April was another impressive month for Eurofins with sustained COVID-19-related revenue and accelerated organic growth momentum in the core business, aided by soft comparables. In ytd FY2021 (to April), the group registered organic growth of c.50% yoy. We will revise our financial estimates and target price upwards to incorporate the strong trading update. However, we reaffirm the cautious stance given the expensive valuation.
Companies: Eurofins Scientific (ERF:EPA)Eurofins Scientific Societe Europeenne (ERF:PAR)
Eurofins continued its strong showing with 44.3% organic top-line growth in Q1, building on its robust performance in the second half of last year. The share price came under pressure on the back of qoq lower revenue from COVID-19 clinical testing and reagents, whilst core offerings grew at 10% despite the lockdown measures in key geographies. Management maintained its financial guidance for now, but 2021 appears to exceed the financial objectives materially.
Eurofins reported strong FY2020 results, underpinned by robust demand for its COVID-19 testing solutions and continued recovery in core businesses. Pandemic-related opportunities have not only been a boon to the top line but were also accretive to profitability and cash flows. While management largely retained its near-term guidance citing uncertainties, 2021 could be materially higher if demand for testing is maintained. The dividend was also resumed with a proposed €0.68/share, significantly h
Eurofins clocked a better-than-expected performance in Q3 FY20, lifted by its broad COVID-19 testing portfolio and a gradual recovery in the core operations. While the management has left its FY20 and FY21 objectives unchanged, it expects to beat them significantly, as testing demand is likely to be sustained in the near-term. Dividend payments are also expected to resume next year.
Companies: Eurofins Scientific Societe Europeenne
Eurofins Scientific reported strong H1 FY20 results with a resilient top-line and a significant improvement in profit margins. Moreover, the robust FCF generation and equity issuance proceeds helped the group to cut its leverage considerably and move forward its 2.5x net debt / adjusted EBITDA target by a year to the end of FY20. Also, as management expects robust demand for the COVID-19 testing over the coming few months, it has maintained its FY20 revenue and adjusted EBITDA targets.
Eurofins displayed good resilience in Q1 FY20, supported by the food and pharma businesses. Although, the Q2 FY20 performance is likely to be soft, due to the widespread lock-downs, management has maintained its full-year organic growth targets – a robust demand for its COVID-19 testing solutions in the coming months is expected to compensate for the loss in existing businesses. Moreover, the curtailed capex, M&A and operating spending should provide it with sufficient liquidity to navigate thro
A good set of FY19 results from Eurofins Scientific – barring the cyber-attack impact, the company performed satisfactorily against its financial targets. Its progress on the deleveraging front was also noteworthy, besides the curtailed M&A spending. Management remains confident about sustaining the positive momentum in FY20 and FY21. Regarding the Coronavirus, no material effect has been seen yet.
Eurofins reported reassuring top-line growth in Q3 FY19 – the performance was spread across all geographies except for the UK. The growth is likely to be sustained in Q4 FY19, in our opinion. However, what remains concerning about this company is its highly-leveraged position and thin free cash flow. A faulty execution of the improvement plan will hamper investors’ confidence in the stock.
In H1 19, Eurofins clocked a strong top-line performance – though organic growth was slightly behind the street’s estimates, the inorganic expansion nudged it up. More importantly, management estimates the cyber-attack consequences to be insignificant for the company. It has maintained the full-year financial guidance, adjusting for the incident-caused losses. No material change in our estimates.
Eurofins reported a cyber-attack on its IT systems a few days back. The recovery work is ongoing and no unauthorised theft or loss of confidential client data has been reported to date. Although there is no clarity on the financial impact so far, management has alluded to it being ‘material’. We attempt to estimate this loss in a scenario-based model, but conclude that the share price correction was an overreaction.
Despite a tad soft Q1 FY19, Eurofins remains confident in achieving its full-year financial targets. Though clinical diagnostic business’ problems continued in the quarter (regulatory headwinds in the US and France), Food and Environment testing segments remained healthy. No material change in our financial estimates. Our stock recommendation ‘Add’ is likely to be maintained.
While Eurofins reported FY18 profitability ahead of the street’s estimates, investors seemingly were not happy on two fronts: lower organic revenue growth (50bp miss vs full-year target due to Q4) and the deterioration in the group’s leverage position. While we will revise our target price downwards, incorporating a more cautious view on the group’s debt problem, we believe that yesterday’s share price drop was more of an overreaction.
