The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma 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.
- H1 revenues almost double last year's - good visibility for H2 and trading in line for full year - "excellent progress" on Innovenn "independence", with proposals likely in July - new Chairman coming soon Given the bullishness, it seems to me that VENN may exceed expectations this year, especially with any new contract wins. Great stuff.
The AGM update is in just 2 days' time - good to see the price bouncing today.
RNS out - the AGM will be on June 30th. The results outlook a month ago hailed "a strong start to 2016", so it should be good. Not long to wait: Http://www.investegate.co.uk/venn-life-sciences--venn-/rns/posting-of-annual-report-and-notice-of-agm/201606101105188710A/
thanks for that rivaldo.
Excellent report from Hybridan here. With the core business on a P/E below 10, a large cash pile, good visibility of revenues and Innovenn in the price for free, the upside here could be substantial. http://www.iii.co.uk/category/author/hybridan "The growing European Contract Research Organisation (CRO) has reported final results for the year to December 2015. Revenue growth of 135% to €11.47m exceeded our already upgraded revenue forecast of €11.2m. Underlying Group EBITDA showed a €1.9m swing from a €1.53m loss to a profit of €0.39m vs our forecast of €0.49m. We attribute this shortfall to development costs at Innovenn. EBITDA attributable to the CRO business was €0.8m. Depreciation and amortisation charges were €0.46m vs our expectation of €0.22m. The company underwent a step change in scale via the acquisition of Kinesis in Q4 which we understand contributed circa 12% to FY revenues owing to the short period under ownership. With €4.4m revenue booked in Q1 vs €2m in Q1 2015, and the commencement of successful cross selling of services across the enlarged client base, we have confidence in our €17m FY2016 revenue forecast, growth of 48% which we forecast to result in a more than fourfold jump in underlying EBITDA to €1.75m and an adjusted profit of €1.6m equating to adjusted EPS of €0.027c reaching €0.032c by 2018. There is however scope for faster revenue growth and greater margin progression. The company finished the year with cash balances of €3.8m, a strong base from which to negotiate potential acquisition opportunities in Central and Eastern Europe that are being explored as well as selective organic expansion into other areas. Innovenn, Venn’s innovation division, has made good progress with both Labskin and Clarogel through their development phases. These are currently being commercialised. Venn intends to reposition this business such that it has an independent footing, its own source of funding and a value that can be clearly established. The shares are on an adjusted PE multiple of 12.4x for 2016. Innovenn made an EBITDA loss this year of €0.44m. If we simply add back a similar figure to our forecast for next year this puts the company on a sub 10x PE rating, as if it were the CRO business on its own. Even at a share price of 43p (74% above the current share price) this rating is only at 16x these pro-forma earnings broadly in line at the sector, and does not take into account any separate value for Innovenn which has two differentiated market ready integumentary products targeting growing markets."
Good news - Davy initiate today with Outperform: https://www.davy.ie/research/public/article.htm?id=venn20160607_03062016.htm "Tried and tested: Initiating with an 'Outperform' rating June 7 2016 DAVY VIEW Venn Life Sciences is a small-cap clinical research organisation (CRO) building scale in an attractive segment of healthcare outsourcing. Now that it is profitable and cash-generative, the business has the potential to grow rapidly, internally and externally. Venn’s valuation – it is on a forward-year P/E of 14.3x and EV/EBITDA of 8.1x – leaves plenty of scope for it to outperform." Hybridan forecast 2.12p EPS this year, so presumably Davy's "forward-year" P/E is actually current year, just different terminology."
Amati Global have just emailed out their quarterly newsletter, and VENN get great exposure as one of three featured stocks as follows: Http://amatiglobal.com/documents/Newsletter/Amati_Newsletter_Issue_3.pdf "Venn Life Sciences is a clinical research organisation providing drug development, clinical trial management and resourcing to pharmaceutical, biotechnology and medical device clients. Venn has adopted a ‘buy and build’ strategy to consolidate a fragmented European market and now has operations in Ireland, Germany and France. In targeting acquisitions, Venn looks to fill in the gaps in its portfolio of service offerings as well as adding to its geographic coverage. This has obvious attractions to its clients, who tend to operate globally and prefer to deal with one service provider rather than multiple supplier in multiple territories. Venn has been around for 25 years and has built a good reputation within its market, having completed over 300 clinical trials. It is this experience and high standard of customer service that the business relies upon. Now over 70% of contracts come each year from repeat customers. From an investor’s point of view, this provides good revenue visibility - the order backlog (contracted work) and the pipeline tend to be healthy at the beginning of each financial year, de-risking the market forecasts. Recent contract awards include a €3m contract with a European biotech for an orphan disease; a €2.4m trial for a new stent for a European medical device customer; and a phase IV allergic disease drug trials contract from a global pharmaceutical company. Venn is now held in both Amati VCT plc and Amati VCT 2 plc."
