilst improving our service level metrics to exceed our clients’ expectations. In
tandem, we further developed our PET imaging capabilities, including an enhanced service offering for PET tracer
management, deepening our reach into the AD market. Our next generation TrialTracker platform is production ready,
and we are looking forward to deploying this Microsoft Azure enabled technology in support of our client trials during
2024 and in the years ahead.
We have made strides in executing our 2022 to 2027 “Precision in Neuroscience” strategy. We enter our new financial
year with an order book of signed contracts valued at £14.8m and a stronger pipeline of client opportunities, with
visibility of new contracts to provide a platform for double digit growth in 2025 and beyond. Considering the longer term,
I am also excited by the progress made with the “Bridge Pillar” of our strategy, with a recent funding award to develop
our plans for post-market decision support; this development will provide the bridge between clinical trials and
diagnostic tools to enable the right patients to safely access novel therapies in AD. There remains significant
opportunity in this space, and our intention is to accelerate further development in this area during 2024.
I would like to thank my team at IXICO for their incredible hard work over the last twelve months, and for the approach
and professionalism that they have brought to both meeting the opportunities and supporting the challenges that we and
our current and prospective clients face in developing new therapies across many neurological diseases. As I look
forward to 2024, it is with cautious optimism underpinned by a deep-rooted confidence that IXICO is better placed than
it has ever been to deliver seamlessly for our clients on our purpose of harnessing medical imaging data to advance
human health within neuroscience.
6
IXICO plc
Strategic Report for the year ended 30 September 2023
Market overview
The burden of degenerative neurological disease continues to increase, driven by an aging population. Research in this
area continues to advance; greater understanding of neurological disease has been recently driven by insights derived
from multi-modal approaches combing genomics, biomarkers, diagnostics, and imaging techniques, and this, along with
emerging new drug mechanisms, is changing the fundamentals of innovation in the sector.
Recent regulatory progress in AD for Biogen, Eisai and Eli Lilly has given pharma companies greater certainty of
commercial returns in what has been historically a very challenging indication. This has encouraged further investment
in neuroscience portfolios and, consequently, the market for clinical trials in neuroscience is expected to continue to
grow at pace.
Central Nervous System disorders account for the second largest segment of pharmaceutical R&D investment, behind
only that of oncology. The CNS disorders segment accounted for 10.6% of the clinical trial imaging market in 2020. This
segment has been valued at $108 million in 2021 and it is expected to grow to $157 million in 2026 with a CAGR of
7.7%
Neuroimaging is widely deployed in CNS trials at all phases, firstly to screen patients for safety and eligibility and then at
regular intervals to detect and measure changes in brain structure caused by disease progression and interventions.
Although many imaging biomarkers are exploratory, objectively detecting and measuring even small changes can
deliver significant insights to the sponsor on treatment mode of action and efficacy.
The core of IXICO’s imaging offer is in its proprietary, validated artificial intelligence technology which is deployed to
deliver standardised and repeatable analysis generating reliable insights; IXIQ.Ai can more than double the amount of
usable data compared to widely used tools delivering greater value to clients in extracting insights from its trial
investments. In addition, IXICO offers its clients deep expertise, in imaging techniques and endpoints with specialist
Biomarker Scientists dedicated to each study to help clients plan the imaging approach and protocol, and to provide
quality assurance for the study output. IXICO’s TrialTracker platform ensures robust data management and security
which is of the highest importance to clients operating in the highly regulated field of clinical trials, particularly when
deploying studies in multiple jurisdictions.
Outlook of the neurological drug development segment by indication
Alzheimer’s Disease (AD)
Historically, over 99% of novel treatments in development for AD have failed to achieve regulatory approval, with many
of these failures occurring in the late stage of trial, representing a loss of many billions of dollars of investment. More
recently, Biogen and Eisai have achieved approval by the FDA and, with a further asset now in regulatory review (Eli
Lilly), there is renewed confidence in the validity of the research approach. This has paved the way for even greater
focus in this area of research and development. The IXIQ.Ai brain segmentation platform can improve success rates by
providing more usable data, enabling more targeted patient selection to lower the biggest driver of costs and
inefficiencies while increasing the chance of success. Currently there are over 140 drugs in the global AD development
pipeline; many of these drugs are exploring new modes of action, increasing the value of imaging biomarkers to closely
monitor patients for safety, as well as to study disease progression and drug efficacy.
Parkinson’s Disease (PD)
Until recently, treatments for PD have focused on reducing the severity and impact of the physical symptoms of this
debilitating disorder. However, decades of research into the underlying causes of PD are now bearing fruit with the
development of newer drugs that focus on slowing, halting, or even reversing disease progression, particularly in the
early stages. To date, IXICO has provided neuroimaging services to 14 trials in parkinsonian syndromes and more
recently has introduced algorithms for DAT SPECT imaging modalities, specifically to support the growing portfolio of
PD trials.
Multiple Sclerosis (MS)
MS tends to affect a younger patient population compared to AD and PD, and a wide portfolio of therapies has been
available for treatment for many years. However, the disease is increasingly now well-understood, and research has
identified new clinical subtypes, ushering in new approaches to treatment and management, and fuelling an increasing
development pipeline. IXICO is partnering with leading clinical centres on the development of new algorithms to support
subtype detection and monitoring, providing leading-edge services to MS studies. The Group also recently introduced
7
IXICO plc
Strategic Report for the year ended 30 September 2023
an early engagement programme to enable sponsors to fully take advantage of novel imaging approaches on their
studies to unlock new insights.
Huntington’s Disease (HD)
HD is a relatively rare neurodegenerative disease caused by a faulty gene. Although there have been recent setbacks in
the progress of drug development for this indication, the genetic nature of HD means that patients can be reliably
identified earlier in the disease pathway, long before symptoms are apparent. This may enable earlier intervention and
raises the possibility of gene therapies, supporting the continued growth of the HD development pipeline. IXICO is a
leader in neuroimaging in HD, having supported many HD studies in the past decade and has strengthened its
leadership position through its close collaboration with the CHDI Foundation and the HD-IH consortium (see the
Science review).
Orphan and Rare Diseases
Initiatives by the EU EMA and US FDA such as orphan drug designation, and the increasing use of genomic
sequencing technology to screen newborns and to investigate early childhood development disorders, have encouraged
significant investment into a wide range of rare diseases. In the past five years a new wave of rare disease neurological
treatments, including dozens with orphan designation, have been approved. With its expertise in imaging and biomarker
development, IXICO has successfully adapted many biomarkers for rare neurodegenerative diseases to support a wide
range of studies in rare indications such as Friedreich’s Ataxia, Multiple System Atrophy and Progressive Supranuclear
Palsy.
Operational review
During 2023, the Group worked on more than 30 studies across a broadening range of neurodegenerative indications,
supporting all phases of clinical research from small early phase studies to larger Phase 3 trials.
Delivering operational excellence
As a highly specialised provider of tailored solutions, we strive to deliver an excellent service to our biopharmaceutical
clients and to the imaging sites we work with. We achieve our high standards by being agile in decision-making and
through our ability to customise the solutions we offer. Examples of 2023 performance metrics include:
• Project performance: we monitor our performance through customer satisfaction, quality, resources and
deliverables. Our metrics have exceeded both those agreed with our sponsors and our own internal targets.
• Geographies: We supported more than 30 studies across 25 countries. During 2023 we added more than
10 SPECT sites to our network of qualified sites, bringing our total qualified site number for MRI, PET and
SPECT to over 1,000 sites across the globe.
• Analysis units: we analysed over 30,000 image endpoints this year for over 4,000 patient visits. The number
of endpoints analysed increased by 37% compared to FY22.
• Turnaround timelines: fast turnarounds of radiology reports are key to ensure patient eligibility and
treatment decisions are not delayed. During 2023, IXICO consistently delivered radiology reports in an
average of 3 working days or less, meeting or exceeding the high standards of expectation by clients for
brain scans.
We strive to stay at the forefront when developing best practice and have reduced the timelines for transferring data and
images to our clients. We know how critical it is for biopharmaceutical companies to have quick access to the full set of
high-quality data collected in their study to allow regulatory filing, early publication and conference presentations. We
continue to streamline our processes to ensure that client requirements are fulfilled or exceeded to achieve these
important milestones.
We are proud of our easy-to-work with operations processes, exemplified by a webinar (December 2022) in
collaboration with Re:Cognition Health showcasing our best-in-class approach in setting up imaging studies quickly and
efficiently.
8
IXICO plc
Strategic Report for the year ended 30 September 2023
Enhancing operational capabilities
1. PET Tracer management
During 2023, IXICO enhanced its service offering to our sponsors to provide PET Tracer management solution
for AD and PD studies. PET imaging uses a radioactive tracer during the scan. The tracer’s uptake provides
information to help determine patient eligibility and treatment efficacy. Due to their radioactive nature, these
tracers have a short half-life (e.g., 110 minutes for the most widely used), and require special transportation,
licencing and storage conditions. They are complex to produce and therefore their availability may be limited.
Due to all these characteristics, tracer management is increasingly of interest to biopharmaceutical companies.
IXICO is able to support these activities by facilitating the coordination of the Tracer manufacturing company,
the logistics companies and the imaging sites.
2. Next generation of TrialTracker
Over the past three years, IXICO has utilised its in-house development resources, augmented by contracted
expertise, to bring to market a next generation of its TrialTracker platform.
As with the Group’s existing TrialTracker, this is an end-to-end data management platform enabling imaging
sites, wherever they are in the world, to upload brain scans whilst automatically checking scan quality and
pseudonymising the scan. The platform seamlessly transfers the scan to IXICO’s radiological team, to provide
image reads and safety checks, and hosts its AI enabled, automated proprietary analysis pipelines.
The next generation TrialTracker platform has been developed using Microsoft’s Azure cloud technologies,
providing the Group and its clients with state-of-the-art, secure, resilient, regulatory compliant infrastructure
benefitting from highly flexible microservice capabilities. This enables the Group to adapt the platform to suit
the specific (and often bespoke) clinical trial needs of its clients and partners.
The platform is ready to be deployed on client trials having completed extensive testing and validation activities
in 2023.
Science review
Significant progress was made across 2023 in further developing, validating and positioning IXICO’s clinical trial product
portfolio across therapeutic indications. In addition, the Group made further progress in developing core technology to
‘bridge’ into potential new markets in clinical applications as the field is experiencing significant momentum in the
approval of new therapies, specifically in AD. Throughout 2023, IXICO has actively participated in the scientific
discussion across core therapeutic areas as demonstrated by the attendance at eight conference and the (co-)
presentation of more than 20 posters and (invited) talks. IXICO has furthermore, hosted three scientific webinars with
key opinion leaders in AD, gene therapies, and HD.
A key R&D focus was on the extension of IXICO’s PET analysis capabilities to extend the service offerings across both
relevant (MRI and PET) imaging modalities within a broadening range of neuroscience clinical trials. Specifically, IXICO
has now deployed PET visual read and quantitative analysis solutions across core PET tracers in AD and PD. During
2023, we have completed PET analysis of the Bio-Hermes trial for the Global Alzheimer’s Platform (GAP). Co-
sponsored by pharma companies with an interest in AD clinical development, the landmark 1,000-participant Bio-
Hermes study was designed to evaluate the ability of blood-based and digital biomarkers to reflect the presence of brain
amyloid in participants enrolled in AD clinical trials. A secondary objective of Bio-Hermes was to include a significant
representation of ethnic and racial minority participants, building a highly valuable database as regulatory requirements
in AD clinical trials increasingly require improved representation of traditionally underrepresented populations. IXICO
provided all PET data collection services as well as the visual radiology read to determine gold-standard amyloid
pathology. Following study completion, IXICO’s scientific team led an initial analysis of the collected PET biomarkers,
specifically focusing on the analysis across ethnic and racial groups. The work was selected for presentation and
discussion in the opening symposium at the high-impact CTAD (Clinical Trials in Alzheimer’s Disease) conference, held
in Boston, Massachusetts, between 24th and 27th October 2023. Selection by the organising committee for this
prestigious presentation slot highlights the importance of the work performed for the AD community and provided a
significant opportunity for IXICO to demonstrate cutting edge scientific and technical capabilities in AD PET imaging to
participating pharma sponsors and academic researchers. As a Bio-Hermes partner with an R&D license on the data
collected, IXICO is well-positioned to further investigate the unique dataset and thereby advance scientific knowledge in
this critical field of AD development.
9
IXICO plc
Strategic Report for the year ended 30 September 2023
Huntington’s disease continues to be a key market for IXICO, and good progress was made during 2023 to further
underline the Group’s leading position by progressing the IXICO-initiated HD Imaging Harmonization (HD-IH)
consortium. HD-IH was founded in 2022 by IXICO, the CHDI Foundation Inc. (CHDI) and pharma partners uniQure and
PTC Therapeutics to conduct an unprecedented harmonization analysis of more than 6,000 participant-visit magnetic
resonance images (MRIs) acquired from over 2,000 research participants. During 2023, the project has completed the
initial phase and, through the onboarding of a third pharma partner, Asklepios BioPharmaceutical, Inc. (AskBio) and
additional funding commitments by both CHDI and IXICO, secured the necessary financing to complete the project.
These analyses are expected to support the development of therapeutic strategies targeting specific HD sub-
populations (“precision-medicine”), inform eligibility and dosing decisions for clinical trials, and aid in associated trial
design decisions and biomarker development to enable interventional studies earlier in the disease course. IXICO
presented an update on progress of HD-IH at the 18th Huntington’s Disease Therapeutics Conference (HDTC) held in
Dubrovnik, Croatia, from 24-27 April 2023.
Further steps were taken in the development of an extended offering for demyelinating disorders. The Group has
previously announced the award of two phase-III trials in MOG antibody-associated disease (MOG-AD) and during 2023
we have extended our service offering to provide automated lesion quantification into one of those trials. With these
extended capabilities, the Group can now serve core imaging requirements across demyelinating disorders, including
Multiple Sclerosis (MS) as the most prevalent and widely researched disease area. IXICO presented a poster on its
quantitative MS analysis at the 9th conference by the European Committee for Treatment and Research in MS,
ECTRIMS, held in Milan, Italy, from 11-13 October 2023.
The Group continues an active R&D program exploring opportunities to develop its core clinical trial analytics
technology for applications that support treatment-related decision-making in new post-market applications. During
2023, we have actively progressed several partnership opportunities on the development of solutions to provide
diagnostic decision-support in clinical practice and safety monitoring of ARIA (amyloid related imaging abnormality), the
core side effect of recently approved anti-amyloid therapy. To further support development of a post-market decision
support tool, the Group has secured funding that will support and complement IXICO’s internal R&D program during
2024.
Growth strategy & Corporate outlook
Our focus remains on neuroscience with neurology global medicine spending expected to grow at 3–6% to more than
$140 billion by 2025. This includes much higher growth subsegments, as a range of rare neurological diseases have
had new treatments approved or showing positive progression as well as the potential that large population diseases
like AD or PD will see further investment consequent to the approval of new treatments.
During 2023, IXICO was impacted by a slow-down in trial start-ups and near-term cutbacks in pharma R&D pipelines
resulting from a tighter funding environment affecting the biopharmaceutical industry. Whilst we anticipate these
conditions continuing in 2024, we view them as near-term headwinds. We remain resolute in our conviction that the
unmet clinical need in neurodegenerative diseases provides significant runway for growth for IXICO, reflected in our
“Precision in Neuroscience” strategy.
Our 5-point Precision in Neuroscience strategy
IXICO continued to make good progress in several strategic areas:
Build Pillar: Robust operational performance and cost control measures for the period enabled financial earnings in line
with market expectations, despite lower year over year revenues. Investments made during 2023 to build our
commercial infrastructure have led to notable increase in the client contract opportunities pipeline providing
management visibility to significantly larger numbers of Requests for Proposal (RFP) over the next 24 months, each
valued at between £0.25m to £2.5m, across a broadening range of therapeutic areas. This, combined with an order
book at the end of 2023 of £14.8m, provides good future revenue visibility and a basis for targeting our commercial
efforts to return to double digit revenue growth in 2025 and beyond.
Innovate Pillar: We believe that IXICO will lead in our addressable markets by developing proprietary algorithms that the
biopharmaceutical industry rely on to establish both the safety and efficacy of new treatments. Data analysis undertaken
by IXICO as part of the GAP Bio-Hermes study (see Science review) completed in 2023 were presented in the opening
symposium at the prestigious CTAD (Boston, October 24th), AD clinical trials scientific conference. Presenting important
data at large disease specific conferences is expected to increase awareness of IXICO’s capabilities to the global
pharma industry and provide significant potential future business development opportunities.
10
IXICO plc
Strategic Report for the year ended 30 September 2023
In 2023, the HD-IH consortium was expanded (see Science review). The HD-IH consortium deploys IXICO’s proprietary
IXIQ.Ai brain segmentation platform to conduct a harmonized analysis of more than 6,000 participant-visit magnetic
resonance images (MRIs) acquired from over 2,000 research participants. These analyses will support the development
of therapeutic strategies targeting more specific sub-populations, inform eligibility and dosing decisions for HD clinical
trials, and aid in associated trial design decisions and biomarker development to enable interventional studies earlier in
the disease course.
Penetrate Pillar: Despite delays in clinical trial start-ups, we continue to make good progress in pursuing our strategy of
penetrating early stage (phase 1 and 2) programmes, accessing the potential to stay with the client for several years as
the asset, if successful, moves along the development continuum. Broadening the client base with more early phase
studies reduces the risk associated with any single large, late phase project, while providing multiple opportunities to
move into larger, later stage (phases 3 and 4) clinical trials in the future.
Developing drugs takes a long time and is expensive. The overall likelihood of approval (LOA) from Phase 1 for all
developmental candidates over 2011–2020 was 7.9%. However, rare disease therapies (of which many are in
neurology) are notably more successful with an overall LOA of 17.0% and development programs with trials employing
patient preselection biomarkers have two-fold higher LOAs (15.9%), driven by a Phase 2 success rate of nearly one-in-
two. This insight supports our strategy of becoming the partner of choice across a broader range of rare diseases, as
we have done in HD. In addition, we will be looking to leverage our next generation TrialTracker platform to increase
commercial success in new trials of large population diseases like AD, MS, or PD, in particular those employing imaging
biomarkers combined with potential analysis of non-imaging biomarkers, such as blood-based and digital biomarkers.
Bridge Pillar: There is incredible potential for real world evidence (RWE) to play a much broader role in the
advancement of drug development, delivering insights that ensure efficacy and safety, while increasing patient-centricity
and trial feasibility. With our recent and ongoing investments in artificial intelligence (AI) and cloud analytics together
with our next generation TrialTracker data sharing and AI analysis platform, IXICO’s ambition is to address many of the
challenges to analysing and interpreting RWE Imaging data. We expect this to expand IXICO’s addressable clinical
trials market whilst creating a bridge into post marketing and clinical practice markets.
Enhance Pillar: With long lead times, significant regulatory and procurement barriers to entry into the clinical trials
market, IXICO is uniquely positioned to partner with innovative analytics organisations to provide a market channel to
the global biopharmaceutical industry. This partnering strategy supplements our own innovation roadmap with additional
enhancements to our offering to provide cutting edge innovations across a broad range of CNS disease areas. Progress
made during 2023 means that we are hopeful to be able to announce our first significant partnership agreement early in
2024.
Giulio Cerroni
Chief Executive Officer
4 December 2023
11
IXICO plc
Strategic Report for the year ended 30 September 2023
Stakeholder engagement
The Board recognises that effective stakeholder engagement enables improved, impactful decision-making. It is
committed to further strengthening its relationships across all stakeholders impacted by the Group’s activities.
The principal strategic decision made during the year was in relation to assessing the operational cost of the Group.
This included critically analysing the cost base of the Group, covering both fixed and variable costs to identify cost
savings, as well as making the decision to reduce headcount to reflect known short-to-medium term challenges in the
clinical trial market. The Board prioritised this to ensure that the Group continues to be well positioned to respond to
expected market growth generated by material progress in the development of drugs to address AD and rare
neurological diseases. This decision supports IXICO’s offering to the neurological clinical trials market, utilising efficient,
secure and highly resilient technology that delivers the highest levels of drug safety and efficacy and trial patient
stratification assessments.
Our stakeholders
Employees
IXICO employs highly qualified employees in a range of scientific, technical, operational, and
supporting roles
What’s important to them
How we engage
Employee engagement is critical to employee happiness,
wellbeing and retention. One of the primary topics of
engagement is emphasising the Group’s purpose and
societal benefit arising from its activities. Additionally,
employees need to understand their opportunities for
development, and how their roles contribute directly and
indirectly to the Group’s successes. Collaboration and
idea sharing along with communication to, within and
between teams is crucial.
The Group holds regular Townhalls with employees to
communicate material matters and topics including
strategic, scientific, operational, commercial and financial.
Development and training plans are defined as part of
annual performance reviews to support personal growth
as well as a wider contribution to the Group. These plans
are reviewed and revisited each year by line managers
and their direct reports. During the year a survey was
conducted to obtain feedback from employees.
Impact of key strategic decision
Right sizing the organisation by removing a small number of roles in the Group affected all employees, not just those
directly impacted. A focus on clear communication, accompanied by a transparent approach and rationale for the
change supported employees in understanding the change and their response to it.
Shareholders
IXICO has a strong list of institutional and individual shareholders
What’s important to them
How we engage
Engagement with shareholders focusses on the
Group’s purpose and its strategy for delivering this.
Shareholders want to see a return to growth and have
the confidence that the Group’s management are
making decisions that place the Group in the best
possible position to capitalise on market opportunities
as they arise. This includes responding to challenges
in a measured and rational manner.
Shareholders are communicated to via LSE RNS, IXICO’s
website, investor presentations and social media. The
Group delivers twice-yearly results briefings to communicate
developments to, and receive feedback from, shareholders.
Our Executive Directors, Non-Executive Chairman and
other Non-Executive Directors make themselves available
to meet with shareholders as appropriate.
Impact of key strategic decision
Key shareholders have been impacted within their portfolios by companies that have found the lack of available
capital in the market challenging. IXICO’s careful management of its financial reserves, whilst continuing important
investments that support future growth supports shareholder confidence that the Group is addressing short term
challenges whilst securing capabilities to respond to both expected and unexpected opportunities as they arise.
12
IXICO plc
Strategic Report for the year ended 30 September 2023
Pharmaceutical and biotech clients
Clients rely on data analytics services to support critical decisions in their clinical development
programs
What’s important to them
How we engage
Clients expect high levels of quality assurance, with
consistent and reliable service levels. They also seek
more efficient ways to run trials, alongside utilising new
product development and innovation. Scientific leadership
and consultancy are also highly valued.
Each project has a dedicated project manager
accountable for service delivery, where weekly project
calls are standard practice. Our science team is closely
involved in projects enabling clients to take advantage of
the latest advances in the IXICO analysis portfolio and
expertise.
The Group supports all client audit requirements, and
operates under a Quality Management System,
accredited to ISO 13485.
Impact of key strategic decision
The Group has ensured that it continues to achieve the highest levels of client satisfaction and service quality across
the year, prioritising these metrics as it seeks to become the partner of choice across neurological clinical trials.
Scientific Partners
IXICO is a member of several scientific consortia and scientific partnerships
What’s important to them
How we engage
These partners require scientific and operational
capabilities, with a focus on investment in innovation. It’s
also important to develop relationships that support the
community’s wider purpose of advancing human health.
IXICO is engaged in several scientific collaborations and
contributes at conferences dedicated to specific disease
areas. The Group provides discounted and/or in-kind
services to collaborations designed to advance
knowledge of neurological diseases. During the year, the
Group CSO undertook detailed analysis on behalf of a
partner resulting in a prestigious symposium presentation
at this year’s CTAD conference.
Impact of key strategic decision
A careful review of the most impactful scientific developments to support clients and partners has increased the focus
of the Group in its investments to the long-term benefit of these stakeholders.
Imaging Centres
Imaging centres perform brain scans on participants involved in clinical trials. The centres upload
images to IXICO’s systems for analysis
What’s important to them
How we engage
The centres used by IXICOs clients require training and
qualification of their personnel to deliver accurate imaging
data. During a project, technical support and timely issue
resolution is critical in successfully delivering for our
mutual client.
Our online imaging-centre-support model enables centres
to receive training and qualification at a time that suits
them. Access to support is also managed through an
online helpdesk.
Impact of key strategic decision
The Group continues to provide the highest levels of support for the qualification of new imaging centres, thereby
accelerating centre onboarding to a trial and reducing the burden on scarce healthcare resources. Positive feedback
from sites continues to separate IXICO from its competition in this respect.
13
IXICO plc
Strategic Report for the year ended 30 September 2023
Participants
Our clients recruit participants to take part in the clinical trials of their drug candidates
What’s important to them
How we engage
Participants rely on IXICO to provide objective
measurement of the impact of trial drugs on the brain. A
participant’s confidence in the safety of enrolling in a
clinical trial is of the highest importance and they rely on
accurate and timely readings to ensure this.
Whilst we do not directly communicate with trial
participants, we engage with patient representatives to
understand the challenges of living with neurological
diseases.
Impact of key strategic decision
The right sizing of the organisation ensures that IXICO can provide sustained delivery of its purpose which places the
improvement of health outcomes for patients suffering from neurological disease at the core of everything that it does.
S172(1) statement:
As required by Section 172 of the Companies Act 2006, a director of a company must act in the way he or she
considers, in good faith, would most likely promote the success of the company for the benefit of its shareholders. In so
doing, the director must have regards, amongst other matters, to the:
• Likely consequences of any decision in the long term;
•
Interests of the Group’s employees;
• Need to foster the Group’s business relationships with suppliers, customers and others;
•
Impact of the Group’s actions on the community and environment;
• Desirability of the Group maintaining a reputation for high standards of business conduct; and
• Need to act fairly between members of the Group.
The Directors continue to consider specific stakeholder groups (as outlined in more detail within the governance
section). This includes the regularity and means by which the Group engages with its stakeholders.
14
d
e
t
a
r
e
n
e
g
l
e
u
f
l
i
s
s
o
f
n
o
e
c
n
a
i
l
e
r
g
n
i
r
e
w
o
l
y
b
t
n
i
r
p
t
o
o
f
n
o
b
r
a
c
’
s
p
u
o
r
G
e
h
t
e
c
u
d
e
r
o
T
e
h
t
t
i
m
i
l
l
y
d
a
o
r
b
e
r
o
m
d
n
a
e
b
a
v
l
i
y
l
l
i
a
c
m
o
n
o
c
e
d
n
a
e
b
s
s
o
p
e
r
e
h
w
i
l
r
e
w
o
p
i
.
s
n
o
i
t
a
r
e
p
o
s
s
e
n
s
u
b
d
n
a
s
e
e
y
o
p
m
e
p
u
o
r
G
l
f
o
t
c
a
p
m
i
l
t
a
n
e
m
n
o
r
i
v
n
e
f
o
s
d
r
a
d
n
a
t
s
h
g
h
s
t
p
o
d
a
O
C
X
I
i
I
t
a
h
t
l
a
i
t
n
e
s
s
e
s
i
t
i
,
e
s
o
p
r
u
p
s
t
i
r
e
v
i
l
e
d
o
t
r
e
d
r
o
n
I
i
s
h
t
d
n
a
i
y
t
e
c
o
s
n
o
t
c
a
p
m
i
e
v
i
t
i
s
o
p
a
i
g
n
k
a
m
t
s
l
i
h
w
e
c
n
a
i
l
p
m
o
c
d
n
a
e
c
n
a
n
r
e
v
o
g
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
e
w
i
h
c
h
w
i
s
c
p
o
t
l
a
i
r
e
a
m
t
e
h
t
d
n
a
k
r
o
w
e
m
a
r
f
G
S
E
r
u
o
d
e
p
o
e
v
e
d
l
i
g
n
v
a
H
.
k
r
o
w
e
m
a
r
f
G
S
E
s
O
C
X
I
’
I
i
f
o
s
s
a
b
e
h
t
s
m
r
o
f
e
p
c
n
i
r
p
i
l
g
n
i
l
b
a
n
e
e
m
i
t
t
s
r
i
f
e
h
t
r
o
f
a
t
a
d
d
e
t
c
e
l
l
o
c
e
w
,
y
t
i
C
e
h
t
f
o
t
r
a
e
H
f
o
t
r
o
p
p
u
s
e
h
t
h
t
i
W
d
n
a
2
,
1
s
e
p
o
c
S
r
o
f
i
i
i
s
n
o
s
s
m
e
e
d
x
o
d
n
o
b
r
a
c
d
e
t
a
m
i
i
t
s
e
e
t
a
u
c
a
c
o
l
l
t
p
u
o
r
G
e
h
t
r
o
t
i
n
o
m
o
t
y
l
r
e
t
r
a
u
q
s
t
e
e
m
d
n
a
d
e
h
s
i
l
b
a
t
s
e
l
l
e
w
s
i
e
c
r
o
f
k
s
a
T
G
S
E
O
C
X
I
I
2
O
C
f
o
s
n
o
t
0
0
2
,
1
y
e
t
a
m
x
o
r
p
p
a
:
i
l
3
e
p
o
c
S
2
O
C
l
f
o
s
n
o
t
0
1
y
e
t
a
m
x
o
r
p
p
a
:
i
2
e
p
o
c
S
2
O
C
l
f
o
s
n
o
t
5
y
e
t
a
m
x
o
r
p
p
a
:
i
1
e
p
o
c
S
-
-
-
e
h
T
o
t
n
w
o
h
s
e
b
n
a
c
e
s
e
h
t
e
r
e
h
w
s
e
g
e
t
a
r
t
s
g
n
i
t
t
e
s
f
f
o
n
o
b
r
a
c
i
i
r
e
d
s
n
o
c
o
s
a
l
l
l
i
w
e
w
i
.
