Akers Biosciences (AKR): Corp FY 2017 results | Europa Oil & Gas (EOG): Corp And Ireland comes for free… | Intercede (IGP): Corp Contract win and trading update
Companies: EOG IGP AKR
Akers Biosciences (AKR): Corp US distribution agreement | ANGLE (AGL): Corp Detailed results of US ovarian cancer study presented | Bioventix (BVXP): Corp What a nice surprise! | Cambridge Cognition (COG): Corp Contract win | Premaitha Health (NIPT): Corp “321” patent update | Taptica (TAP): Corp Taptica’s transformational time | Tristel (TSTL): Corp US partner secured for ultrasound
Companies: AGL BVXP COG YGEN TRMR TSTL AKR
See what's trending this week...
The AIM Healthcare index has shown positive returns in all but three out of the past 11 years (2007, 2008 and 2011), growing at a CAGR of 7.6% over the period. This compares with a CAGR of -0.3% for the broader FT AIM All Share, +0.6% for the AIM 100 and +3.5% for its more senior FT All Share Health index. Sector growth and relative performance to the AIM All Share index has accelerated over the past five years; the sector having risen 19.19% CAGR since 1 Jan 2012. This compares with 6.8% growth in the AIM All Share and 6.1% in the FT All Share.
This outperformance can be attributed to the increasing success amongst the Healthcare constituents which have progressed their business plans to a point where substantial value has been/is being created and where many companies have successfully scaled their businesses to sustain future growth.
We highlight four companies that have different business models but exemplify the opportunities that are increasingly becoming evident within the sector.
Companies: ABZA AGY APH AGL AVCT BVXP COG CTH IHC LID MTFB ODX OPTI YGEN PRM SDI STX SNG TSTL AKR
Keystone Law Group— full service law firm with over 250 self-employed lawyers . Due late Nov. Offer TBA
Beeks Financial Cloud -niche cloud computing and connectivity provider for automated (algorithmic) trading in Forex and Futures financial products . Raising £7m. Mkt Cap c.£24.5m. Due 27 Nov. FYJun17 rev £4m. Profitable at operating level.
City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due late Nov. Offer TBA.
Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to $6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer raising £45m at 59p with mkt cap of £125.9m.
Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer TBA, expected 27 Nov 2017.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
Shefa Yamin minerals company focused on the exploration for precious stones in Northern Israel. Net Proceeds will be used to advance the Company's mining project. Offer TBA.
Sabre Insurance Group—Private motor insurance underwriter, founded in 1982. Raising c.£213m. C.£206m to purchase outstanding preference shares. Generated gross written premiums in 2016. Due December.
Bakkavor—After being postponed on 3 November the provider of fresh prepared food has today set its offer price at 180p. Primary raise of £100m plus vendor sale in combination totalling 25% of enlarged capital. Mkt Cap c.£1bn. FY 16 Revenue: £1,763.6 million. FY 16 Adjusted EBITDA: £146.4 million . Due 16 Nov
Aviva Investors Secure Income REIT - Targeting £200m raise. Will invest in a diversified portfolio of high quality, long-lease commercial real estate assets located within the UK and leased to predominantly investment grade tenants. Due Dec.
Cabot Credit Management -one of the largest credit management services providers in Europe and the market leader in the UK and Ireland with total 120-Month ERC of £2.2bn. Raising c.£195m. Offer TBA. Due November.
M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 30 Nov.
En+, international vertically integrated aluminium and power producer with core assets located in Russia. Priced at $14 per GDR. $1.5bn offer of which $0.5bn primary to pay down debt. Dual listing in Moscow. Unconditional dealings 8 Nov.
Companies: IKA MYN TPG KRS ESCH FEN XTR AKR
Significant uptick in R&D output. After a very disappointing 2016, as measured by the number of new drugs approved by the FDA (23), we have seen 22 new product approvals year-to-date. We now expect the 2017 output to be above the 16-year median of 22 NDAs (New Drug Application) and 5 BLAs (Biologic Licence Application). As previously commented on, BLAs are expected to represent an increasing proportion of overall approvals. The most notable approval in the past quarter was AstraZeneca’s Imfinzi (durvalumab), not because of its use in metastatic bladder cancer but for its potential use as a first-line therapy in surgically unresectable Non-Small Cell Lung Cancer (NSCLC) following an interim analysis of a Phase III trial (PACIFIC), which showed a statistically significant increase in progression-free survival.
