RE: Key points11 Apr 2021 23:23
Reflecting over the weekend, it’s obvious that the drop in share price was overdone with market makers and scaremongers only increasing fear….
• Novacyt are still trading and working directly with 130+ countries (inc UK)
• Current law requires PCR tests to enter most countries as well as used on returns form “Red List” countries.
• Government advice is that all Care home staff have to be tested using PCR tests on a weekly basis. Novacyt were the chosen provider to trial the tests working alongside Queen Mary University.
• Dhsc contract only issue with PCR, could still use the LFT and other products that the company produces.
• Novacyt was and still is an international Diagnostics company, that isn’t solely reliant of covid to generate revenue.
• The addition of the LFT tests, helps to create a start to finish covid diagnostics programme which meets the needs of both public and private companies.
• 20+ jobs on the website alone, indicates more still to come (3 more were announced hours after the recent RNS)
• Huge array of products offered including Lamp Tests, Promate, VariPlex & Winterplex.
• Some of our biggest clients include Pfizer, United States Army & GSK.
• Variplex is one of the first (and only) products around that can identify new variants and mutations.
• Up to 80% margins on pcr tests results in high EBITDA, which if required can definitely be reduced and still make the company impressive margins.
• World re-known reputation due to the high (and consistent) quality of the products produced.
• Novacyt believe they are in the right, the government and ncyt wont want this hanging over there head so would expect a quick resolution
• Without the DHSC contract, the company is still generating 36.3m revenue a quarter with more contract wins expected.
• In February hosted a webinar on the role of ‘Diagnostics Testing and Sequencing” which was attended by UK scientific advisors as well as countries and specialists around the globe.
• Private market exposure only going to increase with current clients including Nationwide pathology & Wren Healthcare.
• Graham Mullis bought shares at £8.17, he will be looking to make money on his investment.
• Acquisition of IT-IS International, a profitable diagnostic instrument development and manufacturing company
• Offer tests for hundreds of other virus including Japanese Encephalitis Virus, Zika Virus and Dengue Virus (which was recently spotted that an order from India had just come in for)
• The company is debt free and is holding a large cash position
For myself and many others I would like the group to offer some further insight which may bring calm amongst the storm;
• Who we are working with Countries, airports, private companies.
• Reason for the high number of jobs and is it affected by the DHSC contract
• Potential contract wins (Private v Public) as stated in the most recent RNS
• Revised figure update
• DHSC issues and likely next steps and outcome
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