GDR5 May 2020 11:36
Company looks promising and is targeting highly demand areas in a short space. The COVID-19 tests will generate cash flow and no doubt when the RNS comes out saying we have CE approval the price will go up.
Have cash now due to the raising of funds at 80p so has £7,000,000 cash. Expecting to produce tests between £8-£10. Lets take a price of £6 to be more conservative with a profit margin of 40% again being more conservative than the 60% quoted. They said that they can produce 10,000 tests per hour and have a supply chain for 6 million tests. Lets again be conservative and say that they produce 5M tests (about 15%) less incase there are any faults etc
That gives 5,000,000 x £6 = 30,000,000. 40% of that equals £12,000,000 income. Thats being conservative as well. Not sure how long it takes to produce the tests... they said 10,000 an hour, again not sure if that is based on 24 hours or 8hour day. Lets say its 6 hours t be further conservative and account for any error etc that means 60,000 tests a day which would mean our capacity is done in 83 days... so within the next quarter £12,000,000 should be available... if not next 3 months at least the next 6, thats based on no further developments that will go ahead if successful. If we get the CE stamp that allows us to distribute across the European Economic Area which means greater demand.