Companies: ABZA AGY APH AVCT BVXP BYOT COG CTH LID MTFB ODX OPTI YGEN PRM SDI TSTL AKR
Hardide* (HDD): Interim results, oil recovery and aerospace approvals bode well (CORP) | Premaitha Health* (NIPT): Trading update (CORP) | Akers Biosciences* (AKR): Q1 results (CORP) | Water Intelligence* (WATR): Growth strategy on track in a large, defensive market (CORP) | Frontier Developments* (FDEV): Elite Dangerous coming to PS4 (CORP) | K3 Business Technology* (KBT): Trading update (CORP)
Companies: YGEN WATR FDEV KBT AKR HDD
Companies: ABZA AGY AVCT BVXP BYOT COG DPH LID ODX OPTI YGEN PRM SDI SNG TSTL AKR
Akers Biosciences* (AKR): Trading update (CORP) | Cello (CLL): Accelerating the strategy (BUY)
Companies: Cello Health Plc Akers Biosciences
Akers Biosciences* (AKR): GPO evaluation for PIFA Heparin test (CORP) | Hurricane Energy (HUR): Lincoln well result (BUY) | Gemfields (GEM): Ruby auction results (BUY)
Companies: HUR GEM AKR
The prospect of Hilary Clinton creating an oversight panel with the power to impose a set of harsh enforcement rules to control aggressive pricing of pharmaceuticals in the US fell away with the election of Trump, leading to a 16% bounce in the NASDAQ Biotech index and an 8% increase in the US Pharma & Biotech index, some of which has already been given back.
Companies: ABZA BVXP BYOT COG DPH EKF LID ODX YGEN PRM SDI SNG TSTL AKR VEC
Warpaint London—Schedule one update. Raising £2.5m at 97p. Expected mkt cap £62.6m vs revenues of £22.3m
Walls & Futures REIT — Has raised £1m at £1 to acquire, refurbish or develop residential properties in the UK . Due to arrive on ISDX on 29 November
Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December.
Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
Companies: MTR RDT MKT GROW BLU TRAK KOD IVO TRX AKR
SCYSIS* (SSY): H2 upgrade builds on the excellent first half (CORP) | Akers Biosciences* (AKR): Preliminary prospectus filed (CORP) | Keywords Studios (KWS): Testing testing (BUY)
Companies: KWS SSY AKR
Orchard Funding Group* (ORCH): Initiation and results (CORP) | Akers Biosciences* (AKR): Q3 results with positive outlook (CORP) | Castleton Technology* (CTP): Interims on track, cash flow returns (CORP) | Ithaca Energy (IAE): Q3 results (BUY) | 21st Century Technology (C21): On the buses (CORP)
Companies: ORCH CTP IAE C21 AKR
In light of the Brexit vote, we reflect upon the implications for the NHS and the wider healthcare industry. We take a pragmatic approach to how the referendum result will affect staffing, recruitment, clinical trials, drug pricing and small company grant funding in the coming months and years.
Companies: RUA BVXP BYOT COG DPH EKF LID ODX YGEN PRM SDI SNG TSTL AKR VEC
Research Tree provides access to ongoing research coverage, media content and regulatory news on Akers Biosciences.
We currently have 28 research reports from 2
Venture Life Group has reported on a very strong H1/20A period. Revenues were up 80% with operational leverage delivering c100% growth in gross profit and +350% adjusted EBITDA growth. Performance was supported by the acquisition of PharmaSource, strong sales to China, sales of new brand, DISINPLUS, and the group's ability to maintain production at its Italian manufacturing facility. With this report we have introduced FY21E forecasts, expecting the company to maintain its growth momentum and deliver 10% revenue growth. Venture Life is delivering a strong performance, we maintain our Buy recommendation.
Companies: Venture Life Group Plc
Today’s interims are in line with management’s expectations with losses before tax in the period of £15.7m (vs. £14.1m prior year). Cash was reported to be £10.0m, which after accounting for the post period-end £7.7m (gross) fundraising provides sufficient cash runway into Q1 2021 and through multiple key milestones across the pipeline. Whilst Covid-19 has impacted the timeline of data for two trials (asthma and pancreatic cancer), in the coming weeks we eagerly await full Phase II topline results for Blautix in IBS, a data catalyst that could potentially unlock significant value either through possible partnering discussions or independently. The IBS opportunity is vast with estimates of up to 45m IBS sufferers in the US; a patient population underserved with 2/3rd of patients dissatisfied with their current therapy’s ability to treat their symptoms and no FDA-approved disease-modifying therapy available on the market. Blautix has the potential to be that first disease-modifying therapy for moderate to severe IBS, offering physicians a sophisticated therapy option to address both IBS-diarrhoea and IBS-constipation patients.
