Bioventix (BVXP): Corp | K3 Business Technology (KBT): Corp | LPA Group (LPA): Corp | Robinson (RBN): Corp
Companies: BVXP KBT RBN LPA
Amino Technologies (AMO): Corp | Belvoir Group (BLV): Corp | Bioventix (BVXP): Corp | Maintel (MAI): Corp | Morses Club (MCL): Corp | PCI Pal (PCIP): Corp | Solid State (SOLI): Corp | Somero Enterprises (SOM): Corp
Companies: AMO BVXP MAI SOLI SOM PCIP BLV
Bioventix delivered a strong set of interims, with revenues up 21%. Given the 9% decline in operating expenses, this resulted in a 31% increase in adjusted EBITDA, with adjusted pre-tax profit also rising 31% to £4.4m (52% of full-year forecasts) and adjusted EPS up 29% to 69.4p. An interim dividend of 36p was declared (+20%) with net cash at period end of £5.5m. Growth was driven by both Vitamin D antibody sales/royalties (+c.25%), its portfolio of other antibodies (+c.12%) and a more meaningful contribution from troponin. Given the inevitable disruption that COVID-19 will have to some testing volumes (although tests such as NTproBNP are likely to benefit from high risk COVID patients), we leave forecasts unchanged, confident that the strong H1 and weaker sterling in H2 should offset any potential H2 trading shortfall. We leave our forecasts unchanged and reiterate our 3750p target price. At this level, the stock would trade on a 30x FY 2020 P/E with a free cashflow yield of 3.1x
Companies: Bioventix Plc
Bioventix (BVXP): Corp FY 2019 results – signs of troponin progress | D4T4 Solutions (D4T4): Corp H1 meets expectation and a record H2 is forecast | President Energy (PPC): Corp Acquisition and subscription
Companies: BVXP D4T4 PPC
Bioventix reported full-year results in line with expectations, although 4% (£0.3m) higher than expected revenues were offset by higher costs. A 47p special dividend was proposed, resulting in full-year dividend of 120p, up 3%. Strong underlying revenue growth (c.16%), which excludes c.£0.8m of backdated royalties, supported by evidence of early sales traction of troponin, provides a solid base for future growth. We have made minor changes to FY 2020 forecasts as well as introducing FY 2021, which implies c.10% EPS growth. We nudge up our target price to 3750p, which implies a 3.1% FY 2020 free cash flow yield, underpinned by 54% free cash flow/capital employed and 71% ROCE.
Bioventix delivered a strong set of interims, distorted by last year’s inclusion of c.£0.8m of back-dated royalty payments from one customer. Whilst statutory revenues rose 2% and pre-tax profits fell 5%, the underlying performance was considerably stronger, with revenues rising by 24% (21% CER) and underlying adjusted EPS up 27% to 53.8p. An interim dividend of 30p was declared (+20%), with net cash at period-end of £5.5m. Growth was driven by both Vitamin D antibody sales/royalties and other antibodies. Despite the strong performance, we are leaving our forecasts unchanged for the moment given the slower-than-expected ramp in troponin antibody revenues. However, we are raising our target price to 3,700p to reflect both the strong underlying and continued belief that Siemens will successfully transition to high-sensitivity troponin tests, driving growth as vitamin D sales ultimately slow. At this level, the stock would trade on a 30x FY 2020 P/E and an EV/EBITDA of 23.0x, with a free cashflow yield of 3.3%.
Bioventix (BVXP): Corp The antibody that keeps on giving | Kazera Global (KZG): Corp Interim results
Companies: Bioventix Plc Kazera Global Plc
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Summerway Capital investing company established to acquire companies or businesses which the directors of the Company believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer TBC, market cap TBC expected 19 October
Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs. No raise, market cap TBC expected 19 October.
PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quoting before the end of 2018.
Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct
Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Companies: PYC RCH BVXP BSE MYX CNC MIN CDM CERP HSP
Full-year adjusted EPS was 11% above our expectations, driven by higher revenues across the majority of its product range. A 55p special dividend was proposed, resulting in full-year dividend growth of 27% to 116p. Strong underlying revenue growth (c.28%), which excludes c.£0.8m of backdated royalties and the loss of a c.£1.0m royalty stream, bodes well for future growth. This was despite a weak start for troponin sales in Europe, which we expect to benefit from Siemens’ US launch in July. We have increased FY 2019 forecasts by 11% and introduced forecasts for FY 2020 that imply c.12% EPS growth. We reintroduce a target price of 3,440p, which implies a 3.2% FY 2019 free cash flow yield, underpinned by 51% free cash flow/capital employed and 64% ROCE.
