Member Info for Hedgehog100

It's interesting to note BMK's strong cash position:
"Cash of £50.6m and Liquidity (cash and available facility) of £61.6m as at 21 February 2022"

Considering the buy-&-build strategy employed by BMK, OTAQ, then which has BMK founder Malcolm Pye as a director, could be a potential BMK takeover target.

In fact, at its current s.p. of just 20.5p OTAQ looks a sitting duck for a BMK takeover attempt, and looks a prefect fit.

Thought I think that it would have to pay at least double or treble OTAQ's current s.p. to succeed.

"Malcolm Pye
Non Executive Director
Malcolm founded, and from 1999 to 2019 was Chief Executive of, Benchmark Holdings plc ("Benchmark"), the world's leading aquaculture health, nutrition and genetics business. Malcolm has over 35 years' experience in international agribusiness through his various roles at Hillsdown Holdings (then HMTF Group), and through building Benchmark from the initial start-up into a major international aquaculture technology business serving the global salmon, shrimp, tilapia and farmed fish industries. Malcolm focused Benchmark's activities on animal health, breeding and genetics, advanced nutrition and knowledge/technology delivery and led the flotation of Benchmark in 2013, maintaining a lead role in investor engagement."
https://www.otaq-ir.com/investors/board-of-directors

I've seen it countless times: as soon as the seller is done, the shares take off.

What's puzzling is why institutions seem to consistently dump at the bottom, when they're supposed to be the professionals!

But for out purposes, all we need to know is that they do, and that it creates an opportunity.

Benchmark Holdings (BMK), the global aquaculture and livestock business founded by OTAQ director Malcolm Pye, reported strong Q1 results last month, which illustrates how aquaculture can be 'insulated' from current economic challenges.

And OTAQ even more so than BMK, as the more technological nature of its business means that supply chain challenges have less impact.

It's also interesting to note BMK's strong cash position:
"Cash of £50.6m and Liquidity (cash and available facility) of £61.6m as at 21 February 2022"

Considering the buy-&-build strategy employed by BMK, OTAQ at its current s.p. of just 20.5p looks a sitting duck for a BMK takeover attempt, and looks a prefect fit.

Thought I think that it would have to pay at least double or treble OTAQ's current s.p. to succeed.

"Malcolm Pye
Non Executive Director
Malcolm founded, and from 1999 to 2019 was Chief Executive of, Benchmark Holdings plc ("Benchmark"), the world's leading aquaculture health, nutrition and genetics business. Malcolm has over 35 years' experience in international agribusiness through his various roles at Hillsdown Holdings (then HMTF Group), and through building Benchmark from the initial start-up into a major international aquaculture technology business serving the global salmon, shrimp, tilapia and farmed fish industries. Malcolm focused Benchmark's activities on animal health, breeding and genetics, advanced nutrition and knowledge/technology delivery and led the flotation of Benchmark in 2013, maintaining a lead role in investor engagement."
https://www.otaq-ir.com/investors/board-of-directors

"08 MAR 2022
Strong outlook in uncertain times
Benchmark’s recent Q1 FY22 results highlighted strong operating trends in its three business areas and a positive outlook in key end-markets, especially farmed salmon. The group’s strong position serving the aquaculture industry should, in our view, insulate it from economic shocks resulting from the geo-political situation and thus make for attractive, safe haven investment.
The company has a strong balance sheet and liquidity position following its £20m equity fundraising last year, which we consider will become a more prominent positive element in its investment case. However, Benchmark will have to refinance its NOK855m senior bond, which falls due on in July 2023. Doing so would remove something that may otherwise become an overhang as it approaches the due date. ..."
https://www.equitydevelopment.co.uk/research/strong-outlook-in-uncertain-times

"I think the main reason is the overall stock market weakness this year, especially for many shares, with many tech. shares being particularly badly hit."

That should say: ... especially for many penny shares ...

Terry,

I think the main reason is the overall stock market weakness this year, especially for many shares, with many tech. shares being particularly badly hit.

Combined with the company being in a quiet period for RNSed news: there's been no real news announced from the company since mid December.

And this share is very illiquid, so if even just one or two retail shareholders decide to sell some, that can have quite a big impact.

But illiquidity is a double-edged sword of course: this share can move up very quickly on minimal buying.

The irony is that oil services and related companies are some of the few to have been doing well recently, and a lot of OTAQ's business is in that field.

Surging oil & energy prices are creating boom conditions for producers, with their s.p.s soaring as a results.

And that also increases demand for the products and services of oil services companies.

NYSE-listed Schlumberger (SLB), the world's largest oil services company, has already seen its s.p. quadruple over the last couple of years.

