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I don’t get it, you’d have thought the SP would spiked on these fantastic results. I guess the market isn’t confident that the revenues from the infectious diseases business can be sustained hence the sceptism reflected in the SP. Paul Hill on Vox Markets says that even without the COVID PCR testing revenues this should be at least 150p on the most conservative estimate of valuation. What are we missing, assuming the market is King and is always right?
"Personally I wish the board would do a share buyback at these bargain levels."
Did you not read the RNS of 8 March:
"Reflecting the cash generated by the Company and the continued strength of its balance sheet, the Board is considering the implementation of a share buyback programme, which would require approval at its 2022 AGM, which is scheduled for 15 June 2022. Details of such a programme, if approved, will be announced alongside the Group's 2021 results."
and in today's RNS:
"As announced on 8 March, the Company intends to seek shareholder approval at the forthcoming AGM to implement a share buyback programme. Further details will be announced in due course."
Pity Katie didn’t ask why the vendors took no equity as part of their consideration -which is a concern -although I haven’t sold
£33m in the bank, zilch borrowings, market cap £85m, pe on non covid business under 10, massive growth in revenues. If this was a tech company with that sort of growth, it would be valued at a minimum of £5. Personally I wish the board would do a share buyback at these bargain levels. They could buy 50% of the shares back easily
Nothing exciting for shareholders. No dividend after months of stagnation and dropping SP yet profits are very tidy. What do I get in return?
Quite right, thanks. Overcomplicating things.
"So, when making the 2020 comparison, are they including the 9 months when it was still private?"
Why wouldn't they? Whether the company was private or public makes no material difference to the revenue figures.
Could somebody help me out please? In the update they highlight an 82% increase in revenues and 70% increase in adjusted EBITDA on 2020 numbers.... but the company only floated in October 2020. So, when making the 2020 comparison, are they including the 9 months when it was still private?
Great underlying business ex covid.It was never really a Covid share bar one month.
Great revenue from Covid testing but I was expecting higher profits, perhaps that’s why investors are dumping stock, worrying about future profits without the revenue from Covid testing
Should offer dividends as the SP is doing nothing for shareholders.
£2.05
This has to be one of the weakest market responses to such good news I've seen in a long while...
That’s a stonker of an RNS!
Revenues of £92.4m. That's a lot more than we expected. I think Liberum estimated £86m with a 190p price target! I just think this company is so undervalued.
This is definitely being held back by these shorters
The removal of the confirmatory PCR testing by gov appears to be a similar play as seen in Jan 21, whereby infections are so high the need for the accuracy that a PCR provides is redundant. However, as seen in March 2021, once infection rates had settled, mandatory PCRs were reintroduced in order to detect new variants (SourceBio are 1 of 8 labs in UK able to do this – genome sequencing) and provide higher accuracy.
It also seems counter intuitive that pre-entry travel testing won’t be back again as cases drop in order to identify new variants.
All of which bodes well for Source, especially given NHS contracts mentioned by Jay in H1 result. Interestingly, looking at Source’s test statistics, they were still at approx. 4k tests per day during Jan-Mar21 as they were ramping up.
Majority of countries are still requiring either PCR or fit to fly (non-NHS LFTs) prior to entry so testing should continue, albeit at lower levels.
San Diego test facility was expected to be launched Q4 of 2021 at 2k/day. News articles from San Diego suggest lots of testing in general. In additions, looks as though US have much higher selling price of PCR tests – unsure how this will play out.
So no pcr test needed for travel back to the £1-20s we will go.
Possibly back to November travel testing as you say ,travel testing will be on & off with low or high
testing requirements depending on the circumstances of various countries but the underlying need for testing at home or travel will remain for sometime yet I would think.
The figures/update should give a clearer picture of the future…..
Everyone rushing for the exits as testing for travel looks to be on the way out shortly.
Cant wait for results in next few days. Should be top of forecasts with added bonus of possible aquisisions.
Signed, Lucksin. This has been the usual Boris disgrace.
...all part of massive government scandal
Pressure is now building for the government to come clean on its dealings with Chinese companies damaging British Industry.
Check out this petition and read the Times.
https://t.co/QIpDzIVumo