’
g
n
h
s
a
w
n
e
e
r
g
‘
n
a
h
t
e
r
o
m
t
n
e
s
e
r
p
e
r
d
n
a
t
s
u
b
o
r
e
b
,
t
n
i
r
p
t
o
o
f
n
o
b
r
a
c
r
u
o
e
c
u
d
e
r
o
t
s
y
a
w
e
t
a
g
i
t
s
e
v
n
i
o
t
s
i
s
u
c
o
f
y
r
a
m
i
r
p
r
u
o
t
s
l
i
h
W
y
e
n
r
u
o
j
G
S
E
s
O
C
X
I
’
I
h
t
i
w
t
n
e
m
e
g
a
g
n
e
e
e
y
o
p
m
e
e
o
m
o
r
p
d
n
a
t
l
.
:
s
w
o
l
l
o
f
s
a
s
i
s
e
t
a
m
i
t
s
e
l
a
u
n
n
a
e
s
e
h
t
f
o
e
m
o
c
t
u
o
e
h
T
.
3
-
-
-
e
v
a
h
t
a
h
w
e
w
,
t
h
w
o
r
g
s
s
e
n
s
u
b
i
l
e
b
a
n
a
t
s
u
s
i
i
g
n
v
e
h
c
a
i
n
i
l
a
i
t
n
e
s
s
e
e
b
o
t
d
e
r
e
d
s
n
o
c
i
t
a
i
g
n
k
o
o
l
,
d
n
a
k
r
o
w
e
m
a
r
f
i
s
h
t
i
g
n
p
o
e
v
e
d
l
r
e
h
t
r
u
f
n
o
i
g
n
s
u
c
o
f
3
2
0
2
t
n
e
p
s
e
w
,
s
h
i
t
f
o
t
r
a
p
s
A
.
s
c
p
o
i
t
l
t
a
i
r
e
a
m
d
e
i
f
i
t
n
e
d
i
r
u
o
g
n
v
o
r
p
m
i
i
f
o
s
m
r
e
t
n
i
o
d
n
a
c
e
w
.
1
y
t
i
C
e
h
t
f
o
t
r
a
e
H
f
o
t
r
o
p
p
u
s
e
h
t
h
t
i
w
t
n
i
r
p
t
o
o
f
n
o
b
r
a
c
t
s
r
i
f
r
u
o
l
d
e
t
a
u
c
a
c
l
e
v
a
h
e
w
w
o
h
e
v
o
r
p
m
i
o
t
e
u
n
i
t
n
o
c
l
l
i
w
e
w
d
n
a
y
e
n
r
u
o
j
G
S
E
r
u
o
f
o
t
r
a
t
s
e
h
t
t
s
u
j
s
i
i
s
h
T
g
n
n
o
i
i
t
i
s
o
p
G
S
E
r
u
o
f
o
y
t
i
l
i
b
a
i
l
e
r
e
h
t
e
v
o
r
p
m
i
l
l
i
w
n
r
u
t
n
i
i
h
c
h
w
a
t
a
d
G
S
E
t
c
e
l
l
o
c
e
b
l
l
i
w
s
h
T
i
.
r
e
h
t
r
u
f
i
s
h
t
e
v
o
r
p
m
i
o
t
e
k
a
t
o
t
d
e
e
n
e
w
s
n
o
i
t
c
a
e
h
t
f
o
y
t
i
r
a
c
l
e
h
t
d
n
a
.
l
w
o
e
b
d
e
l
i
a
t
e
d
r
e
h
t
r
u
f
s
a
4
2
0
2
r
o
f
s
u
c
o
f
y
e
k
a
r
u
o
f
o
n
o
i
t
l
a
u
c
a
c
l
e
h
t
,
y
c
n
a
n
f
i
s
t
i
n
i
s
i
y
e
n
r
u
o
j
n
o
i
t
c
e
l
l
o
c
a
t
a
d
G
S
E
r
u
o
t
s
l
i
h
W
r
u
o
r
o
f
t
a
a
d
i
s
n
o
s
s
m
e
i
e
h
t
i
e
s
n
i
t
u
r
c
s
o
t
h
c
a
o
r
p
p
a
i
s
h
t
e
s
u
l
l
i
w
e
w
,
y
l
r
a
l
i
m
S
i
h
t
i
w
e
g
a
g
n
e
d
n
a
t
r
o
p
p
u
s
n
a
c
e
w
r
e
t
t
e
b
w
o
h
d
n
a
e
m
o
h
m
o
r
f
i
g
n
k
r
o
w
s
e
e
y
o
p
m
e
l
.
a
e
r
a
s
h
t
n
i
i
t
n
i
r
p
t
o
o
f
i
r
u
o
g
n
c
u
d
e
r
n
i
l
s
e
e
y
o
p
m
e
r
u
o
5
1
)
m
o
c
.
y
t
i
c
e
h
t
f
o
t
r
a
e
h
e
h
t
(
d
o
o
g
r
o
f
e
c
r
o
f
a
e
b
n
a
c
s
s
e
n
i
s
u
b
y
r
e
v
e
e
v
e
i
l
e
b
e
W
|
y
t
i
C
e
h
t
f
o
t
r
a
e
H
1
e
g
n
a
r
a
i
g
n
c
u
d
o
r
t
n
i
e
r
a
o
h
w
s
r
e
i
l
p
p
u
s
r
u
o
m
o
r
f
k
c
a
b
d
e
e
f
e
v
i
t
i
s
o
p
y
r
e
v
d
a
h
e
v
a
h
s
y
a
w
.
t
a
a
d
t
a
k
o
o
l
o
t
d
e
e
n
e
r
o
e
r
e
h
f
t
e
w
d
n
a
t
n
i
r
p
t
o
o
f
n
o
b
r
a
c
r
i
e
h
t
e
c
u
d
e
r
o
t
s
e
v
i
t
a
i
t
i
n
i
f
o
r
u
o
n
h
i
t
i
w
s
n
o
i
t
c
u
d
e
r
n
o
b
r
a
c
d
n
a
s
e
v
i
t
a
i
t
i
n
i
G
S
E
e
s
e
h
t
t
c
e
l
f
e
r
n
a
c
e
w
e
W
.
t
a
a
d
i
s
h
t
e
s
n
i
i
t
u
r
c
s
r
e
t
t
e
b
o
t
d
e
e
n
e
r
o
f
e
r
e
h
t
e
w
d
n
a
i
n
o
s
s
m
e
i
t
s
e
g
r
a
l
r
u
o
r
a
f
o
t
k
r
o
w
n
a
c
e
w
e
r
e
h
w
s
a
e
r
a
e
s
o
h
t
d
e
i
f
i
t
n
e
d
i
y
d
a
e
r
l
a
s
a
h
e
r
u
g
i
f
3
2
0
2
e
n
i
l
e
s
a
b
y
b
s
i
i
s
e
c
v
r
e
s
d
n
a
s
d
o
o
g
d
e
s
a
h
c
r
u
p
,
3
e
p
o
c
S
n
I
.
t
c
a
p
m
i
e
t
a
m
i
l
c
’
s
O
C
X
I
I
e
c
u
d
e
r
s
t
e
g
r
a
T
d
n
a
s
s
e
r
g
o
r
P
G
S
E
t
n
e
m
n
o
r
i
v
n
e
n
o
t
c
a
p
m
I
L
A
T
N
E
M
N
O
R
I
V
N
E
-
l
a
c
n
i
i
l
c
g
n
i
t
r
e
v
n
o
c
y
b
h
t
l
i
a
e
h
n
a
m
u
h
d
n
a
e
n
c
d
e
m
e
c
n
a
v
d
a
o
t
s
i
i
e
s
o
p
r
u
p
s
O
C
X
I
’
I
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
y
e
n
r
u
o
j
G
S
E
r
u
O
c
l
p
O
C
X
I
I
t
n
e
m
t
i
m
m
o
C
o
t
i
h
c
h
w
n
o
p
u
i
s
s
a
b
t
n
a
t
r
o
p
m
i
n
a
i
e
d
v
o
r
p
o
s
a
l
t
u
b
e
s
o
p
r
u
p
s
t
i
f
o
y
r
e
v
i
l
e
d
o
t
y
e
k
e
r
a
s
e
u
a
v
s
O
C
X
I
l
’
I
.
n
o
i
t
a
m
r
o
f
n
i
l
i
u
f
g
n
n
a
e
m
y
l
l
a
c
n
i
i
l
c
o
t
n
i
a
t
a
d
g
n
g
a
m
i
i
l
a
i
r
t
e
h
t
l
.
s
a
o
g
G
S
E
r
e
v
i
l
e
d
t
n
e
m
t
i
m
m
o
C
n
i
p
u
o
r
G
e
h
t
f
o
e
s
o
p
r
u
p
e
h
t
e
t
o
m
o
r
p
o
T
l
f
o
s
e
n
n
a
h
c
e
t
a
i
r
p
o
r
p
p
a
t
n
e
m
e
p
m
l
i
o
T
s
e
c
r
u
o
s
e
r
l
,
s
o
o
t
t
e
a
i
r
p
o
r
p
p
a
p
o
e
v
e
d
o
T
l
i
y
t
i
s
r
e
v
d
t
r
o
p
p
u
s
d
n
a
e
t
o
m
o
r
p
s
y
a
w
a
o
T
l
t
n
e
m
t
i
m
m
o
C
t
n
e
m
t
i
m
m
o
C
t
n
e
m
t
i
m
m
o
C
f
o
d
e
e
n
l
i
a
c
d
e
m
t
e
m
n
u
h
g
h
e
h
t
i
s
s
e
r
d
d
a
.
e
s
a
e
s
d
i
l
l
i
a
c
g
o
o
r
u
e
n
o
t
l
s
g
u
r
d
f
o
t
n
e
m
p
o
e
v
e
d
e
h
t
g
n
i
t
r
o
p
p
u
s
i
n
o
i
t
a
c
n
u
m
m
o
c
y
a
w
-
o
w
t
r
o
f
t
n
e
m
e
g
a
g
n
e
t
n
e
a
l
t
i
t
n
a
e
r
d
n
a
t
c
a
r
t
t
a
o
t
s
e
c
i
i
l
o
p
d
n
a
e
c
r
o
f
k
r
o
w
e
h
t
n
h
t
i
i
i
w
n
o
s
u
c
n
l
i
d
n
a
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
t
c
a
p
m
i
&
t
i
f
e
n
e
b
l
a
t
e
i
c
o
S
t
n
e
m
e
g
a
g
n
E
l
t
n
e
m
p
o
e
v
e
d
d
n
a
n
o
i
t
n
e
t
e
r
t
n
e
l
a
T
n
o
i
s
u
l
c
n
i
d
n
a
y
t
i
u
q
e
,
y
t
i
s
r
e
v
D
i
l
.
e
o
h
w
a
s
a
y
t
e
c
o
s
g
n
i
i
t
t
i
f
e
n
e
b
f
i
o
m
a
y
r
a
m
i
r
p
e
h
t
h
t
i
w
l
,
s
a
u
d
v
d
n
i
i
i
i
i
l
d
e
t
n
e
a
t
g
n
n
a
t
e
r
d
n
a
g
n
i
t
c
a
r
t
t
a
s
e
d
u
c
n
l
i
i
s
h
T
.
h
t
l
a
e
h
n
a
m
u
h
d
n
a
e
n
c
d
e
m
g
n
c
n
a
v
d
a
i
i
i
f
o
e
s
o
p
r
u
p
s
p
u
o
r
G
e
h
’
t
o
t
d
e
n
g
i
l
a
s
i
t
a
h
t
e
c
r
o
f
k
r
o
w
d
e
l
l
i
k
s
d
n
a
e
s
r
e
v
d
a
s
e
r
i
u
q
e
r
i
O
C
X
I
I
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
Y
T
E
I
C
O
S
D
N
A
E
L
P
O
E
P
c
l
p
O
C
X
I
I
d
n
a
w
e
n
f
o
t
n
e
m
p
o
e
v
e
d
d
e
u
n
i
t
n
o
C
l
.
s
e
n
i
l
i
i
l
e
p
p
s
s
y
a
n
a
d
e
v
o
r
p
m
i
l
n
o
i
t
e
p
m
o
c
e
h
t
g
n
i
l
b
a
n
e
m
u
i
t
r
o
s
n
o
c
i
l
r
e
v
o
f
o
s
s
y
a
n
a
e
v
i
t
c
e
p
s
o
r
t
e
r
e
h
t
f
o
i
g
n
y
f
i
t
a
r
t
s
o
t
s
e
h
c
a
o
r
p
p
a
d
e
v
o
r
p
m
i
l
e
b
a
n
e
l
l
i
w
j
t
c
e
o
r
p
e
h
t
f
o
t
u
p
t
u
o
e
h
T
.
s
t
e
s
a
t
a
d
g
n
g
a
m
i
i
D
H
0
0
0
,
6
H
I
-
D
H
e
h
t
f
o
h
t
w
o
r
g
d
e
u
n
i
t
n
o
C
l
l
e
w
s
a
s
a
i
r
t
l
l
a
c
n
i
i
l
c
D
H
n
i
s
t
n
e
i
t
a
p
e
c
n
e
r
e
f
n
o
c
D
A
T
C
3
2
0
2
r
e
b
o
t
c
O
e
h
t
d
n
a
e
c
a
r
f
o
s
t
c
e
f
f
e
e
h
t
f
o
t
c
e
p
s
e
r
n
i
i
d
n
a
y
t
i
v
i
t
i
s
o
p
d
o
y
m
a
n
o
r
e
d
n
e
g
l
t
a
s
t
l
u
s
e
r
i
l
s
s
y
a
n
a
a
t
a
d
d
e
t
n
e
s
e
r
P
e
h
t
m
o
r
f
a
t
a
d
g
n
s
u
D
A
i
i
f
o
s
s
o
n
g
a
d
i
j
.
t
c
e
o
r
p
s
e
m
r
e
H
o
B
P
A
G
i
s
g
u
r
d
f
o
s
t
n
e
m
e
r
u
s
a
e
m
y
c
a
c
i
f
f
e
i
i
f
o
n
o
s
c
e
r
p
e
h
t
g
n
s
a
e
r
c
n
i
i
s
a
l
.
s
a
i
r
t
l
a
c
n
i
i
l
c
D
H
n
h
t
i
i
w
-
-
-
d
n
a
s
y
e
v
r
u
s
e
e
y
o
p
m
e
g
n
l
i
t
c
u
d
n
o
C
s
s
o
r
c
f
o
e
m
m
a
r
g
o
r
p
g
n
o
g
n
o
i
i
i
a
v
n
o
i
t
a
c
n
u
m
m
o
c
n
o
i
t
i
a
s
n
a
g
r
o
l
.
s
r
e
t
t
e
s
w
e
n
d
n
a
s
g
n
i
t
e
e
m
f
f
a
t
s
s
t
n
e
v
e
t
n
e
m
e
g
a
g
n
e
.
4
2
0
2
o
t
n
i
e
u
n
i
t
n
o
c
f
f
a
t
s
d
e
H
l
l
l
i
w
h
c
h
w
i
-
-
r
e
v
o
c
e
r
a
c
h
t
l
a
e
h
e
a
v
i
r
p
t
f
o
h
c
n
u
a
L
l
.
s
e
e
y
o
p
m
e
r
o
f
i
.
r
e
d
v
o
r
p
g
n
n
a
r
t
i
i
d
e
u
n
i
t
n
o
c
r
i
e
h
t
n
i
f
f
a
t
s
g
n
i
t
r
o
p
p
u
S
d
n
a
n
o
i
t
a
c
u
d
e
l
i
a
n
o
s
s
e
o
r
p
f
f
o
t
n
e
m
e
v
e
h
c
a
e
h
i
t
h
t
i
w
s
e
e
y
o
p
m
e
l
n
i
j
s
e
v
i
t
c
e
b
o
y
n
a
p
m
o
c
d
n
a
l
a
n
o
s
r
e
p
t
r
o
p
p
u
s
o
t
k
r
o
w
e
m
a
r
f
a
d
e
h
c
n
u
a
L
.
t
n
e
m
p
o
e
v
e
d
l
t
n
e
m
p
o
e
v
e
d
l
l
i
a
n
o
s
s
e
o
r
p
d
n
a
f
e
n
i
l
-
n
o
s
O
C
X
I
’
I
h
t
i
l
w
s
e
u
d
o
m
6
1
.
s
e
u
a
v
l
s
A
4
s
O
C
X
I
’
I
h
t
i
w
e
n
i
l
l
a
n
o
s
r
e
p
l
a
n
o
i
t
i
t
d
d
a
d
e
n
e
m
e
p
m
l
I
I
&
D
d
e
c
n
a
h
n
e
n
a
g
n
h
c
n
u
a
i
l
.
y
g
e
a
r
t
s
t
n
o
4
2
0
2
n
i
s
u
c
o
f
a
h
t
i
w
s
e
c
i
i
l
o
p
R
H
d
e
c
n
a
h
n
e
d
n
a
d
e
h
s
e
r
f
e
R
-
-
-
-
-
.
p
u
o
r
G
e
h
t
o
t
n
i
s
l
l
i
k
s
c
i
f
i
c
e
p
s
t
c
a
r
t
t
a
i
s
a
e
s
r
e
v
o
f
o
p
h
s
r
o
s
n
o
p
s
d
e
t
a
i
t
i
n
I
o
t
s
t
n
e
m
e
r
i
u
q
e
r
a
s
v
e
e
y
o
p
m
e
i
l
i
g
n
c
u
d
o
r
t
n
i
y
b
y
g
e
t
a
r
t
s
n
o
s
u
c
n
I
i
l
d
n
a
e
g
a
r
e
v
a
e
r
u
s
a
e
m
o
t
s
c
i
r
t
e
m
.
y
a
p
r
e
d
n
e
g
n
a
d
e
m
i
i
&
y
t
i
s
r
e
v
D
s
O
C
X
I
’
I
d
e
p
o
e
v
e
D
l
-
-
e
c
n
a
n
r
e
v
o
g
e
v
i
t
c
e
f
f
e
d
n
a
t
n
e
r
a
p
s
n
a
r
t
e
v
a
h
o
t
s
i
t
n
e
m
t
i
m
m
o
c
y
r
a
m
i
r
p
e
h
T
.
)
6
2
e
g
a
p
e
e
s
(
e
d
o
c
e
c
n
a
n
r
e
v
o
g
A
C
Q
e
h
t
h
t
i
l
w
y
p
m
o
c
o
t
e
v
i
r
t
s
e
w
,
I
M
A
n
o
d
e
t
o
u
q
p
u
o
r
G
a
s
A
d
u
a
r
f
d
n
a
t
c
u
d
n
o
c
s
i
m
o
t
e
c
n
a
r
e
l
o
t
o
r
e
Z
n
o
i
t
a
v
o
n
n
I
e
c
n
a
n
r
e
v
o
g
a
t
a
D
t
n
e
m
e
g
a
g
n
e
r
e
d
o
h
e
k
a
t
S
l
l
.
s
r
e
d
o
h
e
k
a
t
s
s
t
i
l
l
a
o
t
e
c
n
a
r
u
s
s
a
e
r
e
d
v
o
r
p
o
t
i
s
e
s
s
e
c
o
r
p
t
n
e
m
t
i
m
m
o
C
t
n
e
m
t
i
m
m
o
C
t
n
e
m
t
i
m
m
o
C
t
n
e
m
t
i
m
m
o
C
.
s
e
i
r
t
s
u
d
n
i
l
t
d
e
a
u
g
e
r
l
y
e
s
o
c
l
’
t
s
o
m
s
d
l
r
o
w
e
h
t
f
o
e
n
o
s
i
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
S
S
E
N
I
S
U
B
E
L
B
I
S
N
O
P
S
E
R
c
l
p
O
C
X
I
I
i
h
c
h
w
,
r
o
t
c
e
s
l
a
c
i
t
u
e
c
a
m
r
a
h
p
o
b
e
h
t
o
t
i
i
s
e
c
v
r
e
s
i
s
e
d
v
o
r
p
O
C
X
I
I
e
c
u
d
e
r
o
t
s
e
r
u
d
e
c
o
r
p
d
n
a
s
e
c
i
i
l
o
p
h
s
i
l
b
a
t
s
e
o
T
e
s
a
e
s
d
i
l
l
i
a
c
g
o
o
r
u
e
n
e
d
v
o
r
p
o
T
i
d
n
a
e
s
y
a
n
a
l
,
e
r
o
t
s
,
s
s
e
c
o
r
p
,
t
e
r
u
p
a
c
o
T
d
n
a
,
s
r
e
d
o
h
e
k
a
t
s
l
l
l
a
h
t
i
w
e
g
a
g
n
e
o
T
r
o
f
t
n
e
m
n
o
r
i
v
n
e
n
e
p
o
n
a
e
g
a
r
u
o
c
n
e
d
n
a
d
u
a
r
f
e
h
t
s
t
r
o
p
p
u
s
t
a
h
t
i
l
s
s
y
a
n
a
r
e
k
r
a
m
o
b
i
e
r
u
c
e
s
,
d
e
l
l
o
r
t
n
o
c
a
n
i
t
a
a
d
t
r
o
p
e
r
s
d
r
a
w
o
t
i
s
e
g
e
t
a
r
t
s
’
s
p
u
o
r
G
e
h
t
t
p
a
d
a
a
,
4
2
0
2
n
i
,
r
e
v
e
w
o
H
.
e
m
m
a
r
g
o
r
p
n
o
i
t
c
u
d
n
i
R
H
e
h
t
f
o
t
r
a
p
s
m
r
o
f
g
n
n
a
r
t
i
i
.
e
r
u
t
l
u
c
r
u
o
y
r
e
b
i
r
b
-
i
t
n
A
i
f
o
d
e
t
c
e
p
x
e
r
u
o
v
a
h
e
b
f
o
s
d
r
a
d
n
a
t
s
h
g
h
i
t
r
o
p
p
u
s
o
t
s
e
c
i
i
l
o
p
R
H
l
a
r
e
n
e
g
f
o
e
t
a
d
p
U
-
-
D
A
i
f
o
n
o
s
s
e
r
g
o
r
p
e
h
t
o
n
t
i
s
t
h
g
s
n
i
i
.
D
H
d
n
a
l
i
s
s
y
a
n
a
f
o
e
m
m
a
r
g
o
r
p
g
n
o
g
n
O
i
l
l
e
b
a
u
a
v
e
b
a
n
e
o
l
t
s
e
n
i
l
e
p
p
i
’
s
O
C
X
I
I
n
e
e
w
t
e
b
n
o
i
t
a
r
o
b
a
l
l
o
C
l
l
o
r
e
h
t
h
t
i
w
n
o
i
t
c
n
u
n
o
c
n
j
i
d
e
t
n
e
m
e
p
m
l
i
e
b
l
i
l
a
c
g
o
o
n
h
c
e
t
’
s
O
C
X
I
I
t
r
o
p
p
u
s
l
l
i
w
g
n
n
a
r
t
i
i
y
r
e
b
i
r
b
-
i
t
n
a
f
o
h
s
e
r
f
e
r
l
a
r
e
n
e
g
o
t
s
m
a
e
t
l
y
g
o
o
n
h
c
e
T
d
n
a
e
c
n
e
c
S
i
.
t
c
u
d
n
o
c
f
o
e
d
o
c
O
C
X
I
I
n
a
f
o
t
u
o
s
t
i
f
o
h
c
n
u
a
l
s
t
i
n
i
s
t
n
e
m
e
c
n
a
v
d
a
.
l
m
r
o
f
t
a
p
s
s
y
a
n
a
n
o
i
l
i
t
a
r
e
n
e
g
t
x
e
n
-
-
7
1
e
h
t
f
o
t
r
a
p
s
m
r
o
f
i
g
n
n
a
r
t
i
r
e
h
s
e
r
f
e
r
t
n
e
u
q
e
s
b
u
s
d
n
a
g
n
n
a
r
t
i
i
R
P
D
G
.
e
m
m
a
r
g
o
r
p
n
o
i
t
c
u
d
n
i
R
H
s
e
c
i
i
l
o
p
n
o
t
t
i
t
c
e
o
r
p
a
a
d
d
e
c
n
a
h
n
E
’
s
O
C
X
I
I
n
i
s
t
n
e
m
t
s
e
v
n
i
d
e
u
n
i
t
n
o
C
t
a
a
d
d
n
a
e
r
u
t
c
u
r
t
s
a
r
f
n
i
.
m
a
r
g
o
r
p
e
c
n
a
n
r
e
v
o
g
.
3
2
0
2
n
i
d
e
h
c
n
u
a
l
-
-
-
t
n
e
i
t
a
p
,
s
r
e
i
l
p
p
u
s
,
s
t
n
e
i
l
i
c
g
n
d
u
c
n
l
i
o
t
4
2
0
2
o
t
n
i
e
u
n
i
t
n
o
c
l
l
i
w
s
e
v
i
t
a
i
t
i
n
i
s
i
h
c
a
o
r
p
p
a
s
O
C
X
I
’
I
e
r
u
s
n
e
e
s
e
h
T
.
s
t
n
e
m
t
i
m
m
o
c
G
S
E
n
o
n
g
i
l
a
o
t
s
r
o
t
s
e
v
n
i
d
n
a
s
p
u
o
r
g
d
n
a
s
t
n
e
m
t
i
m
m
o
c
e
h
t
h
t
i
w
d
e
n
g
i
l
a
l
.
s
r
e
d
o
h
e
k
a
t
s
s
t
i
f
o
s
n
o
i
t
a
r
i
p
s
a
l
s
r
e
d
o
h
e
k
a
t
s
h
t
i
w
t
n
e
m
e
g
a
g
n
E
-
.
e
s
a
e
s
d
i
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
s
e
i
t
i
r
o
i
r
p
d
n
a
s
s
e
r
g
o
r
p
3
2
0
2
i
l
g
n
w
o
b
e
l
t
s
h
w
i
t
e
m
n
u
h
g
h
e
h
i
t
s
s
e
r
d
d
a
o
t
d
e
n
g
s
e
d
i
i
i
s
e
n
c
d
e
m
w
e
n
f
o
t
n
e
m
p
o
e
v
e
d
l
l
i
l
a
c
g
o
o
r
u
e
n
n
h
i
t
i
w
d
e
e
n
l
i
a
c
d
e
m
h
t
i
w
e
c
n
a
i
l
p
m
o
c
n
i
d
n
a
r
e
n
n
a
m
t
n
e
i
l
i
s
e
r
d
n
a
s
n
o
i
t
l
a
u
g
e
r
n
o
t
i
t
c
e
o
r
p
a
t
a
d
.
s
n
o
i
t
a
t
c
e
p
x
e
r
e
d
o
h
e
k
a
t
s
l
d
n
a
s
e
m
e
h
t
n
o
m
m
o
c
g
n
i
r
e
v
i
l
e
d
s
e
i
t
i
r
o
i
r
p
IXICO plc
Strategic Report for the year ended 30 September 2023
Financial review
Right sizing the Group for future growth.
In 2023, the Group has navigated a challenging trading environment. This was anticipated, and the Group has delivered
financial earnings for 2023 in line with market expectations.
Looking to 2024, ongoing macro-economic and political challenges continue to weigh down on the clinical trials market,
and, in particular, the availability of capital. This has led to cost restructuring and consolidation across the pharma,
biotech and CRO space, and has softened the Group’s revenue outlook for 2024, as announced in September 2023.
