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ECO Animal Health has undertaken what represents a potentially important expansion of its R&D pipeline via a collaboration to develop veterinary vaccines against three porcine infectious disease targets using a novel self-amplifying RNA (saRNA) technology developed by Professor Robin Shattock of Imperial College London. The collaboration will assess saRNA-based veterinary vaccines against two viral and one bacterial infection in ECO’s validated swine disease models with a view to selecting candi
Companies: ECO Animal Health Group plc
ECO has entered into a research partnership with Imperial College London to assess veterinary applications for its novel saRNA platform technology. This is the next generation of RNA-delivered medicines with a broad range of potential applications in vaccines and other therapeutics, crucially at a lower cost than existing mRNA technologies. It adds to ECO’s pipeline and strategy to diversify the business alongside lead product Aivlosin, which we continue to believe will be transformative for the
Singer Capital Markets
ECO’s FY22 trading update is encouraging in so far as trading in China appears to be normalising. As a result, revenues and margins are tracking in line with revised expectations. As outlined at its recent CMD, ECO has an exciting pipeline of new products in development. Investment is therefore continuing at an accelerated level, which will result in lower EBITDA than previously expected. We update our forecasts accordingly, but continue to see scope for a transformed business as these new produ
Chinese marketing authorisations for the use of Aivlosin® Water Soluble Granules (“WSG”) are important steps to support regional expansion in the worlds larger producer of table eggs, accounting for more than a third of the world’s laying birds. Aivlosin®, although reaching maturity remains an important product until the new development pipeline comes on stream.
ECO’s recent Capital Markets Day lifted the lid for the first time on its pipeline of new products in development. At a cost of £10m pa, it has been developing a range of complementary vaccines and therapeutics, from which it can leverage its strong brand and established routes to market in larger and higher margin segments of the market. This has the potential to transform the investment case for the group, significantly increasing and extending the growth runway, improving margins and returns
ECO Animal Health’s shares currently stand at a 52-week low, likely on concerns over its exposure to the unpredictable Chinese pork market. Sales of the company’s main product, Aivlosin, are highly exposed to the economics of the pig farming sector in China, which has moved from an unusual situation of shortage in 2020 to one of over-supply this year. Thus, the investment proposition is currently geared to a recovery in Chinese pork prices and rebalancing of supply and demand, something that sho
ECO’s overweight exposure to China continues to have a bearing on the short term outlook, with volatile pork prices impacting on demand and forward visibility. Whilst prices have rebounded strongly off their lows, stability is needed to restore the market to equilibrium. Trading in the rest of the world remains more positive and in line with expectations. After downgrading at the AGM in September, we push through further China-related downgrades, the net impact is -37% at the EPS level this year
After the exceptional trading conditions in China last year comes the hangover. A further softening in pork prices highlighted at the July trading statement has led to conditions in China continuing to ease in Q2. Revenues YTD in that market are now significantly below management expectations and down YoY. Whilst some recovery is expected in H2, there looks to be much to do to make up the shortfall. More encouragingly, trading in the group’s other markets remains in line with expectations. We re
Exceptional trading conditions through the Chinese Lunar New Year in February have prompted a further positive trading update from ECO, indicating revenue and EBITDA for FY21 will be significantly ahead of estimates that have already been upgraded several times. Conditions have also remained buoyant in markets such as the US and Brazil, with other territories remaining in line. As a result, we upgrade our FY21 revenue forecasts by a further 11% to £101.7m which translates to an adj EBITDA upgrad
With the audit process having been further complicated by the impact of the pandemic, ECO’s delayed results for the year ending Mar-20 and the half year ending Sep-20 have now been published. In headline terms, they are both very much in line with expectations. As previously discussed, trading suffered in H1-20 as the African Swine Fever outbreak in key market China impacted on demand. H2 was significantly stronger (60% of FY20 revenues) and that momentum has continued into FY21, with two signif
Ongoing strength in the key China market has prompted a positive trading update, indicating FY21 revenues and EBITDA will be significantly ahead of (already upgraded) expectations. Demand for Aivlosin in China in particular has remained strong throughout Q3 and is expected to remain so in Q4. We upgrade our FY21 revenue forecasts by 12% to £91.9m, which flows through to a 30% PBT upgrade to £10.1m. Whilst there is some caution expressed over the sustainability of this demand, we now forecast a f
Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an
award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol.