But the improved conditions don't yet seem to have such an impact on smaller oil services shares, so there could be an opportunity there.

Swissydog Posts: 78 Price: 26.00 No Opinion
FDA PRE-SUBMISSION 12 Mar '22
" ... some promising news flow should start flowing soon. GLA Geni holders."

23rd Mar 2022 7:00 am RNS Indiana University Medical School collaboration
15th Mar 2022 7:00 am RNS Lipid inCode pilot

Swissydog,

That was very prescient of you Swissydog!

Hopefully we have now entered a period of active newsflow from GENI, to hep fuel a s.p. recovery from the current uber undervalued level.

GENI's half-year report was on 16th. Sept., so the full-year report should be soon.

And that will take us out of the close period ahead of the final results, during which the directors are banned from buying shares in the company.

23rd Mar 2022 7:00 am RNS Indiana University Medical School collaboration

... CVD is a broad disease classification which encompasses conditions such as coronary artery disease (causing angina, heart attacks, heart failure), cerebrovascular disease (causing stroke, and some dementia), peripheral vascular disease (causing limb ischemia, and some chronic kidney disease) and venous thromboembolism. CVD is the leading cause of death and disability worldwide accounting for one in every four deaths in the United States. According to the US National Institutes of Health ("NIH"), by 2030, the global cost of CVD is set to rise to US$1,044 billion, from approximately US$863 billion in 2010, and is both a major health issue and global economic burden.

GENinCode has a vision to assist clinicians and inform patients about cardiovascular risk, and to improve public health using the predictive capability of genomics. High genetic risk patients are assisted in making lifestyle choices and can receive targeted treatment to improve outcomes. Over the past 15 years, GENinCode has made a substantial investment in its research, bioinformatic data, technology, and product development to assess disease risk, in order to help clinicians and patients prevent the onset of CVD.

Matthew Walls, CEO, GENinCode said: "We are delighted to work with the IU School of Medicine and to introduce Cardio inCode-SCORE to the IU health community. The IU study follows on from our recently published US clinical performance studies showing the substantive predictive capability of the Cardio inCode-SCORE product for the risk assessment of patients for the onset of cardiovascular disease. We look forward to working closely with the IU team to successfully deliver the programme."

Richard Kovacs MD, Q.E. and Sally Russell Professor of Cardiology in the Division of Cardiovascular

Disease at IU School of Medicine commented: "The GENinCode and IU collaboration offers the potential to improve the prediction of ASCVD and better assess patient risk of future CVD events. GRS's provide an opportunity to enhance assessment of risk based on 'classic' CVD risk factors and help physicians identify patients at higher inherited genetic risk, thereby targeting improved treatment and reduction in future CVD events. IU welcomes this approach and we look forward to working with Cardio inCode-SCORE to advance preventative CVD care."

For more information visit www.genincode.com

https://www.lse.co.uk/rns/GENI/indiana-university-medical-school-collaboration-ewogieqp5yj0dl6.html

23rd Mar 2022 7:00 am RNS Indiana University Medical School collaboration

Collaboration with Indiana University School of Medicine

Study for testing Cardio inCode-SCORE for the risk of onset of cardiovascular disease

Oxford, UK. GENinCode Plc (AIM: GENI), the predictive genetics company focused on the prevention of cardiovascular disease, announces its collaboration with the Indiana University School of Medicine ("IU"). IU is the largest medical school in the US and will undertake a 'Proof of Concept' study using Cardio inCode-SCORE for the risk assessment of patients for onset of atherosclerotic cardiovascular disease ("ASCVD"). ASCVD accounts for over 85% of all cardiovascular disease deaths and is the leading cause of morbidity and mortality in the US and globally.

According to the Centres for Disease Control and Prevention ("CDC"), cardiovascular disease ("CVD") is the number one cause of death in the United States and the decades-long trend towards lower cardiovascular mortality rates has begun to reverse, with an increase in total mortality during recent years: https://www.cdc.gov/heartdisease/facts.htm.

CVD disproportionately affects people of lower socioeconomic status, and those of non-white ethnicity. Early identification of subclinical disease in the population can lead to better primary prevention of heart attack and stroke. Current American College of Cardiology ("ACC") guidelines call for risk stratification using validated instruments, such as the US National Heart Lung and Blood Institute ("NHLBI") pooled risk cohort equation, drawing on clinical parameters readily available such as blood pressure and cholesterol levels. In addition, the guidelines endorse the use of "risk enhancing factors" such as the Coronary Artery Calcium ("CAC") score, undertaken using computerised tomography ("CT") imaging of the coronary arteries.