To anticipate this, the Group has undertaken cost reduction measures, including a ‘right sizing’ of the employee base
seeking to balance the weaker short-term outlook and the medium-long term market opportunity (which, if anything, has
strengthened in the year).
The Group expects to deliver flat revenue across 2024, before returning to revenue growth in 2025.
This review includes a comparison of the financial KPIs used to measure progress over the prior year, a summary of
which is shown below:
KPI
Revenue
Gross profit
Gross margin
EBITDA (loss)/profit
Operating (loss)/profit
(Loss)/profit per share
Order book
Net assets
Cash
Non-current asset investments
Revenue
2023 result
2022 result
Movement
£6.7m
£3.3m
49.1%
(£0.8m)
(£1.4m)
(2.44p)
£14.8m
£11.4m
£4.0m
£1.9m
£8.6m
£5.2m
60.7%
£1.5m
£0.9m
2.14p
£16.0m
£12.5m
£5.8m
£2.3m
£1.9m ↓
£1.9m ↓
1,160bps ↓
£2.3m ↓
£2.3m ↓
4.58p ↓
£1.2m ↓
£1.1m ↓
£1.8m ↓
£0.4m ↓
Revenue for the year of £6.7 million (2022: £8.6 million) represents a year-on-year contraction of 23%. This
contraction was expected, and was caused by the final year impact of large client trial cessations arising across 2021
and early 2022, each materially impacting future revenues. Replacing the revenues lost from these trials takes time,
both in contracting and initiating new trials and those new trials will tend to be lower value, earlier phase trials
compared to the large, failed trials (which were predominantly late stage).
Across 2023, the Group has seen lower levels of new contract bookings than it anticipated, a trend seen across the
clinical trials market. The Group will deliver approximately flat revenues in 2024 before an expected return to revenue
growth in 2025.
Gross profit
The Group reports gross profit of £3.3 million for the year (2022: £5.2 million). This equates to a gross margin of 49%
(2022: 61%). Whilst this remains a strong gross margin, the reduction on the prior year reflects both the reduction in
revenues and a revenue mix increasingly reflective of earlier phase trials, which tend to be lower margin. Whilst in the
short term, a portfolio of early phase trials results in lower gross margins, this portfolio also provides a strong base for
future growth, as those trials that successfully move from early to late phase provide the Group with the opportunity to
continue providing services as these trials transition to larger, later phase trials.
18
IXICO plc
Strategic Report for the year ended 30 September 2023
Earnings before interest, tax, depreciation, and amortisation (‘EBITDA’)
The Group delivered an EBITDA loss of £0.8 million in the year (2022: £1.5 million profit). This reflects the reduction in
revenues, tighter margins, a lower level of grant income, several non-recurring benefits that supported profitability in
2022 and a reduced level of cost capitalisation. These negative impacts have then been partially offset by careful cost
management including the completion of a headcount reduction exercise immediately post the financial year end.
Profit attributable to equity holders
Depreciation of fixed assets
Amortisation of fixed assets
Interest on lease liabilities
Interest on cash held at bank
Taxation
EBITDA
Operating profit
2023
£000
(1,178)
400
225
29
(105)
(183)
(812)
2022
£000
1,032
451
188
33
(10)
(147)
1,547
Operating expenditure in the year reflected careful cost management alongside targeted investment, specifically:
•
research and development expenses of £0.9 million (2022: £1.2 million) included the development of new
algorithms to support image analysis in new and existing therapeutic indications. In addition, the Group
capitalised £1.2 million of internal development expenditure primarily in respect of its next generation
TrialTracker platform (2022: £0.9 million);
•
sales and marketing expenses of £1.3 million (2022: £1.2 million) reflecting increased investment in this team
in particular, sales executives and marketing and product capabilities; and
• general and administrative expenses of £2.9 million (2022: £2.6 million) reflecting several non-recurring
positive impacts on profit in the prior year that included positive foreign exchange movements and the write
back of long term incentive charges on share options that did not, or were not expected to, meet their
performance conditions.
Operating losses totalled £1.4 million (2022: £0.9 million profit) equated to an operating loss margin of 22% (2022:
11% profit margin).
Order book
The Group continues to benefit from a healthy contracted order book. On 30 September 2023 this totalled
£14.8 million (2022: £16.0 million), which takes account of £6.7 million of revenues delivered during the financial year,
£8.0 million of new and expanded multi-year contracts secured during the year and £2.6 million of trial descopes due
to client trial failures and minor foreign exchange movement in the year. This net contraction in the order book reflects
the notable slowdown in new trial initiations during 2023. This is a short-term challenge reflective of the tight capital
markets and is counter to the medium and longer term trends for increased investment in this market driven by aging
populations, increased global healthcare costs and scientific breakthroughs in the area of neurological disease.
New contracts won were across 7 clients with contract extensions across 13 clients.
Opening orderbook
New wins
Revenue
Net descoping, inflation and FX
Closing orderbook
19
2023
£000
16,019
8,030
(6,665)
(2,631)
14,753
2022
£000
18,776
12,617
(8,643)
(6,731)
16,019
IXICO plc
Strategic Report for the year ended 30 September 2023
Cash
The Group reported operating cash inflows after tax receipts of £0.3 million in the year (2022: £1.4 million). This
reflects the timing of operational cash inflows and outflows with strong client payment volumes early in the year
supporting an overall positive operational cash position.
The Group had a closing cash balance at 30 September 2023 of £4.0 million (2022: £5.8 million) with the reduction in
cash reflecting £1.9 million (2022: £2.2 million) of investment in data and technology assets designed to support future
scalability and £0.2m of lease payments on the Group offices (2022: £0.1m). These investments were partially offset
by the £0.3m of operating cash and taxation inflows (2022: £1.4 million).
Non-current asset investments
The Group capitalised £1.9 million of non-current assets in the year to 30 September 2023 (2022: £2.3 million). This
decrease in non-current assets reflects the 2023 investment in bringing to operational readiness of the Group’s next
generation TrialTracker platform totalling £1.6 million (2022: £2.0 million). 2024 capitalised investment in this platform
to deliver additional functionality is expected to be less than £1.0 million.
The next generation TrialTracker platform further enhances the Group’s capabilities to remotely collect, and centrally
analyse, brain images in support of clinical trials. The platform has been developed on Microsoft Azure’s cloud
infrastructure supporting further improvements in system resilience, security, scalability, and efficiency.
Net assets
The Group’s net asset position decreased by £1.1 million to £11.4 million across the year (2022: £12.5 million). This
reflects the losses reported partially offset by the investments made in technology assets to underpin long-term future
growth aspirations and market demands.
Loss per share
The Group reports a loss per share of 2.44p (2022: 2.14p profit per share).
Grant Nash
Chief Financial Officer
4 December 2023
20
IXICO plc
Strategic Report for the year ended 30 September 2023
Risk management
The Board holds responsibility for monitoring risks to which the Group is exposed, and for reviewing and assessing
the effectiveness of the internal control framework used by the Group to manage those risks.
The Group has designed its internal controls with the aim of providing a proportionate level of assurance for the
organisation, taking account of its size, stage of development and risk exposure.
In assessing the risks faced by the Group, a detailed risk identification and control framework is adopted. It is the
responsibility of each department leader within the Group to update the risk and control matrix for their department
and each matrix is reviewed by management on a quarterly basis. The Board receives a summary of the consolidated
risk and control matrices every six months. The matrix sets out the status of controls in place to manage identified
risks and ranks the risks by their likelihood of occurrence and the potential impact of this on the Group’s operations.
This matrix also details actions which are identified to further manage such risks. The Board reviews, discusses and
challenges this risk and control matrix with the Executive Directors.
Principal risks and uncertainties
The following table presents the principal risks and uncertainties that the Board considers could have a material
impact on the Group’s operational results, financial condition and prospects. This is not an exhaustive list of risks and
is intended to provide visibility of those risks the Board considers the most material based on the information it
currently has available to it.
These risks and uncertainties reflect the business environment within which the Group operates, together with risks in
the execution of its business strategy. The risks are separated into four specific risk areas being Strategic,
Operational, Financial, and Legal, Compliance & Regulatory.
21
e
g
n
a
h
C
k
s
i
R
ó
ó
l
d
n
a
t
n
e
m
p
o
e
v
e
D
s
s
e
n
s
u
B
i
l
a
n
o
i
t
i
d
d
a
h
t
i
w
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
n
e
h
t
g
n
e
r
t
s
n
e
e
b
s
a
h
m
a
e
t
l
i
a
c
r
e
m
m
o
C
e
h
T
-
i
.
d
e
t
n
o
p
p
a
s
e
o
r
g
n
l
i
t
e
k
r
a
m
f
o
s
e
i
r
e
s
a
h
g
u
o
r
h
t
e
l
i
f
o
r
p
s
t
i
d
e
s
a
r
i
s
a
h
p
u
o
r
G
e
h
T
-
-
s
e
i
t
i
l
i
b
a
p
a
c
l
a
n
o
i
t
a
r
e
p
o
d
n
a
-
n
o
i
t
a
c
d
n
i
i
c
i
t
u
e
p
a
r
e
h
t
y
e
k
h
t
i
i
w
p
h
s
r
e
n
t
r
a
p
n
i
d
e
t
n
e
s
e
r
p
,
s
r
a
n
b
e
w
d
e
s
a
b
i
.
t
e
k
r
a
m
s
O
C
X
I
’
I
n
i
s
r
e
d
a
e
l
i
n
o
n
p
o
i
s
e
i
t
i
n
u
t
r
o
p
p
o
f
o
e
n
i
l
i
e
p
p
s
t
i
d
e
n
e
h
t
g
n
e
r
t
s
s
a
h
p
u
o
r
G
e
h
T
-
f
o
r
e
b
m
u
n
r
e
g
r
a
l
a
g
n
i
t
e
g
r
a
t
s
i
t
i
i
g
n
n
a
e
m
,
r
a
e
y
e
h
t
n
i
.
o
g
a
s
h
t
n
o
m
e
v
e
w
l
t
s
a
w
t
i
n
a
h
t
s
t
c
a
r
t
n
o
c
i
s
p
h
s
n
o
i
t
l
a
e
r
l
i
a
c
n
a
n
i
f
t
n
e
i
l
c
d
l
i
u
b
r
o
s
d
n
e
r
t
t
e
k
r
a
m
d
n
a
t
s
r
e
d
n
u
o
t
e
r
u
l
i
a
F
d
e
c
u
d
e
r
d
n
a
s
e
i
t
i
n
u
t
r
o
p
p
o
t
n
e
i
l
c
t
s
o
l
n
i
t
l
u
s
e
r
y
a
m
.
s
n
r
u
t
e
r
e
n
i
l
i
e
p
p
a
d
l
i
u
b
o
t
e
r
u
l
i
a
f
d
n
a
s
e
c
y
c
l
l
s
e
a
s
g
n
o
l
e
v
a
h
s
a
i
r
t
l
l
a
c
n
i
i
l
C
n
o
i
t
c
n
u
f
l
i
a
c
r
e
m
m
o
c
e
h
t
n
h
i
t
i
l
w
s
e
e
y
o
p
m
e
f
o
r
e
v
o
n
r
u
t
t
n
a
c
i
f
i
n
g
s
A
i
.
e
c
n
a
m
r
o
f
r
e
p
s
e
a
s
e
r
u
u
t
l
f
n
o
t
c
a
p
m
i
l
l
i
w
s
e
i
t
i
n
u
t
r
o
p
p
o
f
o
r
e
b
m
u
n
e
h
t
d
e
t
c
a
p
m
i
s
a
h
t
n
e
m
n
o
r
i
v
n
e
g
n
d
n
u
f
e
h
t
i
i
f
o
g
n
n
e
t
h
g
i
t
A
.
t
m
u
n
e
m
o
m
l
i
a
c
r
e
m
m
o
c
m
r
e
t
t
r
o
h
s
t
c
a
p
m
i
y
a
m
.
r
o
t
c
e
s
h
c
e
o
b
e
h
t
i
t
n
i
l
y
l
r
a
u
c
i
t
r
a
p
,
3
2
0
2
n
i
d
e
t
a
i
t
i
n
i
l
s
a
i
r
t
l
a
c
n
i
i
l
c
f
o
e
h
t
i
y
b
d
e
v
e
h
c
a
s
e
u
n
e
v
e
r
n
i
t
h
w
o
r
g
f
o
e
t
a
r
e
h
t
t
c
a
p
m
i
l
l
i
w
s
h
T
i
k
s
i
R
l
a
i
c
r
e
m
m
o
C
e
r
o
c
S
k
s
R
i
h
g
H
i
.
s
l
i
a
m
e
e
s
e
h
t
t
o
p
s
o
t
s
e
e
y
o
p
m
e
l
2
2
.
s
t
e
g
r
a
t
h
t
w
o
r
g
e
v
e
h
c
a
o
t
e
m
a
r
f
e
m
i
i
t
r
e
g
n
o
l
d
e
t
c
e
p
x
e
n
a
t
c
e
l
f
e
r
o
t
e
s
a
b
t
s
o
c
s
t
i
d
e
c
u
d
e
r
s
a
h
p
u
o
r
G
e
h
T
-
p
u
o
r
G
d
u
o
c
l
f
o
e
s
u
g
n
d
u
c
n
l
i
i
,
e
r
u
t
c
u
r
t
s
a
r
f
n
i
T
I
n
i
t
n
e
m
t
s
e
v
n
I
-
l
i
a
c
n
a
n
i
f
,
l
a
n
o
i
t
a
r
e
p
o
e
a
e
r
c
t
y
a
m
k
c
a
t
t
a
-
r
e
b
y
c
l
u
f
s
s
e
c
c
u
s
y
n
A
r
e
b
y
c
f
o
t
a
e
r
h
T
s
m
e
t
s
y
s
d
e
d
a
r
g
p
u
d
n
a
w
e
n
f
o
n
o
i
t
a
t
n
e
m
e
p
m
l
i
i
,
s
e
c
v
r
e
s
i
-
h
g
h
a
n
a
m
e
r
i
l
l
i
w
k
s
i
r
i
s
h
T
.
p
u
o
r
G
e
h
t
r
o
f
k
s
i
r
l
a
n
o
i
t
a
t
u
p
e
r
r
o
/
d
n
a
i
.
t
n
e
m
p
u
q
e
d
n
a
n
i
t
c
i
l
f
n
o
c
e
h
t
i
g
n
d
u
c
n
l
i
s
e
u
s
s
i
l
a
c
i
t
i
l
o
p
o
e
g
o
t
g
n
w
o
k
s
i
r
i
l
e
v
e
l
l
d
n
a
s
n
a
p
n
o
i
t
c
a
f
o
n
o
i
t
a
t
n
e
m
e
p
m
l
i
d
n
a
n
o
i
t
l
a
u
m
r
o
f
d
n
a
s
e
i
t
i
l
i
b
a
r
e
n
u
v
l
l
a
i
t
n
e
t
o
p
f
o
w
e
v
e
r
g
n
o
g
n
O
i
i
l
y
e
m
i
t
a
n
i
s
e
e
y
o
p
m
e
l
l
l
a
r
o
f
g
n
n
a
r
t
i
i
y
t
i
r
u
c
e
s
r
e
b
y
C
s
e
t
a
d
p
u
y
g
o
o
n
h
c
e
t
l
t
s
e
t
a
l
f
o
t
n
e
m
y
o
p
e
D
l
.
r
e
n
n
a
m
s
m
e
t
s
y
s
t
n
e
m
e
g
a
n
a
m
h
c
t
a
p
s
s
e
s
s
a
o
t
n
e
k
a
t
r
e
d
n
u
s
t
s
e
t
n
o
i
t
a
r
t
e
n
e
p
t
n
e
d
n
e
p
e
d
n
I
.
y
t
i
r
u
c
e
s
m
e
t
s
y
s
f
o
s
e
v
e
l
l
i
i
e
s
m
n
m
o
t
i
y
t
i
r
u
c
e
s
l
i
a
m
e
n
i
s
t
n
e
m
t
s
e
v
n
I
r
o
f
y
t
i
l
i
b
a
e
h
t
e
v
o
r
p
m
i
d
n
a
d
e
v
e
c
e
r
i
s
l
i
a
m
e
g
n
h
s
h
p
i
i
-
-
-
-
-
.
l
e
b
o
g
e
h
t
s
s
o
r
c
a
s
k
c
a
t
t
a
e
r
a
w
m
o
s
n
a
r
f
o
s
s
e
c
c
u
s
e
h
t
d
n
a
e
p
o
r
u
E
k
s
i
r
r
e
r
u
s
n
i
d
e
t
c
a
p
m
i
s
a
h
k
c
a
t
t
a
-
r
e
b
y
c
f
o
e
c
n
e
d
c
n
i
i
d
e
s
a
e
r
c
n
I
t
a
r
e
v
o
c
r
e
b
y
c
e
r
u
c
e
s
o
t
y
t
i
l
i
b
a
e
h
t
i
g
n
n
a
e
m
k
s
i
r
i
s
h
t
r
o
f
e
t
i
t
e
p
p
a
.
t
l
u
c
i
f
f
i
d
e
r
o
m
e
m
o
c
e
b
s
a
h
)
l
l
a
t
a
r
o
(
i
s
m
u
m
e
r
p
e
b
s
n
e
s
l
i
e
r
o
c
S
k
s
R
i
s
k
c
a
t
t
a
h
g
H
i
n
o
i
t
a
g
i
t
i
M
t
x
e
t
n
o
C
s
k
s
i
R
l
a
p
i
c
n
i
r
P
s
k
s
i
R
l
a
n
o
i
t
a
r
e
p
O
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
-
c
l
p
O
C
X
I
I
e
g
n
a
h
C
k
s
i
R
ñ
ò
p
u
o
r
G
e
h
t
l
f
o
s
e
u
a
v
d
n
a
e
s
o
p
r
u
p
e
h
t
n
o
s
u
c
o
f
g
n
o
r
t
S
l
,
s
e
e
y
o
p
m
e
r
o
f
s
t
i
f
e
n
e
b
d
n
a
s
e
i
r
a
a
s
e
v
i
t
i
t
l
e
p
m
o
C
d
e
c
u
d
o
r
t
n
i
i
s
a
w
h
c
h
w
e
r
a
c
h
t
l
a
e
h
e
t
a
v
i
r
p
g
n
d
u
c
n
i
l
i
.
r
a
e
y
e
h
t
g
n
i
r
u
d
l
i
a
n
o
s
s
e
f
o
r
p
h
t
i
w
d
e
n
b
m
o
c
i
s
e
i
t
i
n
u
t
r
o
p
p
o
g
n
n
a
r
T
i
i
i
e
c
n
a
t
s
s
s
a
n
o
i
t
a
c
i
f
i
l
a
u
q
l
s
e
v
e
l
t
n
e
m
e
g
a
g
n
e
e
n
m
r
e
t
e
d
o
t
i
s
y
e
v
r
u
s
e
e
y
o
p
m
E
l
s
e
i
t
i
n
u
t
r
o
p
p
o
t
n
e
m
d
n
o
c
e
S
s
e
o
r
l
y
e
k
d
e
i
f
i
t
n
e
d
i
i
l
r
o
f
g
n
n
n
a
p
n
o
s
s
e
c
c
u
S
i
n
i
e
r
a
t
n
e
m
e
g
a
g
n
e
e
e
y
o
p
m
e
e
c
n
a
h
n
e
o
t
l
s
e
v
i
t
a
i
t
i
n
I
-
-
-
-
-
-
-
t
l
u
s
e
r
y
a
m
s
s
e
n
s
u
b
e
h
i
t
n
h
i
t
i
w
t
n
e
a
l
t
i
t
n
a
e
r
d
n
a
t
c
a
r
t
t
a
o
t
e
r
u
l
i
a
f
A
.
s
l
l
i
k
s
y
e
k
f
o
s
s
o
l
r
o
e
g
a
t
r
o
h
s
a
n
i
d
e
s
a
e
r
c
n
i
n
i
s
t
l
u
s
e
r
r
a
e
y
e
h
t
g
n
i
r
u
d
t
n
u
o
c
d
a
e
h
n
i
n
o
i
t
c
u
d
e
r
A
.
p
u
o
r
G
e
h
t
n
h
i
t
i
l
w
s
a
u
d
v
d
n
i
i
i
c
i
f
i
c
e
p
s
n
o
e
c
n
a
i
l
e
r
e
e
y
o
p
m
E
l
e
r
o
c
S
k
s
R
i
n
o
i
t
n
e
t
e
r
i
m
u
d
e
M
n
o
i
t
a
g
i
t
i
M
t
x
e
t
n
o
C
s
k
s
i
R
l
a
p
i
c
n
i
r
P
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
-
c
l
p
O
C
X
I
I
d
e
s
a
b
-
d
u
o
c
l
l
i
s
s
y
a
n
a
d
n
a
e
r
u
t
p
a
c
a
t
a
d
n
o
i
t
a
r
e
n
e
g
t
x
e
N
-
.
s
g
n
i
t
e
e
m
’
l
l
a
h
n
w
o
t
‘
l
y
h
t
n
o
m
s
a
h
c
u
s
,
e
c
a
p
l
n
o
i
t
c
u
d
o
r
p
e
h
t
o
t
n
i
l
d
e
y
o
p
e
d
d
n
a
d
e
p
o
e
v
e
d
m
r
o
l
f
t
a
p
l
’
s
p
u
o
r
G
e
h
t
g
n
i
t
c
a
p
m
i
l
k
s
i
r
d
u
o
w
e
r
u
t
c
u
r
t
s
a
r
f
n
i
i
s
h
t
n
i
e
r
u
l
i
a
f
y
n
A
.
e
r
u
t
c
u
r
t
s
a
r
f
n
i
l
y
g
o
o
n
h
c
e
t
s
t
i
a
v
i
i
s
e
c
v
r
e
s
s
t
i
l
s
y
o
p
e
d
p
u
o
r
G
e
h
T
e
r
u
t
c
u
r
t
s
a
r
f
n
I
T
I
e
r
o
c
S
k
s
R
i
i
m
u
d
e
M
s
e
t
a
g
i
t
i
m
s
e
r
t
n
e
c
a
t
a
d
n
e
e
w
t
e
b
d
n
a
n
h
t
i
i
w
p
u
k
c
a
b
l
l
u
F
i
o
t
d
e
n
g
s
e
d
s
t
s
e
t
n
o
i
t
a
r
t
e
n
e
p
t
n
e
d
n
e
p
e
d
n
i
l
a
n
r
e
t
x
E
.
s
s
o
l
a
t
a
d
f
o
s
k
s
i
r
.
s
u
c
o
f
t
n
e
m
t
s
e
v
n
i
r
o
f
s
a
e
r
a
y
e
k
y
f
i
t
n
e
d
i
r
e
h
t
r
u
f
o
t
d
e
n
n
a
p
s
t
n
e
m
t
s
e
v
n
l
i
f
o
m
a
r
g
o
r
p
g
n
o
g
n
O
i
.
e
r
u
t
c
u
r
t
s
a
r
f
n
i
T
I
e
d
a
r
g
p
u
e
v
o
r
p
m
i
d
n
a
e
t
a
d
p
u
o
t
e
r
u
t
c
u
r
t
s
a
r
f
n
i
n
i
s
t
n
e
m
t
s
e
v
n
I
.
e
c
n
e
i
l
i
s
e
r
d
n
a
y
t
i
r
u
c
e
s
-
-
-
-
t
l
u
c
i
f
f
i
d
e
b
y
a
m
t
i
,
y
t
i
r
u
c
e
s
r
e
b
y
c
n
o
s
u
c
o
f
d
n
a
y
n
i
t
u
r
c
s
d
e
s
a
e
r
c
n
i
i
y
b
d
e
n
a
p
m
o
c
c
a
,
t
l
n
e
m
n
o
r
i
v
n
e
y
g
o
o
n
h
c
e
t
g
n
v
o
v
e
y
d
p
a
r
a
n
I
l
l
i
i
T
I
3
2
l
l
a
s
s
e
r
d
d
a
o
t
t
n
e
m
t
s
e
v
n
i
T
I
f
l
o
s
e
v
e
l
i
t
n
e
c
i
f
f
u
s
e
r
u
s
n
e
o
t
l
.
s
k
s
i
r
d
e
t
a
e
r
-
s
m
e
t
s
y
s
.
t
n
e
m
n
o
r
i
v
n
e
.
e
c
n
a
m
r
o
f
r
e
p
l
a
n
o
i
t
a
r
e
p
o
r
o
/
d
n
a
l
i
a
c
n
a
n
i
f
e
g
n
a
h
C
k
s
i
R
ó
ñ
ñ
f
o
k
s
i
r
e
h
t
t
a
h
t
n
o
i
t
i
n
g
o
c
e
r
n
i
s
t
s
a
c
e
r
o
f
d
n
a
s
t
e
g
d
u
b
l
i
l
a
c
g
o
o
r
u
e
n
n
i
i
h
g
h
y
l
r
a
u
c
i
t
r
a
p
s
l
i
n
o
i
t
a
l
l
e
c
n
a
c
y
l
r
a
e
l
.
s
a
i
r
t
l
a
c
n
i
i
l
c
,
s
t
s
a
c
e
r
o
f
d
n
a
s
t
e
g
d
u
b
d
e
l
i
a
t
e
d
s
e
k
a
t
r
e
d
n
u
p
u
o
r
G
e
h
T
s
t
i
o
t
n
i
n
o
i
t
a
l
l
e
c
n
a
c
l
a
i
r
t
f
o
l
e
v
e
l
a
s
d
l
i
u
b
p
u
o
r
G
e
h
T
d
n
a
y
r
e
v
o
c
e
r
t
s
o
c
t
u
o
-
e
s
o
c
l
,
s
t
n
e
m
y
a
p
e
b
a
d
n
u
e
r
f
l
-
n
o
n
t
n
o
r
f
-
p
u
e
d
u
c
n
l
i
n
a
c
s
t
c
a
r
t
n
o
c
l
i
a
c
r
e
m
m
o
C
l
.
s
e
s
u
a
c
e
c
i
t
o
n
n
o
i
t
i
a
n
m
r
e
t
-
-
-
h
t
i
w
s
t
n
e
m
y
a
p
t
n
o
r
f
-
p
u
e
t
a
i
t
o
g
e
n
o
t
s
k
e
e
s
p
u
o
r
G
e
h
T
-
i
i
i
.
g
n
k
a
m
n
o
s
c
e
d
t
n
e
m
t
s
e
v
n
i
d
n
a
s
w
o
l
f
h
s
a
c
s
t
i
i
g
n
v
o
r
p
m
i
,
n
a
c
t
i
e
r
e
h
w
s
t
n
e
i
l
c
.
e
r
u
l
i
a
f
l
a
i
r
t
f
o
t
n
e
v
e
e
h
t
n
i
k
s
i
r
g
n
c
u
d
e
r
i
t
i
h
o
t
d
e
t
c
e
p
x
e
e
m
a
r
f
e
m
i
t
r
e
g
n
o
l
e
h
t
o
t
e
s
a
b
t
s
o
c
s
t
i
e
z
s
i
i
t
h
g
i
r
o
t
e
s
c
r
e
x
e
n
o
i
t
c
u
d
e
r
t
s
o
c
a
k
o
o
t
r
e
d
n
u
p
u
o
r
G
e
h
T
.
s
e
c
n
a
t
s
m
u
c
r
i
c
n
i
s
e
g
n
a
h
c
d
e
t
c
e
p
x
e
n
u
.
s
t
e
g
r
a
t
h
t
w
o
r
g
s
t
i
s
k
s
i
r
e
s
e
h
t
d
n
u
o
r
a
d
e
i
l
l
p
p
a
e
r
a
s
o
r
t
n
o
c
d
r
a
d
n
a
S
t
t
n
e
i
l
c
a
d
n
a
n
o
i
t
i
s
o
p
h
s
a
c
g
n
o
r
t
s
a
s
a
h
p
u
o
r
G
e
h
T
i
s
n
o
i
t
a
s
n
a
g
r
o
d
e
d
n
u
f
-
l
l
e
w
,
e
g
r
a
l
s
e
d
u
c
n
l
i
i
h
c
h
w
o
i
l
o
f
t
r
o
p
y
c
n
e
r
r
u
c
h
t
i
l
i
w
y
h
t
n
o
m
d
e
w
e
v
e
r
d
n
a
t
s
a
c
e
r
o
f
e
r
a
s
e
v
e
l
l
y
c
n
e
r
r
u
c
d
n
a
P
B
G
n
i
i
d
e
t
a
n
m
o
n
e
d
e
r
a
s
t
c
a
r
t
n
o
c
t
s
o
M
i
g
n
k
n
a
b
s
t
i
h
t
i
w
s
t
n
u
o
c
c
a
t
i
s
o
p
e
d
s
e
s
i
l
i
t
u
p
u
o
r
G
e
h
T
i
g
n
i
t
s
x
e
s
t
i
n
o
n
r
u
t
e
r
a
s
e
v
e
h
c
a
t
i
i
e
r
u
s
n
e
o
t
r
e
n
t
r
a
p
.