The company reported H1 FY18 results which were in line with our estimates. Recently, the company upgraded its revenue guidance, resulting in a significant jump in the stock price (up 16% in two trading sessions), post which the higher leverage level and significant integration risk wiped out most of these gains. The company successfully raised €550m at 1.38% (vs the average cost of debt of c.3.5%, which should fall further in the near future). We have tweaked our estimates slightly. No change i
The company reported Q1 18 numbers which were below our estimates as well as market consensus. North America, Germany and Belgium & the Netherlands, accounting for half of its revenue (approximately), remained either in line or surpassed its projected growth, whereas France remained subdued and the UK & Ireland recorded negative growth. The company continues with its shopping spree, adding further to its execution risk. We have revised our estimate downward, changing our recommendation from ‘Ad
Eurofins reported FY 17 results in line with our as well as market expectations. The company continued with its aggressive M&A strategy, undertaking a record 60 acquisitions in FY 17. Given the stated objective of €4bn in sales by 2019 is within reach, there seems little need to pursue such an aggressive stance. Considering the deteriorating leverage position and higher execution risk attached to the acquisitive strategy, we have tweaked our estimates downward with no change in our stock recomme
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VLG has acquired BBI Healthcare (BBIH) for up to £36m which fully deploys proceeds from the Nov’20 placing. BBIH is of high strategic value; it is growing, highly profitable and a leader in Women’s Health & Energy/Diabetes Management with 3 brands (2 market leaders). It is well invested, has manufacturing capacity, and made a 28% EBITDA margin in FY20. The price equates to c12x EBITDA before synergies, which will be significant and immediate. We upgrade FY21 EPS by 12.5% (part year) and FY22 by
Companies: Venture Life Group Plc
Venture Life Group has announced the acquisition of BBI Healthcare, a leading Women's Health and Energy Management/Diabetes company. Venture Life will pay up to £36.0m for the business, which generated revenues of £10.2m and adjusted EBITDA of £2.6m in FY20A. We believe the acquisition will fit well within Venture Life, significantly expanding the group's own brand revenues and providing a number of revenue growth and operational leverage opportunities. The acquisition has been financed by exist
In an encouraging sign of building US momentum, Yourgene has announced it has signed a multi-year licence and supply agreement with a major US precision medicine company to enable it to offer a new reproductive health screening service from its own laboratories. The agreement encompasses a non-exclusive licence to Yourgene’s proprietary bioinformatics Flex analysis software and a supply agreement for sample preparation reagents and instrumentation. Notably, this includes the Ranger sample enrich
Companies: Yourgene Health Plc
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
A comprehensive FY’21 (May Y/E) trading statement touts a strong FY’21 outturn in line with our expectations that shows 8x topline growth, building strength in the ImmunoINSIGHTS service business and sets the tone for future upgrades. We leave estimates unchanged, but believe forecasts are prudently pitched with risk to the upside. Notably Investors should take confidence in that management believes that, eight days into the new financial year and a strong start to FY’22, it has visibility on up
Companies: Oncimmune Holdings Plc
This morning Oncimmune issued a Trading Update for FY2021, ending 31st May, highlighting strong revenue growth, successful fundraising and investment, plus a number of new key ImmunoSIGHTS contracts signed in Q4. Growth in demand for blood-based lung cancer test EarlyCDT® was also noted, both in the UK (NHS) and US. Positive FY2022 guidance highlighted an ongoing increase in IMMUNOSIGHTS contracts, and potential investment in a new US laboratory and accompanying business development team. We mai
AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN RECI STX SPO SCE TRX VTA
MED3000 is a breakthrough therapy for erectile dysfunction (ED). It works much faster than existing therapies, has a better side-effect profile and can be sold over the counter. However, the market has been sceptical on management’s ability to secure a major European out-licensing deal and to complete a small US study due to its cash constrained position. Following the completion of £12m fundraise Futura is funded through to at least the end of 2024 which includes several major catalysts over th
Companies: Futura Medical plc
Trading has strengthened significantly since restrictions eased in April, especially in the UK. UK brand sales are now up 64% YTD (+18% vs 2019). Further distribution gains are being made, including in the USA and online sales have tripled, albeit off a small base. Net cash has increased to £6.6m (Dec’20, £4.9m). Risk appears to lie to the upside vs prudent forecasts. The re-rating looks well supported to us, and we look forward to the H1 update in July
Companies: Warpaint London PLC
Full year results for the year ended 31 December 2020 reflect a period of change for the company as it sets the stage for the commercialisation of its next-generation DNA synthesis and delivery technology. 4basebio UK Societas was spun out of 4basebio AG (now 2Invest AG) on 8 December 2020, and was admitted to AIM on 17 February 2021. 4basebio generated revenues of £0.46m (2019: £0.20m, +129%), with a pre-tax loss of £0.72m (2019: £0.53m, +35%), with year-end cash of £15.0m (versus our £14.6m es
Companies: 4basebio UK Societas
Data presented at the ASCO further supports the use of eftilagimod alpha ("efti") in PD-1 / PD-L1 immune checkpoint inhibitor ("ICI") combinations. These include data in 1st line NSCLC (non-small cell lung cancer) and 2nd line HNSCC (head and neck cancer). The new Phase 2 TACTI-002 interim results show that 7 patients have now seen complete responses to the efti-pembrolizumab ("pembro") combo (2 in 1st line NSCLC and 5 in 2nd line HNSCC). Treatment was well tolerated in the total 127 patients. W
Companies: Immutep Ltd
Warpaint has issued a highly positive AGM trading update (covering the financial YTD). Trading is said to have been “encouraging”, with UK brand sales some 18% ahead of pre-covid levels, with good progress in international markets and online sales reported at 3x a year ago. We leave forecasts unchanged at this stage of the year, with 2021F at EPS of 5.3p, although we see growing scope for upgrades if the current momentum can be sustained into H2 2021, and if significant additional Covid disrupti
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
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Creo Medical has published its final results for the 12 months to Dec-20. In line with recent trading statements, the company generated revenues of £9.4m through the year and closed the year with cash of £45.1m. Operating loss was £23.5m (Cenkos est. £25.4m) reflecting increased R&D and commercial activities. Despite COVID-19 impacting the adoption of Creo's products, the company had a strong year, completing two acquisitions and achieving additional regulatory clearances. We note that Creo ende
Companies: Creo Medical Group Plc
NetScientific, the life sciences and sustainability technology investment and commercialisation group, announced intraday on Thursday 10 June 2021 that it had raised gross proceeds of approximately £7.7m in an oversubscribed fundraising at a price of 130p, a 10.3% discount to the previous day close of 145p. A total of 5,958,123 placing shares will be admitted to trading on 29 June 2021, subject to placing agreements and shareholder approvals. The placing significantly strengthens the balance sh
Companies: NetScientific plc