Positive AGM Statement

RUA Life Sciences’ AGM statement led with an update on its two revenue-generating businesses for the first four months of FY 2023. This leaves us room to upgrade our FY revenue forecasts, but for the moment we have kept them unchanged, and our valuation remains at £121.0m or 545p per share. Progress on RUA’s vascular and heart valve products continues and a clinical trial update on the former is expected in late September. All resolutions were passed at the RUA Life Sciences AGM. Revenues from

FY 2022 Final Results

RUA Life Sciences’ FY 2022 results included total revenues that increased by 6% on the previous year highlighting the movement beyond the pandemic of the medical device sector. After the dust has settled on the revised requirements for the 510(k) vascular graft re-submission, the way forward is now clear which we explore in the body of this note. Our forecasts have only needed modest and non-material updates for RUA’s YE 2022 financials and our valuation remains unchanged. Our financial estima

Cenkos: RUA Life Sciences Plc -- FY22 Prelims

RUA Life Sciences has announced preliminary results for the year to March 22, in line with the May 22 Trading Update. Revenues grew 6% to £1.6m with an operating loss of £2.4m. Fiscal year-end cash was £3.0m. At the division level, the company continues to make progress with its vascular graft programme, targeting regulatory approvals in late 2024 and market entry during 2025. Both RUA Biomaterials and RUA Medical Devices division had strong years with underlying volumes up for Biomaterials and

Cenkos: RUA Life Sciences Plc -- Trading update

RUA Life Sciences has released a trading update for the 12-months to March 2022, noting revenues are expected to be £1.6m, up 6% YoY (Cenkos est £1.8m), loss before tax of £2.4m (Cenkos est £2.8m) and year-end cash of £3.0m (Cenkos est £1.8m). The company has provided an update on its four business divisions, with a discussion on the progress of the vascular graft programme which was delayed towards the end of 2021. RUA are targeting vascular graft approval in late 2024 with a market launch in 2

The pandemic clouds disperse

RUA Life Sciences’ trading update illustrated both a recovery from the challenges of the pandemic faced by medical device companies which translated into increased revenues at RUA Medical Devices and increased investment in its vascular and heart valve products. RUA’s cash balance has decreased from £6,294k at the end of FY 2021 to £2,963k a year later but this was much higher than our previous FY 2022 estimate and we have aligned with the higher YE 2022 cash position in RUA’s trading update.

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

Cenkos: Healthcare Sector -- Ward Round

Weekly round-up of AIM-listed healthcare news. Agronomics, Eden Research, IXICO, HeiQ, Trellus Health, NetScientific, Circassia, 4basebio, Fusion Antibodies, Surgical Innovations Group, Yourgene Health, Abingdon Health, Verici Dx, Poolbeg Pharma, Omega Diagnostics

Cenkos: Healthcare Sector -- Ward Round

Weekly round-up of AIM-listed healthcare news. Intelligent Ultrasound, Inspiration Healthcare, Agronomics, CareTech Holdings, e-therapeutics, ABCAM, EKF Diagnostics, HUTCHMED (China), Benchmark Holdings, Totally, ImmuPharma, Open Orphan, Destiny Pharma, Polarean Imaging, Induction Healthcare.

Cenkos: Healthcare Sector -- Ward Round

IXICO, HeiQ, Creo Medical, GlaxoSmithKline, Totally, Advanced Oncotherapy, Arecor Therapeutics, Midatech Pharma, Futura Medical, Yourgene Health, Renalytix, Polarean Imaging, Diurnal, Novacyt, Faron Pharmaceuticals, Poolbeg Pharma, ANGLE

Hybridan Small Cap Feast 16/12/2021

Joiners DSW Capital plc (DSW.L) a profitable, fast growing, mid-market, challenger professional services network joins AIM. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Public Policy Holding Company (PPHC.L) leading bi-partisan, full-service US government affairs business joins AIM. Through its wholly-owned companies, PPHC operates a portfolio of independent firms that offer public affairs, crisis mana

Financials reflect increased investment

RUA Life Sciences interim results demonstrated the continued investment in the business and its new products. The highlight of the interims was the 33% increase in third-party contract revenues that were a result of a recovery in elective surgical procedures, particularly in the US. Clouding the interims were the implications of the regulatory delay to the 510(k) review of RUA’s large-bore vascular graft medical device, which we explore more in this note. The deferral of RUA Vascular product

Hybridan Small Cap Feast 13/12/2021

Joiners No Joiners Today. Leavers Equiniti has left the Main Market (Premium) following a takeover. What’s cooking in the IPO kitchen? Carbon Air, a nano-technology company which leverages the absorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company's proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspe

