Our live Investing Matters Podcast Special which took place at the Master Investor Show discussing 'How undervalued is the UK stock market?', has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
KPa1FOF or I'll report you
Why? Yourgene was valued around £70m before covid even existed and now they are a debt free part of this group... There will be a lot of interest in a diagnostics company fully cashed up with no funding requirements, so once the dispute is behind us.
That 'wee rally' is coming soon.
U need to wait for covid 20 for a wee rally here.
So, if we are likely to get a new CEO , after the DHSC case win , it would mean JM will be on his way. What about the fate of JW ? What does he bring to Novacyt ? What is exactly his remit ?
How much credibility does JM has now ? He , and David Allmond were the ones to talk about the £100M organic growth within 5 years from 2022. So can we trust him ?
We need to win this DHSC dispute , for the sake of the poor suffering investors who have been on Novacyt's journey from 2020. It's then we can see a new dynamic board room .
We were never presented with a plan to generate that kind of revenue.
That was so strange, - how might this figure be justified.
With JW in charge, the odds were long someone was going to provide an explanation.
Was it presumed that most of the cash was going to be funnelled into the core assets to achieve £100m revenues or, even more ludicrously, was this alongside an M&A strategy? The whole DA premierships is shrouded in mystery, after all he left just seven months after setting that goal of £100m annual revenues in 'five years'
WBAFC, James won't revert back to CFO, not when a new CFO was appointed just two months ago.
From Question asked at AGM by Wilson in October last year -
" Wilson: There was a £100 million (organic) prediction made over five years. Does that still stand?"
JM - "I don't think that's a sound figure, that figure comes from the end of Q1 2022, I think we were still a £50 million underlying business. At that run-rate we are obviously a long way short of that right now. I think to get there without acquisitions, - it’s just not credible as a number."
+++
Thanks for attending Wilson, specifically with this question.
+++
I'll settle for "It's just not a credible number" - It never was.
Hi HarChris & Kaeren , I guess LTIP we can now forget , because January 2025 they will set up a new LTIP involving new directors and probably a new CEO will be in place . I suspect JM will revert back to CFO .
Oops didn't see your post Harchris.
Agree.
What drives the SP and the appointment of a new CEO. Imo
We're already seeing this with Joanne Mason as Chief Scientific Officer of the Novacyt group, not just YG and Lyn Rees as executive director
Think you are barking up the wrong tree WBAFC. The focus moving forwards is definitely Yourgene.
Personally very much doubt JM will be interim CEO after a successful court conclusion. Yes, he would still get award if SP hit target , however I don't think that will be relevant to sp movement.
A win , another acquisition, increased take up of Ranger, NIPT , new products ,will be
I know you keep bringing up the LTIP but it's irrelevant now, the minimum price in which any of those shares vest is about 8 times the current share price.
Your posts do highlight what a complete overhaul there's been in the executive team though, that's a big positive as it shows Novacyt are no lifestyle company offering lucrative senior management salaries for non performance. We'll probably see many of the senior positions filled by YG staff as we the group slowly becomes a defacto merger between YG and Novacyt.
With more research it looks like David Franks has also left Novacyt. Which confirms only one person from the board has any interest in this LTIP, and that is the interim CEO , James McCarthy.
Looks like Navin Nauth-Misir has left Novacyt as well. That means only 2 board directors remain that have any interest in LTIP which is due to mature in December 2024. I am hoping the interim CEO is working is best to increase share holder value and reach his LTIP.
Four of the directors of the seven who were on the LTIP have left. The goal is still to achieve maximum LTIP shares due December 2024. James McCarthy is due around 225,000 shares if Novacyt achieves the required SP. I would think the interim CEO will try his best to get the SP as high as possible .
https://www.lse.co.uk/rns/NCYT/long-term-incentive-plan-gjk5fnz9rr1jyh0.html
Well they followed through with the YG acquisition, a company that was actually valued around £70m prior to covid so not one of those that got any sort of covid premium and what seems like potentially very good business. I understand the need to focus on streamlining the company through 2023 but once that's complete there's every reason to believe they will continue to look for acquisitions and other forms of investment with the large cash position they are sitting on, yeah.
HC - in theory yes but do you see that happening with the current management? Given how bored and lacking in enthusiasm they are in every video conference they put out, do you think they have the energy or desire to do this?
'On 15 June 2022, the Company filed a defence of the claim received on 25 April 2022 and a counterclaim of £81.5m against the DHSC. The value of the counterclaim is broadly in line with the amounts previously announced by the Company in its full year 2020 results, plus related interest.'
' The Company continues to believe it has strong grounds to defend the claim and assert its contractual rights, including recovering outstanding sums due from the DHSC under the counterclaim.'
WBAFC
I would be more looking at the punitive "Damages" caused to Company...
NB: Nova did everything and more to assist this Gov and like the postmasters they simply shoved it under the carpet! In favour of cheap Chinese (but more rewarding for them) crap!
The sky is the limit!
IMO DYOR
Novacyt want £85M counter claim + interest
https://www.lse.co.uk/rns/NCYT/dhsc-dispute-update-ldcfhiyo5p85qx6.html
ValJu , I believe Novacyt will win the DHSC case and receive full amount owned to them what was due in contract. Novacyt are pursuing also the interest due from this money owned .
How much interest are we looking at on top of the money from contract ? Is it around £5-10M +
DHSC Update
Third Paragraph down
THE COMPANY CONTINUES TO BELIEVE IT HAS STRONG GROUNDS TO PURSUE ITS CLAIM FOR PAYMENT ETC ETC ETC
It was RNS'd then, no counter (negative or positive ) rns's have been made since?
Therefore it is logical to conclude, that the Company are simply waiting there time in court to pursue ALL monies owed and no doubt, interest and compensation?
Dhsc is just another gov delay tactic, as it does with everything else!
IMO Nova will be cleared and paid handsomely and those with patience will be rewarded?
DYOR
Good luck all long term holders!
If this is not settled out of court ,would the shares be suspended until the outcome ?
Fast forward a few months and ABDX trading update signals that the cash break even isn't going to be achieved without further funding. Novacyt would have the ability to pick up a company with a very promising product on the verge of becoming profitable for less than a quarter of their current cash position. Or they could even reach out and be the funder that bridges them in the interim, £2m say for 20% of the company at market rates.
After the YG acquisition I can start to see how Novacyt could become a very large company just by acquisitions, bolt-ons and investment within the diagnostics space. Any increase in the cash position following the dispute broadens that opportunity further.