Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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They will spend it, or at least a fair proportion of it. From the RNS
Whilst our existing HCT and Venn businesses are both delivering strong organic growth, we will seek to enhance this via our inorganic growth strategy, and we are actively assessing synergistic opportunities for small bolt-on acquisitions in the areas of drug development consulting, patient recruitment and clinical trial site services that will support our growth strategy whilst also diversifying the Group's revenue streams.
Thanks for the reply, but they have floated the idea of a purchase for several years now. Either spend it, give it back as a dividend, or better still a share buyback.
I can't see organic growth sending this much higher, only have a fraction of what I held originally in the hope of a takeover/buyout.
GLA
Bazza - where did you get last years £60m from ? Last year was £56m and this year (cautious) target is £62m??
Most PIs look at the numbers (revenue, dividend yield, etc...) and that biases their view of the company. They pay too much attention to the day-to-day or hour-to-hour movements of the share price, which is in turn influenced largely by other PIs.
But the biggest indicator of the company's value and future prospects is a section without bottom-line numbers attached to it. Have a re-read of this and then think why the company included it in the results:
• Value proposition for human challenge trials has been reinforced by recent positive outcomes:
• Pfizer's ABRYSVO™ became one of the first RSV vaccines to receive FDA approval in May 2023 having received Breakthrough Designation, following an PII HCT conducted by hVIVO
• At least two biotech clients received FDA Fast Track and/or Breakthrough Designation
And couple that with this statement:
• Upcoming move to the new state-of-the-art facility, which is largely funded by key clients, will increase revenue potential and position the Company for further margin improvements
If you know anything about biomedical research, you'll know how much time, money and other resources are spent on developing pipelines of medicines. And if hVivo are able to showcase that (so far) 3 clients have received Fast Track or Breakthrough Designations following data generated using hVivo's unique offering, then that is going to have huge ramifications for other biotech companies.
We can already see how important this is, in the second statement I highlighted. The new facility was *largely funded by key clients*. I challenge any PI here to show me another example of this happening.
There is a huge demand for hVivo's unique offering, by companies with very deep pockets.
Sure, sell out at 29p and try to time the market getting back in. Sure, complain that the dividend is 0.2p instead of 1p. But I guarantee that the IIs who were desperate to get in at 28p won't be reading today's RNS with the same focus that PIs are.
It's difficult to beat guidance if you set it too high.
MOA - Under promise, over deliver.
Maybe they have an acquisition in mind and need to preserve cash.
Id10t, the view/narrative is the dividend is required as a tickbox for institutions and so beings the yearly pay out
Agreed, would have expected a bit more revenue but at least it's an increase compared to previous year.
It's a relatively no surprises set of results - strong and consistent. And I would expect a churn in the stock as a positive.
DYOR
I think the revenue target of £62m, following last years £60m, is a bit weak. A 10% increase to £66m would be challenging and still in growth territory. Yes £100m by 2028 is excellent but following the move this qtr, more contracts would be very welcome IMHO.
GLA
Considering the growing cash pile and how long they have held on to it, it's no wonder the market has marked us down.
My personal view is that this is not worth doing, either make it 1p or don't bother!
Thanks Strictly. That was one of my thoughts as I'm stuck between a rock and a hard place and couldn't risk a drop. Good to see there are still some decent folk on here
AIM stock, general market sentiment, news already baked into SP, profit taking...
DYOR
A lot of the information was in the open so its the expected churn when something materially higher wasn't announced.
The final higher EBITDA was higher than given at the last TU.
Also the dividend was higher than I expected (0.2p, I thought 0.1p).
Cavendish upped their pt to 40p:
"Our 2024 estimates have been upgraded, EBITDA increasing 3% and cash generation up 5%. We increase our target price from 38p to 40p on our forecast upgrades. "
Really thought this would rise after such excellent results. Also surprised at number of sales of such a successful and growing company . The London stock market is just not a good place to be compared to the USA. I feel the likelihood of this company at some stage being bought out is very high if the valuation persists.
Well done NST - at least you times your sells before todays fall!!
These are excellent results, good cash position and an encouraging dividend payment. Mo Khan gave a very positive interview this morning. A positive future awaits.
Excellent performance well done team LH&K Mafuta
I like this bit a lot.
"Our current £80 million weighted orderbook is highly diversified, with work contracted across 7 challenge agents and 11 HCT clients, substantially reducing the impact to hVIVO of potential postponements or cancellations."
Overall a very strong performance. As expected.
EBITDA margins of 23.3%. Fantastic as only advised 22% in trading update a couple of months ago!!
The most interesting thing is canary wharf is up and running this month! I didnt expect that. Everything else as predicted and rock solid
Just thinking the same thing !
Https://www.londonstockexchange.com/news-article/HVO/final-results/16413590
Where's the results RNS?
Still waiting for stts big predictions, he said cash would be down but too scared to name a figure?
I'll go 40m cash now ;)