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I read it the same way JAdam - that for me is an order!!
J, agreed
This reminds me a bit off the bbi leak.
Got a speeding ticket and then a few weeks later it was exactly 1m to the dot they announced. So the speeding ticket was a lie or it’s a coincidence.
The 'potential' of the contract is 75mil. When MHRA is achieved, the contract will be fulfilled all the way up to 75mil i think. Until then, the gov order is for professional use 1mil +. When we get mhra, it means gov has approval to send the test kit to anyone to test at home. I think that's when the big money will start to roll in. MHRA is still the key. Esp, as we won't need most of the other approvals, like fda, mcra and who once we get mhra.
So if the value of the contract is up to £75million - that is around 10 million tests assuming £7.50 per test. ODX will manufacturer 2.5 million of these as a minimum and therefore the value of that contract is worth £5-10million for ODX over the next year or so - all based on assumptions?
Paul must be sat at his desk - that is a record time for a reply:
1. It is the Company’s considered view that there is no obligation for ODX to announce this as it is orders that will impact business performance and not an estimated potential for an agreement that isn’t guaranteed or covered by contracted orders currently.
2. Hopefully you’ll appreciate that Abingdon Health and UK RTC (and therefore ODX) can only make public statement about their engagement with the UK Government with prior approval from the UK Government.
On (2) it is in the public domain so dont buy it, on (1) i tend to disagree - possibly a question to pose on the investor presentation.
What do I know - back to boring emails at work - we know it is coming - hold tight!
"Personally I prefer fewer rather than more, but striking a balance can be difficult I suppose. Some AIM companies seem to post when someone sneezes."
*Cough* Avacta *Cough*
;-)
Order or no order, the Company has to decide whether to issue an RNS and the guidance from 'Key UK Listing Rule obligations' is reasonably clear but open to interpretation.
"Companies must notify without delay major new developments that may affect their business if the development may lead to a substantial share price movement. Issuers must also notify without delay information concerning a change in financial condition, performance or expectation of performance if the change would be likely to lead to a substantial share price movement."
Personally I prefer fewer rather than more, but striking a balance can be difficult I suppose. Some AIM companies seem to post when someone sneezes.
[Source: Thomson Reuters-Practical Law]
I have always declared I am a fan and owner of ODX shares so take this in the spirit it is intended. Omega are building manufacturing capabilities to service a worldwide pandemic (not a UK one) with five tests and the need for the tests will last at least the next two years IMO if not longer especially on Antibody testing.
You can then add in expected HIV tests post the WHO approval and the Chinese food intolerance contracts.
So this is a superb company that is going to go from strength to strength.
However, there is so much sentiment driven behaviour on AIM you need to communicate and keep people involved (and invested) in the business - Omega is 59% PI owned - and I do think the PR needs some work, I have replied to Paul @ Walbrook just to pose the following question:
---
Thank you for the reply and being so responsive – that does clear it up – however would there not be merit in releasing the RNS stating that the government have awarded the consortium a framework for ordering up to £75m of Antibody LFT kits of which the first 1m were order as per the RNS dated 6/7 October.
Is this not price sensitive in the sense of the potential revenue streams for investors to consider?
"Gov have budgeted for 75m, that's perhaps another way of looking at it?"
Looking at the Contract, it was awarded two months ago (at the end of August). I think it could be a call off contract, with a value of up to £75m.
This would fit in roughly with timescale of the subsequent leak from BBI about the initial order of 1m tests...
I think part of the problem is that the procurement team at DHSC aren't particularly experienced and are dealing with processes that aren't routine. Some of the paperwork is definitely second rate.
OK thanks, and also I see raharh's comment. Agree @raharh - worth some excitement I would have thought. I guess if the NOMAD is not yelling, then it's OK as it is.
Totally agree, this could have still been in an RNS today at 7am. Even if it was a copy of the email.
Guys
Just to confirm - i got exactly the same reply as Safy from Paul @ Walbrook, to the word (he is cut and pasting a lot I assume), it is a framework to enable ordering of up to £75m with the first call down already being the £1m.