s
e
v
r
e
s
e
r
h
s
a
c
e
t
a
i
r
p
o
r
p
p
a
e
r
e
h
w
d
e
s
i
l
i
t
u
s
e
g
d
e
h
y
n
a
o
t
i
l
y
d
p
a
r
t
c
a
e
r
o
t
t
i
i
g
n
w
o
l
l
a
e
l
i
g
a
s
i
p
u
o
r
G
e
h
T
-
-
-
-
-
-
t
n
e
d
u
r
p
e
r
u
s
n
e
o
t
l
i
,
s
s
y
a
n
a
y
t
i
v
i
t
i
s
n
e
s
s
a
l
l
e
w
s
a
l
a
i
r
t
w
e
n
f
o
e
n
i
l
e
p
p
i
d
e
u
n
i
t
n
o
c
a
s
e
r
i
u
q
e
r
e
r
o
f
e
r
e
h
t
d
n
a
e
u
n
e
v
e
r
l
l
a
m
s
o
t
s
e
n
i
l
i
j
e
p
p
t
c
e
o
r
p
d
n
a
t
n
e
i
l
c
’
s
p
u
o
r
G
e
h
t
g
n
p
o
e
v
e
d
l
i
t
a
a
d
m
i
r
e
n
t
i
s
’
t
n
e
i
l
c
a
m
o
r
f
t
l
u
s
e
r
y
l
l
a
m
r
o
n
e
s
e
h
T
.
n
o
i
t
a
n
m
r
e
t
i
r
o
,
e
g
n
s
l
i
y
n
a
n
o
p
u
o
r
G
e
h
t
y
b
e
c
n
a
i
l
e
r
e
h
t
e
c
u
d
e
r
r
o
,
g
u
r
d
l
a
i
r
t
e
h
t
f
o
t
i
f
e
n
e
b
l
t
a
i
r
e
a
m
o
n
g
n
i
t
a
r
t
s
n
o
m
e
d
w
e
v
e
r
i
l
.
s
a
i
r
t
l
a
c
n
i
i
l
c
,
f
o
r
e
b
m
u
n
.
g
u
r
d
l
a
i
r
t
s
’
t
n
e
i
l
c
e
h
t
y
b
d
e
s
u
a
c
s
t
n
e
v
e
y
t
e
f
a
s
e
s
r
e
v
d
a
n
i
m
a
e
t
l
i
a
c
r
e
m
m
o
c
e
h
t
y
b
n
o
i
t
a
c
i
f
i
s
r
e
v
d
n
o
s
u
c
o
i
f
A
-
y
l
r
a
e
f
o
k
s
i
r
a
r
a
e
b
s
t
c
a
r
t
n
o
c
l
a
i
r
t
l
a
c
n
i
i
l
c
t
n
e
i
l
c
’
s
p
u
o
r
G
e
h
T
n
o
i
t
a
g
i
t
i
M
t
x
e
t
n
o
C
s
k
s
i
R
l
a
p
i
c
n
i
r
P
s
k
s
i
R
l
a
i
c
n
a
n
F
i
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
-
c
l
p
O
C
X
I
I
s
e
k
a
t
r
e
d
n
u
p
u
o
r
G
e
h
t
f
I
.
n
o
i
t
i
s
o
p
l
i
a
c
n
a
n
i
f
n
o
t
c
a
p
m
i
s
t
i
f
o
k
c
a
b
e
h
t
n
o
s
t
n
e
m
t
i
m
m
o
c
t
n
e
m
t
s
e
v
n
i
l
i
a
c
n
a
n
i
f
n
a
c
h
c
h
w
i
t
n
a
c
i
f
i
n
g
s
i
d
e
s
a
e
r
c
n
i
f
o
k
s
i
r
e
h
t
o
t
d
e
s
o
p
x
e
s
i
t
i
k
o
o
b
r
e
d
r
o
d
e
t
c
a
r
t
n
o
c
e
r
u
l
i
a
f
l
a
i
r
t
y
n
a
f
o
t
c
a
p
m
i
l
i
a
c
n
a
n
i
f
s
e
r
u
l
i
a
f
l
a
i
r
t
o
t
e
b
l
i
t
p
e
c
s
u
s
o
s
a
s
l
i
t
I
.
s
e
u
n
e
v
e
r
r
e
v
i
l
e
d
o
t
s
n
w
i
l
a
r
e
v
e
s
f
o
n
o
i
t
i
a
n
m
r
e
t
y
l
r
a
e
e
h
t
i
y
b
d
e
c
n
e
d
v
e
n
e
e
b
s
a
h
k
s
i
r
i
s
h
T
o
t
d
e
t
c
e
p
x
e
s
i
d
n
a
s
r
a
e
y
t
n
e
c
e
r
s
s
o
r
c
a
s
a
i
r
t
l
l
a
c
n
i
i
l
c
t
n
e
i
l
c
p
u
o
r
G
.
e
r
u
t
u
f
e
h
t
n
i
r
u
c
c
o
k
o
o
b
r
e
d
r
o
d
e
t
c
a
r
t
n
o
c
’
s
p
u
o
r
G
e
h
t
f
o
n
o
i
t
i
a
c
i
f
i
s
r
e
v
d
d
e
s
a
e
r
c
n
i
e
h
T
s
a
w
t
a
h
t
t
c
a
p
m
i
r
e
w
o
l
a
e
v
a
h
l
l
i
w
l
a
i
r
t
l
e
g
n
s
i
y
n
a
f
o
s
s
o
l
e
h
t
n
a
e
m
i
l
.
y
s
u
o
v
e
r
p
e
s
a
c
e
h
t
t
a
e
p
e
r
f
l
o
s
e
v
e
l
w
o
l
s
a
h
t
a
h
t
t
e
k
r
a
m
a
s
e
s
s
e
r
d
d
a
p
u
o
r
G
e
h
T
s
e
v
r
e
s
e
r
h
s
a
C
f
o
n
o
i
t
a
n
m
r
e
T
i
l
a
c
i
n
i
l
c
t
n
e
i
l
c
e
r
o
c
S
k
s
R
i
i
m
u
d
e
M
s
l
a
i
r
t
e
r
o
c
S
k
s
R
i
i
m
u
d
e
M
l
i
a
c
r
e
m
m
o
c
l
l
a
f
o
l
i
a
c
p
y
t
s
k
s
i
r
l
i
a
c
n
a
n
i
f
o
t
d
e
s
o
p
x
e
s
i
p
u
o
r
G
e
h
T
t
i
d
e
r
c
,
y
t
i
d
u
q
L
i
i
f
o
s
t
s
e
r
e
n
t
i
e
h
t
i
t
s
n
a
g
a
s
i
i
h
c
h
w
n
o
i
t
a
u
t
c
u
l
f
e
t
a
r
y
c
n
e
r
r
u
c
n
g
e
r
o
f
i
a
o
t
e
r
u
s
o
p
x
e
,
y
a
e
d
l
t
n
e
m
y
a
p
t
n
e
i
l
c
t
i
n
a
c
i
f
i
n
g
s
a
g
n
c
n
e
i
r
e
p
x
e
i
,
l
l
a
f
t
r
o
h
s
h
s
a
c
a
f
o
s
k
s
i
r
e
h
t
e
d
u
c
n
l
i
e
s
e
h
T
i
.
s
e
n
a
p
m
o
c
s
i
f
e
r
o
e
r
e
h
t
d
n
a
x
a
t
r
o
f
l
n
a
p
o
t
s
l
i
a
f
p
u
o
r
G
e
h
t
r
o
/
d
n
a
p
u
o
r
G
e
h
t
4
2
.
y
r
a
s
s
e
c
e
n
l
e
v
e
l
e
h
t
d
n
o
y
e
b
s
e
i
t
i
l
i
b
a
i
l
x
a
t
o
t
d
e
s
o
p
x
e
y
c
n
e
r
r
u
c
d
n
a
e
r
o
c
S
k
s
R
i
i
m
u
d
e
M
e
g
n
a
h
C
k
s
i
R
n
o
i
t
a
g
i
t
i
M
t
x
e
t
n
o
C
s
k
s
i
R
l
a
p
i
c
n
i
r
P
s
k
s
i
R
c
i
g
e
t
a
r
t
S
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
t
r
o
p
e
R
c
i
g
e
t
a
r
t
S
-
c
l
p
O
C
X
I
I
ñ
.
y
g
e
t
a
r
t
s
i
t
s
n
a
g
a
s
s
e
r
g
o
r
p
s
a
l
l
e
w
s
a
s
e
i
t
i
r
o
i
r
p
t
e
g
d
u
b
d
n
a
y
g
e
t
a
r
t
s
p
u
o
r
G
f
o
d
r
a
o
B
e
h
t
y
b
w
e
v
e
r
i
l
a
u
n
n
A
s
d
n
u
f
e
r
o
f
e
b
s
t
n
e
m
t
s
e
v
n
i
t
n
a
c
i
f
i
n
g
s
i
f
o
l
i
a
s
a
r
p
p
a
d
r
a
o
B
h
c
a
e
f
o
w
e
v
e
r
i
t
n
e
u
q
e
s
b
u
s
d
n
a
d
e
t
t
i
m
m
o
c
e
r
a
.
s
e
v
i
t
a
i
t
i
n
i
i
c
g
e
a
r
t
s
t
.
e
c
n
a
m
r
o
f
r
e
p
d
n
a
y
r
e
v
i
l
e
d
s
’
t
n
e
m
t
s
e
v
n
i
i
c
g
e
t
a
r
t
s
m
r
o
f
n
i
o
t
i
t
h
g
u
o
s
e
c
v
d
a
d
n
a
e
s
i
t
r
e
p
x
e
l
a
n
r
e
t
x
E
.
s
e
v
i
t
a
i
t
i
n
i
i
r
o
f
e
d
v
o
r
p
d
n
a
t
n
e
m
n
o
r
i
v
n
e
g
n
g
n
e
i
l
l
a
h
c
e
r
o
m
e
h
t
t
c
e
l
f
e
r
i
o
t
e
s
c
r
e
x
e
n
o
i
t
c
u
d
e
r
t
s
o
c
a
n
e
k
a
t
r
e
d
n
u
s
a
h
p
u
o
r
G
e
h
T
n
o
s
u
c
o
f
o
t
t
n
e
m
e
g
a
n
a
m
f
o
t
n
e
m
n
g
i
l
a
d
n
a
n
o
i
t
t
a
n
e
i
r
O
l
.
s
n
a
p
c
g
e
t
a
r
t
s
i
’
s
p
u
o
r
G
e
h
t
f
o
y
r
e
v
i
l
e
d
c
i
f
i
c
e
p
s
f
o
y
r
e
v
i
l
i
e
d
f
o
w
e
v
e
r
p
h
s
r
e
d
a
e
i
l
l
t
y
h
n
o
M
-
-
-
-
-
-
o
t
n
r
u
t
e
r
o
t
e
n
i
l
e
m
i
i
t
d
e
t
a
p
c
i
t
n
a
y
s
u
o
v
e
r
p
n
a
h
t
l
i
r
e
g
n
o
l
a
e
g
n
a
h
C
k
s
i
R
ò
i
n
o
d
e
s
m
y
n
o
d
u
e
s
p
s
i
s
e
t
i
s
t
n
e
i
l
c
m
o
r
f
d
e
r
u
t
p
a
c
a
a
D
t
s
i
r
e
y
a
l
i
e
v
s
n
e
f
e
d
g
n
o
r
t
s
a
e
r
u
s
n
e
s
e
r
u
s
a
e
m
y
t
i
r
u
c
e
S
l
l
m
r
o
f
t
a
p
r
e
k
c
a
r
T
a
i
r
T
s
p
u
o
r
G
e
h
t
o
t
n
’
i
t
i
p
e
c
e
r
-
-
i
’
g
n
s
s
e
c
o
r
p
s
p
u
o
r
G
e
h
t
n
h
t
i
i
w
d
e
t
a
r
g
e
t
n
i
e
r
a
)
R
P
D
G
f
o
y
t
i
r
u
c
e
s
d
n
a
y
t
i
r
g
e
t
n
i
i
i
e
h
t
n
a
t
n
a
m
o
t
d
e
y
o
p
e
d
l
s
a
h
c
u
s
(
s
t
n
e
m
e
r
i
u
q
e
r
n
o
i
t
a
s
g
e
l
i
l
n
o
i
t
c
e
t
o
r
p
a
a
D
t
-
n
o
i
t
a
m
r
o
f
n
i
l
a
c
i
t
i
r
c
r
o
e
v
i
t
i
s
n
e
s
.
h
t
w
o
r
g
e
u
n
e
v
e
r
n
o
i
t
a
g
i
t
i
M
t
i
n
e
m
n
o
r
i
v
n
e
c
m
o
n
o
c
e
g
n
g
n
e
i
l
l
a
h
c
a
y
b
d
e
t
c
a
p
m
i
n
e
e
b
s
a
h
3
2
0
2
a
s
e
d
u
c
n
l
i
t
i
t
a
h
t
s
i
e
v
i
t
a
i
t
i
n
i
i
c
g
e
a
r
t
s
t
y
n
a
f
o
e
r
u
t
a
n
e
h
T
.
p
u
o
r
G
e
h
t
.
k
s
i
r
t
n
e
m
e
g
d
u
j
f
o
e
e
r
g
e
d
r
o
f
s
e
i
t
i
n
u
t
r
o
p
p
o
t
e
k
r
a
m
w
e
n
d
n
a
n
o
i
t
a
r
t
e
n
e
p
t
e
k
r
a
m
d
e
s
a
e
r
c
n
i
t
o
n
y
a
m
s
n
a
p
c
g
e
a
r
t
s
t
i
l
s
t
i
r
o
,
l
i
i
e
b
s
s
o
p
s
a
y
l
t
n
e
c
i
f
f
e
r
o
y
e
v
i
t
c
e
f
f
e
l
l
s
a
s
n
a
p
c
g
e
a
r
t
s
t
i
s
t
i
t
n
o
e
u
c
e
x
e
t
o
n
y
a
m
p
u
o
r
G
e
h
t
,
r
e
h
t
r
u
F
l
i
a
c
r
e
m
m
o
c
e
h
t
i
i
e
s
m
x
a
m
o
t
g
n
i
l
i
a
f
y
b
e
r
e
h
t
,
l
a
m
i
t
p
o
t
s
o
m
e
h
t
e
b
.
p
u
o
r
G
e
h
t
o
t
e
b
a
l
l
i
a
v
a
y
t
i
n
u
t
r
o
p
p
o
s
e
i
t
i
n
u
t
r
o
p
p
o
l
a
i
c
r
e
m
m
o
c
e
r
o
c
S
k
s
R
i
i
m
u
d
e
M
r
e
v
i
l
e
d
l
l
i
w
s
t
c
e
p
x
e
t
i
t
a
h
t
s
e
v
i
t
a
i
t
i
n
i
i
c
g
e
t
a
r
t
s
s
t
e
s
d
r
a
o
B
e
h
T
l
t
i
o
p
x
e
o
t
e
r
u
l
i
a
F
d
n
a
s
t
c
a
r
t
n
o
c
w
e
n
g
n
n
g
s
i
i
f
o
e
a
r
t
s
p
u
o
r
G
e
h
t
d
e
t
c
a
p
m
i
i
h
c
h
w
.
e
s
a
b
t
s
o
c
s
t
i
o
t
s
e
s
a
e
r
c
n
i
y
r
a
n
o
i
t
a
l
f
n
i
d
e
d
d
a
s
t
c
e
b
u
s
j
l
a
i
r
t
l
a
c
n
i
i
l
c
m
o
r
f
t
a
a
d
l
a
n
o
s
r
e
p
s
e
r
u
t
p
a
c
p
u
o
r
G
e
h
T
n
o
i
t
c
e
t
o
r
P
a
t
a
D
k
s
i
r
y
r
o
t
a
l
u
g
e
r
d
n
a
e
c
n
a
i
l
p
m
o
c
,
l
a
g
e
L
t
x
e
t
n
o
C
s
k
s
i
R
l
a
p
i
c
n
i
r
P
i
t
d
e
a
c
o
s
s
a
d
n
a
(
s
k
s
i
r
y
t
i
r
u
c
e
s
a
a
d
o
t
t
t
i
i
g
n
s
o
p
x
e
y
b
e
r
e
h
t
.
)
k
a
e
l
t
a
a
d
a
f
o
t
n
e
v
e
e
h
t
n
i
s
k
s
i
r
l
a
n
o
i
t
a
t
u
p
e
r
e
r
o
c
S
k
s
R
i
w
o
L
l
a
u
n
n
a
d
n
a
g
n
n
a
r
t
i
i
R
P
D
G
o
g
r
e
d
n
u
s
e
e
y
o
p
m
e
l
l
l
A
-
s
e
c
i
t
c
a
r
p
d
n
a
s
e
i
t
i
v
i
t
c
a
i
g
n
n
a
r
t
i
r
e
h
s
e
r
f
e
r
:
y
b
d
r
a
o
B
e
h
t
f
i
o
r
e
d
r
o
y
b
d
e
n
g
s
d
n
a
3
2
0
2
r
e
b
m
e
c
e
D
4
n
o
d
r
a
o
B
e
h
t
y
b
d
e
v
o
r
p
p
a
s
a
w
t
r
o
p
e
R
c
g
e
t
a
r
t
i
S
e
h
T
5
2
3
2
0
2
r
e
b
m
e
c
e
D
4
r
e
c
i
f
f
O
e
v
i
t
u
c
e
x
E
f
i
e
h
C
i
n
o
r
r
e
C
o
i
l
u
G
i
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
Corporate Governance Report
The Board has adopted, and strives towards compliance with, the Quoted Companies Alliance (‘QCA’) Corporate
Governance Code (‘Code’). It has published a statement on the Group website that sets out, in broad terms, how the
Group complies with the Code at the date of this report. The Board provides annual updates about compliance with the
Code. The Board is responsible for ensuring that IXICO is managed for the long-term benefit of all shareholders, through
effective and efficient decision-making. Corporate governance is an important part of the Board’s role by providing
oversight and guidance to help manage risk and build long-term value.
The Code comprises ten principles, with which companies undertake to comply as part of their corporate governance
arrangements. The Board conducts itself in a manner which places IXICO’s values and the principles of the Code at
the core of the Group’s culture.
A summary of how the Group complies with these principles is outlined below with further detail being available on the
Group’s website (https://ixico.com/investors/governance/oversight/).
Principle
Group approach
DELIVER VALUE IN A MANNER ALIGNED TO SHAREHOLDER AND WIDER STAKEHOLDER ASPIRATIONS
1: Establish a
strategy and
business model
which promotes
long-term value
for shareholders
The Group delivers insights to biopharmaceutical companies developing drugs to address
neurological disease. During 2022 the Group refreshed its strategy focussing on the next phase
of its growth across the period 2022 to 2027. This was presented to stakeholders (including
shareholders) in December 2022.
Progress against this strategy is reviewed regularly at Board meetings and at least annually in a
full day strategy review day. This last took place in June 2023.
2: Seek to
understand and
meet shareholder
needs and
expectations
Further updates to stakeholders occurred across 2023 and will be part of the presentations
made to stakeholders in December 2023. The strategy is focussed on achieving scale, which
the Group sees as critical to it achieving its long-term goals and purpose and will be reflected in
the creation of long-term value for shareholders.
Our 5-point growth plan for the period 2022 to 2027 is discussed in the Chief Executive’s
Statement on pages 10 to 11.
The Board is committed to encouraging open communication between itself and shareholders.
The CEO and CFO arrange to meet with major shareholders at least twice a year to update them
on strategy, progress against this strategy and obtain feedback. The Chair also makes himself
available for discussions with major shareholders as and when appropriate.
Further, should the Board consider any significant divergence from strategy it will seek feedback
from major shareholders as part of its deliberations.
The Board uses publications on its website and its Annual Report to keep all shareholders
informed of its progress. It uses the AGM to invite feedback from any shareholder.
The CEO and CFO are responsible for investor relations and any feedback received from
shareholders is communicated to the wider Board.
Shareholder expectations are discussed further in stakeholder engagement on pages 12 to 14.
26
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
Principle
3: Take into
account wider
stakeholder and
social
responsibilities
and their
implications for
long-term success
Group approach
The Group is highly conscious of the requirements of its wider stakeholders in supporting its
long-term success. It views its wider stakeholders as its shareholders, clients, suppliers,
employees and the participants of the clinical trials it serves. The Group’s purpose is to generate
societal benefits via supporting the development of drugs which deliver improved health
outcomes for those impacted by neurological diseases. To bring life to this purpose, the Board
engenders a culture which translates this purpose into an ethos and culture by which the Group
operates. This is emphasised in our ESG section (page 12) where the Group discusses our
investments in our employees and how this contributes to long term success.
4: Embed
effective risk
management,
considering both
opportunities and
threats,
throughout the
organisation
In working closely with its stakeholders, the Board has implemented approaches that align the
considerations of each stakeholder group with the Group’s purpose and ‘way of working’.
Our stakeholders are described in our stakeholder engagement on pages 12 to 14.
The Board has ultimate responsibility for the Group’s system of risk management and internal
control and for reviewing its effectiveness.
The Board instils control to the Group’s operations by overseeing the following:
•
•
competent and prudent management;
sound planning;
• adequate systems of control, including regular review of risk;
• adequate and accurate accounting records; and
•
compliance with statutory and regulatory obligations.
The Risk Management Report is provided on pages 21 to 25.
MAINTAIN A STRONG AND DYNAMIC MANAGEMENT FRAMEWORK THAT PLACES VALUE ON
DEVELOPING THE GROUP IN AN ETHICAL MANNER
5: Maintain the
Board as a well-
functioning,
balanced team
led by the Chair
The Board comprises the Non-Executive Chair, two Executive Directors and two Non-Executive
Directors, one of whom acts as Senior Independent Director. A further Non-Executive Director
was appointed after the year end.
The Board has an appropriate balance between independence and knowledge of the Group and
its target markets which allows it to discharge its duties and responsibilities effectively.
The Directors use their independent judgement and challenge matters affecting the business
whether strategic or operational. The Non-Executive Directors are in regular contact with the
Executive Directors and the Chair has regular one-to-one meetings with the Chief Executive
Officer. The Board has access to independent external advisers to support it In its decisions,
where additional skills or expertise is deemed necessary.
The Board has procedures in place to deal with a situation in which a Director has, or may have,
a conflict of interest. The Board is aware of other commitments and interests as they are
disclosed by each Board member.
The Board meets formally (either face-to-face or via video conference) not fewer than four times
per year in addition to the annual strategy day.
The Board is also supported by three subcommittees: the Audit Committee, the Remuneration
Committee and the Share Transaction Committee. The Board and its subcommittees all operate
the Company website
against
(https://ixico.com/investors/governance/).
reference which are summarised on
terms of
More information on Board membership is provided on page 32.
27
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
Group approach
The Board has an appropriate balance of skills and experience and is mindful of the need to
continuously review the needs of the business to ensure that this remains true, so that the Board
can drive performance as well as comply with regulations.
The Group’s Articles of Association require that all Directors must stand for re-election every
three years and that any new Directors appointed during the year must stand for election at the
AGM following their appointment.
The Board undertakes self-reviews from time to time in order to assess its performance. The
Chair provides leadership to the Board and assesses the individual Directors to ensure that their
contribution is relevant and effective and that they are committed members of the Board.
Further details of the Board’s skills and experience can be found on page 32.
Principle
6: Ensure that
between them the
Directors have the
necessary up-to-
date experience,
skills and
capabilities
7: Evaluate all
elements of Board
performance
based on clear
and relevant
objectives,
seeking
continuous
improvement
8: Promote a
corporate culture
that is based on
ethical values and
behaviours
The Group operates in a highly regulated environment in accordance with an Integrated
Management System which is subject to third-party audit. The Group is focussed on a
therapeutic area which has a high unmet medical need, and our employees are motivated to
support our clients in their quest to develop and provide safe, effective treatments for people
living with neurological diseases.
The Group employs a diverse workforce and embraces a culture where employees are treated
equitably within an environment of mutual respect and understanding.
The Group adopts a zero-tolerance position to fraud, bribery, modern slavery and other unethical
behaviours and is committed to meeting high standards in this regard throughout its operational
practices and wider stakeholder engagements.
The Company’s corporate responsibility approach is to ensure that as a company we focus on
the environmental, social and governance (‘ESG’) consequences of all our activities and to strive
to be an organisation that individuals wish to interact with, whether employees, clients or
suppliers. The Company is committed to integrating ESG within its business model.
The Group’s values are described on page 4.
The Board is collectively responsible for the long-term success of the Group. Its principal function
is to provide the Group with a framework of prudent and effective controls, which enables risk to
be assessed and managed and its strategy executed. Further details as to how the governance
processes are structured to achieve this are outlined within this Governance Report.
The Group’s risk management approach is described on page 21 to 25.
9: Maintain
governance
structures and
processes that
are fit for purpose
and support good
decision-making
by the Board
28
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
The Group communicates with shareholders (and other stakeholders) via its website, its Annual
Report, and the AGM as well as via issuing RNS announcements and presenting to major
shareholders and analysts.
Group approach
Principle
BUILD TRUST BASED ON OPEN COMMUNICATION WITH STAKEHOLDERS
10: Communicate
how the Group is
governed and is
performing by
maintaining a
dialogue with
shareholders and
other relevant
stakeholders
This Governance Report and the wider Strategic and Directors’ Reports are designed to
provide full and relevant updates on how the Group is governed and how it is performing.
These are drafted with both shareholders and the wider stakeholder community in mind.
Further reading can be found in the Strategic Report on pages 4 to 25, stakeholder
engagement on pages 12 to 14, the Directors’ Report on pages 35 to 38, and the Financial
Review pages 18 to 20.
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors
have elected to prepare the Group and Parent Company financial statements in accordance with UK-adopted
international accounting standards. Under Company Law the Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company and Group
for that period. In preparing these financial statements, the Directors are required to:
– select suitable accounting policies and then apply them consistently;
– make judgements and accounting estimates that are reasonable and prudent;
– state whether applicable UK-adopted international accounting standards have been followed, subject to any
material departures disclosed and explained in the financial statements; and
– prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group
will continue in business, in which case there should be supporting assumptions or qualifications as necessary.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
Group’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and the
Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on
the Group’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
By order of the Board of Directors
______________________________
Charles Spicer
Non-Executive Chair
4 December 2023
29
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
Audit Committee Report
The Audit Committee is charged with monitoring the integrity of the Group’s financial statements and the application of
accounting policies. The Committee also assesses the effectiveness of the internal control and risk management
systems. Risk management discussions take place bi-annually and are included within the agenda of Board
meetings.
The Committee is chaired by Kate Rogers; Mark Warne and Dipti Amin are members of the Committee. Additional
attendees are invited to join by the Committee where appropriate. In the year ending 30 September 2023, this
included the Chief Financial Officer, Group Financial Controller, General Counsel, and senior representatives of the
Group’s auditor Grant Thornton UK LLP.
FY23 Audit Committee agenda items
During FY23, the Audit Committee met three times, with a variety of agenda items discussed. These are set out
below, with further additional details about the FY24 Audit Tender presented, which is considered to be the Key
Decision for FY23.
NOVEMBER 2022
MAY 2023
SEPTEMBER 2023
External audit
Reviewed external audit findings
report with Grant Thornton.
Reviewed and approved accounting
approach to areas of judgement or
those deemed to be of higher risk.
External audit
Reviewed interim review report for
the half year unaudited results with
Grant Thornton. Reviewed and
approved accounting approach to
areas of judgement or those deemed
to be of higher risk.
External audit
Reviewed the audit plan for the 2023
financial year with Grant Thornton
with particular focus on areas of
judgement or those deemed to be of
higher risk.
Anti-Bribery and Corruption
The Group’s Anti Bribery and
Corruption policies were reviewed
and agreed fit for purpose.
FY24 Audit Tender
The Audit Committee agreed next
steps to finalise the appointment of
the Group’s FY24 auditors.
Interim results
The interim results and associated
announcement were reviewed
ahead of recommending them for
approval by the Board.
Internal control
The Group’s internal control
framework was reviewed and agreed
fit for purpose.
FY24 Audit Tender
It was confirmed that the Group
would tender the audit services for
the financial year 2024 as well as
the process that would be followed
to complete this.
