Member Info for Adastra

Purely because it indicates traction in helping solve the NHS biggest headache - unnecessary admissions and bed blocking. If patients take the correct medicine in the correct dose at the correct time recommended by their doctor it goes a very long way to keep vulnerable patients stable. BioDose is an excellent system and it went live in Q4 2015 rolling out to current full deployment - hence my comment on its relevance now. Quantum is active on many fronts, of which this is one. The evolution of e-monitored compliance is a horizon event that could step-change this division.

http://ir.quantumpharmagroup.com/content/news/news_archive/2015/21-09-15.asp Implemented Q4 2015 and rolling out

I think the financial hiccup last year was primarily due to having to source and pay for the replacement polishing/finishing machine. The insurance payout should also fill up the coffers a bit. Like you, judgement is out on the forcefulness of management to get the factory up and running for end H1. I do believe they've had a steep learning curve here, but the quality of those on the sidelines is excellent and I think they are leaning very hard for results. I feel that the pressure will lead to a lot of things falling into place in a very short timeframe as the quarries start producing this year. Well that's the theory.....hence my toe-in-the-water.

Fundamentals are excellent if FOX can successfully manage the next five months to completion of the processing factory. Block marble is there for the taking but the real financial boost is totally geared to the processing facility. Its been put back so many times it should be part of the Heathrow plan! Joking aside, the steel framed factory is built and machinery being assembled - the final piece of the jigsaw is the polishing machinery so FOX can sell finished marble by the square metre rather than block by the cubic metre. Everything goes positive when they can process their own marble - ease of transport; cost of transport; margins and flexibility of orders both take off. FOX can't afford to have any more set-backs but if everything goes to 'current' plan it should literally be a transformational year - but don't hold your breath!

Not often I disagree with your logic and constructive criticism JS but I've done a lot of background on this and watched it since flotation. Certainly had its fair share of set-backs and bad luck BUT I actually think its all coming together in H1 this year. Yes the Amati loan is a priority and I'm sure the BoD is all over it like a rash, but Amati is a supportive shareholder and its in its own interest to expedite. The reason it wasn't paid down was pretty obvious from the fire delays in getting the processing plant completed. At 31st December there was 2.8m euros in bank. Feb 26th they get 600k euros from Eboracum plus another 1.3m euros befor April 1st. Thats 4.7m euros in Q1. Even paying the loan at 20k Epcm that gives plenty of headroom to get the polishing shed up and running for start H2 and breakeven. Any positive news from America, Middle or Far east is a bonus. I'm in, having watched from the sidelines for a long time for an inflection point. We are close and I think sentiment may change strongly at next RNS.................................................. assuming no big problems arise.

I agree that Steffan is now guiding progress and expect the rerate to mimic his increasing involvement. There is a lot of opportunity for growth here in the UK and Porta know it. They would love to pick up complementary businesses at current depressed prices and consolidate a fragmented industry. I'd love to see them hive off and float Newgate Australia as a stand alone but retain a holding. That would realise a shed load of cash as opposed to the £1m start-up cost invested. Newgate Australia is booming but UK institutions just don't value assets held down under. Monies received could then be used to a) buy the remaining 49% of Redleaf b)pay off the 12% loan debt and c) acquire more businesses and stick them in Skylight Tower for immediate earnings enhancement. Magic!!! Earnings and profits soar and 2017 we buy out Capital Access. I just hope the BoD read London South East posts!! I'd even stretch to Strong Buy if they did and acted on this one as it would transform the business overnight.

'we expect to be cash positive by April 2016.' And that includes the ultra-prudent statement 'without the inclusion of tender business, which has been an Achilles heel in the past'. So any tender wins [Middle East contract imminent?] and any payment from debtors [the Mexican orders which have been written off?] will automatically drop to the bottom line. Tasty when EKF is trading at asset value level.

Ron Zwanziger sees this as a very short time-frame turnaround divested of molecular.

Extracted from the August update and present in the latest "The Company has a strong Point-of-Care ("PoC") business with a large installed base and, coupled with new product launches anticipated for 2015 and beyond, we expect to deliver significant growth"

Attracted two initial approach bids of £76m and £86m last year but was foiled by the parties not wanting the cash-consuming molecular division. The 2016 clear-out leaves a clean Point of Care business with strongly growing orders, margins of 50% plus and a no-nonsense straight talking management in charge. Increasing Point of Care medicine is the present and very much the future. Doctors want blood test results when the patient is present - not a couple of days later via path lab. EKF is in that sweet spot and the clean PoC business is primed for a step-change in growth with excellent products for Anaemia, Diabetes etc and soon2Breleased Phenylketonuria test. Ron Zwanziger cut his teeth in this business guiding Alere; this is what he does and our MCap is only £38m - exactly at clean asset value assuming zero growth. Got to double from here imho.

It is an accolade to management that they have nurtured Newgate Australia from a £1m startup to its current 'star performer' level in just two and a half years! It alone is probably worth around the current MCap of the whole company were it to float! Same goes for Newgate Hong Kong, established at minimal cost. It is common sense to redirect savings from under-performers like Frankfurt and Brussels into existing strong growth or new ventures. Organic growth is now strongly established so if we cut out any dead wood as we go and acquire new businesses that suits me.

