Imaging Biometrics (LSE:IBAI) returned to profitability in the first half of 2026, with the nano-cap medtech group posting a profit after tax of £73,852 against a loss of £89,652 in the same period last year.
Revenue grew 6% to £416,270 from £394,002, while a 32% cut in administrative expenses to £325,860 turned an operating loss of £89,652 into an operating profit of £88,678.
The AIM-listed group, which develops automated quantitative imaging biomarkers for neuro-oncology, said the swing reflected cost discipline following its decision to refocus on core imaging technologies.
"This is a decisive first step," chief executive Trevor Brown said, adding that converting clinical momentum into recurring revenue "is our central priority for the second half and beyond".
The group's IB Neuro technology featured in Phase II results from the EAF151 study, a 146-patient trial across 33 sites presented at the American Society of Clinical Oncology meeting in May, where its automated blood-volume measurement showed the strongest statistically significant link to survival in recurrent glioblastoma.
Imaging Biometrics continues working with GE HealthCare to integrate IB Clinic and QSMetric into GE's global ordering systems, while subsidiary Kirkstall traded profitably over the half, supported by a new Nottingham Trent University-led collaboration on a glioblastoma "tumour-on-a-chip" model.
Net cash outflow for the period was £63,226, against a £59,110 inflow a year earlier.
News Intelligence what this means for the company
Imaging Biometrics swung to a £73,852 profit in H1 2026 from an £89,652 loss a year earlier, driven by a 32% cut in administrative expenses that more than offset modest 6% revenue growth to £416,270. The turnaround reflects management's refocus on core imaging technologies and validates the cost discipline strategy, while clinical validation of its IB Neuro technology in a 146-patient glioblastoma trial and progress integrating products into GE HealthCare's systems position the company to convert this operational momentum into recurring revenue.
- GE HealthCare integration progress (IB Clinic and QSMetric into global ordering systems) could materially expand addressable market if rollout accelerates in H2 2026.
- Kirkstall subsidiary's profitable performance in H1 supports the October 2025 acquisition thesis and suggests the organ-on-chip business is contributing to group profitability.
The return to profitability on flat revenue demonstrates operational leverage from cost cuts, but the £63,226 net cash outflow in H1 (versus a £59,110 inflow a year prior) signals the company is still burning cash despite the profit swing—sustainability depends on converting clinical momentum into recurring revenue streams in the second half, particularly through GE HealthCare distribution and IB Neuro adoption.
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