This small-cap London-based company is well under the radar of most investors, but it is highly regarded by major players in the pharmaceutical and biotechnology industries. The business has developed artificial intelligence (AI) software algorithms that have become highly valued by huge corporations looking to develop cures for serious neurological ailments.
The company has won a load of contracts, booking £20m of new orders since the start of last year, and this revenue stream is underpinning a move to operating profitability. Once that inflection point is passed, the high gross margin earned from its cutting-edge data analytics activities means operating profits are set to move sharply higher in the years ahead, a point that is not factored into the company's valuation of little over one times its enterprise value to forecast sales for the 2021 financial year.