Steffan has stamped his mark firmly on Porta. This is the kind of 'feet on the ground' comment we want to hear from a new MD four months into the job. He is clearly focused and hungry to push Porta to 'the next level'. He could really be a shining beacon if he openly advocated that he was abolishing EBITDA and leaving it up to savvy investors to work out how well Porta were doing. I repeat again - just give us plain simple comparators with explanations. Grant us the common sense to be able to make the decisions on value and growth. We know that strongly growing acquisitive businesses will clock up losses. We also know that the growth profile will transition equally quickly to strong cash generation once we reach an inflection point. Porta is on the cusp of that transition. We closed two underperforming offices in Frankfurt and Brussels - great; that's saved us £1m a year to plough into the strong growers. Its only like cultivating a big garden and pulling out the weeds - simples! I am EXPECTING y/e 2015 to be loss-making after the closures and the appointment of Steffan as MD. What I want to see is Steffan opening loads of doors as we go into 2016 - Motivating and enabling staff to cross-sell from a business that now has the critical mass to compete on a much bigger stage. I believe that that is now happening and very strongly. 2015 is history - 2016 is where we are seeing the real prospect for strong growth and cash-generation. Its been a long time coming, but we have shed all the legacy costs and broken into clear air from January. Steffan has been granted 1.5 million out-of-the-money options at 10p - that's a powerful incentive to perform. Bring it on.

JB is a very astute CEO and the introduction of Mike Read as chairman is a well thought through appointment. A seasoned guy of his standing and track record is hardly likely to accept the role if he cant see solid progress on the horizon. I think it highly unlikely that he would have come on board with his first official task being a fundraise - that was my logic for staying in [and picking up a few more yesterday when TW interview validated the view]. The last results indicated that more contracts had been signed off than officially RNS'd so we assume, as suspected, that client/department confidentiality precludes disclosure. On that basis, I am happy to hold and accumulate on any weakness. I have contacted JB on many occasions and have found him to be genuine and honest in his comments albeit restricted by disclosure legislation. I am sure that John and Mike will work well together and that the new chairman will open more networking opportunities for Falanx. Lots to look forward to this year as we should soon see Assuria extension to BYOD and the evaluation of the Principia tie-up.

Redleaf Polhill purchase balance was dependent on earn-out: Redleaf are doing exceptionally well within Porta and this is vindication of the growth. I'm surprised the shares have been marked down on such a positive inference - heyho.

Mike Read - keen to get involved, then suggest he provides a £1m convertible loan to Falanx till breakeven. Terms - interest at 5% above LIBOR [fixed] payable every 6 months with option to convert to shares at 6p in 12 months. Security by way of second charge on assets after bank.

Dont dismiss it offhand - I disagree: Quote: "Post the interims period, a number of contracts have been signed with UK Government departments and corporate customers." - Note - only one contract has been RNS'd since the interims inferring client/department confidentiality is still key. Also of note that contract negotiations with a number of prospects including those in the financial services industry continue. The prospective customer base is pretty substantial and is common to both FLX and CHRT!

The Cohort/Falanx tie up is also logical. Cohort is throwing off cash with £20m+ in the coffers. There is a lot of synergy in bringing on board a Govt/CERT registered fully functional outfit like Falanx. Taking 20% in exchange for short-term funding commitment of £1-2m brings all the skills under a bigger CHRT umbrella. It works for both parties symbiotically. Falanx gets the space to sign off contracts and sees an immediate increase in its share price as a result of the Cohort deal plus the new marketplace that it opens. Cohort gets a foothold in an area in which it is so obviously lacking, given its exposure to Govt contracts and defence. The immediate rise in shareprice of Falanx would immediately make the deal capital and earnings enhancing for both parties. This is far better than even the option of a straight purchase of FLX by CHRT at this miniscule price. It also gets the Assuria tie-in till 2018 free of charge. The existing investors who stumped up 14p would also see improved forecasts.

JB should approach Cohort and offer a 10-20% stake in Falanx in exchange for funding to breakeven this year. Symbiotic win:win for both companies and raises the profile of Falanx in a penstroke. Simples.

Dibs, didn't sell out as I have a reasonable average price given the many in here. In retrospect I should have sold and reinvested but that's life and it's an illiquid stock with no news. I still believe that we have a strong offering in cyber but that JB failed to see the validation times required for bigger contracts. They should start to fall into place as we go into 2016 with renewed budgets but upfront cash is required to slow down burn rate. RNS releases have been dreadfully timed and a lot could have been done to smooth the jagged bounces even if the price seldom reflects reality in the market. KB is still working in an advisory capacity so we 'could' get an contract from that quarter but it looks increasingly less likely. Mike Read should bring in fresh networking on the cyber side but it is looking increasingly like a fundraise. I think we should have secured funding through a third party like Cohort in exchange for shares and a 10-20% stake last year. That would have been a great symbiotic move for both sides if/when contracts start to roll in but neither side moved on it despite my suggestion!

Agree - but that drop looks engineered??