Offer TBC Due mid Jan.
HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of
tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the Uni
Companies: SAR CREO VRS JDG CCT MPAC ALS AVCT EAH GCM
The strong recovery experienced in the early part of the year has continued, particularly in China, meaning H1 revenues are now expected to be materially ahead of expectations. Whilst up against soft comparatives, this implies strong growth YoY and, if trends persist, a FY21 performance ahead of expectations. We upgrade our FY21 revenues by 14% to £82.0m driving a meaningful 23% increase to Adj EBIT. Whilst there remain some macro uncertainties, we have sufficient confidence at this stage to nud
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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
Companies: ANIC RUA CREO GENI HEIQ IHC IXI IUG OPTI SBTX VAL VLG
Companies: Futura Medical plc
Full-year results were in line with the preliminary guidance issued in early 2022. Feraccru revenues in Europe increased with a 60% increase in volumes and the US commercialisation of Accrufer continues, with broader insurance coverage (100m lives covered). As with many small cap companies, access to growth capital is currently difficult; however, the group has raised a $10m loan from a major shareholder providing a cash runway till end-2022. Our assumption is that further funding comes from deb
Companies: Shield Therapeutics Plc
OptiBiotix has reported final results for the year to December 2021, with revenues growing 45% to £2.2m and the EBITDA loss increasing to £1.0m, reflecting the increased investment in the business. Post-period end, OptiBiotix has continued to return value to shareholders through the successful spin-out and listing of its ProBiotix Health division. Future growth of the company is supported by commercial agreements with large partners and a substantial pipeline of opportunities through its 2nd gen
Companies: OptiBiotix Health PLC
Companies: Warpaint London PLC
Trading continues to track ahead of expectations, which have been upgraded twice so far 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, potentially with counter-cyclical characteristics as consumers start trading down. After the recent pull-back, valuation is undemanding for a 3-yr EPS CAGR of 13% with risk p
An update from CVS this morning covering conclusion of the CMA process, a further acquisition and update on trading. The CMA investigation into the acquisition of Quality Pet Care (QPC) is now complete, thereby bringing to an end a 9 month process. As part of the undertaking, CVS yesterday completed the sale of QPC for cash proceeds of c.£9m, implying a c.£12m impairment. Whilst the CMA episode has clearly been a setback, it does not seem to have fundamentally impaired ongoing M&A ambitions give
Companies: CVS Group plc
Companies: ORPH STX TSTL
Dish of the day
Visum Technologies has joined the AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators).
No Leavers Today.
What’s cooking in the IPO kitchen?
Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Compan
Companies: VAST TSTL 7DIG AHT CMX JADE
Belluscura has announced the launch of the next generation X-PLOR portable oxygen concentrator and expanded distribution through a D2C offering and partnership distribution plan for smaller DMEs.
Companies: Belluscura PLC
Companies: Oxford BioDynamics PLC
No Joiners Today.
Tungsten Corp and Sensyne Health have both left AIM. Hibernia REIT has left the Main Market.
What’s cooking in the IPO kitchen?
Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June.
LifeSafe Holdings, a fi
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The strong momentum from Q4-21 has continued into H1-22, with revenues expected to be up by more than 22% YoY. The outlook remains positive supported by strong industry demand and market share gains in the UK, where the group’s sustainability and affordability credentials are increasingly resonating. Whilst some macro pressures remain, these look to be manageable. We therefore make no change to our forecasts at this stage, but are highly encouraged by current trends and remain optimistic for the
Companies: Surgical Innovations Group plc
Companies: SourceBio International Plc
A positive AGM update confirms strong revenue growth has continued YTD and further margin improvement means management again expect EBITDA to be materially ahead of expectations. The business model is now settled, with additional distributors appointed in the US which should help drive further penetration into the Primary Care market there. China revenues were strong and with no sign yet of any slowdown, despite being cognisant of renewed lockdowns there. Gross margins have remained robust on po
Companies: Circassia Group PLC