Member Info for Davde

H&N Profit FY should be circa £1.6m before tax. Sales to North America £1m and Europe £1.5m in first half. The half year does not break down between global health and H&N sales but fair to assume will be mainly H&N.

Health and nutrition sales up to £8.6m in 2021 up from £6.8m in 2020 so they are selling and growing that element of the business.

My understanding is 4p is the lowest they can offer shares at as this is the nominal value.

TB Half year to Sept 21 Revenue for H&N £4.3m, EBITA £1.1M, Profit before tax £0.87m. For full year we know H&N revenues have grown to £8.6m so if ! argins are same in second half 21/22 then H&N should show a profit of circa £1.6m before tax. These profits are completely wiped out by the global health losses. If the global health losses are eliminated by ceasing covid and sale of CD4 then left with a profitable company.

Certainly would not disagree that the share price does not reflect the turnaround currently underway. Once CD4 sold ODX should have a profitable company. It is nearly early summer, when they said sale should be done, we will see re timescale and value realised. After that we will see what happens to SP however do not expect any significant rise at least until potential warrents lapse.

The current finance person took up post on the 30th Aug 2021 and did not benefit from any options sold. Since his appointment ODX have changed strategy. He has a proven track record in turning companies around.

The presentation posted yesterday indicated 88% increase on revenue for Q1. Whilst not quite triple digit growth, not far away. If the broker forecast out of sync with what is actually going to be achieved then we will be told soon enough. I personally would like to see a business segment revenues each quarter however it tends to be only large corps who provide this detail. The H1 figures for me will be useful in providing reassurance that all is well. It is disappointing that the SP is where it is however a lot of the decline is market sentiment due to Ukraine war, inflation and recession fears rather than with DVRG performance. I personally still think DVRG will deliver a significant profit on my investment but do understand why some have reservations in these precarious times!

Will we not get an RNS if it is Helium selling like we did before!

NU had a look at your sums earlier today so at the end of year 5 DVRG could potentially be generating $14.4m cash per month from 12,000 units in place or $178.2m per annum. Not an insignificant sum! Had a look at BAE systems accounting policies re lessor leases and my interpretation is if its an operating lease the income is recognised on a straight line basis, whilst if its a finance lease the value of the asset (the kit) less financing cost is recognised in year lease commences. This is my interpretation so maybe wrong. What is clear is that significant revenues that could being generated annually if production capacity utilised fully. The questions outstanding are what will be the utilisation and what are the margins! Maybe I am being overly optimistic or not understanding the model!

NU yes I understand the RNS. It tells us the payment or cash flow schedule, it does not tell us what the accounting treatment for the income is in year 1, 2 etc. As I said I am no expert in lease arrangements, so you may well be right but we do not know what type of leases are being proposed or how they will be funded, e.g. from cashflow or via a 3rd party. Leasing is a complicated business both for lessor and leasee and further info when available will be helpful.

The recognition of lessor income from a asset sale via a lease depends on the type of lease being provided. I would suspect that DVRG will be offering manufacturing leases which if I recall does allow recognition of some of the asset sale income at start of lease. It is a complicated area and I am no expert but it would be good to understand what type of leasing arrangements are being proposed? Peoples thoughts welcome.

£7m per Finncap update.

The potential sale value for CD4 will be interesting if they get anywhere near the book value. We will know soon enough as sale predicted early summer.

I have seen no daily trades in ODX, pre covid which is where we are now. CD4 can be very profitable in future I for one hope they do not sell it.

Yes good results as expected. Interesting comments re distribution, Rivaldo hope you are correct as cash mounting up!

"The Alva site generated a £4.9m loss in the nine months to 31 December 2021." From March this loss will have been significantly reduced as will cash burn. It is not clear what the profit/loss is for LFT production will be going forward as yet.

FUD meaning in other parts of UK is a perhaps more appropriate!

Odx still have use of the Alva site until Dec for making LFT's, mainly for CD4 I suspect but you never know.

Quote from consultation launched on Thursday.

"Complete separation of sewage and rainwater systems would remove the need for storm overflows, however this would cost between £350 billion and £600 billion. It would also cause significant disruption.
For example, most of the combined system runs under our towns and cities and would have to be dug up. Reducing discharges to zero in an average year at all inland waters using other options, such as building storage tanks to capture excess water during heavy rainfall, would cost between £160bn and £240bn. The cost of each of these options would have an impact on consumer water bills."

The numbers are eye watering! I seriously hope this will not be fudged, as the increased rainfall predicted due to global warming will result in a significant risk to public health if the issue is not addressed. The role of monitoring water quality will be essential to determine investment priorities, enter stage left DVRG!

Wonder if he will fund ODX again! Stranger things have happened.