2019 results and the future16 Jun 2020 14:21
I have seen various posts saying that everything is going to be all right here in 18 months time with the business being sold at 62.5p because Griffiths, Johnson, Roller have done this before, but I must be missing something. This is now a NIOX only business. Their 2019 NIOX sales were £34.6 million at 74% gross margin = £25.6M gross profit. Sales and marketing costs were £55M and G&A costs £11M. Let's assume that half of this cost goes now that they have given up Tudorza and Duaklir and they spend nothing on R&D. They are still loss-making on NIOX to the tune of £7M or £8M. To get to a share price of 62.5p needs a market cap of close to £250M. Who is going to pay £250M for a loss making business? What am I missing?