In essence this is good news, it has been done so they can just call off batches now.
However from a PR perspective I would have thought an RNS would still be applicable as it is very different saying 'we have a contract for £1m' against saying 'we have signed a call off contract for up to £75m and the government has drawn down and ordered the first 1m of LFT kits'
@Hype
word for word copy and paste, email sent to me by Paul McManus.
@Safy, please advise, are your points 1. 2. 3. 4. in your 11:37 post a close-to-verbatim paste of written info you got from Wallbrook this morning, in response to your rant? Thanks!
Safy - i was surprised why we did not get an RNS BEFORE that info got to the public domain. That shouldn't happen. But the fact we still have not seen an RNS even after contacting them means, there is nothing to RNS.
Jadam, may be afy is right.
Gov have budgeted for 75m, that's perhaps another way of looking at it?
J,
The question to them was a rant why no RNS. They definitely know about the bid website update.
https://ted.europa.eu/udl?uri=TED:NOTICE:497590-2020:TEXT:EN:HTML
Contract award notice
Results of the procurement procedure
Supplies
Legal Basis:
Directive 2014/24/EU
Section I: Contracting authority
I.1)
Name and addresses
Official name: Department of Health and Social Care
Postal address: 39 Victoria Street
Town: London
NUTS code: UKI32 Westminster
Postal code: SW1H 0EU
Country: United Kingdom
E-mail: procurement.operations@dhsc.gov.uk
Internet address(es):
Main address: https://www.gov.uk/government/organisations/department-of-health-and-social-care
Address of the buyer profile: https://www.gov.uk/government/organisations/department-of-health-and-social-care
I.4)
Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5)
Main activity
Health
Section II: Object
II.1)
Scope of the procurement
II.1.1)
Title:
Provision of Lateral Flow Test Kits
II.1.2)
Main CPV code
33124130 Diagnostic supplies
II.1.3)
Type of contract
Supplies
II.1.4)
Short description:
Provision of lateral flow test kits for Covid-19 for use as part of the UK Covid-19 Testing strategy in support of Pillar 3 – antibody testing.
II.1.6)
Information about lots
This contract is divided into lots: no
II.1.7)
Total value of the procurement (excluding VAT)
Value excluding VAT: 75 000 000.00 GBP
.... .... ....
Section V: Award of contract
A contract/lot is awarded: yes
V.2)
Award of contract
V.2.1)
Date of conclusion of the contract:
14/08/2020
V.2.2)
Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: no
V.2.3)
Name and address of the contractor
Official name: Abingdon Health Ltd
National registration number: 06475379
Postal address: York Biotech Campus, Sand Hutton
Town: York
NUTS code: UK UNITED KINGDOM
Postal code: YO41 1LZ
Country: United Kingdom
Internet address: https://www.abingdonhealth.com/
The contractor is an SME: yes
V.2.4)
Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot: 75 000 000.00 GBP
V.2.5)
Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 33 000 000.00 GBP
Proportion: 44 %
Short description of the part of the contract to be subcontracted:
A significant proportion of manufacturing and all of packing.
Gutted, £75 mil seemed like a separate new order
Ouch... so its the potential of the contract then. At least we have 1m order so far.
From Walbrook.
Just to clarify:
1. The RNS from 6/7 October “UK Government contract for UK-RTC” was issued following the conclusion of a contract between Abingdon Health and the UK Government regarding the supply of the UK-RTC’s AbC-19 Rapid tests.
2. The RNS confirms the first order from UK Gov for one million tests
3. The public declaration today that investors are referring to is the UK Gov’s assessment and disclosure of the potential value of the contract with Abingdon Health. It not a confirmation of further orders received or a guarantee that these orders will happen, but only a potential value.
4. As confirmed in the 19 October RNS “UK-RTC contract for the Supply of Goods” Omega will manufacture not less than 25% of the demand from total orders placed – at the moment though, only orders for 1m tests has been placed.