Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Really hope you’re more right than me. As always, time will tell.
actually looking at the chart and with the recovery process now being well underway, I see no reason the shares can't bounce back to 40p+ in short order, to close the gap from the sell-off from Feb 3rd. I personally see fair value around 50-60p, but I suspect that will require full confidence to return and more visibility on the growing life science/fermentation revenues. I'm adding more here at 27p. DYOR and GLA.
think it will come on the back of the Fermentation Enzyme business ramping over the summer, once the market sees there's plenty of material growth ahead, possibly sooner. GLA
2 years maybe, to get back close to 50p?
There does seem to be something of a clean up operation going on and a simplification of the business likes and strategy back towards core growth and expansion in Life Sciences with the Fermentation business in the US. I personally think they have a real shot at growing significantly in the US, so much so that revenues could comfortably surpass the Covid peak of £82m and with higher more sustainable margins. Yes of course this will take time but with no debt and good free cash generation, this makes for a very cheap stock in a high quality recurring revenues space in medical diagnostics. Once they get past this reordering phase the shares should comfortably recover above the 50p level and then it’s all to play for. On top of this Renalytix, Verici and Trellus are moving into their early commercial growth phases, having completed much of the preparation and building work necessary for sustained success ahead. Loony pricing in EKF down here at 25p! Check out the interview on Vox Markets with Brendan Gulston at Gresham House last week.
Sounds like Baines has been busy - and yes I think its safe to assume anything lab related (Covid, NIPT etc) has gone with ADL. Looks like they have attempted to further simplify the business into two core operations (1) Point of Care and Central Laboratory and (2) Life Sciences and Contact Manufacturing. Basically back to where the business was in 2019 pre covid with a decent core c.£45m revenue business growing at 10%+ pa in (1) and the now c.$15m enzyme investment looking to grow much increased life sciences revenue in (2). Looks like they are trying to get poor news out the way ahead of next Tuesday, with the exception of the exceptional restructuring costs. SB
Chelsea yes, you would think so. Nothing from ygen though so for them it seems it's still in place with ADL. I am holding ygen, so hoping their better non COVID revenues mean they are selling plenty of ygens nipt tests.
Assume also then, that the “Strategic Partnership Agreement” (LOL) with Yourgene is also dead.
This company seems to get its "ass-kicked" every time they make a US acquisition. They had a major US disaster 10 years or so ago after which Christopher Mills bought into EKF.
They have more or less given this back to the original owner. He seems to have tucked them up good and proper.
EKF get 1.2M shares, worth 300k today but could fall if financing needed, and the fire sale value of 400k of equipment. Forget the loan, its terms mean that loss making ADL will never have to pay it.
Each of the Loan Repayments is subject to ADL Health generating excess operational cashflow over its needs, with unpaid amounts rolling forward over the term of the loan. There can be no guarantee that these payments will be received.
There better be some better news about the enzyme business on Monday.
Trust in their competence is very low now.
I also want to know how confident they are in their cash position.
Bought for $10m…..sold for $1m. Only positive was the deal was all share. But compounded with ekf then purchasing 9m buyback shares at c40p to create some ‘value’ - more money thrown at the problem. Complete disaster and makes you seriously wonder about BOD competence. SB
Consideration of sale.
Return of 1.2 mil shares
Capital equipment at book 0.44 mil
Inter company loan repayment of 0.65 mil over 3 years
SB - agree it’s good to saw off your own leg if it has gangrene.
Essentially what this amounts to. What a strategic flop.
Here ends a rather painful lesson in how not to acquire and run fledging companies with no history set up to address a one off crisis. Good that ekf are looking to clean house, bad that shareholders take the hit - although it’s not clear yet what the true cost of this will be - we will hear more next week. SB
I believe everybody has had their shares. The shares were issued before Christmas, around November time (sorry writing from memory). The thing is that they are under a lock in. I moved SIPP in late November and queried this. My Verici shares are still held by my old broker as they cant even be transferred to a new SIPP. I have copied the pertinent line from the email thread : "they had been informed by their custodian that the Verici Dx shares were currently in a ‘lock-in period’ until 26th June 2023 and will remain in their custody until they can be transferred. "
I am not well researched in Verici DX, but the EV value is compelling, and I might buy some more.
I trade with interactive investor - and they have recently inserted a general restricted holding position for my allotted shares in my accounts - although do not indicate the actual quantified allocation (it was 1 Vrci for every 50 ekf) and as noted shares are in lock up until late June 23. SB
Reading rns again , looks like at least a year after it was announced. So maybe June time. Hopefully Verici 40p by then lol
I haven’t yet
Hi has anyone had their verici shares ?
Argee Chelsea - I like to think a great deal of thought is being given to an updated investor presentation with robust, tested timescales for the new fermentation capacity in particular - including where we sit in relation to customer onboarding given they seem to be influencing specification. The core business is more than capable of double digit organic growth. H1 2023 could be a bit tricky with reorganisation costs - but this is not a complete basket case - far from it - but no more screw ups or your point on breeding confidence evaporates. SB
SB - I'm also expecting something forward looking, that is tangible and breeds confidence.
So - 27 days until we hear what's really been going on - assuming Baines will want to offload previous issues to Salter's account. IMO the two core businesses (POC and Central Labs) should still deliver FY 2022 revenue in the region of £41/42m; with Life Sciences about £4m. Expect to see a further H2 drop in Contact Manufacturing - possibly in the region £10-12m; with Lab testing reaching £4m. With some minor add ons all in we should be in the region of £ 62/£64m give or take. EBITDA should hold steady - but PBT likely to be hit with exceptional costs. Still no idea who sold/bought tens of millions of shares a couple of weeks ago.....SB
EKF DIAGNOSTICS HOLDINGS PLC will be holding a Preliminary Results meeting on 28th Mar 2023 at 4:30pm BST.
Yes, Chelsea, could have been a "worked buy".