Companies: 4D Pharma Plc
Synairgen reported interim results to 30 June in which the adjusted net loss was £3.9m with period-end cash of £10.9m. A fuller analysis and disclosure of the Phase II trial of inhaled interferon (SNG001) in hospitalised COVID-19 patients confirms the earlier optimism we had at the time of its first headline disclosure in July. The announcement that Clinigen is to launch a Managed Access Program (MAP) in the UK and Europe for SNG001 is a significant step enabling treatment of hospitalised COVID-19 patients under certain circumstances ahead of regulatory approval. With plans to scale manufacturing to c.100,000 treatment courses per month in 2021, Synairgen is clear in its ambitions. Based on pricing points for Rebif and Avonex and Gilead’s remdesivir, future supplies suggest significant potential revenues in 2021. We leave forecasts unchanged for the time being until we have greater visibility over the uptake of the MAP as well as the regulatory path. We reiterate our price target of 360p.
Companies: Synairgen Plc
Advanced Oncotherapy ("AVO") reported a wider H1 net loss of £12.2m (+8% YoY) as tightened administrative expenses of £9.8m (H1/2019: £11.0) were offset by increased finance cost totaling £2.4m (H1/2029: £0.59m) and a lack of tax credits (H1/2019: £0.38m). Despite the ongoing pandemic, we note that AVO has made good progress regarding both the development and initial commercialisation of LIGHT in 2020. We continue to believe in the potential for the LIGHT system to disrupt the radiotherapy market as a result of the proven clinical superiority of proton therapy ("PT"), combined with the implied economic advantages associated with linear accelerators. Now largely de-risked from a technical perspective, we see a number of important inflection points in the coming 6 - 12 months for AVO, maintaining our OUTPERFORM recommendation and GBp 135 target price.
Companies: Advanced Oncotherapy Plc
Novacyt (NCYT.L): R&D update
Companies: Novacyt SAS
Allergy Therapeutics reported full-year 2020 results that were marginally ahead of expectations, driven by lower overhead costs (COVID-related) and lower R&D. This underpinned 25% growth in pre-R&D EBIT to £14.2m on 7% CER revenue growth and continued, albeit smaller, market share gains. Year-end net cash was £33.2m, providing the company with the financial resources to execute on current research programmes. The outlook remains characterised by the start of the Phase III Grass MATA MPL trial in US/Europe, enhanced by a broadening pipeline of opportunities and continued commercial traction in core European markets. We have made small upward adjustments to our forecasts and raise our target price to 45p, which is underpinned by the current commercial operations, with potential upside in Grass MATA MPL in the US (c.21p on risk-adjusted DCF), Polyvac peanut vaccine and the recently broadened VLP technology licence.
Companies: Allergy Therapeutics Plc
Allergy Therapeutics delivered a solid 6% revenue growth for FY20 to £78.2m, from £73.7m, despite COVID-19 impacts taking a 2% toll. The well-established European commercial platform produced operating profit before R&D of £14.2m, from £11.3m, with R&D spend of £9.0m, from £13.2m. Pollinex Quattro Grass is set to start a pilot Phase III study before initiating full registration trials. The promising VLP-based peanut vaccine reported highly encouraging preclinical data which, if maintained, could be transformational for future prospects. The fruits of the development portfolio are expected to enable the market entry into the commercially attractive US. Cash resources of £37.0m are ample to fund near-term requirements. We initiate coverage with a £325m (51p a share) valuation.
Yourgene continues to progress across all areas of the business, with core trading on track. Demand has been increasing for Yourgene’s Covid-19 testing services, and is expected to reach 10k/month from early October onwards. This would equate to a £3.0m boost to revenues in the year to Mar-21 and we upgrade forecasts accordingly, with outer year estimates unchanged for now. We view this as a base level of demand, with scope for further upgrades if demand continues to increase and/or lasts beyond March. Our underlying estimates for the core are unchanged.
