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£900k a month of sales that’s it
This was the latest £numbers off Omega - RNS 25/11/21
Financial Highlights:
· Revenue increased by 81% to £5.73m (H1 '20: £3.16m)
§ Health and Nutrition sales up 62% to £4.17m (H1 '20: £2.58m)
§ Global Health revenue up 170% to £1.56m (H1 '20: £0.58m)
· Gross margin decreased to 34.4% (H1 '20: 42.9%) caused by increased direct labour in anticipation of DHSC COVID-19 contract work
· Statutory loss for the period of £2.75m (H1 '20: £0.28m)
· Adjusted EBITDA loss1 of £2.45m (H1 '20: loss of £1.29m)
· Adjusted loss per share1 of 1.3p (H1 '20: 0.1p)
· Cash balance of £4.7m (H1 '20: £7.0m)
Okeehurst1
I haven't managed to log onto ODX website where you can get the true figures, but this is according to google finance. The graph shows that since December 2020 - December 2021 ODX were turning over between 2.7M - 2.9M per month.
MIKODX
£3M a month would mean they are doing £2M a month from Covid ? - assume they are only doing £11M p/a ex Covid
Can’t see that tbh ? How are you getting to the 3M ?
Not sure how much they are generating from CD4, but they are generating just under 3M per month from all their tests.
But IF the cash burn over and above operational gross profit that would be £7M a year of losses - assuming 55% gross profit on £11M of CD4/HIV sales
Note ; H1 gross was 30% but they disclosed this was down to DHSC Costs indicating they expected a return to the normalised gross margins which have been 55%
So IF they are generating £900k a month of sales of CD4 then they are generating £500k of gross profit a month ( now ) that covers the operational cost - maybe some PLC costs tip it over to a small manageable loss
It all boils down to what did they spend £650k a per month from their £4M plus cash pile the last 3 months ?
It has to be raw materials for stock ? What else could it be ?
The cash running costs of Omega can’t be say £500k p/m which happens to match the gross profit generated (give or take ) plus another £650k p/m on top - which would be £7M a year plus of losses, that’s not the case
"Once we firm the base line operational
monthly run rate for cash burn we can take a view on what the other £2M over 3 months was used for ?"
I have no idea what it was used for, all we know that in those 3.5 months the cash position dropped by around 2M, and in the 6 months prior the cash position dropped around 0.5M a month, pretty much on par. And if you extrapolate, something needs to change otherwise ODX runs out of cash in around 3 months...and then into the overdraft.
"I just can’t see our cash burn is £1.2M a month"
It isn't its 5-600K a month
TW, how about we look at it this way ?
MIKODX thinks (below )cash running costs look up to around £500k a month
Once we firm the base line operational
monthly run rate for cash burn we can take a view on what the other £2M over 3 months was used for ?
£600k per month tops is my take on cash burn and they have maybe £500k to £600k of gross from CD4 sales per month , so maybe washing their face at best
Re the £2M cash used from reserves over the last 3 months, agree it’s cash utilised ( no argument on that point )
However this cash is not on staff/ establishment but stock to ensure the CD4 has the - maybe low numbers of Antigen LFT’s -the materials to be produced , this will be turned back into cash when products are sold (CD4 and maybe a very small £value for EU CE via DAM )
I just can’t see our cash burn is £1.2M a month to generate £900k per month of total revenue?
Could be wrong but we would be looking at £6M to £7M a year losses and that’s not the case?
It does focus the mind that the Chairman has to make some big calls within the next 8 weeks - personally I don’t think it’s Jag calling the shots here it’s the Chairman.
Does he try and limp on if he secures CTDA/ EU HUA and how big is that market going to be over the spring / summer from a £cash point of view ?
If your correct and am wrong re cash burn then he doesn’t have long before he has burnt his cash pile - what’s left of it
He then has to consider plan B which is selling CD4 division and separately Alva as a going concern IF there are any overseas players who want a U.K. base to help pick up Government contracts for next winter ?
Google Finance.
Head count source please.
ODX cashburn is around 400 - 500K per month. They've now reduced their headcount to 170.
"I disagree with TW’s views on cash burn ( quantum) per month, I don’t think it’s £1M, suggest we are close to break even or small loss due to the £600k gross from CD4 / HIV"
OKe, cash burn is how much less cash on hand is reported from one time to the next. Regardless of income, profit or outgoings, it's the cash in the bank...simple.
The cash on hand is reducing, according to the last 3 stated cash on hand figures reported by ODX. It's not a case of believing me, its a case of facts. It's going down, and if you divide the reduction by the period between the reports you get a rough and ready average monthly figure. In terms of income, nothing has changed that we have been advised. In terms of expenditure, ODX can reduce the wage bill, but many of the other outgoings will be standing charges, with them feeling an increase like everyone else in the cost of electricity. So given the information we know of, cash will continue to dwindle around the same rate as previous, until they can get generate more net income, which means sales of product at a net profit.
