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"Recognised revenue for the period was £1.12M" Peanuts... no wonder it is crashing. It's all well and good claiming 80% gross margin for Immunoinsights but if growth cannot be scaled then it's going to be difficult to get investor support.
In my opinion the selling of Oncimmune LTD for 13 million was a low ball offer. I just wonder how much R&D was spent and the amount of time (many years) to for the Early Detection of Cancer of the Lung Scotland (ECLS) study with 12,210 high-risk smokers. The ECLS study was the largest-ever randomized study for the detection of lung cancer using biomarkers. Share price reflecting disappointment and I hope they deliver before cash runs out. IMO, DYOR.
What can I say. 31% drop. I can only appeal to management to get this sorted and provide clear guidance, vision and set realistic expectations. I want to know what the 3 year pla/roadmap is after the sale. I also want to have a better revenue forecast. I understand that this business is young and needs some time and resource to find its feet. But maybe that's a sign that investing here was probably premature. In fact that seems highly likely. I am not sure what you are seeing @trek but I am agreeing more with Compounds view. Peanuts Sale of assets and unfortunately at the right time to cover debts but wrong time in the market for ONC. I also wonder whether the full year revenue will be equally disappointing as the interim result or whether we should just tag on to this impeccable management optimism and believe that business is picking up. Hard to say. I remain hopeful that the worst (surely) must be over....unless the rest of the business simply collapses.....
"It remains my firm belief that this platform has the potential to offer significant value to our customers, and is primed to respond, at scale, in lockstep with the market as it inevitably rebounds. Post the sale of the Oncimmune Limited, our focus is the expansion of the ImmunoINSIGHTS services business with an intention to achieve a cash flow break even position in the near term." Adam H.
I can see great Business Development both on the Research and on the Pharma Services side. I also understand the strategy has been to focus singularly on the IMMUNOInsights business which allows all resource to flow there and to deliver value a d to expand and generate revenue at scale. Next financial report should reflect the proceeds from the asset sale and potentially wake more people up to the true opportunity here. As of right now though....the numbers are all a bit blurry. When cash flow positive, hopefully by 2024, I think this could take a real U turn.
I also firmly believe the company is at a turning point.
The shares are also worth peanuts right now. Having followed here for 4 years+ I want to highlight that buying shares now means you get them for 1/4 the price of what they were 4 years ago. We have high interest rates, a suppressed Pharma market and certainly a lot of nervousity in the investment community. But one thing should not be underestimated. With the sale of assets the company has cash through a new loan facility. They repayd 65% or so of their debt obligations which is huge. Cash flow positive in near term and 80% profit margin. Business relationships (MSAs with 7+ of top 15 top pharmas) and several relationships with research institutions that will further expand the reach as publications are released and more awareness and marketing occurs. Sales teams in NA ramped up and a path to expand and diversify the incredible PI of IMM7NOinsights to cater for many more diseases.
Financially the business in the next report will be 10x better than they were 4 years ago with the foundations layer to grow at scale. If this all happens according to plan this SP can skyrocket from where it is . I will pick up my balls and put down some more here. Seems risky but man will that lower my average and hopefully pay off in the coming cycles. Long term hold - Strong strong by IMHO.
What do I know?!
Can't believe the drop, I understand the current revs but from the guidance earlier this year we should still see some good results year end (unless we under deliver there), and with a high margin too. SP doesn't deserve to be down circa 40% today, very unfair.
That being said, we are now considerably less than what we were in 2020. This company has so much promise and is used by so many pharma companies but investors aren't biting. With Alistair coming on board and his experience, I think we were all hoping for some momentum, but we've seen absolutely nothing here. Around the PR too Onc is non existent - minimal updates, zero comms, few events. Perhaps a change of mgmt is needed.
Not wanting to be negative but it's frustrasting. Anways, agree with all your points R00st3R and here's hoping!
Lost so much here already, but it does now look very positive. Have topped up small.