Accounting policies, judgements,
and estimates
Following a review into the Group’s
policies on IFRS 15 – Revenue, the
impact of changes on accounting for
commissions was presented and
confirmed.
Full year results
Review of full year preliminary
results announcement and draft
Annual Report ahead of
recommending them for approval by
the Board.
Other
Completed annual review of the
Audit Committee Terms of
Reference and completed checklist
to ensure appropriate actions had
been taken to fulfil the duties of the
Audit Committee.
30
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
FY24 Audit Tender Process
In the year, the Audit Committee agreed to put out the financial year 2024 Group audit to tender. This is in line with
good practice, seeks to ensure the achievement of ongoing high-quality audits, balanced with obtaining fee levels that
reflect value for money. A Selection Panel was established to assist the Audit Committee in its proposal to the Board.
The Selection Panel consisted of the Audit Committee Chair the Chief Financial Officer and the Group Financial
Controller.
Throughout the process, the Selection Panel used the following criteria to assess each audit firm:
• Audit approach including understanding of the key risk areas and use of technology during audits;
• Reputation and experience in AIM and within the life sciences and technology industries;
• Understanding of IXICO, its industry and the identification of risks;
• Approach to client service to ensure quality audits are delivered for all stakeholders;
• Quality of communication throughout the selection process and ability to develop a robust relationship; and
• Delivery of a value for money audit for stakeholder value.
The initial scoping phase included obtaining a list of potential audit firms and detailed each audit firms experience on
AIM, as well as their industry specific experiences, and the firm’s size and network. A longlist of eight firms were
identified, each of which were invited to take part in the process. The Group received tender proposals from six audit
firms. Each proposal was assessed based on their merits and were discussed in detail by the Selection Panel.
Following this, a shortlist of three firms were progressed to present their audit services to the Selection Panel.
Following the completion of the presentations, the Selection Panel presented their findings to the Audit Committee in
September 2023. Based on the above criteria, the Audit Committee will advise the Board on their recommendation,
and the appointment of the auditors for the year ending 30 September 2024 will be proposed as a resolution at the
2024 AGM.
Going concern
The financial statements are prepared on a going concern basis after considering the Group’s and the Company’s
current cash position, and in reviewing the cash flow forecasts and budgets for a period of 12 months following the
approval of these financial statements.
The Audit Committee are satisfied with the going concern basis through obtaining a sensitised cashflow forecast
which consisted of several adjustments which are not in the ordinary course of business. These included but were not
limited to:
•
Increasing the level of expected cancellations and delays on clinical trials beyond the level that would
normally be expected in this environment; and
• Reducing the number of new contracts expected to sign during the next 12 months.
Other mitigating factors in the event of a significant downturn in business include careful cost management and
opportunities to raise additional financial capital.
In addition, the Audit Committee reviewed a reverse stress test based on the Group’s existing cash and current
receivable position, considering the plausibility of these assets being insufficient to enable the Group to continue to
trade for twelve months. Based on its review the Committee concluded that it is appropriate that the Group continue
to report as a going concern.
31
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
The Board of Directors
Giulio Cerroni
Chief Executive Officer
Giulio has over 35 years of experience in the life sciences sector and a track record of
growing business operations in Europe, the US and Asia. Prior to IXICO, Giulio held
global leadership roles at Thermo Fisher Scientific, Inc. and LGC Limited, where he
transformed the scale of LGC’s Genomics division, completing three acquisitions in
under 18 months. Giulio was a member of the executive leadership team responsible for
the successful sale of LGC Limited to global investment firm, KKR & Co. Inc.
External appointments
None
Grant Nash
Chief Financial Officer &
Company Secretary
Grant has worked in the life sciences sector for almost 20 years. In his Executive
Director role, Grant leads the Group’s Finance, Legal, IT and Quality functions. Grant
joined IXICO in 2019. He was previously Finance Director at UK Biobank, an
international health research data resource. Previous to this he was SVP Finance at
Evotec, an early-stage drug discovery CRO. Grant is a member of the Share Transaction
Committee and also acts as Secretary to the Board and its subcommittees.
External appointments
None
Charles Spicer
Non-Executive Director
Chair
Charles is an experienced director of public and private companies, primarily in the
MedTech sector. In addition to his other appointments below, Charles is Chair of the UK
Department of Health’s Invention for Innovation (i4i).
External appointments
Creo Medical Group plc, Non-Executive Chair
Korn Wall Limited, Non-Executive Chair
NetScientific plc, Non-Executive Chair
Mark Warne
Non-Executive Director
Senior Independent
Director
Mark is widely recognised in the UK and international life sciences sector, having spent
almost ten years at IP Group Plc, a leading intellectual property commercialisation
company, where he led the Healthcare team.
External appointments
Deep Matter Group plc, Chief Executive Officer
Angelini Ventures, Advisor
Kate Rogers
Non-Executive Director
Kate is qualified as a chartered accountant and holds a Bachelor of Science degree in
Engineering from Oxford University. Kate previous experience includes a 20-year career
with Glaxo SmithKline. At GSK Kate led the transformation of GSK’s global finance
organisation, having previously worked as CFO for Laboratoire Glaxo SmithKline SaS
(GSK France) and other senior finance roles within GSK.
External appointments
Follicular Lymphoma Foundation, Chief Executive Officer
Dipti Amin
Non-Executive Director
Dipti is an experienced non-executive director having previously sat on the Boards of
companies in both the private and public sector. Before this, Dipti spent over 20 years of
her executive career at IQVIA occupying senior positions in compliance, drug safety and
medical affairs. Dipti is medically trained and is a Fellow of the Faculty of
Pharmaceutical Medicine.
Dipti joined the Board on 1 October 2023.
External appointments
University of Hertfordshire, Non-Executive Director
Lineage Cell Therapeutics, Non-Executive Director
32
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
Board activities and timeline
The Board and its subcommittees
The Board meets at least four times per year in accordance with a pre-determined meeting calendar. The Board is
supported by three subcommittees: the Audit Committee, the Remuneration Committee and the Share Transaction
Committee. The subcommittees discharge responsibilities on behalf of the Board and are entitled to such internal or
external advice as is required to allow them to fulfil their duties.
The Board and its subcommittees receive appropriate and timely information prior to each meeting including a formal
agenda. Any Director may challenge Group proposals. Decisions are taken democratically after appropriate
discussion. Specific actions arising from Board meetings are agreed by the Board or relevant subcommittee and are
then followed up by the Executive Directors.
The Board and subcommittees all operate against terms of reference which are summarised on the Group website
(https://ixico.com/investors/governance/).
Board and sub-committee responsibilities
Board meetings
The Board is responsible to shareholders for the proper management of the Group. It
comprises the Non-Executive Chair, two Executive Directors and three Non-Executive
Directors, one of whom acts as Senior Independent Director.
The Board is chaired by Charles Spicer. Kate Rogers, Mark Warne and Dipti Amin are
considered to be independent of the Executive Directors and free from any relationship
which could materially affect the exercise of their independent judgement. Non-
Executive Directors receive a fee for their services.
The Board has agreed terms that are reserved for its consideration including the Group’s
strategy, budgets, financial reporting, and internal controls, together with the monitoring
of the progress to achieve its goals.
Remuneration
Committee
The terms of reference of the Remuneration Committee include the following
responsibilities:
• determine and agree with the Board the framework or broad policy for the
remuneration of the Executive Directors and other such members of the executive
management as it is designated to consider;
• approve the design of, and determine targets for, any performance-related pay
schemes and approve the total annual payments made under such schemes;
• approve all long-term incentive scheme structures and option schemes;
• approve all option grants for ratification by the Board; and
• within the terms of the agreed policy, determine the total individual remuneration
package of each Executive Director including, where appropriate, bonuses,
incentive payments and share options.
Remuneration Committee meetings are held at least twice per financial year.
Audit Committee
The terms of reference of the Audit Committee include the following responsibilities:
• monitor the integrity of the Group’s financial statements and application of
accounting policies;
•
review the effectiveness of the Group’s internal control and risk management
systems; and
• oversight of the Group’s external auditors, including assessment of their
independence from the Group.
Audit Committee meetings are held at least twice per financial year.
The Group auditor only provides audit services to the Group.
33
IXICO plc
Corporate Governance Report for the year ended 30 September 2023
Share Transaction
Committee
The terms of reference of the Share Transaction Committee include the following
responsibilities:
•
•
review, consider and, where appropriate, approve the exercise of share options
by option holders of the Group and the issuance of shares in connection with such
exercises; and
review, consider and approve the request to transact shares by employees or
other individuals closely related to the Group in accordance with the relevant
policies of the Group, applicable law and any directions of the Group’s nominated
adviser.
The Share Transaction Committee meetings are held on an ad hoc basis as required.
Board and sub-committee meetings in the 2023 financial year
Board meeting
Audit
Committee
Remuneration
Committee
Share Transaction
Committee
Number of meetings
G Cerroni
G Nash
K Rogers (NED)
C Spicer (NED)
M Warne (NED)
Attendance percentage
13
12
Member
13
Member
13
Member
13
Member
13
Member
98.7%
3
6
1
3
Chair
3
Member
100.0%
6
Member
6
Chair
100.0%
1
Member
1
Chair
100.0%
Note: Dipti Amin (NED) joined the Board on 1 October 2023, immediately after the end of the 2023 financial year
34
IXICO plc
Directors’ Report for the year ended 30 September 2023
Directors’ Report
The Board of Directors of IXICO plc (registered in England and Wales: 03131723) presents its report together with the
audited consolidated Group and Company financial statements for the year ended 30 September 2023.
Principal activities
The Group provides specialist data analytics services to the global biopharmaceutical industry. The services include
the collection, analysis, management and reporting on data generated in the course of a clinical study. The outputs
from the data analysis are used to improve patient selection, monitor drug safety and assess clinical efficacy of the
drug under development.
Results and dividends
The Group achieved a net loss after tax of £1.2 million for the year (2022: £1.0 million profit).
The Board of Directors does not recommend the payment of a dividend.
Financial risk management
The financial risk management and objectives of the Group are set out in note 22 of the consolidated financial
statements. Specific financial risks are set out on page 24 of the Strategic Report.
Political donations
The Group made no political donations during the period (2022: £nil).
Charitable donations
The Group made £1,000 in charitable donations during the period (2022: £nil).
Directors
The Directors of the Company, who served during the period and up to the date of this report, unless otherwise
indicated, are as follows:
Director
Capacity
Appointed date
Resignation date
Giulio Cerroni
Chief Executive Officer
Grant Nash
Chief Financial Officer
Company Secretary
Charles Spicer
Non-Executive Chair
6 February 2017
21 August 2019
31 May 2019
14 October 2013
Mark Warne
Non-Executive and Senior Independent Director
16 September 2016
Kate Rogers
Non-Executive Director
Dipti Amin
Non-Executive Director
21 January 2022
05 October 2023
Biographical details of IXICO plc’s Directors are shown on page 32.
Directors’ remuneration and share options
Details of the Directors’ remuneration and share options are set out in the Directors’ Remuneration Report on page 39
and 40.
Re-election of Directors
At the 2023 AGM, in accordance with the Company’s Articles of Association, Kate Rogers was elected as a Non-
Executive Director and Giulio Cerroni was re-elected as a Director of the Company.
In accordance with section 992 of the Companies Act 2006, the Directors disclose that the rules regarding the
appointment and replacement of Directors are contained in the Company’s Articles of Association, which may be
35
IXICO plc
Directors’ Report for the year ended 30 September 2023
amended with shareholder approval in accordance with relevant legislation. The powers of the Directors are contained
in the Company’s Articles of Association or in accordance with the provisions of the Companies Act 2006. The
Companies Act 2006 provides that Directors may issue and buy back the Company’s shares on behalf of the
Company, subject to authority being given to the Directors by shareholders in a general meeting. No authority to buy
back the Company’s ordinary shares of 1 pence per share has been sought.
Directors’ interests
At 4 December 2023, the table below sets out the interests in the Company’s shares of Directors who served during
the period and their connected persons:
Director
Giulio Cerroni
Grant Nash
Charles Spicer
John Bradshaw1
Mark Warne
Kate Rogers
Ordinary shares
of 1 pence
Ordinary shares
of 1 pence
2023
491,333
200,000
333,196
N/A
19,650
-
2022
491,333
-
333,196
35,500
19,650
-
1John Bradshaw left the company in April 2022, his shareholding is therefore not disclosed for the year ended 30 September 2023
The Directors’ interests are beneficially held by each Director unless otherwise stated. Apart from these interests and
share options (as disclosed on pages 39 and 40), no Director had any further interest in the period in the share capital
of the Company or other Group companies. There have been no changes in the Directors’ interests in the share
capital of the Group since the year end.
Directors’ indemnities
The Group had in place for the whole of the period, and at the date of signing the consolidated financial statements,
qualifying third-party indemnity insurance for all Directors and officers.
Going concern
The ongoing conflict in eastern Europe and recent re-commencement of hostilities in the middle east, accompanied by
rising inflation, interest rates and a broad degree of macro-economic and political disruption continue to create
challenges for the global economy. These have resulted in a lowered risk appetite which has impacted capital markets
around the world, reducing capital availability and investment in areas deemed higher risk.
The impact of this has been visible in the clinical trials market both through a slow down in the initiation of new clinical
trials, increased focus on development pipelines by the biopharmaceutical companies and restructuring and
consolidation announcements within both biopharma and CROs.
The Group has seen the impact of this and, whilst it remains well capitalised and debt-free, it has seen an elongation
of the timeframes to sign new clinical trials and therefore has lowered its expectations for revenues in 2024 ahead of a
return to growth in 2025.
Irrespective, the Group has a strong balance sheet for its size with financial year end net assets of £11.4 million, a
£4.0 million cash balance and has secured £8.0 million of new contracts in the year providing it with good visibility of
future revenues across a diversified portfolio of clients and projects.
In assessing going concern, management has prepared detailed sensitised forecasts which consider different
scenarios through to December 2024. These include the risk to current projects and expected future sales pipelines.
The Directors have considered these forecasts, alongside the Group’s strong balance sheet and cash balance as well
as the ability for the Group to mitigate costs if necessary. After due consideration of these forecasts, the Directors
36
IXICO plc
Directors’ Report for the year ended 30 September 2023
concluded with confidence that the Group has adequate financial resources to continue in operation for the
foreseeable future.
Structure of the Company’s capital
The Company’s share capital comprises a single class of ordinary shares of 1 pence per share, each carrying 1 voting
right and all ranking equally with each other. At 30 September 2023, 48,351,373 (2022: 48,151,373) shares were
allotted and fully paid. Note 20 of the consolidated financial statements provides full details of movements in the
Company’s share capital.
Holders of ordinary shares are entitled to receive all shareholder documents, to attend, speak and exercise voting
rights, either in person or by proxy, on resolutions proposed at general meetings and participate in any distribution of
income or capital. There are no restrictions on the transfer of shares in the Company or in respect of voting rights
attached to the shares. None of the shares carries any special rights with regard to the control of the Company.
Participants in employee share option schemes have no voting or other rights in respect of the shares which are
subject to their awards until the options are exercised, at which time the shares rank pari passu in all respects with
shares already in issue. Details of employee share option schemes are set out in note 21 of the consolidated financial
statements.
Authority to issue shares
At the general meeting held on 20 January 2023, shareholders authorised the Directors to allot relevant securities up
to an aggregate nominal value of £160,505 (representing 33.33% of the issued share capital) and to allot for cash
equity securities having a nominal value not exceeding in aggregate £48,151 (representing 10.0% of the issued share
capital).
These authorities expire at the close of business on 26 January 2024, or if earlier, the conclusion of the next AGM. At
the 2024 AGM, similar authorities will be sought from shareholders, and the Company does not intend to seek
authority for a fully pre-emptive rights issue.
Substantial shareholdings
At 4 December 2023, the Company had received notification from the following financial institutions of their and their
clients’ interest in the following disclosable holdings, which represent 3% or more of the voting rights of the issued
share capital of the Company.
Shareholders having a major interest
BGF Investment Management
Octopus Investments
Gresham House Asset Management
Amati Global Investors
CIP Merchant Capital Limited
City Asset Management
Number of
shares held
8,924,000
6,408,400
5,357,100
5,031,300
3,857,566
1,864,493
% of issued
Shares
18.46
13.25
11.08
10.41
7.98
3.86
AGM
The notice convening and giving details of the 2024 AGM will be posted to shareholders on or before 17 December
2023. The 2024 AGM of the Company will be held at the offices of CCT Venues Smithfield, 2 East Poultry Avenue,
London, EC1A 9PT on Thursday 25 January 2024.
37
IXICO plc
Directors’ Report for the year ended 30 September 2023
Other matters
Matters required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports)
Regulations 2008 which have not been covered in the Directors’ Report have been included in the Strategic Report in
accordance with Section 414c(11) of the Companies Act 2006.
No post balance sheet events have been noted.
Disclosure of information to auditors
The Directors confirm that:
• So far as each Director is aware, there is no relevant audit information of which the Group’s auditors are unaware;
and
• The Directors have taken all steps that they ought to have taken as Directors in order to make themselves aware
of any relevant audit information and to establish that the Group’s auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the
Companies Act 2006.
On behalf of the Board of Directors
______________________________
Charles Spicer
Non-Executive Chair
4 December 2023
38
IXICO plc
Directors’ Remuneration Report
Directors’ Remuneration Report
Remuneration policy for Executive Directors
The remuneration policy and practice are intended to align the remuneration of Executive Directors with the Group’s
business model and achievement of the Group’s strategy. The policy seeks to strike an appropriate balance between
a base salary and a discretionary, performance-related element.
Base salary
The Remuneration Committee approves the base salary of Executive Directors, having regard to the individual role
and responsibilities.
Pension contribution
The Group operates a money purchase Group personal pension plan for all employees. The Group contributes to the
scheme 8% of base salary in respect of the Chief Financial Officer. The Chief Executive Officer does not receive
pension contributions.
Performance-related bonus
The Group operates a discretionary bonus scheme that takes account of the underlying financial performance of the
Group, meeting KPIs and achieving strategic objectives, specifically focussed on revenue and contract wins. All
performance targets are set by the Remuneration Committee. The award of bonus payments to employees, including
Executive Directors, are subject to the Remuneration Committee’s review and approval. For the year to 30 September
2023, the Remuneration Committee determined that bonus related KPIs and strategic objectives were not met,
resulting in no bonus entitlements being achieved.
Bonus payments are not pensionable.
IXICO EMI Share Option Plan 2014
Share options granted to Executive Directors are in accordance with the rules of the IXICO EMI Share Option Plan
2014. The share options include performance-related vesting criteria related to the achievement of strategic goals or a
significant corporate development transaction. The exercise of share options is subject to the Remuneration
Committee’s review, and approval, of whether such performance targets have been achieved.
Share dilution limits
The aggregate number of new ordinary shares which may be issued on the realisation of the EMI Share Option Plan
2014 in any 10-year period may not exceed 15% of the number of ordinary shares in issue.
At 30 September 2023, and assuming satisfaction of all performance conditions, the total number of the Company’s
shares issuable under awards made under the EMI Share Option Plan 2014 (and including any awards already
exercised) was 5,119,111 or 10.6% of the number of ordinary shares in issue at that date.
Other benefits
The Executive Directors are part of a Group Life Assurance scheme and a private medical insurance scheme that is
maintained and paid by the Group for all employees.
Income protection insurance are not provided.
Executive Directors’ service contracts and termination provisions
The service contracts of Executive Directors are approved by the Remuneration Committee and then the Board. The
service contracts may be terminated by either party giving notice to the other as set out below:
Giulio Cerroni
Grant Nash
Date of contract
6 February 2017
29 April 2019
Notice period
12 months
6 months
Non-Executive Directors
The Non-Executive Directors have letters of appointment with the Company. Fees paid to the Non-Executive Directors
are determined by the Board, giving due consideration to market rates and comparative businesses. The Non-
Executive Directors do not receive pension contributions and do not participate in any discretionary bonus or
Company share option schemes. Current contracts together with notice periods are as follows:
39
IXICO plc
Directors’ Remuneration Report
Charles Spicer (as Chair)
Mark Warne
Kate Rogers
Dipti Amin
Directors’ remuneration
Date of contract
16 September 2016
16 September 2016
21 January 2022
01 October 2023
Notice period
3 months
3 months
3 months
3 months
Year ended 30 September 2023
Salary
and fees
£000
Pension
Bonus contributions
£000
£000
Year ended 30 September 2022
Salary
and fees
£000
Pension
contributions
£000
Bonus
£000
Executive
Giulio Cerroni
Grant Nash
Non-Executive
Charles Spicer
John Bradshaw
Mark Warne
Kate Rogers
Aggregate emoluments
328
200
528
53
-
31
31
115
643
-
-
-
-
-
-
-
-
-
-
16
16
-
-
-
-
-
16
316
186
502
51
14
28
21
114
616
2
2
4
-
-
-
-
-
4
-
15
15
-
-
-
-
-
15
No Directors waived emoluments in the year ended 30 September 2023 (2022: £nil).
Directors’ options
Details of options over shares in the Company held by Directors who served during the period, all of which have been
granted at no cost to the Directors, are set out below:
Number of options
At 30
September
2022
Granted
during
the year
Exercised
during
the year
Lapsed
during the
year
At 30
September
2023
Exercise
price
Date of
grant
Vesting
date
Giulio Cerroni
Grant Nash
584,525
584,525
245,000
245,000
1,659,050
300,000
300,000
600,000
Total
2,259,050
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(81,666)
(81,666)
(163,332)
584,525
584,525
163,334
163,334
1,495,718
£0.010 4-Jun-18
£0.010 4-Jun-18
£0.010 5-Dec-19
£0.010 5-Dec-19
3-Jun-21
3-Jun-22
4-Dec-22
4-Dec-23
(200,000)
-
(200,000)
(100,000)
(100,000)
(200,000)
-
200,000
200,000
£0.010 5-Dec-19
£0.010 5-Dec-19
4-Dec-22
4-Dec-23
(200,000)
(363,332)
1,695,718
During the year ended 30 September 2023, the Company’s share price ranged from £0.175 to £0.34.
Further details of the share option schemes are set out in note 21 of the consolidated financial statements.
40
IXICO plc
Independent auditor’s report to the members of IXICO plc
Financial Statements
Independent Auditor’s Report
Independent auditor’s report to the members of IXICO plc
Opinion
Our opinion on the financial statements is unmodified
We have audited the financial statements of IXICO plc (the ‘parent company’) and its subsidiaries (the ‘group’) for
the year ended 30 September 2023, which comprise the Consolidated Statement of Comprehensive Income, the
Consolidated and Company Statements of Financial Position, the Consolidated and Company Statements of
Changes in Equity, the Consolidated and Company Statements of Cash Flows and notes to the financial statements,
including a summary of significant accounting policies. The financial reporting framework that has been applied in
their preparation is applicable law and UK-adopted international accounting standards and, as regards the parent
company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
•
•
•
•
the financial statements give a true and fair view of the state of the group’s and of the parent company’s
affairs as at 30 September 2023 and of the group’s loss for the year then ended;
the group financial statements have been properly prepared in accordance with UK-adopted international
accounting standards;
the parent company financial statements have been properly prepared in accordance with UK-adopted
international accounting standards and as applied in accordance with the provisions of the Companies Act
2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act
2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the
financial statements’ section of our report. We are independent of the group and the parent company in accordance
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s
Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the group’s and the parent company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our
conclusions are based on the audit evidence obtained up to the date of our report. However, future events or
conditions may cause the group or the parent company to cease to continue as a going concern.
A description of our evaluation of management’s assessment of the ability to continue to adopt the going concern
basis of accounting, and the key observations arising with respect to that evaluation is included in the Key Audit
Matters section of our report.
41
IXICO plc
Independent auditor’s report to the members of IXICO plc
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group’s and the parent company’s ability
to continue as a going concern for a period of at least twelve months from when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report.
Our approach to the audit
Materiality
Key audit
matters
Scoping
Overview of our audit approach
Overall materiality:
- Group: £132,000, which represents 2% of the group’s total revenue.
- Parent company: £118,800, which represents 2% of the parent
company’s total assets, capped at 90% of group materiality.
Key audit matters were identified as:
- Revenue recognition – Occurrence of data imaging and analysis
(same as previous year)
- Going concern (same as previous year).
-
Impairment of intangibles assets (new)
- Valuation of investment and intercompany receivables (company
only) (new).
Our auditor’s report for the year ended 30 September 2022 included no key
audit matters that have not been reported as a key audit matter in our
current year’s report.
We performed full scope audit procedures on the financial information of the
significant components of the Group. This includes IXICO Technologies
Limited. We performed analytical procedures on the financial information of
IXICO Technologies Inc. There were no changes to scope of the group
audit from the prior year.
Key audit matters
Key audit matters are those matters that, in our professional judgement,
were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These
matters included those that had the greatest effect on: the overall audit
strategy; the allocation of resources in the audit; and directing the efforts
of the engagement team. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these
matters.
In the graph below, we have presented the key audit matters, significant
risks, and other risks relevant to the audit.
Description
Audit
response
KAM
Disclosures
Our results
42
IXICO plc
Independent auditor’s report to the members of IXICO plc
Key Audit Matter – Group
How our scope addressed the matter – Group
Revenue Recognition – Occurrence of data imaging
and analysis
In responding to the key audit matter, we performed the
following audit procedures:
We identified revenue recognition as one of the most
significant assessed risks of material misstatement due
to the risk of fraud.
Under ISA (UK) 240 ‘The Auditor’s Responsibilities
Relating to Fraud in an Audit of Financial Statements’,
there is a rebuttable presumption that there are risks of
fraud in revenue recognition.
Group revenue of £6,665k (2022: £8,643k) has been
recognised for the year ended 30 September 2023. The
Group’s contracts comprise a variety of tasks. These
tasks are all considered types of a single revenue
stream, being service revenue. The key audit matter
has been pinpointed to the data imaging and analysis
related obligations.
The data imaging and analysis revenue of £2,770k
(2022: £3,106k) is determined to have the most
significant risk of fraud because the units, being each
analysed image, fluctuate based on usage each month
Occurrence (significant risk)
• Obtaining management’s IFRS 15 Revenue from
Contracts with Customers accounting paper and
confirming if the revenue policy is consistent and in
accordance with IFRS 15. Considering new
contracts and whether the revenue policies have
been consistently applied.
• Forming an expectation of revenue based on cash
received during the year.
• Confirming the occurrence of data imaging and
analysis revenue through the performance of the
following audit procedures:
- Agreeing a sample of tasks to planning
sheets, contracts, invoices and payment;
- Corroborating the tasks’ unit price to the
signed contracts;
43
IXICO plc
Independent auditor’s report to the members of IXICO plc
Key Audit Matter – Group
How our scope addressed the matter – Group
and this is where the opportunity to fraudulently
manipulate revenue would arise.
- Agreeing the number of units to the group’s
internal project tracker system;
Further, the occurrence assertion is considered where
the greatest risk of fraud exists. For each contract the
number of units billed each month varies, depending on
the number of images analysed in the month.
Therefore, there is opportunity for the unit values of any
contract to be inflated and for increased revenue to be
recognised as there is no set expectation of billing each
month.
- Assessing whether the performance
obligations of each task are being
recognised in accordance with IFRS 15;
and
- Testing credit notes raised during the year
and post-year end to assess the size and
qualitative nature of these and ensure they
are recorded in the correct period.
Relevant disclosures in the Annual Report &
Accounts 2023
Our results
• Financial statements: Note 3 Significant
accounting policies, subsection 3.1 – Revenue,
Note 4 Significant management judgements in
applying accounting policies and estimation
uncertainty, Note 5 Revenue and Note 6
Segmental information.
Going concern
We identified going concern as one of the most
significant assessed risks of material misstatement due
to error.
Macro-economic uncertainties currently faced by the
UK have ongoing impacts on businesses, and at the
date of this report its effects continue to result in
uncertainty.
The impact of cost increases combined with the risk of
further cancelled contracts could adversely impact the
future trading performance of the group and the parent
company and as such increases the extent of
judgement and estimation uncertainty associated with
the forecasts prepared, as well as management’s
decision to adopt the going concern basis of accounting
in the preparation of the financial statements.
Our audit testing did not identify any material
misstatements in relation to revenue.
In responding to the key audit matter, we performed the
following audit procedures:
• Obtaining management’s base case scenario for the
period to 31 December 2024, together with
supporting evidence for all key trading, working
capital and cash flow assumptions. We assessed
how these cash flow forecasts were compiled and
assessed their appropriateness by applying relevant
sensitivities to the underlying assumptions and
challenging the nature of those assumptions.