Amino Technologies (AMO): Corp Trading update | Bioventix (BVXP): Corp FY 2018 results – 12% upgrades to FY 2019 | Sopheon (SPE): Corp Unexpected trading update – upgrade
Companies: AMO BVXP SPE
Bioventix reported a strong set of interim results, with EPS rising 40% boosted by the unexpected inclusion of £0.8m of back-dated royalties from one of its customers. Underlying revenue growth was still robust, rising 13% (c.18% at constant exchange rates (CER)), driven by both Vitamin D antibody sales/royalties and other antibodies which offset a c.£0.4m reduction in revenues from one customer following the termination of the licence. This, in turn, led to a 39% increase in pre-tax profits and a 40% increase in adjusted EPS. An interim dividend of 25p was declared (+25%) with net cash at period end of £5.6m (excludes £0.8m of back-dated royalties). We have increased FY 2018 EPS by 15% to take account of the back-dated royalty and 2019 by 2%, which reflects the underlying performance. Consequently, we raise our target price to 2650p, at which level the stock trades on a 26.5x FY 2019 P/E and an EV/EBITDA of 20.1x.
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
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We currently have 43 research reports from 3
Interim results to 30 June reflected a step-up in research activity post-June fundraise as it seeks to take its first pre|CISION targeted chemotherapy into clinical trials in early 2021. With period-end cash of £54.5m, Avacta has a cash runway into 2023, providing the necessary working capital to deliver a rapid SARS-CoV2 antigen test, take AVA6000 into the clinic, as well as its first Affimer immunotherapy and the next pre|CISION pro-drug into the clinic. Avacta is aiming to have validated its rapid SARS-CoV-2 antigen test in Q4 2020, the exact timing of which is dependent on pilot batch product from BBI Solutions. However, it is increasingly clear that there is a need for mass screening tests to isolate and remove infectious people, with Avacta’s test at the forefront. We have made changes to FY 2020 forecasts, introduce FY 2021 forecasts and a target price of 310p with a range of 211-796p.
Companies: Avacta Group Plc
Interim results for the six months ended 30 June 2020 cover a period of significant change for Open Orphan and lay the foundations for a potentially transformational H2 and beyond. They include the first six months of hVIVO performance as part of the company, and due to the implementation of operational efficiencies across the group, the operating loss fell by 11% and EBITDA was held at the same level despite a 36% reduction in revenue. The outlook for the business has never been stronger, with a strong forward order book into December 2021 and beyond and advanced negotiations for a COVID-19 challenge contract, in conjunction with potential new revenue streams. We leave our forecasts unchanged (beyond conversion to pound sterling) and retain our 19p target price for the time being, but with room for upside.
Companies: Open Orphan Plc
Open Orphan has announced interim results for 2020 which reflect a period of acquisition and integration of hVIVO, capital raising, substantial cost rationalisation and strongly accelerating commercial focus. As such, the results themselves do not reflect the Group's ongoing operational capabilities and profitability where we see strong ongoing news flow and substantial upside risk to earnings not reflected in the current share price. Reiterate Buy
In the six-month period to June 2020, ORPH focused on integration and restructuring following its acquisition of lab services and challenge studies specialist hVIVO in January. The company is currently positioned to deliver and maximise the potential its world-leading clinical research organisation
Open Orphan has announced a new £4.3m contract to conduct a Respiratory Syncytial Virus (RSV) human viral challenge study. The customer is a top 10 global vaccine company which continues to demonstrate the attractiveness of the hVIVO assets and the Group's increasing ability to attract business from the largest vaccine and pharmaceutical players in the world. Buy.
The interims are in line with the July update and highlight MMX’s resilience during the pandemic. Steady growth in billings continues alongside strategic improvement in the quality of business; notably, a reduced reliance on one-off brokered domain name sales saw almost all H1 billings (amounts invoiced) come from growth in the automated retail channel, building renewal business for the future. However channel billings are recognised over the life of the registration so much of that revenue is deferred. Thus while total H1 billings grew an impressive 7% YoY, accounting revenue actually booked fell 5% and adj. PBT fell 4% YoY - the near-term cost of greater security and quality. Cashflow remained strong, lifting net cash from $6.6m in January to $7.3m in June despite a $1.2m buyback in H1. Given the current COVID-19 backdrop, management is cautious on FY guidance however with a bright outlook, a cash-generative business and a large cash reserve, a further return of £3.0m is being flagged for H2.
Companies: Minds + Machines Group Ltd.
