Hybridan Small Cap Feast 03/11/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Life Sciences REIT plc (LABS.L), the AIM listed real estate investment trust focused on UK life science properties, announces that, in accordance with the intention expressed at the time of the Company's initial public offering on AIM, the board has determined to apply for the Company's existing ordinary shares to be admitted to listing on Premium Segment of the Main Market. The Company's admission to trad

H1 Trading update

H1 revenues show continued double-digit core growth, with further contract mobilisations and a strong pipeline underpinning FY expectations. The group is not immune from inflationary pressures however and management has elected to prioritise market share growth over near term margin protection. We update our forecasts accordingly, now expecting an EBITDA loss for this year of £1.3m. Management has additional levers to control discretionary expenditure and working capital management such that it

Prelims in line, Q1 trading shows return of core growth

FY22 results reflect a period dominated by Covid, where revenues more than doubled YoY as Yourgene moved quickly to capitalise on available opportunities. The world has since moved on, and we are highly encouraged to see a return to growth in the core business of 20%+ in Q1. Furthermore, this looks to be broadly based, with NIPT, DPYD and Ranger Tech all showing strong growth in the period. We make no material changes to our forecasts and continue to see a substantial growth opportunity ahead. W

Hybridan Small Cap Feast 24/05/22

*A corporate client of Hybridan LLP Dish of the day Joiners: EnSilica (ENSI.L), has join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties - otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help

CMD demonstrated broader opportunity set

Yourgene’s Capital Markets Day on 26/4 provided a strong illustration of the significant strategic progress the group has made in recent years. The pandemic was both a blessing and a curse for YGEN, delaying some opportunities, but catalysing others and leaving the group in a stronger net position than where it started. The building blocks are now in place and, as healthcare markets normalise globally, we believe Yourgene is poised for a period of extended growth, with multiple opportunities to

FY22 update – focussing on the core

Ahead of its Capital Markets Day later today, Yourgene has issued an FY22 update indicating results will be in line with upgraded expectations. With Covid-related volumes reducing more rapidly than management expected, a restructuring programme has been initiated to consolidate its UK activities and reduce overheads. We take the opportunity to rebase our estimates, essentially removing all future Covid-related sales and look for a more phased ramp of Core business sales across both Genomic Servi

The Big Book 2022 - Extended Coverage & Best Ideas

The Big Book 2022 includes our highest conviction Best Ideas for 2022. In 2021 our Best ideas outperformed by 24%, extending our track record (>10% outperformance on average over the past decade). We have again divided our coverage into six distinct themes to create our Matrix. We have added two new categories this year: ESG and Pricing Power, both of which will be fundamental investment themes for 2022. We look forward to discussing our ideas with you.

Further upgrades as testing demand persists

Strong recent trading has persisted over the winter months, as Yourgene has been co-opted in to help the UK’s response to the new wave of infections caused by the omicron variant. This comprises the surge testing PCR contracts and a new Covid sequencing service, which has made a strong contribution and is scaling up further for additional expected volumes. As a result, management now expects FY22 revenues of at least £37.0m and for adj EBITDA margins to exceed 10%. We upgrade our current year es

Small Cap Feast 18/11/2021

Banquet Buffet Bivictrix 26.5p £17.5m (BVX.L) BiVictriX Therapeutics, an emerging biotechnology company applying a novel approach to develop next generation cancer therapies using insights derived from frontline clinical experience announced a collaboration to manufacture BiVictriX's antibody-drug conjugates with Abzena Limited, a partner research organisation for integrated discovery to cGMP manufacturing solutions for biologics. The collaboration will allow BiVictriX to cost-effectively manuf

Strong H1 update drives FY revenue upgrades

Yourgene has experienced strong demand for its Covid-19 tests, which propelled H1’22 revenues to £17.5m, ahead of the >£15.0m indicated at the AGM last month. This is more than double the revenues booked in H1’21 and close to the whole of FY21. Both Genomic Services and Genomic Technologies grew strongly in the period, with Covid-related revenues now acting as much more than a natural hedge in both segments. Despite the ongoing uncertainties and lack of forward visibility around Covid-testing vo

AGM statement points to strong H1

Yourgene’s AGM statement points to a strong first half performance, with revenues expected to exceed £15m in the period. Momentum is accelerating in both the Genomics Services and Genomics Technologies business segments. This has been further bolstered by the recent award of a Covid-19 surge testing contract with the DHSC and the re-opening of travel between the UK and the US. We make no changes to our forecasts at this stage – while activity levels are ramping up strongly, visibility remains so

Hybridan Small Cap Feast 10-09-2021

Joiners No joiners today. Leavers No leavers today. What’s cooking in the IPO kitchen? Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world's best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset M