• Obtaining management’s downside scenarios,
including a Reverse Stress Test, which reflect
management’s assessment of uncertainties. We
evaluated the assumptions regarding the forecast
period and reduced trading levels under each of
these scenarios including the impact of early
termination of clinical trials, failure to convert
expected bookings to contracted bookings and the
impact of macro-economic uncertainties on the cost
base of the group.
• Determining whether the assumptions are
consistent with our understanding of the business
obtained during the course of the audit and the
changing external macro-economic circumstances.
• Assessing the accuracy of management’s past
forecasting by comparing management’s forecasts
for previous years to the actual results for previous
years and considering the impact on the base case
cash flow forecast.
44
IXICO plc
Independent auditor’s report to the members of IXICO plc
Key Audit Matter – Group
How our scope addressed the matter – Group
• Obtaining post year end management accounts and
comparing against amounts forecasted to assess
accuracy of forecasts;
• Obtaining and reading post year end board minutes
to confirm that any post year end events have been
factored into management’s forecasts.
• Assessing the impact of the mitigating factors
available to management in respect of the ability to
restrict cash impact, including the level of available
facilities.
• Consulting with our transaction advisory service to
provide a specialist assessment of going concern.
• Assessing the adequacy of related disclosure within
the Annual Report and Accounts.
Our results
We have nothing to report in addition to that stated in
the ‘Conclusions relating to going concern’ section of
our report. We did not identify any material
uncertainties related to going concern.
Relevant disclosures in the Annual Report &
Accounts 2023
• Financial statements: Note 1(d) Going concern
Impairment of intangible assets
We identified the valuation of the intangible balance as
one of the most significant assessed risks of material
misstatement due to error.
There is a significant intangibles balance of £6,147k
(PY £4,587k) in the group financial statements which
needs to be considered for impairment in accordance
with IAS 36 Impairment of assets.
Based on IAS 36, intangible assets that are not ready
for use should be tested annually for impairment and all
assets within the standard’s scope are to be tested for
impairment where there are visible impairment
indicators. With the decline in revenues, the reported
trading loss and the declining market capitalisation of
the group at 30 September 2023 (being close to the
carrying value of intangibles at the balance sheet date),
there is a significant risk that the carrying value is not
recoverable and that impairment is required.
As a result, management prepared an impairment
assessment in relation to the carrying value of the CGU
to determine their recoverability.
In responding to the key audit matter, we performed the
following audit procedures:
• Assessing any indicators of impairment in line with
IAS 36 that may trigger a requirement of an
impairment for all intangibles.
• Obtained management’s impairment assessment,
including determination of assets included in the
CGU. Assessing and challenging the trading,
working capital, and cash flow assumptions applied
to the value-in-use model to ensure they are
reasonable and supportable.
• Agreeing inputs to the value-in-use calculations by
reference to the forecasts tested in our audit of
going concern and ensuring consistency of the
forecasts, where appropriate.
• Checking mathematical accuracy of the Value in
Use calculations.
• Engaging our internal valuations experts to inform
our challenge of management, to confirm that the
assumptions used within the calculation of the
discount rate are reasonable and consistent with
industry data.
45
IXICO plc
Independent auditor’s report to the members of IXICO plc
Key Audit Matter – Group
How our scope addressed the matter – Group
• Obtaining details of management’s sensitivity
analysis and further sensitising growth rates within
the model, by reference to industry and market data.
• Assessing the accuracy and completeness of
financial statement disclosures relating to the
impairment of intangible assets.
Our results
Our audit testing did not identify any material
misstatement to the impairment of intangibles.
Relevant disclosures in the Annual Report &
Accounts 2023
• Financial statements: Note 3 Significant
accounting policies, subsection 3.9 –
Impairment of non-current assets and Note 14
Intangibles.
Key Audit Matter – Parent company
How our scope addressed the matter – Parent
Company
Valuation of investment and intercompany
receivables (company only)
In responding to the key audit matter, we performed the
following audit procedures:
We identified the valuation of the investment and
intercompany balance in the parent company financial
statements as one of the most significant assessed
risks of material misstatement due to error. This relates
to the investment held by IXICO plc in the subsidiary
IXICO Technologies Ltd and amounts due from IXICO
Technologies Ltd.
There is a significant investment balance of £5,857k
(PY £5,805k) and intercompany balance of £2,451k
(PY £3,507k) in the parent company financial
statements which needs to be considered for
impairment in accordance with IAS 36 Impairment of
assets and IFRS 9 Financial instruments. With the
decline in revenues, the reported trading loss and the
declining market capitalisation of the group at 30
September 2023 (being close to the carrying value of
intangibles at the balance sheet date), there is a
significant risk that the carrying value is not recoverable
and that that impairment is required.
As a result, management prepared an impairment
assessment in relation to the carrying value of the
investment and intercompany receivables to determine
their recoverability.
• Assessing any indicators of impairments in line with
IAS 36 that may trigger a requirement of an
impairment.
• Obtaining management’s paper and assessing and
challenging the trading, working capital, and cash
flow assumptions applied to the client-prepared
value-in-use model to ensure they are reasonable
and supportable.
• Reviewing the cash balance of IXICO Technologies
and ensuring that the company has enough cash to
repay the intercompany debt.
• Agreeing inputs to the value-in-use calculations by
reference to the forecasts tested in our audit of
going concern and ensuring consistency of the
forecasts, where appropriate.
• Checking mathematical accuracy of the Value in
Use calculations.
• Engaging our internal valuations experts to inform
our challenge of management, to confirm that the
assumptions used within the calculation of the
discount rate are reasonable and consistent with
industry data.
• Obtaining details of management’s sensitivity
analysis and further sensitising growth rates within
the model, by reference to industry and market data.
46
IXICO plc
Independent auditor’s report to the members of IXICO plc
Key Audit Matter – Parent company
How our scope addressed the matter – Parent
Company
Relevant disclosures in the Annual Report &
Accounts 2023
Our results
• Financial statements: Note 3 Significant
accounting policies, subsection 3.10 –
Investments in Group undertaking and Note 15
Investments.
Our audit testing did not identify any material
misstatement to the impairment of investment and
intercompany balance.
Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified
misstatements on the audit and of uncorrected misstatements, if any, on the financial statements and in forming the
opinion in the auditor’s report.
Materiality was determined as follows:
Materiality measure
Group
Parent company
Materiality for financial
statements as a whole
We define materiality as the magnitude of misstatement in the financial statements
that, individually or in the aggregate, could reasonably be expected to influence the
economic decisions of the users of these financial statements. We use materiality in
determining the nature, timing and extent of our audit work.
£118,800, based on 2% of the parent company’s
total assets, and then capped at an amount less
than group materiality.
This benchmark is considered the most
appropriate because the company’s principal
activity is that of a holding company for the group
and this judgement is consistent with the prior
year.
Materiality for the current year is lower than the
level that we determined for the year ended 30
September 2022 owing to the reduction in group
materiality.
Materiality threshold
£132,000, which is 2% of the
group’s total revenue.
Significant judgements
made by auditor in
determining the materiality
We have selected revenue as the
most appropriate benchmark
because this is a key measure
used by the directors to report on
the financial performance of the
group.
We have also consistently used
revenue to determine materiality
due to the year-on-year volatility
in profit or loss before tax,
meaning it is not a stable and
appropriate benchmark.
Materiality for the current year is
lower than the level that we
determined for the year ended 30
September 2022 owing to the
decrease in revenue in the
current year.
Performance materiality
used to drive the extent
of our testing
We set performance materiality at an amount less than materiality for the financial
statements as a whole to reduce to an appropriately low level the probability that the
47
IXICO plc
Independent auditor’s report to the members of IXICO plc
Materiality measure
Group
Parent company
aggregate of uncorrected and undetected misstatements exceeds materiality for the
financial statements as a whole.
Performance materiality
threshold
£99,000, which is 75% of
financial statement materiality.
£89,100 which is approximately 75% of financial
statement materiality.
Significant judgements
made by auditor in
determining the
performance materiality
In determining performance materiality, we made
the following significant judgements:
- whether there were any significant
adjustments made to the company
financial statements in the prior year
- whether there were any significant control
deficiencies identified in prior years
- whether there were any changes in senior
management of the company during the
period
- whether there were any significant
changes in business objectives/strategy
In determining performance
materiality, we made the
following significant judgements:
- whether there were any
significant adjustments
made to the group
financial statements in the
prior year
- whether there were any
significant control
deficiencies identified in
prior years
- whether there were any
changes in senior
management of the group
during the period
- whether there were any
significant changes in
business
objectives/strategy
Specific materiality
Specific materiality
Communication of
misstatements to the
audit committee
Threshold for
communication
We determine specific materiality for one or more particular classes of transactions,
account balances or disclosures for which misstatements of lesser amounts than
materiality for the financial statements as a whole could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial
statements.
We determined a lower level of
specific materiality for the
following areas:
- Related party transactions
- Directors’ remuneration
We determined a lower level of specific materiality
for the following areas:
- Related party transactions
- Directors’ remuneration
We determine a threshold for reporting unadjusted differences to the audit committee.
£6,600 and misstatements below
that threshold that, in our view,
warrant reporting on qualitative
grounds.
£5,900 and misstatements below that threshold
that, in our view, warrant reporting on qualitative
grounds.
The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for
potential uncorrected misstatements.
48
IXICO plc
Independent auditor’s report to the members of IXICO plc
Overall materiality – Group
Overall materiality – Parent company (Capped at 90%
of group materiality)
Revenue
£6,665,000
PM
£99,000,
75%
FSM
£132,000,
2%
TFPUM
£33,000, 25%
Total
assets
£10,322,000
PM
£89,100,
75%
FSM
£118,800,
2%
TFPUM
£29,700, 25%
FSM: Financial statements materiality, PM: Performance materiality, TFPUM: Tolerance for potential uncorrected
misstatements
An overview of the scope of our audit
We performed a risk-based audit that requires an understanding of the group’s and the parent company’s business
and in particular matters related to:
Understanding the group, its components, and their environments, including group-wide controls
• The engagement team obtained an understanding of the group and its environment, including group-wide
controls, and assessed the risks of material misstatement at the group level; and
• The engagement team obtained an understanding of the effect of the group organisational structure on the
scope of the audit, identifying that there are centralised processes and controls over the key areas of audit
focus. Group management are responsible for all judgemental processes and significant risk areas. All
accounting is centralised, and we have tailored our audit response accordingly. In assessing the risk of
material misstatement to the group financial statements we considered the transactions undertaken by each
entity and therefore where the focus of our audit work was required.
Identifying significant components
• Significant components were identified through assessing their relative share of key financial metrics including
total revenue, profit before taxation and total assets. If any of these individual metrics were >15% of the group
total amounts, then the related component was classified as ‘individually financially significant to the group’ and an
audit of the financial information of the component using component materiality (full-scope audit) was performed.
• Other than IXICO Technologies Limited, which was scoped as a significant component, the only other component
of the group (IXICO Technologies Inc) was selected as ‘neither significant nor material’ and was subject to
analytical procedures.
49
IXICO plc
Independent auditor’s report to the members of IXICO plc
Performance of our audit
• The year-end audit was conducted both remotely and at the head office. This hybrid approach was supported
through the use of software collaboration platforms for the secure and timely delivery of requested audit
evidence. The audit team held pre-scheduled video calls throughout the audit fieldwork.
• Our audit approach in the current year is consistent with the audit approach adopted for the year ended 30
September 2022, being wholly substantive in nature.
Audit approach
Full-scope audit
Analytical procedures
Total
Other information
No. of
components
2
% coverage Total
assets
100
% coverage
Revenue
100
% coverage
PBT
100
1
3
-
100
-
100
-
100
The other information comprises the information included in the Annual Report & Accounts 2023, other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other information contained
within the Annual Report & Accounts 2023. Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether there is a material misstatement in the financial statements themselves. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact.
We have nothing to report in this regard.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
In our opinion, based on the work undertaken in the course of the audit:
•
•
the information given in the strategic report and the directors’ report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the group and the parent company and their environment obtained
in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
50
IXICO plc
Independent auditor’s report to the members of IXICO plc
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us
to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit
have not been received from branches not visited by us; or
•
•
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, set out on page 28, the directors are responsible
for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent
company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our
procedures are capable of detecting irregularities, including fraud, is detailed below:
• We obtained an understanding of the legal and regulatory frameworks applicable to the parent company and
the group and determined that the most significant which are directly relevant to specific assertions in the
financial statements are those related to the reporting frameworks (UK-adopted international accounting
standards and the Companies Act 2006).
• We understood how the company and the group is complying with those legal and regulatory frameworks by
making inquiries of management, including general counsel. We corroborated our inquiries through our review
of board minutes and walkthrough tests performed with management.
•
In assessing the potential risks of material misstatement, we obtained an understanding of the entity’s
operations, including the nature of its revenue sources, products, and services and of its objectives and
strategies to understand the classes of transactions, account balances, expected financial statement
disclosure and business risks that may result in risks of material misstatement.
• We assessed the susceptibility of the company’s and group’s financial statements to material misstatement,
including how fraud might occur, by evaluating management’s incentives and opportunities for manipulation of
the financial statements. This included the evaluation of the risk of management override of controls. Audit
procedures performed by the group engagement team included:
-
Identifying and assessing the design effectiveness of controls management has in place to prevent
and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for
override of controls or other inappropriate influence over the financial reporting process;
51
IXICO plc
Independent auditor’s report to the members of IXICO plc
- Challenging assumptions and judgements made by management in its significant accounting
estimates such as capitalised development costs, carrying value of intangible assets and the valuation
of the parent company investments and intercompany balances in group undertakings,
-
Identifying and testing journal entries, in particular any journal entries posted with large values,
unusual account combinations and those posted at the year-end or those posted by certain users
during the year;
- Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on
the related financial statement item; and
- Holding discussions with those outside the finance team including human resources, key management
including the Chief Executive Officer and operations personnel, and general counsel.
• These audit procedures were designed to provide reasonable assurance that the financial statements were
free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk
of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more
difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment,
forgery, or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations
is from events and transactions reflected in the financial statements, the less likely we would become aware of
it;
• The engagement partner assessed whether the engagement team collectively has the appropriate
competence and capabilities. This included consideration of the engagement tam’s understanding of, and
practical experience with, audit engagements of a similar nature and complexity, knowledge of the industry in
which the client operates, and understanding of the legal and regulatory requirements specific to the entity.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s
report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as
a body, for our audit work, for this report, or for the opinions we have formed.
Paul Naylor
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
4 December 2023
52
IXICO plc
Financial Statements for the year ended 30 September 2023
Consolidated Statement of Comprehensive Income
for the years ended 30 September 2023 and for 30 September 2022
Revenue
Cost of sales
Gross profit
Other income
Operating expenses
Research and development expenses
Sales and marketing expenses
General and administrative expenses
Total operating expenses
Operating (loss) / profit
Finance income
Finance expense
(Loss) / profit on ordinary activities before taxation
Taxation
(Loss) / profit attributable to equity holders for the period
Other comprehensive income / (expense):
Items that will be reclassified subsequently to profit or loss
Foreign exchange translation differences
Movement in fair value of cash flow hedges
Cash flow hedges recycled to revenue
Total other comprehensive income / (expense)
Total comprehensive (expense) / income attributable
to equity holders for the period
(Loss) / profit per share (pence)
Basic (loss) / profit per share
Diluted (loss) / profit per share
Notes
5
7
10
11
22
22
12
12
30-Sep-23
30-Sep-22
£000
6,665
(3,395)
3,270
393
(925)
(1,321)
(2,854)
(5,100)
(1,437)
105
(29)
(1,361)
183
(1,178)
(21)
111
(27)
63
(1,115)
£000
8,643
(3,400)
5,243
689
(1,217)
(1,226)
(2,581)
(5,024)
908
10
(33)
885
147
1,032
14
(214)
103
(97)
935
(2.44)
(2.44)
2.14
2.03
53
IXICO plc
Financial Statements for the year ended 30 September 2023
Consolidated Statement of Financial Position
as at 30 September 2023 and 30 September 2022
Assets
Non-current assets
Property, plant and equipment
Intangible assets
Commission assets
Total non-current assets
Current assets
Trade and other receivables
Current tax receivables
Cash and cash equivalents
Total current assets
Total assets
Liabilities and equity
Non-current liabilities
Trade and other payables
Lease liabilities
Total non-current liabilities
Current liabilities
Trade and other payables
Derivative financial liabilities
Lease liabilities
Total current liabilities
Total liabilities
Equity
Ordinary shares
Share premium
Merger relief reserve
Reverse acquisition reserve
Cash flow hedge reserve
Foreign exchange translation reserve
Capital redemption reserve
Accumulated losses
Total equity
Notes
30-Sep-23
£000
30-Sep-22
£000
13
14
16
16
11
17
18
17
22
18
20
20
20
20
20,22
20
20
20
518
6,147
39
6,704
1,706
549
4,031
6,286
817
4,587
-
5,404
3,029
453
5,769
9,251
12,990
14,655
2
275
277
1,142
27
112
1,281
1,558
484
84,802
1,480
(75,308)
(27)
(95)
7,456
(7,360)
11,432
33
394
427
1,502
111
122
1,735
2,162
482
84,802
1,480
(75,308)
(111)
(74)
7,456
(6,234)
12,493
Total liabilities and equity
12,990
14,655
The financial statements on pages to 53 to 87 were approved by the Board of Directors and authorised for issue
on 4 December 2023 and were signed on its behalf by:
______________________________
Grant Nash
Chief Financial Officer
4 December 2023
IXICO plc, Registered number: 03131723
54
IXICO plc
Financial Statements for the year ended 30 September 2023
Company Statement of Financial Position
as at 30 September 2023 and 30 September 2022
Assets
Non-current assets
Investments in Group undertakings
Total non-current assets
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Liabilities and equity
Current liabilities
Trade and other payables
Total current liabilities
Equity
Ordinary shares
Share premium
Merger relief reserve
Capital redemption reserve
Accumulated losses
Total equity
Total liabilities and equity
Notes
30-Sep-23
£000
30-Sep-22
£000
15
16
17
20
20
20
20
20
5,857
5,857
2,481
1,469
3,950
9,807
60
60
484
84,802
1,480
7,456
(84,475)
9,747
5,805
5,805
3,088
1,590
4,678
10,483
83
83
482
84,802
1,480
7,456
(83,820)
10,400
9,807
10,483
Parent Company Income Statement
As permitted by Section 408 of the Companies Act 2006, the income statement of the Company is not presented as
part of these financial statements. The Company’s loss for the financial year was £707,000 (2022: £741,000).
The financial statements on pages 53 to 87 were approved by the Board of Directors and authorised for issue
on 4 December 2023 and were signed on its behalf by:
______________________________
Grant Nash
Chief Financial Officer
4 December 2023
IXICO plc, Registered number: 03131723
55
2
3
4
,
1
1
)
0
6
3
,
7
(
6
5
4
,
7
)
7
2
(
)
5
9
(
)
8
0
3
5
7
(
,
0
8
4
1
,
2
0
8
4
8
,
4
8
4
6
5
l
a
t
o
T
0
0
0
£
9
7
4
,
1
1
2
3
0
,
1
4
1
)
4
1
2
(
3
0
1
5
3
9
9
7
3
9
4
,
2
1
s
e
s
s
o
L
0
0
0
£
)
5
4
3
,
7
(
2
3
0
,
1
-
-
-
2
3
0
,
1
9
7
)
4
3
2
,
6
(
)
8
7
1
,
1
(
)
8
7
1
,
1
(
)
1
2
(
1
1
1
)
7
2
(
-
-
-
)
5
1
1
,
1
(
)
8
7
1
,
1
(
2
2
5
4
5
-
2
5
2
5
0
0
0
£
6
5
4
,
7
-
-
-
-
-
-
6
5
4
,
7
-
-
-
-
-
-
-
-
-
-
-
0
0
0
£
)
4
1
2
(
3
0
1
)
1
1
1
(
-
)
1
1
1
(
-
-
1
1
1
)
7
2
(
4
8
-
-
-
)
8
8
(
0
0
0
£
-
4
1
-
-
4
1
-
)
4
7
(
-
-
-
)
1
2
(
)
1
2
(
-
-
-
e
v
r
e
s
e
r
e
v
r
e
s
e
r
e
v
r
e
s
e
r
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
8
0
3
5
7
(
,
0
8
4
1
,
2
0
8
4
8
,
2
8
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
2
e
s
n
e
p
x
e
/
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
d
o
i
r
e
p
e
h
t
r
o
f
t
i
f
o
r
P
1
2
0
2
r
e
b
m
e
t
p
e
S
0
3
t
a
e
c
n
a
a
B
l
l
n
o
i
t
a
s
n
a
r
t
e
g
n
a
h
c
x
e
n
g
e
r
o
F
i
e
s
n
e
p
x
e
/
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
e
u
n
e
v
e
r
o
t
d
e
c
y
c
e
r
l
s
e
g
d
e
h
w
o
l
f
h
s
a
C
w
o
l
f
h
s
a
c
f
o
e
u
a
v
l
r
i
a
f
n
i
t
n
e
m
e
v
o
M
s
e
g
d
e
h
e
s
n
e
p
x
e
/
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
d
o
i
r
e
p
e
h
t
r
o
f
s
s
o
L
s
n
o
i
t
p
o
e
r
a
h
s
f
o
t
c
e
p
s
e
r
n
i
e
g
r
a
h
C
2
2
0
2
r
e
b
m
e
t
p
e
S
0
3
t
a
e
c
n
a
a
B
l
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
T
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
e
s
n
e
p
x
e
/
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
e
u
n
e
v
e
r
o
t
d
e
c
y
c
e
r
l
s
e
g
d
e
h
w
o
l
f
h
s
a
C
w
o
l
f
h
s
a
c
f
o
e
u
a
v
l
r
i
a
f
n
i
t
n
e
m
e
v
o
M
s
n
o
i
t
p
o
e
r
a
h
s
f
o
t
c
e
p
s
e
r
n
i
e
g
r
a
h
C
s
n
o
i
t
p
o
e
r
a
h
s
i
f
o
e
s
c
r
e
x
E
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
t
l
a
t
o
T
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
t
a
e
c
n
a
a
B
l
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
T
l
n
o
i
t
a
s
n
a
r
t
e
g
n
a
h
c
x
e
n
g
e
r
o
F
i
d
e
t
a
l
u
m
u
c
c
A
n
o
i
t
p
m
e
d
e
r
e
g
d
e
h
n
o
i
t
a
l
s
n
a
r
t
n
o
i
t
i
s
u
q
c
a
i
f
e
i
l
e
r
e
v
r
e
s
e
r
0
0
0
£
)
8
0
3
5
7
(
,
0
0
0
£
0
8
4
1
,
e
v
r
e
s
e
r
0
0
0
£
2
0
8
4
8
,
e
r
a
h
S
i
m
u
m
e
r
p
2
8
4
0
0
0
£
s
e
r
a
h
s
y
r
a
n
d
r
O
i
l
a
t
i
p
a
C
w
o
l
f
h
s
a
C
n
g
i
e
r
o
F
e
g
n
a
h
c
x
e
e
s
r
e
v
e
R
r
e
g
r
e
M
2
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
n
a
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
s
r
a
e
y
e
h
t
r
o
f
y
t
i
u
q
E
n
i
s
e
g
n
a
h
C
f
o
t
n
e
m
e
t
a
t
S
d
e
t
a
d
i
l
o
s
n
o
C
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
t
n
e
m
e
t
a
t
S
l
a
i
c
n
a
n
F
i
c
l
p
O
C
X
I
I
l
a
t
o
T
0
0
0
£
2
6
0
,
1
1
)
1
4
7
(
9
7
0
0
4
,
0
1
)
7
0
7
(
2
2
5
4
5
0
0
0
£
s
e
s
s
o
l
)
8
5
1
,
3
8
(
)
1
4
7
(
9
7
-
-
-
-
0
0
0
£
6
5
4
,
7
e
v
r
e
s
e
r
0
0
0
£
0
8
4
,
1
e
v
r
e
s
e
r
l
a
t
i
p
a
C
d
e
t
a
l
u
m
u
c
c
A
n
o
i
t
p
m
e
d
e
r
f
e
i
l
e
r
r
e
g
r
e
M
-
-
-
-
0
0
0
£
2
0
8
4
8
,
e
r
a
h
S
i
m
u
m
e
r
p
2
8
4
0
0
0
£
s
e
r
a
h
s
y
r
a
n
d
r
O
i
d
o
i
r
e
p
e
h
t
r
o
f
e
s
n
e
p
x
e
e
v
s
n
e
h
e
r
p
m
o
c
i
l
t
a
o
T
1
2
0
2
r
e
b
m
e
t
p
e
S
0
3
t
a
e
c
n
a
a
B
l
s
n
o
i
t
p
o
e
r
a
h
s
f
o
t
c
e
p
s
e
r
n
i
e
g
r
a
h
C
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
T
)
0
2
8
,
3
8
(
6
5
4
,
7
0
8
4
,
1
2
0
8
4
8
,
2
8
4
2
2
0
2
r
e
b
m
e
t
p
e
S
0
3
t
a
e
c
n
a
a
B
l
-
2
5
2
5
)
7
0
7
(
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
2
d
o
i
r
e
p
e
h
t
r
o
f
e
s
n
e
p
x
e
e
v
s
n
e
h
e
r
p
m
o
c
i
l
t
a
o
T
s
n
o
i
t
p
o
e
r
a
h
s
f
o
t
c
e
p
s
e
r
n
i
e
g
r
a
h
C
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
T
s
n
o
i
t
p
o
e
r
a
h
s
i
f
o
e
s
c
r
e
x
E
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
t
l
a
t
o
T
7
4
7
,
9
)
5
7
4
,
4
8
(
6
5
4
,
7
0
8
4
,
1
2
0
8
4
8
,
4
8
4
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
t
a
e
c
n
a
a
B
l
7
5
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
t
n
e
m
e
t
a
t
S
l
a
i
c
n
a
n
F
i
2
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
n
a
3
2
0
2
r
e
b
m
e
t
p
e
S
0
3
d
e
d
n
e
s
r
a
e
y
e
h
t
r
o
f
y
t
i
u
q
E
n
i
s
e
g
n
a
h
C
f
o
t
n
e
m
e
t
a
t
S
y
n
a
p
m
o
C
c
l
p
O
C
X
I
I
IXICO plc
Financial Statements for the year ended 30 September 2023
Consolidated Statements of Cash Flows
for the years ended 30 September 2023 and 30 September 2022
Cash flows from operating activities
Profit / (loss) for the period
Finance income
Finance expense
Taxation
Depreciation of fixed assets
Amortisation of intangibles
Research and development expenditure credit
Impairment of intangible assets
Share option charge
Changes in working capital
Decrease in trade and other receivables
(Decrease) / increase in trade and other payables
Cash (used in) / generated from operations
Taxation received
Taxation paid
Net cash (used in) / generated from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets including staff costs capitalised
Finance income
Net cash (used in) / generated from investing activities
Cash flows from financing activities
Issue of shares
Repayment of lease liabilities
Net cash (used in) / generated from financing activities
Movements in cash and cash equivalents in the period
Cash and cash equivalents at start of period
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at end of period
30-Sep-23
£000
30-Sep-22
£000
(1,178)
(105)
29
(183)
400
225
(355)
14
52
(1,101)
1,290
(327)
(138)
456
(16)
302
(100)
(1,863)
99
(1,864)
2
(158)
(156)
(1,718)
5,769
(20)
4,031
1,032
(10)
33
(147)
451
188
(316)
41
79
1,351
280
(696)
935
499
(10)
1,424
(187)
(2,058)
6
(2,239)
-
(114)
(114)
(929)
6,684
14
5,769
58
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
Notes to the financial statements
1. Presentation of the financial statements
a. General information
IXICO plc (the ‘Company’) is a public limited company incorporated in England and Wales and is admitted to trading
on the AIM market of the London Stock Exchange under the symbol IXI. The address of its registered office is 4th
Floor, Griffin Court, 15 Long Lane, London EC1A 9PN.
The Company is the parent of the subsidiaries detailed in note 15, together referred to throughout as ‘the Group’. The
Group is an established provider of technology-enabled services to the global biopharmaceutical industry. The
Group’s services are used to select participants for clinical trials and assess the safety and efficacy of new drugs in
development within the field of neurological disease.
b. Basis of preparation
The consolidated financial statements have been prepared on a going concern basis and in accordance with
international accounting standards in conformity with the requirement of the Companies Act 2006.
The consolidated financial statements comprise a Statement of Comprehensive Income, a Statement of Financial
Position, a Statement of Changes in Equity, a Statement of Cash Flows, and accompanying notes. These financial
statements have been prepared under the historical cost convention modified by the revaluation of certain financial
instruments.