" Locked in"
Too right.
Been in the Job a day, and everyone wants a pound of flesh.
Plus, he'll be polishing his shoes and getting his overnight bag ready for the trade show in Dubai - hopefully, get some orders in the locked-in.
"I just don't get it."
That is clear, you just now have to come to the realisation that I have neither a responsibility nor a particular desire for you to "get it".
Perhaps you should spend more time discussing the company, than discussing posters. This came about from a discussion on ODX cash position, which you did not refer to or add to at all, just went all "don't get it"
Nicely evaded Benny . Well played sir.
You could be a politician
Benny..I should be flattered as if you only post twice a day I must often be your only subject...eg yesterday..I don't know how accurate it is as I often skim past your posts as I know it will have nothing to do with odx itself.
So out of curious interest ..why don't you ever post something that refutes what twatcher says or strike a dialogue with him about odx.
Why spend your time worrying about him and not in the share you are supposedly invested in ? If he has got it wrong let him and the rest of us know how and why .
and I am not being malicious either..I just don't get it.
Twatcher - you have to remember that there are a group of posters that have nothing at all to say on odx....nada..a stock they are supposedly invested in...their only reason for coming on here is to pass comment on other posters..
Strangely they can't understand why those of us who have invested heavily in a company that should be selling tests in a pandemic are on here...complaining
If we weren't they would have nothing to say..which personally I find strange and a waste of their obviously much more valuable time...according to them...
As for the disappearance and then reappearance of some ..I put that down to them slinking off when those of us critical were proved right. After a short interlude they feel safe poking their heads out again...and normal service is resumed.
Hashtag...it seems to me that the most vitriolic on here often have the least meaningful contribution on here
TW, am just adding back the 55% gross - we lost 25% off the gross in H1 due to the DHSC debacle - on the £11M non Covid sales, say £600k gross profit a month today ?
On the cost side we discussed £250k p/m estimation for the 150no staff today ? This could be light
I genuinely can’t see how we are burning £650k more cash a month ? That would be £1.1k cash require per month for £900k sales
It has to be for stock materials for CD4 ? - £2M
Could be a very small cash burn but looking at the numbers it can’t be £650k over above the £600k gross ?
Everything else below Re Omega directors ramping fully agree with your points
Benny-hill,
Oke said "We don’t know if we are running at a loss at cash level "
I countered it is one of the things we do know and related the various figures that ODX was supplied. It is a discussion. It's why I'm here.
And once again it appears my giving relevant factual information irks you and you'd rather not have that information posted ?
It is clear for all to see that the REAL information coming out of ODX has in fact been entirely negative for over 18 months, and the positive stuff they put out wasn't real. In fact they have been the rampers of most consequence in my opinion. Unfortunately the things we were not privy too have also proved to be negative. The fact that my mostly factual postings, and my personal assessment of the situations have predominantly been proved correct seems to annoy you....it certainly is a disappointment to me that notwithstanding their ineptitude I had expected the gov contract to bear fruit (I always said so), and am at a significant financial loss as a result. Perhaps you'd prefer if I took the same path as the notorious ODX rampers, such as BigJock, Merchantbank etc etc, and just disappeared when the SP crumbled ? I constantly challenged their ramping at the time.
Maybe you should in fact learn something from those18 months, which is I've basically been right, and take more heed of my posts rather that dismissing them.
In this instance the ODX's cash running down is factual correct.
I note you weren't here for quite a while, and have returned of late, which is suggestive that you sold out and have latterly bought back in and are now not happy with your timing, and would once again prefer to just hear good news regardless of its basis in reality ? Look up BJ or Shredz or Merchantbank on twitter, they'll dish out endless "news" that'll keep you content.
TW where does it say that JG is an interim CEO?
Also have you forgotten the CD4 string to the ODX bow?
Lolz sileng, this will drop into the next support level of 12's as we approach close as it did yesterday when it dropped into the 13's in the last 30 mins. Expect pretty much the same here today. Pretty much expect this to be in the 11's by end of tomorrow leaving all holders with sweaty hands over the weekend as they lose another 25 -30 % this week !!!
Today could be a blue finish one of many imo
Third party Government loan would have been paid back via profits from contract ? No contract no loan repayment.
So if a third party asks you to build and ramp up your production facility using your funds and their funds for an impeding contract from them and that contract isnt given.
The least i would expect is the third party to actually cover your cost. Government pulling a fast one, not a leg to stand on in court.