Physiomics interim results: record half-year income, but costs bite
Physiomics has turned in a strong top line for the six months to 31 December 2025, with total income up 51% year-on-year to £528k – the highest half-year in the Company’s history. Revenue was £498k, supported by £30k of Innovate UK grant income, and the period included two record individual revenue months.
The flip side: operating losses widened to £327k, mainly due to onboarding new staff and leaning on pricier external contractors during the ramp. Cash closed at £257k, modest but backed by £288k of receivables. Management still expects to meet market expectations for the full year to June 2026, including circa 27% total income growth versus FY25 and a 24% reduction in loss after tax.
Key numbers at a glance
| Metric (H1 to 31 Dec 2025) | H1 2025/26 | H1 2024/25 |
|---|---|---|
| Revenue | £498k | £329k |
| Other operating income (grants) | £30k | £25k |
| Total income | £528k | £354k |
| Operating expenses | £855k | £603k |
| Operating loss | £327k loss | £249k loss |
| Loss per share | 0.10p | 0.12p |
| Cash and cash equivalents (period end) | £257k | £269k |
| Shareholders’ funds (period end) | £393k | £418k |
Where the growth is coming from: Modelling & Simulation and Biometrics
Physiomics has broadened its offer beyond oncology modelling. The Modelling and Simulation arm now covers discovery (candidate selection and target identification) and later clinical work such as population PK analysis of Phase 2 data. It has also stepped into new therapeutic areas, delivering projects in arthritis, dermatology and irritable bowel syndrome.
The biggest structural step is Biometrics. The Company launched the new service line, hired a Head of Biometrics, Mr Jesse Thissen, and won four Biometrics contracts spanning infectious and autoimmune disease trials, including a contract with the Global Antibiotic Research and Development Partnership. Post period, it added another Biometrics client for an influenza antiviral study. Management says Biometrics revenue is tracking ahead of internal projections – a helpful new leg of growth.
Contract momentum: repeat business and new geographies
Across the half, there were 11 new contract wins, including several with long-standing client Numab Therapeutics. After period end, Physiomics secured another Modelling and Simulation contract from Numab for immunology and inflammation, and a new South Korea-headquartered biopharma client covering antibody drug conjugates and immuno-oncology. That mix of repeat and new logos is exactly what you want to see for a consultancy model.
Costs, margins and the path to improved profitability
Operating losses increased by £78k year-on-year as the Company bridged capacity with external contractors while training newly hired staff. This is classic growing pains. The Board expects second-half operating expenses to be “significantly less” than H1 as internal utilisation improves and reliance on external consultants drops. If delivered, margins should improve into H2.
Guidance is clear: meet market expectations for total income growth of 27% in FY26 (vs FY25) and a 24% reduction in loss after tax. The caveat, as ever, is timing – revenue recognition can slip if client timelines move.
Cash position and runway: tight but manageable with execution
Cash ended the half at £257k with receivables of £288k. Operating cash outflow was £203k in the period. The Board expects to be at the lower end of market expectations for year-end cash. Nothing is disclosed about new financing. In the near term, working capital will be sensitive to the pace of collections and delivery milestones, so converting the strong pipeline into billings – and then into cash – is the key watch point.
There is around £25k of Innovate UK grant income left to recognise in H2 to 30 June 2026, a small but useful offset.
Personalised Dosing Software: clinical data building, platform integration in place
On personalised medicine, two tracks are progressing. First, model calibration and validation: the Innovate UK-backed observational trial in breast cancer recruited its first patient in January 2025 after approval delays. Data from over thirty patients have been collected and processed, with final recruitment now targeted by the end of March 2026 and further months of data collection thereafter. In January 2026, Physiomics also signed a Data Usage Agreement with a leading American university for access to a substantial oncology dataset, which could accelerate development. Further updates are planned later in H2.
Second, deployment: the Personalised Dosing Software has been integrated into DoseMeRx, a widely used Bayesian dosing platform. It is currently available for research-only use, enabling the team to gather usability data and iterate. The intent is clear – complete calibration and validation, deploy updates based on user feedback, and pave the way for a commercial launch with paid features.
CEO transition: continuity plan in place
Dr Peter Sargent will step down as CEO on 29 May 2026. The search for a successor is underway; if a suitable candidate is not in post by then, current Non-Executive Chairman and former CEO, Dr Jim Millen, will become Executive Chairman to ensure continuity. The Board highlights adherence to the QCA Corporate Governance Code for any new appointment.
Outlook and guidance: record year still on the cards
Management expects to meet current market expectations for the full year to June 2026, which would mark the highest ever full-year total income for Physiomics. A substantial proportion of the required revenue is already contracted or projected from the pipeline. The bigger swing factor is operating leverage: if H2 cost discipline lands as planned, the Company should also meet expectations for a reduced loss after tax.
My take: what’s good, what to watch
- Positives
- Record half-year total income and two record revenue months demonstrate real commercial traction.
- Service diversification is working: new therapeutic areas, discovery-to-late-stage capabilities, and a fast-start Biometrics line.
- Strong client momentum with repeat work from Numab and entry into South Korea via a new biopharma client.
- DoseMeRx integration puts the Dosing Software in clinicians’ hands for research, a practical route to refine and de-risk before monetisation.
- Guidance maintained for FY26 growth and improved bottom line.
- Watch-outs
- Cash is tight at £257k; delivery, billing and collections need to run smoothly. The Company expects to be at the lower end of market expectations for FY cash.
- H1 margins were hit by external contractor spend; H2 needs to show a clean step-down in operating expenses.
- Clinical trial delays mean Dosing Software validation runs beyond March 2026; timelines to commercial features remain dependent on data.
- Revenue recognition is exposed to client-driven project timing.
- CEO transition by May 2026 introduces some execution risk, albeit with a clear continuity plan.
Bottom line
Physiomics is growing into a broader data science partner for biopharma, with Biometrics adding welcome breadth and momentum. If H2 operating discipline shows through and pipeline conversion stays on track, FY26 can still be a record year on the top line with better losses. Cash will keep investors’ eyes trained on near-term execution, but the strategic pieces – diversified services, repeat clients, and a pragmatic route to market for the Dosing Software – are falling into place.