The consolidated financial statements are presented in Great British Pounds (‘£’ or ‘GBP’) and are rounded to the
nearest thousand unless otherwise stated. This is the predominant functional currency of the Group, and is the
currency of the primary economic environment in which it operates. Foreign currency transactions are accounted in
accordance with the policies set out below.
The Company has elected to use Financial Reporting Standard – ‘The Reduced Disclosure Framework’ (FRS101). In
preparing these financial statements the Company has taken advantage of all disclosure exemptions conferred by
FRS 101. Therefore, these financial statements do not include:
• A statement of cash flows and related notes;
• The requirement to produce a statement of financial position at the beginning of the earliest comparative
period;
• The requirements of IAS 24 ‘Related Party Disclosures’ to disclose related party transactions entered in to
between two or more members of the group as they are wholly owned within the group;
• The effect of future accounting standards not adopted;
• Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payment’ (details of the number and weighted
average exercise prices of share options, and how the fair value of goods or services received was
determined);
• Paragraphs 91 to 99 of IFRS 13, ‘Fair value measurement’ (disclosure of valuation techniques and inputs
used for fair value measurement of assets and liabilities).
• Disclosures in relation to impairment of assets
IFRS 7, ‘Financial instruments: Disclosures’.
•
c. Basis of consolidation
The consolidated financial statements incorporate the accounts of the Company and its subsidiary companies
adjusted to eliminate intra-Group balances and any unrealised gains and losses or income and expenses arising from
intra-Group transactions. The Company’s subsidiaries are detailed in note 15. When necessary, adjustments are
made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting
policies.
59
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
1.
Presentation of the financial statements continued
The Group controls a subsidiary when the Group is exposed to, or has rights to, variable returns from its involvement
with a subsidiary and has the ability to affect those returns through its power over a subsidiary. In assessing control,
potential voting rights that are currently exercisable or convertible are taken into account.
The results of subsidiary companies are included in the consolidated financial statements from the date that control
commences until the date that control ceases. The assets and liabilities of foreign operations are translated into GBP
at exchange rates prevailing at the end of the reporting period. Income statements and cash flows of foreign
operations are translated into GBP at average monthly exchange rates which approximate foreign exchange rates at
the date of the transaction. Foreign exchange differences arising on retranslation are recognised directly in a separate
translation reserve.
d. Going concern
The ongoing conflict in eastern Europe and recent re-commencement of hostilities in the middle east, accompanied by
rising inflation, interest rates and a broad degree of macro-economic and political disruption continue to create
challenges for the global economy. These have resulted in a lowered risk appetite which has impacted capital markets
around the world, reducing capital availability and investment in areas deemed higher risk.
The impact of this has been visible in the clinical trials market both through a slow down in the initiation of new clinical
trials, increased focus on development pipelines by the biopharmaceutical companies and restructuring and
consolidation announcements within both biopharma and CROs.
The Group has seen the impact of this and, whilst it remains well capitalised and debt-free, it has seen an elongation
of the timeframes to sign new clinical trials and therefore has lowered its expectations for revenues in 2024 ahead of a
return to growth in 2025.
Irrespective, the Group has a strong balance sheet for its size with financial year end net assets of £11.4 million, a
£4.0 million cash balance and has secured £8.0 million of new contracts in the year providing it with good visibility of
future revenues across a diversified portfolio of clients and projects.
In assessing going concern, management has prepared detailed sensitised forecasts which consider different
scenarios through to December 2024. These include the risk to current projects and expected future sales pipelines.
The Directors have considered these forecasts, alongside the Group’s strong balance sheet and cash balance as well
as the ability for the Group to mitigate costs if necessary. After due consideration of these forecasts, as well as the
review completed by the Audit Committee (including a review of a reverse stress test) the Directors concluded with
confidence that the Group has adequate financial resources to continue in operation for the foreseeable future.
2. New and amended accounting standards and interpretations
a. Adoption of new accounting standards for the year ended 30 September 2023
The Group has adopted all new and amended accounting standards and interpretations issued by the International
Accounting Standards Board (‘IASB’) that are mandatory for the current reporting period.
There was no impact on the Group’s financial statements as a result of adopting these standards.
b. Accounting developments affecting financial statements in subsequent periods
At the date of authorisation of these financial statements, several new, but not yet effective, standards and
amendments to existing standards and interpretations have been published by the IASB. The standards and
amendments that are not yet effective and have not been adopted early by the Group include:
• Classification of liabilities as current or non-current (Amendments to IAS 1)
• Deferred Tax related to Assets and Liabilities arising from a Single Transaction
• Definition of Accounting Estimates
• Disclosure of Accounting Policies
60
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
2. New and amended accounting standards and interpretations continued
The Directors anticipate, based on current business processes, that the introduction of the above standards and
amendments will not have a material impact on the Group and Company financial statements and therefore the impact
of these changes on the financial statements has not been assessed.
3. Significant accounting policies
3.1 Revenue
Revenue is principally derived from service revenue. Revenue comprises the transaction price, being the amount of
consideration the Group expects to be entitled to in exchange for transferring promised goods or services to a
customer in the ordinary course of business net of value-added tax, returns, rebates and discounts and after
eliminating sales within the Group.
In determining whether to recognise revenue, the Group follows a 5-step process:
Identifying the contract with a client;
Identifying the performance obligations;
1.
2.
3. Determining the transaction price;
4. Allocating the transaction price to the performance obligations; and
5. Recognising revenue when/as performance obligation(s) are satisfied.
All services provided to clients are agreed at the inception of a project through contracts, wherein the transaction price
is determined and agreed for each performance obligation in the schedule of work. The transaction price agreed at the
outset is not variable or subject to any refunds or warranties, and this is consistent across all revenue streams. A
critical part of the contract is a detailed schedule of work that provides the list of services to be provided by the Group.
Under the requirements of IFRS 15 - Revenue from Contracts with Customers, the Group is required to identify
individual and distinct performance obligations within each contract. This represents a judgement, and the Group has
considered whether each individual service provided meets these requirements in its own right and in the context of
the contract, by assessing in particular the level of interrelationship between each type of service and the nature of the
contract entered in to with clients.
The Group has identified performance obligations within each of the revenue streams as set out below. The
transaction price associated to each performance obligation is allocated based on their relative stand-alone selling
price. Revenue is recognised once the performance obligation is met for each distinct service. Deferred income and
advanced payments are recognised where consideration is received before all performance considerations have been
completed. They are then released in line with contractual terms which dictate which performance obligations they
relate to. In some instances the Group invoices in advance of work being completed, a corresponding contract liability
is therefore created to account for this. The Group also invoices on completion of contractual milestone. In these
instances accrued income is recognised until the invoices are issued to reflect the Group’s right to compensation for
these completed but not invoiced performance obligations.
Revenue types
The Group’s contracts comprise a variety of performance obligations. These obligations are all considered streams of
a single revenue type, being service revenue. Most of the Group’s revenue is recognised at a point in time; the Group
recognises this revenue once control is passed to the client, or once the service has been delivered on behalf of the
client.
61
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
3.1 Revenue continued
The Group’s most significant streams of service revenue are outlined below and have the respective recognition
criteria:
Service type
Project & site set up
Training materials
and delivery
Scientific reports
Performance obligations
This service type includes the initial project set up
documentation, such as scientific protocols and operational
guides, and close out activities such as scientific reports.
Where a tangible product is created, the performance
obligation is met once the item is transferred to the client.
Revenue recognition policy
Revenue for this service is
recognised at a point in time
once the Group has delivered
the relevant material on behalf
of the client.
Project management
Site management
TrialTracker
configuration and
access
In respect of training, materials are prepared in advance
and provided to clients as tools for site training. Site training
is provided either through live online training or through a
self-paced training module. The performance obligation is
met once each individual site has completed the training.
For training materials and
delivery, revenue is
recognised at the point in time
when a site has completed its
training.
Each contract requires various project management
activities. These services are provided throughout the
duration of a contract. Site management services are
provided throughout the duration of a site being operational
and would typically be shorter than the project management
cycle. For both activities, the costs and time spent
delivering these services are generally spread evenly over
the project lifetime. As such the performance obligation is
met when the specific service is provided each month.
The TrialTracker platform delivers a robust and
comprehensive set of centralised imaging services
designed to efficiently manage the complex imaging
workflow, including image upload, quality control, reading
and analysis. The platform also allows for reporting and
data transfer. This involves the initial configuration and
deployment of TrialTracker, and access granted to client
trial sites for upload of clinical information.
Due to the lack of interrelationship between the two distinct
services provided, each are recognised independently. The
performance obligations for each are:
• The performance obligation for deployment is met
over a period of time during the configuration and
development of TrialTracker.
• The performance obligation for ongoing access to
TrialTracker for the upload of data by client trial
sites is recognised over the duration of the project
once TrialTracker is deployed.
The services provided for
project and site management
represents a provision of
ongoing services. As the fee is
charged monthly to the client
over the duration for which
management services are
provided, revenue for these
items is recognised over a
series of points in time across
the contract.
The deployment of
TrialTracker is recognised
over time as the platform is
configured for the customer.
This is because an asset is
being created that has no
alternative use for the Group
and there is an enforceable
entitlement to receive payment
for the work completed to
date.
The ongoing access fee is
charged monthly to the client
and so revenue is recognised
over a series of points in time
across the contract.
Data management
and quality control
Ensuring data are managed appropriately and that the data
are of a high quality is critical in the delivery of the Group’s
service. The data management and imaging teams work in
collaboration to ensure ongoing integrity of data.
In respect of data quality
control, revenue will be
recognised at the point in time
when data is quality checked.
The data will go through a series of quality control reviews
prior to being used in the Group’s performance of reading
The services provided for data
management represents a
provision of ongoing services.
62
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
and analysis. Therefore, the performance obligation is met
once the data is quality checked.
Data management is an ongoing service performed
throughout the duration of a project whilst data is being
received and managed on a project. The respective costs
and time spent delivering this service is generally spread
evenly over the duration in which data is being managed
and as such the performance obligation is met when the
specific service is provided each month.
As the fee is charged monthly
to the client over the duration
for which data management is
required, revenue for these
items is recognised over a
series of points in time across
the contract.
The Group provides data analysis services across a range
of biomarkers, providing high-quality, clinically meaningful
data. The performance obligation for these services is met
once the analysis is completed.
Revenue from reading and
analysis of clinical data is
recognised at the point in time
when the work is complete.
Revenue relating to licencing is entirely attributable to
TrialTracker. Each agreement will grant the user rights to
access the software for their own use and receive
associated technical support during the licence period.
The granting of the licence and its associated support are
distinct performance obligations and are met on a straight-
line basis over the contract term.
Revenue for both the licencing
and support are recognised on
a straight-line basis over the
duration of the contract and is
therefore recognised over
time. Licence revenue in the
current year is not material.
Data reading and
analysis
Licence revenue
Change orders
Throughout the duration of a contract, the client may request additional services or service changes to be made. For
revenue recognition purposes, the Group treats a change order or contract modification to a client agreement as a
separate contract, if both:
•
•
the scope changes due to the addition, or reduction, of ‘distinct’ services; and
the price change reflects the services stand-alone selling prices (‘SSP’) under the circumstances of the modified
contract.
The revenue recognition for the change order is applied in the same way as the original contract, as detailed above,
with the original client agreement remaining unchanged.
In line with note 5, the Group has determined that it acted as an agent in one material contract in the year. The Group
charges a management fee and recognises this as revenue. This contract delivered £13,000 (£192,000) of revenues
in the year.
3.2 Other income
Government grants and assistance
A government grant is recognised only when there is reasonable assurance that the Group will comply with any
conditions attached to the grant and the grant will be received. The grants are recognised as income over the period
necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis.
The Group recognises grant income as an item of other income.
Research and Development Expenditure Credit (‘RDEC’)
The Group has elected to take advantage of the RDEC introduced in the Finance Act 2013. A company may surrender
corporation tax losses on research and development expenditure incurred on or after 1 April 2013 for a corporation tax
refund. Relief is given as a taxable credit on 13% of qualifying research and development expenditure, with the rate
increasing to 20% for expenses incurred from 1 April 2023. The Group recognises research and development
expenditure credit as an item of other income, taking advantage of the ‘above the line’ presentation, and is recognised
in the year for which the research and development relates.
63
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
3.3 Research and development expenditure
In all instances across the Group, research expenditure is expensed through the income statement. For development
expenditure, items will be expensed where the recognition criteria for internally generated intangible assets is not met.
The main criteria used to assess this, as required under IAS 38 – Intangible Assets, are:
Intention to complete the asset;
- Demonstrating technical feasibility of completing the intangible asset;
-
- Ability to use or sell the asset in order to generate future economic benefit;
- Availability of adequate technical or other resources to complete development; and
- Ability to measure reliably the expenditure attributable to the asset.
It was determined that the Group continued to meet the above criteria in respect of specific developments to its
TrialTracker platform and data analytics service offering. As a result, associated development costs are capitalised in
the year and an intangible asset is recognised as set out in note 14.
3.4 Share-based payments
Equity-settled share-based payments are measured at the fair value of the equity instruments at the grant date. The
fair value determined at the grant date of the equity-settled share-based payment is expensed on a straight-line basis
over the performance period, based on the Group’s estimate of equity instruments that will eventually vest. At each
reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the
effect of any non-market-based performance conditions.
Any changes that impact the original estimates, for example the effect of employees who have left the Group in the
year and have forfeited their options, is recognised in the Consolidated Statement of Comprehensive Income such
that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves.
Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 21 of
the consolidated financial statements.
3.5 Employee benefits
All employee benefit costs are recognised in the Consolidated Statement of Comprehensive Income as they are
incurred. These principally relate to holiday pay and contributions to the Group defined contribution pension plan.
The assets of the Group pension scheme are held separately from those of the Group in independently administered
pension funds. The Group does not offer any other post-retirement benefits.
3.6 Leased assets
A lease is defined as a contract that gives the Group the right to use an asset for a period of time in exchange for
consideration. The Group identifies from the contract the total length and cost of the lease contract, and determines
whether it meets the definition of a right-of-use asset. Recognition of a right-of-use asset is met if it is longer than 12
months and of a high value. For those leases that do not meet these criteria, the rental charge payable under these
leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease
term.
The initial recognition and subsequent measurement of right-of-use asset leases are:
Initial recognition
At the commencement date, the Group measures the lease liability at the present value of future lease payments,
discounted using the Group’s incremental borrowing rate. The Group also recognises a right-of-use asset which is
measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs and an
estimate of any costs to reinstate the asset to its original condition.
Subsequent measurement
The lease liability is reduced for payments made and increased for interest accrued, and is remeasured for any
modifications made to the lease. The right-of-use asset is depreciated on a straight-line basis over the expected lease
term. The asset is also assessed for impairment when such indicators exist.
On the statement of financial position, right-of-use assets are included in property, plant and equipment and lease
liabilities are shown separately. Please see note 18 for more information.
64
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
3.7 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and, where appropriate, less provisions
for impairment. The initial recognition and subsequent measurement of property, plant and equipment are:
Initial recognition
Property, plant and equipment is initially recognised at acquisition cost, including any costs directly attributable to
bringing the assets to the location and condition necessary for them to be capable of operating. In most
circumstances, the cost will be its purchase cost, together with the cost of delivery.
Subsequent measurement
An asset will only be depreciated once it is ready for use. Depreciation is charged so as to write off the cost of
property, plant and equipment, less its estimated residual value, over the expected useful economic lives of the
assets.
Depreciation is charged on a straight-line basis as follows:
Office buildings
Leasehold improvements
Fixtures and fittings
Equipment
over expected lease term
shorter of 5 years or the lease term
3 years
3 years
The disposal or retirement of an asset is determined by comparing the sales proceeds with the carrying amount. Any
gains or losses are recognised within the Consolidated Statement of Comprehensive Income.
3.8
Intangible assets
Acquired intangibles
Intangible assets that are acquired through business combinations are recognised as intangible assets if they are
separable from the acquired business or arise from contractual or legal rights. These assets will only be recognised if
they are also expected to generate future economic benefits and their fair value can be reliably measured.
Initial recognition
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition.
Subsequent measurement
Following capitalisation, the intangible assets are carried at cost less any accumulated amortisation, and where
appropriate, less provisions for impairment.
Intangible assets are amortised using the straight-line method over their estimated useful economic life as follows:
-
Intangibles acquired through business
combinations
- Computer software
- Data acquisition
5 years
3 years
5 years
Amortisation is charged to the Consolidated Statement of Comprehensive Income and is included within cost of sales
for those items directly related to project activities, or otherwise within general and administrative expenses.
Internally generated intangible assets
Intangible assets that are capitalised internally are deemed to have met the recognition criteria set out in IAS 38.
These items relate to research and development costs and are considered in note 3.3.
Initial recognition
Internally generated intangible assets are initially recognised at cost once the recognition criteria of IAS 38 are met.
65
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
3.8 Intangible assets continued
Subsequent measurement
Any assets that are not yet ready for use will be capitalised as assets under construction and will not be amortised.
Once the asset is ready for use, amortisation will begin. The amortisation rates adopted are based on the expected
useful economic life of the projects to which they relate, with the charges recognised in accordance with how the
Group receives the benefit from the technology. The assets useful economic life is as follows:
Internally generated technology
Proprietary clinical trial platform
3 - 5 years
15 years
Impairment of non-current assets
3.9
Each category of non-current assets is reviewed for impairment annually when under construction or when there is an
indication that an asset may be impaired, being when events or changes in circumstances indicate that the carrying
value may not be recoverable. An impairment loss is recognised in the Consolidated Statement of Comprehensive
Income for the amount by which the asset’s carrying value exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use. Non-financial assets,
other than goodwill, which have suffered an impairment are reviewed for possible reversal of the impairment at each
reporting date.
3.10 Investments in Group undertakings
Investments in Group undertakings are initially recognised at cost and subsequently measured at cost less any
impairment provision. Investments are subject to an annual impairment review, with any impairment charge being
recognised through the Consolidated Statement of Comprehensive Income. Additions to investments are amounts
relating to share options for the services performed by employees of the subsidiaries of the Company and are
classified as capital contributions within note 15.
3.11 Trade and other receivables
Trade and other receivables are initially recognised at fair value and subsequently stated at amortised cost using the
effective interest method, less any expected credit losses. The Group makes use of a simplified approach in
accounting for trade and other receivables as well as contract assets and records the loss allowance as lifetime
expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for
default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience,
external indicators and forward-looking information to calculate the expected credit losses.
The Group assess impairment of trade receivables on an individual basis as they possess individual credit risk
characteristics based on each client. Refer to note 16 for further information on aging of trade receivables and an
analysis of any expected credit losses.
The Group recognises commission payments as incremental costs from obtaining a contract. Those that are paid
immediately are capitalised under IFRS 15 and amortised over 3 years (2022: 3 years), being the average length of
contracts entered into by the Group, as opposed to using a tailored time period for each project. Management reviews
this assessment annually to determine that there are no material variances. Those not paid immediately are accrued
over a period of time as this element of the commission payment requires the respective employee to remain in
service for a specific period. Commission assets.
3.12 Taxation
Current tax
Current tax represents amounts recoverable within the United Kingdom and is provided at amounts expected to be
recovered using the tax rates and laws that have been enacted at the Statement of Financial Position date.
Research and development credits
The benefit associated with UK-based research and development is recognised under the UK’s Research and
Development Expenditure Credit scheme. Details of the recognition are set out in note 3.2.
Deferred taxation
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements in accordance with IAS 12 –
66
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
3.12 Taxation continued
Income taxes. Deferred tax liabilities are recognised for all taxable temporary differences. A deferred tax asset is
recognised only to the extent that it is probable that sufficient taxable profit will be available in future years to utilise
the temporary difference. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a
transaction, other than a business combination, that at the time of the transaction affects neither the accounting, nor
taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the
Statement of Financial Position date and are expected to apply when the related deferred income tax asset is realised
or the deferred income tax liability is settled.
Deferred tax assets and liabilities are offset only when there is a legally enforceable right to set off current tax assets
against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Group intends
to settle these on a net basis.
Deferred tax assets are recognised to the extent it is probable that the underlying tax loss or deductible temporary
difference will be utilised against future taxable income. This is assessed based on the Group’s forecast of future
operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any
unused tax loss or credit. As such, the Group does not recognise any deferred tax assets, see note 19.
3.13 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand with original maturities at inception of 3 months or
less.
3.14 Foreign currency translation
Transactions denominated in foreign currencies are translated into Great British Pounds at actual rates of exchange
prevailing at the date of transaction. Monetary assets and liabilities expressed in foreign currencies are translated into
Great British Pounds at rates of exchange prevailing at the end of the financial year. All foreign currency exchange
differences are taken to the Consolidated Statement of Comprehensive Income in the year in which they arise.
Non-monetary items are not retranslated at year end and are measured at historical cost (translated using the
exchange rates at the transaction date), except for non-monetary items measured at fair value which are translated
using the exchange rates at the date when fair value was determined.
3.15 Trade and other payables
Trade and other payables are non-interest-bearing, unless significantly overdue, and are initially recognised at fair
value and subsequently stated at amortised cost.
3.16 Provisions, contingent assets and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, it
is probable that an outflow of economic resources will be required from the Group and amounts can be estimated
reliably. The timing of such outflows may still be uncertain. Such provisions are measured at the estimated
expenditure required to settle the present obligation based on the most reliable estimate available at the reporting
date, discounted to the present value where material.
Any reimbursement that the Group is virtually certain to collect from a third party in relation to the related provision will
be recognised as a separate asset.
Liabilities are not recognised where the outflow of economic resources is not probable, but are instead disclosed as
contingent liabilities.
3.17 Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
3.18 Financial instruments
Financial assets and financial liabilities are recognised on the Consolidated Statement of Financial Position when the
Group or the Company becomes a party to the contractual provisions of the instrument. Debt and equity instruments
are classified as either financial liabilities or as equity in accordance with the substance of the contractual
arrangement.
67
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
3.18 Financial instruments continued
The Group holds one type of derivative financial instrument – forward contracts used for the purposes of hedging.
These are designated as cash flow hedges and held at fair value with changes held in the cash flow hedge reserve.
On crystallisation the gain or loss is recycled to revenue to reflect the risks being hedged. The ineffective portion of the
hedging instrument is recognised in the profit or loss account immediately.
Further information relating to financial instruments and the policies adopted by the Group to manage risk is found in
note 22.
4. Significant management judgement in applying accounting policies and estimation uncertainty
When preparing the consolidated financial statements, the Directors make a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.
Significant management judgements
The following are significant management judgements in applying the accounting policies of the Group that have the
most significant effect on the consolidated financial statements.
Determination of acting as agent or principal
The scope of a client project or its contract terms are reviewed to determine whether the Group is acting as principal
or agent. This determination depends on the facts and circumstances of each individual project or contract and
requires judgement, which are made in accordance with the applicable standards. The primary indicator used to
determine whether the Group is acting as a principal is whether control of the good or service is gained prior to the
good or service transferring to the client. If control is gained, revenue is recognised on a gross basis. If no control is
achieved, then revenue is recognised on a net basis. During the year, the Group had a contract with a client to
arrange the delivery of products from a third party to various client trial sites. The Group determined this was an
agency relationship. If this judgement was incorrect and the Group was acting as principal, it would result in an
immaterial increase in revenue and cost of sales recognised in the year and a decrease in profit margins achieved. In
the prior year the effect would have been material.
Capitalisation of internally developed software
Distinguishing the research and development phases of a new software product and determining whether the
requirements for the capitalisation of development costs are met requires judgement. Management will assess
whether a project meets the recognition criteria as set out in IAS 38 based on an individual project basis. More detail
is included in note 3.3 as to the specific considerations given to each project when determining whether to capitalise
internally developed software. Where the criteria are not met, the research and development expenditure will be
expensed in the Consolidated Statement of Comprehensive Income. Where the recognition criteria are met, the items
will be capitalised as an intangible asset.
During the year ended 30 September 2023, research and development expenses totalled £2,152,000 (2022:
£2,129,000). Of this amount, £1,211,000 (2022: £912,000) was capitalised as an intangible asset relating to employee
costs. The balance of expenditure being £925,000 (2022: £1,217,000) is recognised in the Consolidated Statement of
Comprehensive Income as an expense.
Recovery of deferred tax assets
Deferred tax assets have not been recognised for deductible temporary differences and tax losses. The Directors
consider that there is not sufficient certainty that future taxable profits will be available to utilise those temporary
differences and tax losses. Further information on the Group’s deferred tax asset can be found in note 19 of the
consolidated financial statements.
Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of
assets, liabilities, income and expenses is provided below. Changes to these estimations may result in substantially
different results for the year.
Determination of transaction prices in revenue recognition
Client contracts include an agreed work order so the transaction price for a contract is allocated against each distinct
performance obligations for each service, based on their relative stand-alone selling prices. For legacy contracts prior
68
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
4. Significant management judgement in applying accounting policies and estimation uncertainty continued
to the adoption of IFRS 15, management were required to estimate the standalone price allocated to each distinct
service that were previously grouped in a single price. For new contracts, the fair value of individual components is
based on actual amounts charged by the Group on a stand-alone basis. Management have determined that for items
recognised on a straight-line basis, including project, site and data management, the demands of this on the Group
are spread evenly over the life of the revenue stream. This was determined through an understanding of the work
required to deliver the various revenue streams and the obligations within the contract needing to be met.
Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value of the options granted is measured using an option
valuation model, taking into account the terms and conditions upon which the options were granted. Details of the
estimations used in determining the fair value of the options in issue are detailed in note 22. In line with IAS 2,
management assess whether non-market conditions will be achieved and adjusts appropriately.
Useful lives of depreciable assets
The useful lives of depreciable assets are determined by management at the date of purchase based on the expected
useful lives of the assets. These are subsequently monitored and reviewed annually and where there is objective
evidence of changes in the useful economic lives, these estimates are adjusted. Any changes to these estimates may
result in significantly different results for the period.
5. Revenue
An analysis of the Group’s revenue by type is as follows:
Service revenue
2023
£000
6,665
2022
£000
8,643
All material revenue streams derived by the Group relate to the delivery of services in support of clinical trials. As
such, all revenue is deemed to belong to one stream, being service revenue.
Revenue derived from services provided over time do not constitute a material portion of revenue and therefore
disclosure distinguishing between revenue recognised at a point in time versus over time is not made.
For the year ended 30 September 2023, revenue includes £214,000 (2022: £499,000) held in contract liabilities within
trade and other payables at the beginning of the period. This amount also includes performance obligations relating to
advance payments that were not yet complete at the end of the prior year. Advance payments are charged to clients
to de-risk start-up activities and are recognised at a point in time once an activities performance obligation is met. At
30 September 2023, £343,000 (2022: £575,000) of advanced payments were recognised on the balance sheet.
6. Segmental information
The Board considers there to be only one core operating segment for the Group’s activities. This is based on the
Group’s development, commercial and operational delivery teams operating across the entirety of the Group, which is
primarily based in the United Kingdom. The projects undertaken by the Group are managed by project managers, who
receive inputs for each project from other team members. Performance information is reported as a single business
unit to the management team.
The information gathered for each project is subsequently reported to the Group’s Chief Executive Officer, who is
considered to be the chief operating decision-maker. This information is used for resource allocation and assessment
of performance. Therefore, the entirety of the Group’s revenue and assets can be attributed wholly to this operating
segment with reference to the Consolidated Statement of Comprehensive Income and Consolidated Statement of
Financial Position.
69
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
6. Segmental information continued
During the year ended 30 September 2023, the Group had five clients (2022: three clients) that exceeded 10% of total
revenue. In 2023 the individual percentage revenue associated with these clients was 14% (£966,000), 14%
(£949,000), 13% (£862,000), 12% (£792,000) and 10% (£699,000). In 2022, the individual percentage revenue
associated with the three largest clients was 38% (£3,320,000), 14% (£1,175,000) and 11% (£976,000).
Geographical information
The Group’s revenue can be categorised by country, based on the location of the contracting client. Sometimes clients
of the Group, which include global biopharmaceutical companies with offices in multiple locations across the world,
request the Group to contract directly with their regional offices in the United Kingdom or European locations. In such
circumstances the associated revenues are reported as being based in the contracting location even though much of
the operational execution of the contract will include entities or partners of the client based elsewhere in the world.
United States of America
United Kingdom
Netherlands
Switzerland
Ireland
Other - Europe
Revenue
2023
£000
3,053
952
862
816
689
293
6,665
2022
£000
2,711
2,057
436
2,077
724
638
8,643
As the Group is domiciled in the United Kingdom, the entirety of the revenue originates from this location.
