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Hopefully the rest of the market will start seeing what we think we see now, only they will be paying higher prices .... hopefully, lol
Good to see the share price reacting so well to just a couple of buys - not much stock around perhaps.
Nice update from Beaufort Securities today - the share price should be a lot higher imo: Http://www.beaufortsecurities.com/breakfast-today/2015/08/14/imf-urges-europe-to-assist-with-greeces-debt-relief/ "Venn Life Sciences (VENN.L, 22.0p) – Speculative Buy Yesterday, Venn Life Sciences announced its trading update for half year ended 30th June 2015. The company reported revenues greater than €4m in H1 2015 compared to €1.5m in H1 2014, owing to contract wins totalling €9m during the period. Venn would announce its interim results for the first half on 22nd September 2015. Our view: Venn delivered solid first half results owing to strong organic growth and increase in the number of contracts. The company is progressing well with its latest product Labskin, a 3D skin equivalent alternative to animal testing for dermatological purposes and has won its first customer as a major pharmaceutical company. Further, Venn is looking for acquisition opportunities in Central and Eastern Europe in wake of the huge opportunities in the region at minimal costs. Overall, the company is well placed with a strong balance sheet and enhanced contract base to maintain its growing momentum for the entire year. In view of the above optimism, we maintain a Speculative Buy rating on the stock"
Yeah, it’s very important and hopefully the increasing revenues which in turn should see VENN become profitable this year will also feed down to positive cash flow …… day to day cash flow is also helped by upfront payments and then stage payments as the trials progress. They seem to have a good pipeline of potential new contracts which as of July was still an impressive €18m and that’s after converting €9m into actual contracts (it’s relevant because at the end of last year the pipeline was €18m which means new pipeline opportunities as well as conversion are looking very strong) They’ve invested for growth and they are now seeing it …..
Sales are important and look to be progressing well but so too is cash flow which was not mentioned in today's RNS
“Some of the smaller hybrid contract research firms are trading at 2.5 times and above – which makes a mockery of Venn’s current stock market rating of one times forward revenues. “We have a business doubling year on year, with good fee income that is expected to be profitable this year. You have some technology upside in there, but this is a real company making real money,” said Richardson. http://www.proactiveinvestors.co.uk/companies/news/108395/venn-life-sciences-is-proof-that-the-market-doesn-t-always-get-it-right-108395.html Somebody stop me
"Time to get in" ....... does that sound a bit rampy? apologies if it does, lol
Before the CEO starts pumping it ...... he didn't actually say pumping, but near enough, lol
Just a reminder, from the CEO's mouth ....... Profitable this year ....... oo-er
Everyone like a video http://www.proactiveinvestors.co.uk/companies/stocktube/3909/venn-life-sciences-riding-the-biotech-wave-3909.html
Venn Life Sciences (LON:VENN) said its revenues in the first half are 170% up on the year earlier as it gave an upbeat assessment of prospects. The growing clinical research group said billings exceeded €4mln in the six months to June 30 driven by contract wins totalling €9mln in the period. Chief executive Tony Richardson said: "Our fee income figures highlight the steady and consistent growth of the company year on year with both repeat business and organic growth contributing to our excellent results and ability to win projects internationally. “Our market continues to grow steadily and with a healthy pipeline of prospects we are well positioned to deliver further growth." Venn’s bedrock business, as mentioned earlier, is contract research. It has 110 staff on its books and offices in five European countries. At this size it isn’t going to go toe to toe with the sector’s big boys. But it is, as its release Thursday reveals, winning some significant new business. Its recent focus has been phase II clinical trials and post-approval studies. If the company’s outsourcing business provides the bedrock to the investment proposition, Venn’s Innovenn arm represents the blue sky. Mixed metaphors aside, the business is primed and entering the commercial phase. Its most advanced product, Labskin, is a 3D living skin equivalent that is a unique alternative to animal testing for dermatological purposes and has the ability to allow microorganisms to grow on its surface. It is has won its first customer, an unnamed major pharma company, and is gearing up to sell the product. However, it also has the capacity to bring testing in-house, which will complement what it already does in the CRO side of the business. It is early days, but there are multiple applications for this innovative product. Innovenn is also developing an anti-acne treatment that is “around six months away from being a licensable technology”. http://www.proactiveinvestors.co.uk/companies/news/109924/venn-life-sciences-trading-strongly-109924.html
At the moment the revenue that is booked they class as fees, they then account for Direct Project and Administrative Costs to leave either an Operating profit or loss …… in other words they don’t show what we would normally class as a gross margin. From looking at previous results I’d say there is a good chance that the first half is at least close to breakeven if not better ……. IMO and the usual. Winning an average of just over €1.2m in contracts per month over the last 14 months is an impressive achievement and shows that the business model looks good. At the end of last year they said they had contracted revenue for 2016 in excess of €6m …… it’s going to be better than that now! They also said “the Company is confident that it will deliver profitability and significant revenue growth next year.” ……. I’d say that it’s a good bet they will deliver off the back of €17m in contracts
They have stated that they will show first profit this year and we are half way through August! They have stated that they are already a ways into negotiations regarding aquisitions. Charlie, why not give them a call and ask. Horses mouth and all that.Do let us know.