Cenkos: RUA Life Sciences Plc - Vascular graft update

Following discussions with the FDA relating to RUA's recently submitted 510(k) application for its range of vascular graft products, it has been agreed that the filing will be converted to a pre submission process. This change will extend the regulatory pathway and as such RUA no longer anticipates generating first commercial sales during FY22. Clearly this is disappointing news for the company; however, our forecasts do not include vascular graft sales and therefore this update does not impact

EBITDA on track; strong order book

VLG has delivered a pleasing and reassuring H1 result against a challenging backdrop. The recent acquisitions are performing strongly and it has been able to mitigate a lot of the recent incremental cost/inflation headwinds. Trading so far in H2 is slightly ahead of plan and it has a very strong order book which will lead to increased H2 weighting. Confidence in EBITDA forecasts is therefore high. We have, however, reduced our PBT/EPS forecasts on the back of higher D&A (non-cash) than expected.

12m to May-22 results

Oncimmune has released results for the 12m period to May-22, ahead of its changed year and to August. These results reflect a period of investment into the commercial team for ImmunoINSIGHTS and increased penetration into the Top 15 global pharma customers, where a number of MSAs have been signed. These are expected to translate into faster contract wins and management reports a current weighted value pipeline of £11.0m across the business, providing increased revenue visibility. Cost savings in

SHORE CAPITAL - Warpaint London+ (W7L) - House Stock at 129p

Interim results update

Belluscura has made very significant progress in technology, manufacturing and sales in the year to date and remains strongly positioned to achieve considerable scale next year.

Upgrade cycle continues as brand demand grows

Trading momentum has been sustained in early Q3, triggering a 3rd upgrade YTD. There is clear evidence the growth strategy is bearing fruit. Distribution gains are increasing brand reach both in the UK and overseas. This appears to be an ideal time for its on-trend value-for-money proposition to gain traction in its key channels, potentially with counter-cyclical characteristics as consumers start trading down. After a further pull-back (YTD now -29%), valuation is out of synch with its growth t

LIBERUM: Medica Group PLC* - Continued growth, but costs set to rise

Cenkos: OptiBiotix Health Plc -- GoFigure Launch with Apollo

OptiBiotix has launched its GoFigure weight management range in India through its commercial partner Apollo Hospitals (Apollo). Apollo owns and operates the largest pharmacy network across India and will initially stock the GoFigure range in key stores in major Indian cities, as well as online. Apollo is one of three large partners which entered commercial agreements with OptiBiotix in late-2021. The launch demonstrates OptiBiotix' strategic shift towards selling a greater proportion of finished

Interims – recovery continuing

H1 saw a continued recovery in revenues, which are now comfortably back above pre-pandemic levels, despite some territories lagging. The group’s sustainability and cost-saving messaging looks to be increasingly resonating as health systems globally look to address the twin challenges of elective recovery and environmental impact. Some inflationary and supply chain issues have been experienced, although these are expected to ease in H2 as mitigations take effect. We make no change to our forecast

ReNeuron Group Update

Following ReNeuron’s strategic review and change of management, the company has refocused on the exploitation of its exosome platform. We have likewise focussed our research on the potential for, and value of, ReNeuron’s exosomes. In this note, we do not dwell on the past but explore the potential for ReNeuron’s exosomes and why they may be the answer to pressing drug delivery questions. One of its previous products – now under the control of a partner – remains as an upside to our valuation.

Cenkos: OptiBiotix Health Plc -- Interim Results

OptiBiotix has issued its interim results for the six months ended 30 June 2022. In line with the company's August trading update, revenues have fallen to £0.12m as delays to customer restocking and new product launches impacted the top-line. Whilst the operating loss grew to £1.11m, as the company invested in key management personnel, OptiBiotix delivered over £10.2m in value to shareholders through a dividend in specie following the listing of ProBiotix Health (PBX) in March 2022. Post-period,

Morning Note – 21 September 2022

Hybridan Small Cap Feast 21/09/2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company's investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. Raising £150

Cenkos: Venture Life Group Plc - Strong trading

Venture Life has published its interim results for the 6-months to June 22, which show profits slightly ahead of the previous trading update. Revenues grew 36% in the period to £18.9m, while both gross and adjusted EBITDA margins improved strongly, 5.0 and 3.6 percentage points, respectively. Growth was driven by recent acquisitions, with new distribution deals and product launches through the period. Performance has continued into H2/22, with further deals signed and trading in-line with expect

Interims – transition proceeding to plan

Interims show a strong underlying performance with “core established” revenues +11.5% in the period. As previously discussed, the business is in the process of transitioning away from Covid-related work and implementing the growth strategy of the new management team. Initial indications are positive and investment plans are on track, which should set the business up for strong growth in FY23 and beyond. We make no material changes to forecasts and continue to see substantial potential upside on

Morning Note – 26 September 2022