Companies: Yourgene Health Plc
CVS had what we regard as a good FY20 – showing excellent progress during the first 8 months, highlighting a keen focus on the core business, and then recovering strongly as lockdown conditions eased. This reflects very favourably on the new exec team and the underlying resilience / attractions of the veterinary sector. Pleasingly positive momentum has continued into Q1-21 with LFL sales growth of 3.9% (8.0% comp) and an improved EBITDA margin. In the current climate the veterinary sector has attractive defensive growth qualities, with CVS very well positioned to both protect earnings and take advantage of a positive environment for acquisitions. Ongoing CV19 uncertainty means guidance remains suspended but the broad thrust of today’s results underpin the premium rating.
Companies: CVS Group Plc
SDI reported full-year results to 30 April that were slightly ahead (+2%) of the trading update issued by the company on 23 April with net debt of £4.0m comparing favourably to our forecast of £4.3m. Underlying organic growth of 3.7% organic growth, despite the COVID-19 disruption in Q4, was supplemented by growth from acquisitions in FY 2019 and FY 2020. Adjusted pre-tax profit rose 44% to £4.3m with adjusted EPS up 21% to 3.4p. Net debt at 30 April was £4.0m. With evidence of trading activity normalising and the positive outlook statement, indicating adjusted pre-tax profit to be at least as good as FY 2019, we reinstate forecasts. We re-introduce a target price of 100p, which implies the stock trading on FY 2021 P/E of 27.5x falling to 24.6x in FY 2022 – in line with its peer group (e.g. Judges Scientific which trades on 33.8x, falling to 27.5x for slightly lower growth) and underpinned by a FY 2020 free cashflow yield of 3.2%.
Companies: SDI Group Plc
While disruption was significant in H1, Warpaint still made a small profit and generated cash. Crucially, even with some ongoing weakness in markets like the US, trading has recently bounced back to pre-CV19 budgeted levels. This is a function of the brand and range development work, and broadening distribution in the UK (Tesco/Wilko). It also highlights the appeal of its value-for-money on-trend brands. Improved visibility around the full year outcome has led to PBT guidance being reinstated for FY20, and dividends being proposed. This is likely to be well received by the market.
Companies: Warpaint London Plc
Creo Medical has reported strong H1/20A and post-period performance. While COVID has impacted the company's ability to market its products in hospitals, at commercial events and provide training during 2020 Creo has continued to book commercial orders, provide remote training, receive regulatory clearances for new devices and complete a significant acquisition. We believe that as healthcare systems begin to recover from the impact of the pandemic, the benefits of Creo's technology could come to the fore, offering shorter procedure times and outpatient treatments. The company closed H1/20A with cash of £70.6m.
Companies: Creo Medical Group Plc
The oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens and personalised medicine solutions has announced FY June 2020 results with total income including grants up 7% to £841.6k, driven by an 11.1% increase in revenue to £799k. Losses after tax fell 38% to £64.4k, with prudent cost management helping to keep net operating expenses of £976k marginally bellow FY June 2019 levels, and the Company continuing to enjoy R&D tax credits with £69k recognised in the period, down from £97k.
Companies: Physiomics Plc
Cambridge Cognition reported encouraging interim results to June, with revenues up +39% to £3.0m and the Pre-Tax Loss sharply reduced to £0.4m. The company has made strong progress on its commercialisation strategy this year and, having announced £4.9m of contract wins in H1, a major win for a schizophrenia trial has since increased this to £8.4m. Although CV19 led to some contracted clinical trials being delayed in H1, this has been offset by new contract wins and going forwards we see a structural shift to virtual clinical trials which plays to CamCog's strength in remote clinical testing. We raise our FY20 revenue forecast to £6.3m (was £6.2m), which we view as conservative given the sales contracted for 2H20, though we are mindful of possible delays due to CV19. We continue to model a FY20 loss of -£0.7m, with CamCog moving into profit in Q4. We forecast the group to be profitable for FY21 and believe profits can build materially given the tailwind of 17-20% industry growth. We retain our Buy recommendation and raise our target price to 80p (was 75p).
Companies: Cambridge Cognition Holdings Plc
Diurnal is a commercial-stage specialty pharmaceutical company focused on diseases of the endocrine system. Its products are targeting rare conditions where medical need is currently unmet, with the long-term aim of building an “Adrenal Franchise”. Alkindi® was approved by the European regulators in September 2018, and has been launched in 10 countries. Now it has been approved for the US market, with Diurnal receiving formal approval from the FDA. This is an important valueinflection milestone that only two other AIM-listed companies have reached. Marketing partner, Eton Pharmaceuticals (Eton), has high US sales expectations.
Companies: Diurnal Group plc