CEO, Chair and FD need to buy shares in ODX - and soon....7 Apr 2022 09:02
Lets stick to the facts presented today in the RNS, which read well for the future prospects of the remaining ODX business. In summary:
* ODX expects to report a 41% increase in revenues to £12.3m (2021: £8.7m)
* Health and Nutrition (H&N) division contributing £8.6m of revenue (2021: £6.8m).
* Underlying H&N sales grew by 54%, driven by strong Food Print® product sales, up 82%. This division remains one of the key areas of strategic focus, with substantial growth opportunities in both China and the US.
* The Global Health division has also seen substantial growth in the period, up 97% to £3.8m (2020: £1.9m).
* CD4 revenues increased to £1.0m (2021: £0.1m), as further progress is made to implement CD4 testing in high HIV prevalence countries. Order intake is running well ahead of available production and the long-term prospects remain undiminished for the roll-out of the VISITECT® CD4 Advanced Disease test.
The trading update clearly highlights the growth potential at ODX. I would suggest that trust in the BOD can be gradually restored if the following happens next:
* CEO Jag, Chairman Simon and FD Chris need to defer their salaries and invest some of their salary in to shares soon. i.e. they need to have skin in the game to demonstrate to long suffering share holders that they too have confidence in the business. This will be well received by the stock market and shareholders.
* The BOD need to focus on the core business, which as the numbers above illustrate is performing well. There is no doubt that there is value in H&N / Global Health and this needs to be nurtured and developed in to a world leading business.
* Once they have restored share holder value and the core business is flying that will be the appropriate time for a takeover. There is no point in finding a suitor now as it will be selling off the business on the cheap and share holders are clearly in no mood for any more shenanigans from the BOD. It's a BIG if - bearing in mind how badly share holders have been let down over the last 12 months - but IF they can nurture the existing business share holder value & consequently the share price will improve significantly. Over to you Jag, Simon and Chris.
Good luck, Brighty
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