But what's the margin on that?
It won’t be long before the market starts to factor in the potential here, mind you I said/thought that in Jan, lol The contracts that VENN win are generally several years in length which gives them clarity over projected revenue etc. …… they are also structured so that when a stage is met an invoice is sent and cash is received meaning cash flow should be ok. €17m worth of contracts in the last 14 months, surely that has to grab some attention!
taken a med-long term positiion here this morning. I have had this stock on my watchlist for some time and the RNS this morning has satisfied me that Venn has the necessary fundamentals to move it out of this trading range in the next quarter. A nice, steady, share with great potential... imo, of course.
Over €17m in contracts won in the last 14 months In the last 8 months of 2014 they won €8m worth of contracts, in the first six months of this year they have won over €9m worth of contracts …… Now that’s what you call good progress!
Yep, good update and looking forward to seeing the interims.
That RNS just underlines the progress being made and the nature of the contracts bodes very well for revenue growth going forward as well as cash generation and hopefully a first profit in the not too distant future.
only up 170% , I can live with that. atb
A very confident trading update today, with H1 revenues in excess of €4m, which puts VENN easily on track to meet - or beat - forecasts of €8m for the year: Http://www.investegate.co.uk/venn-life-sciences--venn-/rns/trading-update/201508130700158992V/ "Venn Life Sciences (AIM: VENN), a growing Clinical Research Organisation (CRO) providing clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announces a strong first half of 2015 with the Company billing in excess of €4m, up 170% against the same period in 2014 (H1: €1.5m). The Company has demonstrated continued growth throughout 2015 driven by contract wins amounting to over €9m in the period to 30 June 2015. Commenting on the figures, Venn CEO, Tony Richardson said: "Our fee income figures highlight the steady and consistent growth of the Company year on year with both repeat business and organic growth contributing to our excellent results and ability to win projects internationally. Our market continues to grow steadily and with a healthy pipeline of prospects we are well positioned to deliver further growth." Venn will announce its interim results for the six months ended 30 June 2015 on the 22 September 2015."
RNS
Thanks for posting
Nice Find
The July issue of Techinvest is now available free on their web site, so here's what they had to say about VENN, which is one of their Best Buys for H2'15: Http://www.techinvest.ie/downloads/sample.pdf "Venn Life Sciences (VENN; 21p) was also a Nap Tip for 2015 (at 17p) in the January issue this year. Back then, we reckoned the shares were overdue a significant rerating. Gain to date: 23.5%. Last month’s issue (Page 2) contained a review of progressive results for the year to December 31 last. This also noted that house broker Zeus Capital was looking for revenue of €8.22m for 2015, with earnings per share at breakeven. On June 10, a €2m contract over four years was announced with a leading European biotech company (see Page 4 for further detail). This came on the back of €4.1m in new contracts reported in March with a US based biotech (see Page 4, May issue)." VENN was also featured a second time in the issue as a straight Buy tip at 21p: "Venn Life Sciences (VENN; AIM) # 21p Venn has secured a €2m contract with a European Biotech company to manage a Phase III study in the area of Rheumatology. The study will involve multiple European countries and will run over a four year period, with most activity occurring during year one. This deal brings the value of new CRO contracts signed so far this year to more than €6m. House broker Zeus Capital commented that, since the Phase III trials are usually the most complicated and extensive, this latest contract underscores the value of Venn’s service offering and geographic coverage. Zeus expects Venn to generate revenues of at least €8.2m for the current year to 31 December with a breakeven bottom line. This compares with €4.9m revenue last year. Venn is showing it is capable of winning complex, higher value contracts. Continue to buy."