Very positive results and outlook today. EBITDA of €285k (before amortisation and exceptionals and after depreciation) is well ahead of the £130k forecast. Q1 of this year looks incredibly strong with €4.4m of revenues booked. Innovenn looks intriguing now that it's reached commercialisation, with lots of talk about "maximising shareholder value". Plenty of cash too, so the likelihood of more acquisitions is good. Pleasing stuff.
Moving in the right direction, 135% increase in revenue and the start of this year is already 100%+ up on the same period last year. They are still looking for bolt on acquisitions ……. FCF still a way off but there is a nice cash balance to fall back on and hopefully Innovenn should start to contribute to revenue etc this year. Back to sleep.
results tomorrow and looking like they will be positive. im away till sat so will miss all the fun GLA
New article on VENN on Proactive FYI setting out the investment case quite persuasively. The P/E of 9.1 is interesting given forecasts of 1.85p EPS for this year from Hybridan - perhaps it refers to next year's numbers, or perhaps it's after stripping out the cash pile: http://www.proactiveinvestors.co.uk/companies/news/125362/venn-life-sciences-big-contract-wins-key-to-continued-success-125362.html?utm_source=Sign-Up.to&utm_medium=email&utm_campaign=7163-350980-proactivity++-+28%2F04%2F2016 Conclusion: "What the analysts think Last month shares were down 20% to 18.5p. But based on current year forecasts, analysts saw this price as offering deep value for a solid cash generative business with good revenue. The shares are on a 9.1x price earnings multiple, a discount of around 50% to the sector, which offers a free cash flow yield of 7.2%, said analysts at Hybridan. The broker estimates revenues of £16.03mln for 2016. The latest trading update suggested the group’s earnings will be at least in line with analyst forecasts. The company now expects revenues for full year 2015 to be more than double the previous year (2014: €4.9m) and to exceed market expectations by at least 15%. Venn said it is now generating free cashflows and will report a positive EBITDA position having recorded a group EBITDA loss, before exceptionals of €1.53m for the previous year."
Aesop , think we all have them storeys, i only sold half my CYAN last week from boredom, Damm. I see a big sell at close after looking strong all day. I thought we might have more news incoming as all the MMs were lined up at 26p most of the morning.u still might get a chance to buy back in. . ATB
about 22p and sold for almost the same amount as it just didn't seem to want to move. I guess value shows through eventually. Best of luck all.
yep , cant argue with that. atb
Moving up nicely, and evidently there aren't many shares around as a 20k buy at 26p today has moved the share price up 0.75p!
finally VENN starting to show what its worth GLA
little bit of interest here today always nice. gla
so whats are we missing, every rns over the last 18 months have been positive and still trading around 21p.
Even before the trading update, Finncap were forecasting 1.8p EPS this year (2016). It'll be interesting to see if they increase those forecasts or whether they wait a little. Decent round-up of the Life Sciences sector, with a nice mention of VENN: Http://www.hybridan.com/HybridanSCW/public/techpiece/Lifesciencesreview_21032016.pdf "Indeed for the more risk adverse investor, companies such as Venn Life Sciences* (LON:VENN), a growing Contract Research Organisation, with strong levels of contracted revenues offer a smoother yet still compelling growth profile."
Interview with CEO....very confident: http://www.proactiveinvestors.co.uk/companies/stocktube/4820/venn-life-sciences-holdings-plc-beat-forecasts-on-rising-contract-sizes-says-chief-4820.html "Venn Life Sciences Holdings PLC beat forecasts on rising contract sizes, says chief 12:02 24 Mar 2016 Venn Life Sciences Holdings PLC (LON:VENN) has forecast better-than-expected annual results after winning bigger contracts this year. Tony Richardson, chief executive, tells Proactive Investors the company has “moved from the realm of a typical contract size being €300,000/€400,000/€500,000 per piece,” to “a pipeline that has a lot more multi million euro pieces of business in it.” He says the company is seeing a “healthy mix” of both recurring revenue from existing clients as well as a “nice pattern” of referrals or recommendations from existing customers to new potential clients."
very happy with that, think we could be on to a winner here. gla
Yippee :o)) Http://www.investegate.co.uk/venn-life-sciences--venn-/rns/year-end-update/201603240700091152T/ "the Company now expects revenues for full year to 31 December 2015 to be significantly more than double the previous year (2014: €4.9m) and to exceed market expectations by at least 15%" Plus a €3.4m cash pile. Plus a very bullish outlook.
ticking along nicely ....... ahead of expectations, free cash flow etc. etc Back to sleep.
Does anyone know if the drop is just a stock overhang or is there some other reason for yesterdays fall? I bought some last week when it hit 19.50p - is it worth buying some more?