Cenkos Buy Recommendation now up to 14p. :0)
What I find most exciting is that there is an ever increasing sales pipeline, with new products that have recently been added to the portfolio, that haven't impacted these historical results. These being the Lithium Ion Hybrid supercapacitors, the TruckStart units and the Power modules. Then there is the 3Volt products which are coming on line in a few months:
"The first 3 Volt products from Seven Hills are expected to ship to customers by the end of this calendar year. The development of the 3 Volt product has been targeted to meet demand for small, inexpensive, energy efficient power solutions for thin wearables, key FOBs and other IoT devices, especially those using 3 Volt coin cell lithium ion batteries, such as the CR2032 battery."
And then there are the cylindrical supercapacitors:
"In the past, CAP-XX has faced competition in various markets from cheaper cylindrical supercapacitors where our thin form factor, high power and long life are not valued as highly as lower initial cost components from competitors. To counteract this, the Company released a range of cylindrical cells. Modest sales revenue for these products was first recorded during FY 2019. Since then, sales have continued to grow strongly, with the Company being successful in winning significant large volume orders. Several new large volume opportunities are currently being evaluated by customers."
And not forgetting the DMF, DMT and DMH products:
"The Board remains of the view that the installation of the additional production facilities at the Seven Hills facility is transformational for the Company's sales and profitability. The capacity of the Seven Hills plant is around 4.8 million DMF or DMT products per year and more than 2.4 million DMH products per year. Operations at Seven Hills have continued to improve in yield, costs and output as expected. Production costs are currently more than 50% lower than the prismatic parts which the Company manufactures in Malaysia. These production costs are expected to decrease further as further improvements are commissioned. At Seven Hills, the Company is well advanced in obtaining the German automotive quality accreditation VDA6.3 which the Board considers necessary for expanding sales in automotive applications."
"Dotpost is your secure online document hub, enabling you to store and organise any document important to you on any of your devices, keeping them safely in the cloud to access them where and when you need them."
"Dotpost works with the organisations sending you appointment letters, bills, statements and more to help them switch from printing and posting documents to delivering electronic documents to your Dotpost inbox.
"Bleepa is the only CE/UKCA accredited medical app that allows you to share, annotate and discuss clinical grade images on a mobile device."
https://bleepa.com//wp-content/uploads/2021/10/Bleepa__fact-sheet.pdf
Looks like Carelocker has it's own Domain Name.
https://carelocker.in/
Good point, over 20% higher, so should have a positive impact on Revenue.
Revenue from Location Based Entertainment for the whole of last year was £6.3million. From the trading statement in August '22: "unaudited LBE revenue for the seven months to 31 July 2022 to £5.7m" so almost the same as the previous year with another 5 month trading to go! Bodes well for the rest of the year.
Unaudited revenue at the Group's core Location Based Entertainment ("LBE") business for H1 2022 almost doubled to £4.4m (from £2.3m in H1 2021).
In addition, the LBE business is currently enjoying very strong trading in the key summer period, with unaudited July 2022 revenue of £1.3m being the division's best ever month. This takes unaudited LBE revenue for the seven months to 31 July 2022 to £5.7m, a 78% increase from £3.2m in the equivalent period in 2021.
August 2022 has also started very strongly.
R&D Cash Rebate payment of A$2million due in a few months, all helps.....
• Adjusted EBITDA* Loss of A$0.3 million (2020: Profit of A$0.3 million)
• Revenue up 14% up on corresponding prior year period
• Product sales up 40% driven by IoT markets
• No Royalty or licence income reported in the period
• Sales order book at end CY 21 more than 40% higher than same time CY 20
• Sales pipeline now in excess of US$50m p.a.
• Aggregate level of customer enquiries well exceeds nominal capacity
• Increasing interest from global multinational companies
• Ramp up of production and capacity expansion continuing to plan
• CAP-XX is vigorously pursuing Maxwell for patent infringement and AVX for breach
of patent licence agreement.
Nice to hear this:
"A lot of demand is moving from smaller companies to Global multinationals who have some very interesting projects in the pipeline."