7. Other income
Items of other income principally relate to government grants received. Grants are recognised as income over the
period required to match them with the related costs, for which they are intended to compensate, on a systematic
basis.
The Group also recognises Research and Development Expenditure Credit (‘RDEC’) as other income.
Grant income
RDEC
Other income
2023
£000
38
355
393
2022
£000
373
316
689
70
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
8. Auditor’s remuneration
Audit services
- Group and Parent Company
- subsidiary companies
Total audit fees
Audit-related assurance services
Total auditor’s remuneration
9. Employees and Directors
2023
£000
2022
£000
56
37
93
8
101
38
26
64
7
71
The average monthly number of persons (including Executive and Non-Executive Directors) employed by the Group
was:
Administration
Operations, research and development
Average total persons employed
The aggregate remuneration of employees in the Group was:
Wages and salaries
Social security costs
Other pension costs
Share-based payments charge
Total remuneration for employees
Employee costs capitalised
Net employee costs
2023
2022
Number
14
75
89
Number
15
75
90
2023
2022
£000
5,944
702
303
52
7,001
(1,211)
5,790
£000
5,851
610
286
79
6,826
(912)
5,914
The Group operates a defined contribution pension scheme for employees. The assets of the scheme are held
separately from those of the Group in independently administered funds. The amounts outstanding at 30 September
2023 in respect of pension costs were £46,000 (2022: £46,000).
The remuneration of the Group’s Directors is set out in the Directors’ Remuneration Report on pages 39 and 40, as
well as in note 23 under related party transactions.
The Company did not directly employ any staff and therefore there is no cost recognised in respect of staff costs.
71
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
10. Operating loss / profit
The Group’s operating loss (2022: profit) has been achieved after charging:
Research and development expenses
Research and development related impairment
Research and development related amortisation
Sales and marketing expenses
Amortisation of commission assets
Operating lease charges: land, buildings and printers
Depreciation of tangible assets
Amortisation of intangible assets
Foreign exchange (gain) / loss
Administrative expenses
Total operating expenses
2023
£000
903
14
8
1,262
59
1
400
24
85
2,344
5,100
2022
£000
1,176
41
-
1,173
53
1
451
23
(149)
2,255
5,024
There is a further amortisation charge of £193,000 (2022: £165,000) recognised in cost of sales for those items directly
related to project activities. The total amortisation charge for the year is £225,000 (2022: £188,000).
11. Taxation
The tax charge for each period can be reconciled to the result per the Consolidated Statement of Comprehensive Income
as follows:
(Loss) / profit on ordinary activities before taxation
(Loss) / profit before tax at the effective rate of corporation tax
in the United Kingdom of 22% (2022: 19%)
Effects of:
Expenses not deductible for tax purposes
Origination and reversal of temporary differences
Research and development uplifts net of losses surrendered for tax credits
Overseas taxation
Prior period adjustment
Tax credit for the period
The tax credit for each period can be reconciled as follows:
Small or medium enterprise research and development credit
Deduction for corporation tax on RDEC
Overseas taxation
Prior period adjustment
Tax credit for the period
72
2023
£000
(1,361)
2022
£000
885
(299)
168
(17)
(291)
406
16
2
(183)
2023
£000
(276)
75
16
2
(183)
4
(332)
17
-
(4)
(147)
2022
£000
(200)
57
-
(4)
(147)
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
11. Taxation continued
The Group has elected to take advantage of the RDEC, introduced in the Finance Act 2013 whereby a company may
surrender corporation tax losses on research and development expenditure incurred on or after 1 April 2013 for a
corporation tax refund.
The following is a reconciliation between the tax charge and the tax receivable within the Consolidated Statement of
Financial Position:
Current tax receivable at start of period
Current period credit
Corporation tax repayment
Current tax receivable at end of period
2023
£000
453
552
(456)
549
2022
£000
480
472
(499)
453
The tax credit for each period can be reconciled to the current period credit recognised in tax receivable within the
Consolidated Statement of Financial Position in each period as follows:
Tax credit for the year
RDEC gross of corporation tax deduction
Overseas taxation
Tax recoverable
Current period credit
2023
£000
183
355
15
(1)
552
2022
£000
147
316
-
9
472
73
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
12. Earnings per share
The calculation of basic and diluted earnings per share (‘EPS’) of the Group is based on the following data:
Earnings
Earnings for the purposes of basic and diluted EPS, being net profit
attributable to the owners of the Company (£000)
Number of shares
Weighted average number of shares for the purposes of basic EPS
Effect of potentially dilutive ordinary shares:
- Weighted average number of share options
2023
2022
(1,178)
1,032
48,309,181
48,151,373
-
2,606,350
Weighted average number of shares for the purposes of diluted EPS
48,309,181
50,757,723
Basic earnings per share is calculated by dividing earnings attributable to the owners of the Company by the weighted
average number of shares in issue during the year. The diluted EPS is calculated by dividing earnings attributable to
the owners of the Company by the weighted average number of shares in issue taking into account the share options
outstanding during the year. For the year ended to 30 September 2023, there was no dilutive effect as the share
options in issue would have decreased the loss per share.
The basic and diluted earnings per share for the Group and Company is:
Basic earnings per share
Diluted earnings per share
2023
(2.44p)
(2.44p)
2022
2.14p
2.03p
74
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
13. Property, plant and equipment
Group
Cost
At 30 September 2021
Additions
Disposals
At 30 September 2022
Additions
Disposals
At 30 September 2023
Accumulated depreciation
At 30 September 2021
Charge for the period
Disposals
At 30 September 2022
Charge for the period
Disposals
At 30 September 2023
Net book value
At 30 September 2022
At 30 September 2023
Office
building
£000
777
-
-
777
-
-
777
Leasehold Fixtures and
fittings
£000
5
-
-
5
-
-
5
improvement
£000
185
-
-
185
7
-
192
Equipment
£000
955
187
(25)
1,117
94
(20)
1,191
277
102
-
379
102
-
481
398
296
98
59
-
157
19
-
176
28
16
5
-
-
5
-
-
5
-
-
461
290
(25)
726
279
(20)
985
391
206
Total
£000
1,922
187
(25)
2,084
101
(20)
2,165
841
451
(25)
1,267
400
(20)
1,647
817
518
The only right-of-use asset is held within the office building category. At 30 September 2023, the carrying amount of the
right-of-use asset was £296,000 (2022: £398,000).
Company
At 30 September 2023 and 30 September 2022, the Company had no property, plant and equipment.
75
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
14.
Intangible assets
Group
Cost
At 30 September 2021
Additions
Impairment
Disposals
At 30 September 2022
Additions
Impairment
At 30 September 2023
Accumulated amortisation
At 30 September 2021
Amortisation
Disposals
At 30 September 2022
Amortisation
At 30 September 2023
Net book value
At 30 September 2022
At 30 September 2023
Other acquired
intangibles
£000
Other Internally
developed
technology
£000
Next generation
TrialTracker
platform
£000
Total
£000
2,985
2,106
(41)
(8)
5,042
1,799
(14)
6,827
275
188
(8)
455
225
680
2,137
1,974
-
-
4,111
1,589
-
5,700
-
-
-
-
-
-
210
11
-
-
221
121
-
342
104
37
-
141
47
188
80
154
638
121
(41)
(8)
710
89
(14)
785
171
151
(8)
314
178
492
396
293
4,111
5,700
4,587
6,147
Amortisation is charged to the Consolidated Statement of Comprehensive Income and is included within cost of sales
for those items directly related to project activities, research and development for those items directly related to the
research activities of the company or otherwise within general and administrative expenses.
Internally developed technology
The Group has capitalised research and development costs during the year in relation to the development of its
proprietary TrialTracker software. Development includes TrialTracker platform upgrades as well as additional
algorithm development. The costs capitalised include time and expenses in relation to staff costs. In recognising these
assets, the Group has applied the recognition criteria of IAS 38 relating to internally generated intangible assets,
where costs in relation to the development phase must be capitalised under certain circumstances. More information
in relation to this is included in the accounting policies of the Group in notes 4 and 5.
Assets under construction
Assets that are still under construction undergo an annual impairment test which is carried out at the end of the
reporting period. This impairment test considers the carrying amount of the asset and compares it with its recoverable
amount, with an impairment being recognised if the recoverable amount is lower than the carrying amount.
Management have determined the recoverable amount as being the value-in-use, which is calculated using
management expectations of future revenues, discounted at an applicable rate. Whilst the asset remains under
construction, amortisation is not charged.
Company
At 30 September 2023 and 30 September 2022, the Company had no intangible assets.
76
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
15.
Investments
The consolidated financial statements of the Group as at 30 September 2023 and at 30 September 2022 include:
Name of subsidiary
Class of share
Country of
incorporation
Principal activities
Directly held:
IXICO Technologies
Limited
Indirectly held:
IXICO Technologies Inc.
Ordinary
United Kingdom
Data collection and analysis of neurological
diseases
Ordinary
United States
Sales and marketing
The Company and Group has no investments other than the holdings in the above subsidiaries that are all 100%
owned. The carrying amounts of the investments in subsidiaries for the Company are:
Investments in subsidiary undertakings
At beginning of the period
Capital contribution
Total investments at end of the period
2023
£000
5,805
52
5,857
2022
£000
5,748
57
5,805
The capital contribution represents the charge in the year for share-based awards issued by the Company to employees
of IXICO Technologies Limited and IXICO Technologies Inc.
16. Trade and other receivables
Current receivables
Trade receivables
Less provision for bad and doubtful debts
Net carrying amount of trade receivables
Other taxation and social security
Prepayments and accrued income
Commission assets
Other receivables
Amounts due from subsidiary undertakings
Current receivables
Non-current receivables
Commission assets
Total trade and other receivables
Group
Company
2023
£000
945
-
945
40
684
27
10
-
1,706
2022
£000
2,247
-
2,247
30
652
96
4
-
3,029
2023
£000
-
-
-
6
20
-
5
2,450
2,481
2022
£000
-
-
-
2
28
-
1
3,057
3,088
39
1,745
-
3,029
-
2,481
-
3,088
All amounts are classified as short-term and are expected to be received within one year. The average credit period
granted to clients ranges from 30 to 90 days (2022: 30 to 90 days).
77
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
16. Trade and other receivables continued
A provision for expected credit losses is made when there is uncertainty over the ability to collect the amounts
outstanding from clients. This is determined based on specific circumstances relating to each individual client. The
Directors consider that there are immaterial credit losses (2022: immaterial credit losses) due to the calibre of
customers the Group has and so the carrying amount of trade and other receivables approximates their fair value.
Within the Company, there are expected to be immaterial credit losses (2022: immaterial credit losses) from subsidiary
companies due to the level of cash available in the subsidiaries which would allow the repayment of these receivables
immediately.
As at the year-end, the ageing of trade receivables which are past due but not impaired is as follows:
Amounts not past due
Past due:
Less than 30 days
Total trade receivables
Group
Company
2023
£000
864
81
945
2022
£000
2,189
58
2,247
2023
£000
-
-
-
2022
£000
-
-
-
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets
disclosed in note 22.
17. Trade and other payables
Current liabilities
Trade payables
Other taxation and social security
Contract liabilities
Accrued expenses
Other payables
Non-current liabilities
Accrued expenses
Group
2023
£000
86
58
529
464
5
1,142
2
2022
£000
254
56
673
508
11
1,502
33
Total trade and other payables
1,144
1,535
Company
2023
£000
2022
£000
-
-
-
60
-
60
-
60
-
-
-
83
-
83
-
83
Trade payables and accrued expenses principally comprise amounts outstanding for trade purchases and ongoing
costs. No interest is charged on the trade payables. The Group’s policy is to ensure that payables are paid within the
pre-agreed credit terms and to avoid incurring penalties and/or interest on late payments.
The fair value of trade and other payables approximates their current book values.
78
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
17. Trade and other payables continued
Reconciliation of liabilities arising from financing activities
The only liabilities affecting financing activities arise solely from the recognition of the lease liability:
Lease liability as at 1 October 2021
Cash-flow: Repayment of lease
Non-cash: Interest charge
Lease liability as at 1 October 2022
Lease liability as at 1 October 2022
Cash-flow: Repayment of lease
Non-cash: Interest charge
Lease liability as at 30 September 2023
18. Leases
All lease liabilities are presented in the statement of financial position as follows:
Current
Non-current
£000
597
(114)
33
516
516
(158)
29
387
2022
£000
122
394
516
2023
£000
112
275
387
The Group uses leases throughout the business for office space and IT equipment. With the exception of short-term
leases and leases of low value, each lease is reflected on the balance sheet as a right-of-use asset in property, plant
and equipment and a lease liability.
Each lease generally imposes a restriction that, unless there is a contractual right for the Group to sublet the asset to
another party, the right-of-use asset can only be used by the Group. For leases over office buildings, the Group must
keep those properties in a good state of repair.
The Group has identified one lease relating to the office building that meets the definition of a right-of-use asset. There
is no option to purchase and payments are not linked to an index. The remaining lease term is 36 months (2022: 48
months). The lease has the ability to be extended at the end of this term and can be terminated on the break date being
after 3.5 years from the date the lease was renegotiated.
The Group has elected to not recognise a lease liability for short-term leases, being 12 months or less, or for leases of
low value. Payments for these are expensed on a straight-line basis.
Right-of-use asset and lease liability
Additional information on the right-of-use asset is as follows:
Office building
Asset Depreciation
£000
398
£000
(102)
Carrying
amount
£000
296
79
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
18. Leases continued
The various elements recognised in the financial statements are as follows:
Statement of Comprehensive Income
Depreciation charge in the year
Interest expense on lease liability
Low value leases expensed in the year
Statement of Cash Flows
Capital repayments on lease agreements
2023
£000
102
29
1
2022
£000
102
33
1
158
114
The undiscounted maturity analysis of lease liabilities for the office building is as follows:
Within 1 year
1 - 2 years
2 - 3 years
3 - 4 years
Total
30 September 2023
Lease payments
Finance charges
Net present values
30 September 2022
Lease payments
Finance charges
Net present values
132
(20)
112
151
(29)
122
166
(14)
152
132
(20)
112
127
(4)
123
166
(14)
152
-
-
-
134
(4)
130
425
(38)
387
583
(67)
516
At 30 September 2023, the Group’s commitment to short-term and low-value leases was £nil (2022: £nil).
19. Deferred tax
Deferred tax asset (unrecognised)
Tax effect of temporary differences:
Tax allowances in excess of depreciation
Accumulated losses
Losses on financial instruments debited to equity
Accelerated commission charge
Deductible temporary differences
Deferred tax asset (unrecognised)
Group
2023
£000
1,581
(17,618)
5
14
(13)
(16,031)
2022
£000
1,316
(17,310)
28
-
(14)
(15,980)
Company
2023
£000
(1)
(3,331)
-
-
-
(3,332)
2022
£000
(1)
(3,217)
-
-
(5)
(3,223)
The unrecognised deferred tax asset predominantly arises due to unused tax losses carried forward that have
originated but not reversed at the Consolidated Statement of Financial Position date and from transactions or events
that result in an obligation to pay more tax in the future or a right to pay less tax in the future.
The unrecognised deferred tax asset is measured on an undiscounted basis at the tax rates that are expected to apply
in the periods in which temporary differences will reverse. Based on tax rates and laws enacted or substantively
enacted at the latest balance sheet date, the rate when the above temporary differences are expected to reverse is
currently 25% (2022: 25%).
80
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
20.
Issued capital and reserves
Ordinary shares and share premium
The Company has one class of ordinary shares. The share capital issued has a nominal value of £0.01 and each share
carries the right to one vote at shareholders’ meetings and all shares are eligible to receive dividends. Share premium is
recognised when the amount paid for a share is in excess of the nominal value.
The Group and Company’s opening and closing share capital and share premium reserves are:
Authorised, issued and fully paid
At 30 September 2022
Share issue in the year
At 30 September 2023
Exercise of share options
Group and Company
Ordinary
shares
Share
capital
Share
premium
Number
£000
£000
48,151,373
200,000
48,351,373
482
2
484
84,802
-
84,802
During the year, the following share options were exercised:
Date of
exercise
16/12/2022
Key management personnel
shares
Other employee
shares
Total
shares
200,000
200,000
-
-
200,000
200,000
Exercise
price
Pence
1.0
Value
£000
2
2
Other reserves
Accumulated losses
This reserve relates to the cumulative results made by the Group and Company in the current and prior periods.
Merger relief reserve
In accordance with Section 612 ‘Merger Relief’ of the Companies Act 2006, the Company issuing shares as consideration
for a business combination, accounted at fair value, is obliged, once the necessary conditions are satisfied, to record the
share premium to the merger relief reserve.
Reverse acquisition reserve
Reverse accounting under IFRS 3 ‘Business Combinations’ requires that the difference between the equity of the legal
parent and the issued equity instruments of the legal subsidiary, pre-combination, is recognised as a separate component
of equity.
Capital redemption reserve
This reserve holds shares that were repurchased and cancelled by the Company.
Foreign exchange translation reserve
This reserve represents the impact of retranslation of overseas subsidiaries on consolidation.
Cash flow hedge reserve
This reserve represents the movement in designated hedging instruments in the year that have not yet crystallised.
81
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
21. Share-based payments
Certain Directors and employees of the Group hold options to subscribe for shares in the Company under share option
schemes. All share options relate to a single scheme outlined in the EMI Share Option Plan 2014.
The scheme is open, by invitation, to both Executive Directors and employees. Participants are granted share options in
the Company which contain vesting conditions. These are subject to the achievement of individual employee and Group
performance criteria as determined by the Board. The vesting period varies by award and the conditions approved by
the Board. Options are usually forfeited if the employee leaves the Group before the options vest.
Total share options outstanding have a range of exercise prices from £0.01 to £0.70 per option and the weighted
average contractual life is 6.7 years (2022: 7.2 years). The total charge for each period relating to employee share-
based payment plans for continuing operations is disclosed in note 10 of the consolidated financial statements.
Details of the share options under the scheme outstanding during the period are as follows:
Outstanding at start of the period
Granted
Exercised
Lapsed
Outstanding at end of the period
Exercisable at end of the period
22. Financial risk management
2023
2022
Number
4,490,931
-
(200,000)
(761,250)
3,529,681
1,949,680
Weighted
average exercise
price
£0.18
-
£0.01
£0.29
£0.15
£0.08
Number
3,815,931
900,000
-
(225,000)
4,490,931
1,719,680
Weighted
average exercise
price
£0.18
£0.20
-
£0.35
£0.18
£0.07
In common with all other areas of the business, the Group is exposed to risks that arise from the use of financial
instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the
methods used to measure them.
The main risks arising from the Group’s financial instruments are liquidity, interest rate, foreign currency and credit risk.
The Group’s financial instruments comprise cash and various items such as trade receivables and trade payables,
which arise directly from its operations.
Categories of financial instruments
Financial assets held at amortised cost
Trade and other receivables excluding prepayments
Cash and cash equivalents
Financial liabilities held at amortised cost
Trade and other payables excluding statutory liabilities
Lease liabilities
Financial liabilities held at fair value
Forward contracts held at fair value (Level 2)
82
2023
£000
1,795
4,031
5,826
1,144
387
1,531
27
27
2022
£000
2,943
5,769
8,712
1,535
516
2,051
111
111
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
22. Financial risk management continued
Fair value of financial assets and liabilities
There is no material difference between the fair values and the carrying values of the financial instruments held at
amortised cost because of the short maturity period of these financial instruments or their intrinsic size and risk.
Liquidity risk management
Liquidity risk is the risk that the Group will not be able to meet its obligations as they fall due through having insufficient
resources. The Group monitors its levels of working capital to ensure that it can meet its liabilities as they fall due.
Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate framework for
the management of the Group’s short-, medium- and long-term funding and liquidity requirements.
The principal current asset of the business is cash and cash equivalents and is therefore the principal financial
instrument employed by the Group to meet its liquidity requirements. The Board ensures that the business maintains
surplus cash reserves to minimise any liquidity risk.
The financial liabilities of the Group and Company are all mostly due within 3 months (2022: 3 months) of the
Consolidated Statement of Financial Position date, with the exception of the lease liability. Further analysis of the lease
liability is provided in note 18. All other non-current liabilities are due between 1 to 3 years after the period end. The
Group does not have any borrowings or payables on demand which would increase the risk of the Group not holding
sufficient reserves for repayment.
Market risk
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rate. The Group operates an interest rate policy designed to minimise interest costs and
reduce volatility in reported earnings.
The Group holds all cash and cash equivalents with institutions with a recognised high credit rating. Interest rates on
current accounts are floating. Changes in interest rates may increase or decrease the Group’s finance income.
The Group does not have any committed interest-bearing borrowing facilities and consequently there is no material
exposure to interest rate risk in respect of financial liabilities.
Foreign currency risk management
Foreign currency risk is the risk that the fair value of future cash flows of a foreign currency exposure will fluctuate
because of changes in foreign exchange rates.
The Group’s exposure to the risk of changes in foreign exchange rates relates to the Group’s overseas operating
activities, primarily denominated in US Dollars, Euros and Swiss Francs. There is also an investment by the Company in
a foreign subsidiary. The Group’s exposure to foreign currency changes for all other currencies is not material. The
Group seeks to minimise the exposure to foreign currency risk by matching local currency income with local currency
costs where possible. The Group utilises US Dollar forward contracts to mitigate the risk of US Dollar fluctuations on
client contracts. It agrees forward contracts based on forecasts of its US Dollar inflows and applies hedge accounting to
minimise currency risk.
The Group enters into forward contracts to sell US Dollars at quarterly intervals and applies hedge accounting to these
contracts. Under hedge accounting, unrealised gains or losses are recognised in other comprehensive income and the
cash flow hedge reserve, with the ineffective portion being recognised in the profit and loss as soon as they occur. The
gains or losses arising on these are allocated to revenue on settlement. The item hedged was a portion of highly
probable forecast US Dollar inflows. The hedged item is the receipt of US Dollars, and the hedging instrument is the
sale of a portion of these. The Group has determined that a 1:1 ratio exists between the instrument and items as the
underlying risks of both are the same – the exchange rate of USD:GBP. The Group uses the dollar offset method to
monitor effectiveness, which compares the change in fair value of the underlying derivative and the change in fair value
of future cash flows. Ineffectiveness can arise due to the counterparties credit risk and inaccurate forecasting, which
83
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
22. Financial risk management continued
could leave the Group over hedged. In the year some ineffectiveness arose where the Group’s actual inflows were
below that of the hedging instrument. This ineffective portion was recognised in general and administrative expenses.
At year end the Group had contracts to sell $750,000, these hedges are designated as effective under IFRS 9 and
hence the fair value of these is recognised in other comprehensive income. These balances are removed from the
Group’s US Dollar exposure as there is deemed to be no foreign exchange exposure. At 30 September 2023, $750,000
is hedged to period of March 2024, at an average rate of 1.2785. The contracts are valued based on observable market
exchange rates.
The hedging transactions in the year had the following effect on the Group’s results:
Statement of Comprehensive Income
Revenue
Gross profit
General and administrative expenses
Profit for the year
Total other comprehensive expense
Total comprehensive income attributable to equity holders for the period
Statement of financial position
Derivative financial liabilities
Cash flow hedge reserve
Accumulated losses
Statement of Comprehensive Income
Revenue
Gross profit
General and administrative expenses
Profit for the year
Total other comprehensive expense
Total comprehensive income attributable to equity holders for the period
Statement of financial position
Derivative financial liabilities
Cash flow hedge reserve
Accumulated losses
Without
hedge
accounting
£000
Hedging
movements
£000
6,638
3,243
(2,743)
(1,094)
(21)
(1,115)
27
-
(7,387)
27
27
(111)
(84)
84
-
-
(27)
27
Without
hedge
accounting
£000
Hedging
movements
£000
8,746
5,346
(2,795)
921
14
935
111
-
(6,345)
(103)
(103)
214
111
(111)
-
-
(111)
111
2023
£000
6,665
3,270
(2,854)
(1,178)
63
(1,115)
27
(27)
(7,360)
2022
£000
8,643
5,243
(2,581)
1,032
(97)
935
111
(111)
(6,234)
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities as at 30
September are as follows:
US Dollar exposure
Balance at end of period
Monetary assets
Monetary liabilities
Total exposure
84
2023
USD’000
2022
USD’000
14
(27)
(13)
704
(135)
569
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
22. Financial risk management continued
Euro exposure
Balance at end of period
Monetary assets
Monetary liabilities
Total exposure
Swiss Franc exposure
Balance at end of period
Monetary assets
Monetary liabilities
Total exposure
2023
EUR’000
2022
EUR’000
156
(13)
143
480
(15)
465
2023
CHF’000
2022
CHF’000
33
-
33
113
-
113
The Company had no foreign currency exposure at the year end (2022: nil).
Foreign currency sensitivity analysis
As at 30 September 2023, the sensitivity analysis assumes a +/-10% change of the USD/GBP, EUR/GBP and
CHF/GBP exchange rates, which represents management’s assessment of a reasonably possible change in foreign
exchange rates (2022: 10%). The sensitivity analysis was applied on the fair value of financial assets and liabilities.
US Dollar
Euro
Swiss Franc
2023
2022
10%
weaker1
10%
stronger
10% weaker 10% stronger
1
(12)
(3)
(14)
(1)
12
3
14
£000
(51)
(41)
(10)
(102)
£000
51
41
10
102
1 10% weaker relates to the Great British Pound strengthening against the currency and therefore the Group would be in
a weaker monetary position.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group’s financial assets are cash and cash equivalents and trade and other receivables. The carrying value
of these assets represents the Group’s maximum exposure to credit risk in relation to financial assets.
The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the Consolidated
Statement of Financial Position are net of allowances for any expected credit losses, estimated by the Group’s
management based on prior experience and their assessment of the current economic environment, and any specific
criteria identified in respect of individual trade receivables. An allowance for expected credit losses is made where there
is an identified loss event, which, based on previous experience, is evidence of a reduction in the recoverability of future
cash flows. There are no outstanding expected credit losses identified at 30 September 2023 (2022: nil).
Prior to entering into an agreement to provide services, the Group makes appropriate enquiries of the counterparty and
independent third parties to determine creditworthiness. The Group has not identified any significant credit risk exposure
to any single counterparty or Group of counterparties as at the period end.
85
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
22.
Financial risk management continued
The Group and Company continually reviews client credit limits based on market conditions and historical experience.
Any provision for impairment, as well as the ageing analysis of overdue trade receivables, is set out in note 16.
The Group and Company’s policy is to minimise the risks associated with cash and cash equivalents by placing these
deposits with institutions with a recognised high credit rating.
Capital risk management
The Group considers capital to be shareholders’ equity as shown in the Consolidated Statement of Financial Position,
as the Group is primarily funded by equity finance and is not yet in a position to pay a dividend. The Group had no
borrowings at 30 September 2023 (2022: £nil).
The objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to
provide returns for shareholders and for other stakeholders. In order to maintain or adjust the capital structure the Group
may return capital to shareholders or issue new shares.
23. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.
Remuneration and transactions of Directors and key management personnel
Key management remuneration:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share-based payments
Total remuneration
2023
£000
1,113
29
(44)
19
1,117
2022
£000
1,269
33
(115)
77
1,264
Key management includes Executive Directors, Non-Executive Directors and senior management who have the
responsibility for managing, directly or indirectly, the activities of the Group.
The aggregate Directors’ remuneration, including employers’ National Insurance and share-based payments’ expense,
was £687,000 (2022: £658,000) and aggregate pension of £16,000 (2022: £15,000). Further detail of Directors’
remuneration is disclosed in the Directors’ Remuneration Report on page 39 and 40.
Transactions with group companies
The Company is responsible for financing and setting Group strategy. The Company’s subsidiaries carry out the
Group’s research and development strategy, employ all employees, including the Executive Directors, and manage the
Group’s intellectual property. As a result, a management charge is made between the subsidiaries and the Company for
the services provided by the subsidiaries on behalf of the Company. Similarly, as share options are issued in the
Company for employees of the subsidiaries, a charge is made between the Company and its subsidiaries.
86
IXICO plc
Financial Statements for the year ended 30 September 2023
Notes to the financial statements
23.
Related party transactions continued
Intercompany balances are unsecured and are interest bearing at 6%, with no fixed date of repayment but are
repayable on demand. The intercompany balance also includes specific funding provided by the Company, which
attracts a 0% interest rate.
Outstanding balances related to subsidiary undertakings are disclosed in note 17. During the year, the following
transactions occurred with related parties:
Charges from subsidiaries:
Management recharge from subsidiaries
Net interest charged
Charges to subsidiaries:
Share option charge
2023
£000
530
(100)
2022
£000
416
(68)
52
57
87