[source: Kooth]
Kooth (KOO) , a UK digital mental health platform, issued a trading update this morning for the 6 months ended 30 June 2022.
The company said it had a strong pipeline of contracts expected to be signed in the second half, and high retention of existing customers, giving it confidence that it would deliver revenue for the full year in line with market expectations. Kooth said it continued to "make good progress with its mission to provide personalised digital mental health care which is both cost effective and clinically proven."
Kooth reported net cash of £8.3m as of 30 June 2022, which it said would support continued investment and long-term growth. The company did not include any other financial details in today's brief update. The current average forecast for its full-year 2022 revenue is £20m, up from £16.7m in the year to 31 December 2021. Kooth will deliver its half year results to 30 June 2022 in September.
Kooth's directors believe the ongoing restructuring within the NHS from 135 Clinical Commissioning Groups (CCGs) to 42 Integrated Care Systems (ICGs) will provide an opportunity for the company to deepen its relationships in the sector, leaving it in a stronger position.
Kooth is also expanding into the US market, with its first pilot in the US set to go live in H2 2022.
CEO Tim Barker summarised: "We have continued to expand our business, grow our service offering and target long-term, sustainable growth. This is underlined by our strong pipeline of new business opportunities along with the high rate of retention we see with our existing customers. This retention, and our strong balance sheet, allow us to invest for long-term growth, including accelerating business development, further platform investment and focus on US expansion, particularly following our maiden pilot contract there.
The breadth of our data, combined with the clinically validated nature of our platform, ensures that Kooth remains a market leader and is able to help people find the treatment they need and the NHS to continue providing support for their patients."
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Kooth has established itself as the leader in the digital mental health field in Britain. According to data collected to support NHS England's strategy of expanding access to mental health support, Kooth is now the number one provider of mental health access in the UK and the only digital mental health provider in the country to be accredited by the British Association for Counselling and Psychotherapy.
The company is steadily expanding. Kooth Adult has seen new wins in Greater Manchester, Northumberland, Devon and County Durham, and Tees Valley. As mentioned, Kooth recently won its first pilot in the US, to go live in H2 2022. Finally, Kooth Work has been successful in addressing the needs of frontline and key workers, winning new contracts with RetailTrust, Grocery Aid, and multiple multi-academy educational trusts to support teaching staff.
The Kooth Pulse 2021 Report (downloable here) revealed Covid's long-lasting impact on children's and young people's mental health. As the use of Kooth's platform increased 42% in that demographic, it revealed a 54% increase in suicidal thoughts for children aged 10-13, and a 39% increase for those under 18. The number of people under 18 who had presented with self-harm issues increased by 27%.
These troubling statistics reveal the increasing need for mental health services. Digital services remove a lot of the barriers traditionally associated with seeking help, with Kooth's platform offering no waiting lists, no costs, and complete anonymity.
Kooth partnered with the NHS services app myGP earlier this year to have the app self-refer patients to Kooth's online platform. Given the advantages of digital mental health services and Kooth's leading position in the space, continued growth for the company is likely, with breakeven at a pre-tax level expected by 2024.
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