Physiomics plc (AIM: PYC) has secured a new £102,000 drug development modelling contract, taking the total value of contract awards announced since May 2026 to more than £970,000, exceeding the company’s revenue for its previous financial year.
The mathematical modelling and data science specialist confirmed that the latest agreement covers model-informed drug development (MIDD), incorporating pharmacokinetic and pharmacodynamic (PK/PD) modelling to support the development of new medicines.
The contract adds to a series of recent commercial wins, with announced awards since May exceeding the £941,222 revenue reported for the financial year ended 30 June 2026.
The comparison highlights improving business momentum, although contract awards do not necessarily translate into revenue within the same financial period.
Finance Director Ian Bagnall welcomed the latest agreement, describing it as further evidence of the company’s ability to secure new business and strengthen its commercial pipeline.
He said Physiomics expects to benefit from the full-year impact of previously implemented cost reductions, alongside investment in IT systems and a pipeline of potential projects.
Management is focusing on revenue growth alongside tighter financial controls, following a period in which increased reliance on external contractors contributed to higher operating costs.
Bagnall also addressed investor speculation that Physiomics had been accepting unprofitable contracts, stating that the company does not knowingly accept contracts expected to generate a loss on the work programme.
He acknowledged that contractor costs had increased during the 2026 financial year, particularly in the first half, but confirmed that the use of external contractors has since been significantly reduced.
The company believes the combination of additional contract wins, lower costs and operational improvements should support financial progress during its current financial year.
For investors, the latest £102,000 award provides further evidence of improving commercial activity, with the value of recently announced contracts now exceeding the company’s entire previous annual revenue.
However, the timing of revenue recognition, project delivery costs and the conversion of prospective opportunities into signed contracts will determine the impact on future financial results.
Attention will now turn to Physiomics’ ability to translate its growing order book into sustained revenue growth and improved profitability, while maintaining the tighter cost controls introduced by its management team.