Despite the challenges of the past few months, XLMedia remains profitable on a run-rate basis. The interim results have delivered a much more robust performance than expected, in our view. With work progressing on recovering its position in its Casino vertical expected to yield results from Q4 onwards, there is a visible recovery profile ahead. With the >50% of the market cap in cash we are Buyers.
Companies: XLMedia Plc
Gateley grew FY 2020 sales by +6% and maintained profits despite the impact of COVID-19 and has remained profitable and cash-generative since. Swift action was taken to reduce costs and successfully move to home working. While there is no immediate financial guidance, the group is ideally placed to help clients with the legal implications of the sudden and very significant changes all businesses have seen and is supported by strong finances with net debt of only £0.9m at April 2020 down from £3.2m in 2019.
Companies: Gateley (Holdings) Plc
Full-year results to 31 May 2020 deliver revenue of £15.0m (+10.3%) and EBITDA of £6.8m (+36.0%) as noted at the acquisition of Quantuma Advisory. We continue to believe a key value driver of owning K3 shares is an investor’s exposure to the positive disruption being wrought by the company’s model, which now has the ability to be applied to synergistic markets across the addressable professional services SME sector as a result of the two recent acquisitions. The already proven restructuring and insolvency practice specifically has the potential to deliver significant upside in the current environment. We reiterate our estimates, noting EPS growth of 63% between 2020A and 2023E. Target price remains 300p, offering 100% upside from the placing price of 150p.
Companies: K3 Capital Group Plc
H120 adjusted EBITDA of £9.1m was the main positive surprise for us in Ergomed’s full interim report released today. We have increased our adjusted EBITDA forecasts to £18.3m (up 8.6%) in 2020 and £20.1m (up 6.8%) in 2021. A strong order book (£151.4m, up 22.0% from the end of 2019) with high visibility into 2021, continued overall business growth and a strong balance sheet should allow Ergomed to successfully navigate the COVID-19 pandemic, invest in organic growth and look for potential strategic acquisitions. Our valuation is upgraded to £409m or 845p/share.
Companies: Ergomed Plc
Gateley’s FY20 results highlight another year of revenue and underlying profit growth despite the impact of COVID-19 in the final two months of the year. Swift action was taken in response to the pandemic and the Group ended the year in a strong position with negligible net debt and activity improving. Given the track record of growth through previous cycles and the strength of Gateley’s market position, we fully expect the Group to return to, and exceed, previous levels of profitability over time. Relative to peers, an historic FY20 P/E rating of just 10x looks low for a Group of Gateley’s quality and long term growth potential.
Intelligent Ultrasound has announced its results for the 6-months to June 2020. EBITDA loss of £1.2m was slightly ahead of the recent trading update expectation (£1.3m-£1.4m) on revenues of £2.5m for the period, which were negatively impacted by COVID-19. Currently all group revenues are generated by the Simulation division which successfully minimised the impact of COVID-19 on sales and marketing activities to limit the group level impact. Importantly, the first ScanNav AI software product remains on track to deliver revenues in 2021, while commercial discussions for the second product, AnatomyGuide, are on-going. Cash at period end was £10.1m. COVID-19 uncertainties led us to withdraw forecasts and we remain Under Review.
Companies: Intelligent Ultrasound Group Plc
FY20 results reflect a year of trading in-line with earlier expectations, until being significantly interrupted in Q4/20 by the impact of Covid-19. Despite this, 1pm remained profitable throughout, despite accepting forbearance requests and prudently lifting bad debt provisions for the future. Post-period, there has been a noticeable pick-up in trading as the UK economy recovers, which 1pm is currently positioning itself for. A P/TNAV of 0.55x materially undervalues 1pm, hence we remain at “Buy”.
Companies: 1pm Plc
The Group has announced that its subsidiary Chesterfield Special Cylinders (‘CSC’) has won a second major contract with EDF Energy worth over £3m and also that it now expects a delay in the recognition of revenue and profit on the raw material milestone for the supply of cylinders for the second Dreadnought submarine from Q4 FY2020 to Q1 FY2021. The statement notes a strong outlook for CSC as it continues to diversify away from its historic dependence on the oil & gas sector where challenging trading conditions continue to impact the performance of its Precision Machined Components (‘PMC’) division. Despite mitigating actions, the combination of factors affecting PMC and CSC are now expected to result in a loss-making performance at Group level in FY2020. A further trading update is expected in the second half of October when we would expect forward guidance to be reinstated.
Companies: Pressure Technologies Plc
Frenkel Topping has acquired 6% of the share capital of NAHL and NAHL has confirmed that it has received an approach from Frenkel Topping proposing an all share combination. The Board of NAHL is considering the proposal. We move our recommendation from sell to neutral.
Companies: NAHL Group Plc