A reminder from the pre-close trading statement:
The Board is encouraged by the outlook for FY23 and beyond and expects to see continued strong growth in product sales. This growth is being driven by increasing customer demand for DMF and DMT products, cylindrical supercapacitors and traditional supercapacitor products made in Malaysia. In addition new products, such as LICs together with the expansion of our distribution channels are expected to increase sales.
Both court cases are progressing favourably and the Board, under advice from our lawyers, remains confident of the Company's prospects of securing a favourable outcome. This has enabled the Board to secure litigation funding which is expected to be in place to cover the legal fees in FY23.
Even if the revenues predicted for this year which were £8million are not met, look at the valuation of the company now, crazy!!
No, they have an agreement with Accelerated Payments Limited:
The Group had a cash balance as at 30 June 2022 of £0.7m (30 June 2021: £1.4m) and no bank debt.
We are pleased to announce that the Group has entered into a receivables financing agreement with Accelerated Payments Limited. This highly flexible facility has been put in place to provide working capital funding, as and when required, as we look to grow the business over the coming months and years.
This is now ridiculously low!
And remember that Bleepa/Carelocker provides the UK’s first end-end symptom-based CDC pathway, connecting primary and secondary care – Bleepa is the first example of cross-provider connectivity. So there is no other platform that competes with this, and with the positive feedback from the Sussex pilot, and pressure on the polititians to deliver on reducing the elective care backlog, Bleepa is positioned perfectly to benefit from this.
Interesting to note from the presentation that "We are in conversations with a number of OEMs around potential joint go-to-market strategies"
https://www.**********.co.uk/articles/trader-s-cafe-with-zak-mir-dr-tom-oakley-ceo-feedback-7565993
I like this bit:
Strategically, regional cross-provider opportunities are of key importance to our future trajectory. The average contract value is considerably higher than a sale to an individual NHS trust, which requires a similar degree of customer development resource. It is also an area of low competition as no other provider can currently offer our combination of patient-centric data management and a regulated clinician interface, which gives us a large early mover advantage. Bleepa’s UKCA-marked image viewer remains a key USP given the requirement for image display within a regulatory compliant image viewer. We hope to achieve significant commercial traction following the reporting of the initial Sussex pilot results and evolution of the CDC programme as central funding comes online.
The Company is making good headway and the Board is very optimistic about its future prospects, in light of the opportunities that have been unlocked by the 2019 strategic shift and sustained investment. The Board believes that as management continues to deliver beyond market expectations and progresses on the multiple fronts outlined in the report below, there is significant scope to provide increased returns, which should result in a growing market valuation. The Company looksforward to building on the momentum of 2022 in the year ahead and is aiming to report strong revenue growth as we strive towards profitability.
With an expected 150 CDCs to be created, and an estimated total addressable market of over £90m, the CDC programme
represents a huge opportunity for the Company, for which we are uniquely positioned to exploit, given our regulatory compliant user interface (Bleepa) and patient-centric data architecture (CareLocker) which, in combination, can connect multiple providers around an individual patient journey. Our pilot deployment at Sussex ICS has successfully delivered the first end-to-end symptom-based CDC pathway in the NHS and would not have been achievable without our digital infrastructure offering. This should drive adoption of our products at sites that hope to replicate the success of the Sussex programme.
Well, from reading the results, there are clearly very exciting opportunities ahead, which will increase revenues substantially. The recent CDC contract gives a taste of this, and if what Tom says below is true, then more will surely follow in the coming months:
"Our patient-centric approach combines with our credentials as a medical device manufacturer to give us a truly unique market position. We are the only healthcare supplier to deliver a patient-centric digital infrastructure within a regulatory compliant technology product for clinical communication. Digital medical images must be displayed within a medical-device-certified image viewer if they are to be used for a diagnostic purpose and, without images, clinical case discussion is ill informed and incomplete. This makes us the only tool suitable for facilitating a full diagnostic care pathway across provider settings as these pathways must include medical images. "
"2022 was a crucial year for the Company as we recognised the initial success of our new strategic direction and the growth in Bleepa sales, continuing the move away from lower margin legacy products. Looking forward, we are now well positioned to address a number of at scale market opportunities and are sufficiently funded to deliver against them. We look forward to building on the momentum generated during the period and delivering further growth in the year ahead.