16 January 2023

Intelligent Ultrasound Group plc

("Intelligent Ultrasound" or the "Group")

Trading update

Intelligent Ultrasound Group plc (AIM: IUG), the 'classroom to clinic' ultrasound company, specialising in artificial intelligence (AI) software and simulation, continued to make significant progress across the business and announces that Group revenue for the year to 31 December 2022 is expected to have increased by 33% to £10.1m (2021: £7.6m).

The Group's simulation revenues are expected to have grown by 28% to £9.4m (2021: £7.4m), driven by strong sales in the UK. Overall direct to market sales that combine the UK and US, are expected to have grown by almost 50% to £7.7m (2021: £5.2m). However, the Group's reseller markets in Europe and Asia are expected to have declined 19% to £1.7m (2021: £2.2m), largely due to the impact of Covid-19 on the Chinese market.

The Group's clinical AI related revenues are expected to have grown by over 220% to £0.7m (2021: £0.2m). Although still relatively modest at this early stage of commercialisation, the sales exceeded market expectations and Directors believe this growth demonstrates that these first AI-related products are beginning to gain commercial traction. The Group remains confident that its 'Classroom to Clinic' ultrasound business strategy will enable the growth of both its simulation and AI-related revenue to continue in 2023.

In November 2022, the Group announced that it had raised £5.2m (net: £4.8m) from shareholders via a placing and as a result cash at bank as of 31 December 2022 was £7.2m (31 December 2021: £5.0m).

Stuart Gall, CEO of Intelligent Ultrasound Group plc, commented: "This has been another very positive year for the Group. We increased Group revenue by over 30% and we continued to build our partnership with GE Healthcare, the world's leading ultrasound company, with the launch of SonoLyst on their Voluson Expert 22 ultrasound machine. As well as this, our ScanNav Anatomy PNB software received FDA De Novo clearance for sale in the US, and we raised over £5m from our shareholders to take the Group to profitability by the end of 2024.

"We are delighted with this significant progress, are well placed to continue on an upward trajectory in 2023, and also remain excited about the long-term potential of our 'Classroom to Clinic' business."

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ABOUT INTELLIGENT ULTRASOUND GROUP

Intelligent Ultrasound (AIM: IUG) is one of the world's leading 'classroom to clinic' ultrasound companies, specialising in real-time hi-fidelity virtual reality simulation for the ultrasound training market ('classroom') and artificial intelligence-based clinical image analysis software tools for the diagnostic medical ultrasound market ('clinic'). Based in Cardiff in the UK and Atlanta in the US, the Group has two revenue streams:

Simulation

Real-time hi-fidelity ultrasound education and training through simulation.  Our main products are the ScanTrainer obstetrics and gynaecology training simulator, the HeartWorks echocardiography training simulator, the BodyWorks Eve Point of Care and Emergency Medicine training simulator with Covid-19 module and the new BabyWorks Neonate and Paediatric training simulator. To date over 1,450 simulators have been sold to over 700 medical institutions around the world.

Clinical AI software

Deep learning-based algorithms to make ultrasound machines smarter and more accessible using our proprietary ScanNav ultrasound image analysis technology. Current products on the market utilising this technology are GE Healthcare's SonoLyst software that is incorporated in their Voluson Expert 22 and SWIFT ultrasound machines; ScanNav Anatomy PNB that simplifies ultrasound image interpretation by providing the user with real-time AI-based anatomy highlighting for a range of ultrasound guided regional anesthesia procedures; and NeedleTrainer that teaches real-time ultrasound-guided needling and incorporates ScanNav Anatomy PNB. 

www.intelligentultrasound.com