Member Info for ak_gabba

Crl123, ooft almost £80k down? Sore one very sore.
Out of interest are you confident you will be in a profitable position and if so how long do you think that will take?

Simple00,
I'm aware of that. Was just using the wording as the contract was with the DHSC and a lot of the jobs have specifically mentioned NHS combined with the note in the RNS re sufficient supplies of PROmate to the NHS for the rest of the year.

This whole day has been bizarre. We have all been digging about looking for evidence that PROmate and the Qs are being used. The digging appears to have been correct and the RNS contains that information however the ending of the contract along with dispute and may impact Q4 2020 revenues and we are almost 40% down.

Bluelight,
I had a nagging anxiety about that. One thought was hiring so many people to support the continue contracts or new contracts with DHSC (sadly not the case) while the other thought was.. they have lost the contract and this is their speculate to accumulate approach. A lot of the jobs did mention NHS so there must still be some kind of relationship to sell into it.

B2HS2L,

I would doubt that. Would the minimum supply not be within the contract which has now ended?
Re the PROmate supply it's almost as if someone has come up with projected infection rates combined with vaccine roll out and the use of all the LFTs. I am puzzled by that as i thought this was specifically for Pillar 1 testing and the need for clinical PCR validation.

B2HS2L,

Interesting take on it. I have no idea hence the questions and thanks for your input!

I guess we could perhaps even introduce the possibility that novacyt feel that phase 2 should have been triggered if they feel they may have over supplied on the Qs. Phase 1 being 300 machine 200 of which I believe were Q4 2020. I'm not aware of exact number of Qs which have been supplied.

Guessing game until we receive specifics to the dispute which is unlikely as it's now legal unless there are leaks to the press or investigative journalism.

Porky,
"* What are NHS doing with the current Q machines? Are they scrap? If still in use then they will still be buying reagents for them as required, hence still supplying NHS?"

Still being used. They expect PROmate to continue to be rolled out in hospitals however they believe that the Q1 PROmate sales may be sufficient for the rest of 2021

https://www.lse.co.uk/rns/NCYT/trading-update-74tpjo9hz25buh8.html

“Regrettably, the parties are now in dispute regarding the contract, which may have a material impact on Q4 2020 revenues.”

I read that as DHSC have called into question the contract and as such dispute the service/products supplied therefore they have raised a query re the money which has already been paid.

“However, the Company has taken legal advice and believes it has strong grounds to assert its contractual rights.”

Obviously Novacyt dispute this and feel they have a legal ground to defend this.
I’m unsure specifically what that relates to.
Is it the minimum value of phase 1 (14 weeks) of £150m?
The extension of phase 1 (10 weeks further £100m could be expected)?
They mention specifically supplying PROmate in Q1 2021 at DHSC demand and they expect PROmate to continue to be rolled out in hospitals.

You would expect this considering it’s received technical validation from DHSC

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/957995/TVG_Report-PROmate.pdf

It is also the only direct to PCR COVID assay approved.

Is the overall dispute in relation to the kits prior to PROmate?
Does the customer feel they have lost months and therefore value of the contract due to this?

Welcome peoples thoughts on this as I can’t figure this one out.

If they had that information prior to market opening at 8am today then yes however unsure if the RNS released at 12:30 may have contained information that was only confirmed after 8am.

I see your point though. I wasn't about when the news came in. Not sure if that really matters though as i'm still holding. It's still a long term hold for me although today is a real pain the rear end.

its your call!
I think we are all trying to fathom the position of the company minus the DHSC contract. trying to figure out our non UK government sales and market. Big question mark is can we pursue wider markets now we don't have contracts to maintain with DHSC? I don't have that information

"Unfortunately, an extension has not been agreed, although the Company supplied PROmate™ in Q1 2021 in accordance with DHSC demand. Regrettably, the parties are now in dispute regarding the contract, which may have a material impact on Q4 2020 revenues. However, the Company has taken legal advice and believes it has strong grounds to assert its contractual rights."

Is the dispute in relation to the extension of phase 1?
Is the £150 mill secure or under dispute?
Is the potential £100 mill extra revenue for the phase 1 extension?

"Novacyt expects PROmate™ to continue to be rolled out in hospitals, private sector settings and international markets for the foreseeable future, although the Company believes that Q1 PROmate™ sales may be sufficient to support the NHS current roll out plans for the remainder of 2021"

So no further sales to support NHS?
They have enough to roll out?

"Unfortunately, an extension has not been agreed, although the Company supplied PROmate™ in Q1 2021 in accordance with DHSC demand. Regrettably, the parties are now in dispute regarding the contract, which may have a material impact on Q4 2020 revenues"

"Novacyt delivered revenue for Q1 2021 of €83.0 million (£72.6 million). Approximately 50% of Q1 revenue was driven by sales to the DHSC, predominately PROmate™"

£36.3 mil approx revenue in Q1 to DHSC. Not sure how that falls over each month. Does explain the the statement in the end of Jan RNS which everyone didn't like. myself included.

awful news

it does look like it should say 690 instead of 590. i thought this was all automated and these "errors" couldn't happen

Date Time Trade Prc Volume Buy/Sell Bid Ask Value
08-Apr-21 11:30:17 590.52 570 Sell* 686.20 690.80 3,366

Showing a sell at Prc 590.52

Thanks ShaunP, just posted a similar link on another thread

https://www.whatdotheyknow.com/request/lighthouse_labs_and_mega_lab_in
The above link has a doc which states the Leamington spa lab will use PCR on high throughput ePCR platforms

I think the testing lab in Loughborough ran by Perkin Elmer has stopped

New mega lab in Leamington spa?? Are we involved?

Kaeren, glad your mother is getting back to her normal self :)

B2HS2L, I guess it depends on the detail of what manufacturing targets have been set.
https://www.lse.co.uk/rns/NCYT/acquisition-of-it-is-international-ltd-i8bvioc275703de.html

Roderic Fuerst did say

"We look forward to applying our expertise in instrumentation as part of the Novacyt Group to create world class integrated diagnostic workflows. In the short-term our clear mission is to support the Novacyt Group in delivering systems in volume to support expanded point of need COVID-19 testing this winter"

I'm unsure how closely they have been working on things we already know (promate) and what else is in the pipeline. Could they be working on specific workflows for the NHS? perhaps even at their own request and possibly outside of covid. Is this branching out further into the roles we are seeing advertised? Research associates times how many?

Kaeren,

acquisition RNS 15/10/20

"IT-IS delivered revenues of £3.9 million at a gross margin of 55% and a net profit of £0.8 million for the year ended 31 December 2019. In the six months ended 30 June 2020, revenues increased significantly to an annualised £5.0 million with an improved gross margin of 58%, due to higher levels of activity driven by the COVID-19 pandemic"

" an earn out of up to £1.9 million in cash is payable to the directors of IT-IS over the next two years, subject to certain manufacturing targets being achieved."

R&D Update 16/11/20

"Further to the announcement on 15 October 2020 when Novacyt acquired IT-IS International, the Company has significantly increased the manufacturing capability of IT-IS to manage the growing demand for its q16 and q32 instruments. From November 2020, the Company has scaled-up manufacturing capacity for instrument production more than five-fold, with further expansion planned, depending on continued demand."

I do wonder just how many Q16s and Q32s are being produced and sold. The previous directors of IT-IS are certainly incentivised to meet the required targets.

thanks for that link. hopefully he doesn't receive the nuclear codes in some bizarre admin error ;-)