DeepMatter Group Plc (AIM: DMTR), the AIM-quoted company focusing on digitising chemistry, is pleased to announce its audited financial results for the year ended 31 December 2020.
· Revenues of £1.3m (2019: £1.2m)
· Loss for the year £2.4m (2019: £3.0m)
· Cash as at 31 December 2020 of £2.6m (31 December 2019: £2.6m)
· Fundraise in July 2020 raising gross proceeds of £2.2m, enabling further investment in the Group’s sales and marketing to support its long-term objectives
· 50% of the world’s Top 10 pharmaceutical organisations using DeepMatter products
· 300% growth in the number of trials of DeepMatter products, 18% growth in user numbers
· Growing awareness of the need to digitalise chemistry and labs, driving increased market interest in the Group’s offering reflected in the announcement of a three-year contract with Thieme Chemistry, an award-winning international medical and science publisher and deployments of DigitalGlassware® within life sciences companies and academic institutions
· Productivity gains with DigitalGlassware® were demonstrated by a study with o2h, with the average yield 50% greater and average errors reduced by 80%
· Strengthening of team through key hires at management and Board level including a new Chief Financial Officer and new Chair, providing an enhanced structure to capitalise on the growth opportunity as the disruption to the pharma industry of COVID-19 reduces
Post-Period Highlights and Outlook
· Expanded geographic reach into the US via a co-distribution agreement with North American-based Elemental Machines
· Demonstrated the monetising of our data with a multi-year, data licensing agreement signed with the Life Science business of Merck
· The Group has made progress in the year in developing its user base, particularly within Contract Research Organisations (‘CRO’), Academic segments, and continues to see healthy growth in its pipeline
· The accelerating integration of science with technology provides a positive long-term opportunity for DeepMatter and the Board looks to the future with confidence
Mark Warne, CEO of DeepMatter, said: “I am pleased to report that we achieved notable strategic successes and have entered 2021 in a strong position despite the uncertainty created in 2020 by the impact of Covid-19. We will continue to build on the momentum of the second half of 2020 in the current year with sales to the pharmaceutical industry and scientific publishers, whilst targeting the CRO and academic sectors who are proving to be the most successful early adopters of our platform.
“We are encouraged by our growing base of committed recurring revenues and an increased pipeline of opportunities. Our increased sales and marketing capability is delivering results, and we have a strengthened financial basis on which to grow. We therefore look forward to the ongoing execution of our growth strategy.”
For more information, please contact:
DeepMatter Group plc
T: 0141 548 8156
Mark Warne, Chief Executive Officer
Canaccord Genuity Limited (Nominated Advisor and Broker)
T: 020 7523 8000
Bobbie Hilliam / Angelos Vlatakis
Caroline Forde / Harriet Jackson / Kieran Breheny / Faye Calow
T : 020 3405 0205
About DeepMatter Group plc
DeepMatter is building and commercialising the most powerful data platforms, to enable scientists to easily perform and optimise chemical reactions, by increasingly integrating chemistry with technology. Ultimately this will allow the greater use of artificial intelligence and reaching a point where chemicals can be autonomously synthesised through robotics.
I was delighted to be appointed Chair of the Board of this exciting business in November 2020. With an innovative offering, much needed by its industry, a growing roster of blue-chip customers and a passion for great chemistry, I believe DeepMatter has a significant opportunity ahead.
This has, of course, been a challenging year for all. However, I am pleased to report that the Group made significant progress towards its vision to digitise chemistry. Having successfully completed the foundation development of the proprietary DigitalGlassware® platform and integration of the InfoChem offerings following its acquisition in 2019, the focus in 2020 was on the commercialisation of the Group’s technologies. This focus delivered growth in user numbers, the development of strategic partnerships and the first steps towards the monetising of the Group’s data collections.
Increasingly supportive market environment
While COVID-19 significantly disrupted the pharma industry, it has also, as with many industries, shone a light on the need for accelerated digitalisation. Typically, in scientific, evidence-based industries, the collection, structuring and sharing of data has taken place in siloed environments, leaving scientists un-empowered to capitalise on the wealth of knowledge created in economically important fields such as drug discovery and development. Digital transformation in recent years had started to lower data sharing barriers on a modest level, however the shift to remote working and increased social distancing as a response to the COVID-19 pandemic has accelerated the rate in which technology is being incorporated into the day-to-day workings of a laboratory. The possibilities to digitally impart knowledge and hands-on experiences in the laboratory to another person, without the requirement of physical proximity, is more attainable now that the industry has been forced to adapt and experience it first-hand.
Throughout the year we have seen an increased awareness of the benefits technology can lend to drug discovery and this trend will only gain further traction in the coming years, providing a growing opportunity for DeepMatter’s product offerings and technology platform.
A passion for great science
The passion of the team at DeepMatter is the driving force for this business. Their commitment and genuine passion for improving productivity and discovery of chemical reactions that contribute towards the development of new medicines makes them a great team to be a part of and resonates strongly with our customers. The team swiftly adapted to working remotely in March 2020, continuing to support our customers, develop our offerings, secure new customers and forge new partnerships. On behalf of the Board I would like to thank every single team member for their efforts during the year.
Expansion of the Board’s expertise
As well as my appointment in November 2020, the Board’s expertise was further expanded during the year with the appointment of Fraser Benson, as Chief Financial Officer and post-period end, the appointment of Mirko Walter as Non-Executive Director. Both Fraser and Mirko bring a wealth of knowledge in their specific fields, with Fraser having accounting experience and exposure to fast-growing software businesses, whilst Mirko’s experience in sales and the scientific sector resonates with DeepMatter’s long-term strategic goal to commercialise the digitisation of chemistry. Through this strengthening of the Board’s expertise, DeepMatter comprises an excellent mix of leadership skills and experience to take the business to the next phase of growth.
The Group has a steady base of recurring revenues, a healthy financial position and a clear strategy for growth. The long-term opportunity for DeepMatter is extremely positive, with market conditions indicating the integration of science with technology is accelerating, with the potential to revolutionise the industry. The Group has made progress in the year in developing its user base, particularly within Contract Research Organisations and academic segments, and continues to see healthy growth in its pipeline. The Board therefore looks to the future with confidence.
28th May 2021
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