SHORE CAPITAL - Destiny Pharma plc+ (DEST, House Stock at 33p)

In line interims should reassure

Interims are in line with expectations and should reassure, particularly given the strong mid-teens growth ex-China. Improved pork prices should be supportive of a recovery in China in H2 and management remains cautiously optimistic over the full year outlook. New product development activities continue to plan, and should start to contribute from FY25 onwards. Our forecasts, Buy recommendation and 246p Target Price (2.0x EV/Sales) are unchanged. After recent weakness, the shares now stand at a

Morning Note – 16 November 2022

Hybridan Small Cap Feast 16/11/22

Dish of the day Joiners: BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio

Cenkos: Inspiration Healthcare Group Plc - Trading update

Inspiration Healthcare has provided an update on trading, noting that due to broad market uncertainty the company does not expect its FY23E revenues to ‘significantly exceed' FY22A revenues and as a result, H2/23E EBITDA is expected to be below H1/23A levels. We have updated our forecasts for FY23E and FY24E to reflect this update, removing revenue growth in the current year and shifting our previous revenue growth expectations out one year. We expect high-end, higher margin sales to have been p

LIBERUM: ReNeuron* - Cuts ahead but path to upside intact

Further AI collaboration progress

POLB announces that, further to its announcement in March 2022, the construction of the computational artificial intelligence (AI) influenza disease model has been completed by CytoReason Limited, indicating that it is on track to deliver outputs in Q2 2023. The model aims to unlock clinically meaningful insights into influenza infection and recovery through the analysis of POLB’s unique human challenge trial data. We view this rapid progress on the collaboration as positive and envisage that fu

Fusion Antibodies Interims

FY23 interim results showed a sharp short-term decline in revenue. With a recovery expected in H2, our expectations are being maintained for a 12% y-o-y increase in revenue for FY2023. Loss at the EBITDA level was £1m (FY22 H1: loss of £250k), reflecting higher CoGS and R&D spend. Fusion’s results come ahead of a key milestone in the form of the move into commercialisation of OptiMAL, which has the potential to become an important revenue source in the future. We expect further growth in revenue

Cenkos: Venture Life Group Plc -- Acquisition and trading update

Venture Life has announced the acquisition of HL Healthcare Ltd (HL) and its three Ear-Nose-Throat (ENT) brands, Earol, EarolSwim and Sterinase. Venture Life will pay £13m for the business which generated £4.5m of sales and £1.7m of EBITDA to the year-ending March 22, indicating trailing acquisition multiples of 2.9x and 7.6x, respectively. The portfolio is expected to grow in the year to March 2023 and we expect the acquisition to be accretive. The company has also announced additional distribu

Morning Note – 7 December 2022

ReNeuron Group Interims

ReNeuron’s interim results announcement provided important support to the company after a year of change. The decision not to raise money when market conditions were unfavourable has resulted in a cash conservation programme that extends ReNeuron’s FY23 cash position beyond our previous estimates while ensuring continued development of the technology platform and maximisation of partnering opportunities. As investors’ focus return to the potential for a CustomEx™ licensing transaction, the incre

Hybridan Small Cap Feast 05-12-2022

Dish of the day Joiners: Hellenic Dynamics (HELD.L) (formerly U.K. SPAC Plc) announces their First Day of Dealings on the Main Market (Standard segment). The Company has raised gross proceeds of £1.125m through a fundraising. Hellenic Dynamics plans to cultivate and export THC dominant medical cannabis products to the 25 countries in Europe that now allow medicinal cannabis for patients via prescription. Whilst we were away…. Life Sciences REIT (LABS.L), moved from AIM to Main Market Premium on

Hybridan Small Cap Feast 09/11/22

Dish of the day Joiners: Ithaca Energy (ITH.L) has joined the Premium Segment of the Main Market. Based on the offer price of 250 pence per ordinary share, the market capitalisation will be approximately £2.5bn. Ithaca Energy is one of the largest independent oil and gas companies in the UKCS. The Company will target a free float of at least 10% of its issued share capital and expects to be eligible for inclusion in the FTSE UK indices. OTAQ plc, (OTAQ.L) has joined the Access Segment of the AQS

Mixed Q3, but 2022 guidance maintained

Q3 sales fell short of consensus and AV estimates while profitability was impacted by one-off charges. However, Innovative Medicines continued its growth/recovery momentum, with healthy growth in all therapeutic areas, except Neuroscience, where Zolgensma had a one-time adverse impact. Sandoz’s guidance upgrade was a positive, especially in the context of rising cost pressure squeezing other players. Overall, we remain positive on the stock, supported by the long remaining patent life of key dru

SHORE CAPITAL - Destiny Pharma plc+ (DEST) - House Stock at 32.5p