No doubt. 75% down in last 12 months. Even more if you go last 15 months. We are almost 90%down from all time high. Just remember that nothing is lost unless you sold.
At year end results 27 Feb 2023 the company said "Stronger growth in current financial year, with first half FY2023 revenue already exceeding level for the 15 months to 31 August 2022"
and today they are saying revenue for H1 end Feb. 23 only £1.12m , last year it was £3.79m
how is this possible ? i have got a large holding hear i think i will sell the lot first thing tomorrow morning
Having looked further tonight, I have some thoughts. We were told earlier this year revenue for first 6 months was expected to exceed revenue generated in the 15 month period to Aug 31 and that we had an order book of £13m.
Now we see revenues of £1.12m in a lab that supposedly can do 40,000 tests (AFTER being expanded at significant cost) with a high margin. Looks like only a few thousand tests are happening based on the revenues if that (the RNS talks about delayed samples but really that many to make a difference?) so either there is no demand or the new business team is not performing.
This all happened under the financial director and CEO, and no update to the market of considerably less revenues forecast compared to earlier this year. Also Alastair who came from an impressive background and built a lot up prior but we haven’t heard from.
We have what 6-7m in the bank, but it basically just covers the outstanding debt.
The finance director needs to be sacked after this and I think a change of CEO needs to be considered, the foundations are built and we now need to hand over to the right person. There needs to be a clear outlook for the next 12 and 18 months… or we just find a buyer and sell the business to claw something back.
4 words:
Fibs, lies, porkie pies
Lampedusa,
General slowdown/delays in the wider bioscience sector meaning contracted revenues are slipping into next 6 month period.
Costs will come out also, so hopefully it will comfortably be making a profit later this year or early 2024.
I feel they have a solid platform for growth now with the house in order, so I prefer to hang on to what I have and see how they get on. Once you sell, the upside will be gone unless one feels the company will crash and burn. Never say never, but I would be very surprised.
Flova, I think you have some genuine and reasonable questions. Should probably be addressed to the company/board, as I doubt they are following these discussions on lse.
I can only assume any revenue from the sold business has been stripped out.
Ps, Flova:
In fairness, the £13 million figure was a forward pipeline figure (expected), whereas the €3.5 million is actually contracted (firm). If you were confused, I am sure many others were and may well in part explain the massive panic sell off today.
From Feb update: "the pipeline for the ImmunoINSIGHTS service business stood at approximately £13M and was growing steadily at approximately £0.75M a month"
They could do with being a bit more crisp wrt how they talk numbers, the use of currency etc. Sloppy CFO? You may have a point, but for the board to consider. Also, don't forget the company has some serious anchor investors all hanging in there, presumably waiting for a trade/corporate sale, as there is no way they can sell on the normal open market.
I also agree wrt chairman, as hopes/expectations had been raised, so...would be good to see some tangible benefits and broad director buys; should by now be a no-brainer if they believe in the business!
Sorry Dr
looks you don't get it . H1 ends in end of Feb , and they said on the 27th "first half FY2023 revenue ALREADY exceeding level for the 15 months to 31 August 2022"
this is not a forecast they stated a fact which turns out to be lie
ONC continue to underwhelm. It is excuse after excuse here for abject performance.
That revenue number is shockingly bad imho.
I think Adam Hill needs to step down.
Lampedusa, I do get your point but depends on how you read it. Can be read (inferred) as comparing H1 with previous H1 of the 15 months year ending Aug 2022 or as - which I think is your interpretation - the full 15 months year. The latter is clearly not the case, the gap is huge then. If they meant that, then it is a big issue, I agree. If the former, it can be explained by delayed invoicing (only just).
In any case, it's either sloppy comms or a straight lie. If a lie, it must surely have consequences ie removal of CEO and/or CFO. To be continued!!
I may actually write to the company, as I am not selling.
If you are selling tomorrow: good luck, I do understand your frustration.