Chemistry-focused DeepMatter widens interim losses, but forecasts better H2 result

Digital chemistry data and software company DeepMatter Group has unveiled higher revenues and widened losses in the first half of its financial year, but expects the second to be stronger on the back of greater investment in its platform.

The Aim-quoted, Glasgow-based business, whose offering includes enabling chemists to record and share the results of experiments, said revenue in the period ending June 30 increased to £680,000, up from £650,000 12 months previously, while its operating loss grew to £1.8 million from £1.4m.

It flagged further spend on research and development, growing to £1.06m from £860,000, citing continued investment in its SmartChemistry platform to drive deal flow in the second six months of the year, and noted its raise in January of £2.8m net cash for ongoing investment.

Among other milestones in the first half, DeepMatter cited a multi-year licencing and collaboration agreement with artificial intelligence-driven drug discovery company Standigm, as well as a multi-year extension of its agreement with major global research publisher Springer Nature, licencing proprietary algorithms and supporting the handling of proprietary data.

DeepMatter also in the period sealed the £420,000 purchase of French contemporary ChemIntelligence to enhance its intellectual property and expertise.

The Glaswegian firm’s chief executive Mark Warne at the time stated: “Our vision is to combine our proprietary chemistry data with proprietary algorithms in order to transform how medicines and other chemical molecules are made, significantly improving productivity, discovery and sustainability in the field of chemistry.”

Commenting alongside the latest interim figures, he said: “We have seen solid revenues during H1 and some notable renewals, which reflects the recurring nature of our business model.

'We have seen solid revenues during H1 and some notable renewals,' says the digital chemistry data and software company. Picture: contributed.

“We have also continued to invest in people and our capabilities, both organic and by acquisition. Our SmartChemistry concept of providing our customers with easy access and the ability to exploit data, is gaining international industry recognition.

“A combination of a growing pipeline and our H1 investment programme is expected to drive deal flow in H2 and deliver a stronger second half than H2 2021.”

DeepMatter says it “liberates chemists to capture, record and discover together on a global scale”. It also has a presence in Germany; in 2019 it acquired InfoChem, based in Munich.