Bazz : Perhaps you should focus on Croda ?25 Sep 2025 09:44
Croda : Profits required from Zenakine;
To understand why SBTX will do so well from Zenakine , we need to look at what profits croda require from the product.
30% of sales is the number (10% or more has already been deducted for SBTX.)
30p in each £ of Zenakine sales, is required by Croda for the following to be achieved .
£10M of Zenakine sales : £3M operating profit for Croda
£100M of Zenakine sales : £30M operating profit for Croda
£250M of Zenakine sales : £75M operating profit for Croda.
In my view £250M of sales will be the short term goal Croda have set themselves
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For SBTX the profit numbers are £1M, £10M, and £25M ( at 10%). Could be higher .
Investors need to understand the top number, (£25M), simply requires Zenakine to replace what’s been used, and sold by Croda , on an annual basis, in the form of dirty oil based ingredients, for the last two decades.
I personally don’t think that’s a big ask, since Zenakine is green, bio, sustainable , and outperforms by a mile.
SBTX have 5 pillars with a total value placed on the company of £36M.
That has to be wrong, since £10M of value can be given to the group ex Zenakine, cash of at least £2M, and a tax loss of £10M
Thus, Zenakine is valued at £25M, : on a high growth PE , a £1M profit from Zenakine is required to justify that valuation.
As a SBTX shareholder the chances of making , real rock solid, super high profits from holding the shares, are very real indeed , in my personal view.
One million of SBTX profits from Zenakine is just 1/25th of what can be delivered by Croda , if as I believe, Zenakine is a blockbuster.
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