Whilst acknowledging family history as a risk factor, current guidelines have not yet incorporated the potential of genetic risk assessment in the prediction of ASCVD. Cardio inCode-SCORE provides an opportunity to apply advanced polygenic testing to improve patient risk assessment and prognosis, in a widely available form and at reduced cost compared with other test modalities.

The primary aim of the IU study is to evaluate the association between the Cardio inCode-SCORE genetic risk score ("GRS") and the presence of subclinical coronary atherosclerosis evaluated by CAC. ...

https://www.lse.co.uk/rns/GENI/indiana-university-medical-school-collaboration-ewogieqp5yj0dl6.html

And another one! What is this - dud posters gathering day?!

Canaccord's discretionary clients haven't sold any of those shares in the last few days: the last of them was five days ago, i.e. 17th. March, which was the day before the big ESYS directors shares buying was announced.

They're probably regretting selling now, so are more likely to be looking to rebuy.

About sixteen and a half million ESYS shares have been traded this month, out of 64 million ESYS shares in issue.

Which obviously would have been about half buys and half sells.

Some big selling, but big buyers who are happy to mop them up at this price.

And as we knew that institutional-sized blocks had been sold, that is not news.

There should be an announcement shortly of another institution buying.

It's a bit surprising that there's been no such buy announcement already, because it's obvious that an institution is buying.

But sometimes they like to delay an announcement for as long as possible if they're accumulating, using leeway in the rules, because they know that news that they're buying can work against them price-wise.

You mean you're just another dud AIM poster.

The flexible office space market is set to grow enormously throughout this decade, a process which is already happening.

And as the global tech leader in this field, ESYS should grow enormously with it.

It seems almost extraordinary that you can acquire shares in the global tech leader in a sector facing such enormous growth, at such a knock-down price.

But stock market turmoil can sometimes throw up quite extraordinary bargains, that looking back on them a few years later look mouth-watering.

The challenge of course is to recognise and react to them at the time.

"THE FUTURE OF OFFICE SPACE TECHNOLOGY IS HERE

With our proven enterprise-ready office space technology, you can transform your buildings and your business.

We’re the global leader for delivering the digital services and office experiences that occupiers demand. The next generation of office real estate is here, and we’re ready to power a world that works differently."

https://essensys.tech/

"Flex office space market poised for more rapid growth

... “The increased demand for flex space is structural and not solely a result of the pandemic. As a result, we are seeing landlords and building owners including both flexibility and hospitality services into their portfolios,” says Homa. “They are exploring multiple methods of driving foot traffic, generating leasing prospects, and delivering modern amenities to tenants within these new flex spaces.”

Jacob Bates, Managing Director, Head of Americas Flexible Space at JLL, agrees that tenants have started to see flex as a key part of their overall business strategy. “Companies are looking for the agility that flex space provides,” he says. “Historically, businesses have been able to increase or decrease employee headcount according to market conditions, but they’ve felt stuck in long-term leases and space that no longer serves their needs. After all, you can’t lay off your real estate in times of trouble! But when a tenant starts putting a significant percentage of a real estate portfolio into flex space, they gain a new level of flexibility both from a cost and a space perspective that allows them to match their footprint to the changing needs of their talent base.”

Plenty of room to grow

At the moment, only three percent of the occupiers that JLL surveyed use flexible space for more than a tenth of their total office footprint. Still, JLL expects flexible workspace to continue its grow trajectory from a sliver of the overall market to a critical, mainstream element of the commercial real estate landscape.

“The adoption rate will vary among industries, but we still expect flex space to represent 30% of the market by 2030,” notes Bates. “I would say that high-tech and creative companies may integrate flex space into their office portfolios more quickly, although even we’ve seen even financial services firms move a bit more aggressively to add flex space during the pandemic.”"

https://www.jll.co.uk/en/trends-and-insights/investor/flex-office-space-market-poised-for-more-rapid-growth

"Flex office space market poised for more rapid growth

Nearly half of office tenants plan to increase flex space usage in the future

December 27, 2021

With tenants realizing that pandemic-driven uncertainty is set to continue, they’re increasingly incorporating flex space into their workplace strategies as they move toward a more agile footprint that adapts to their changing needs.

JLL’s 2021 Global Flex Space Report reveals that 41% of tenants expect to increase their use of flex space as part of a post-pandemic work strategy.

“Employers and employees have very different preferences in terms of managing the return to the physical office,” says Scott Homa, Senior Vice President and Director of U.S. Office Research at JLL. “Companies can reconcile these differences with flex space. Looking ahead, we think the broader concept of flexibility will be critical for the office market—not just in terms of how spaces are designed and used, but also the physical locations where people gather and work.”

63% of employees prefer a hybrid model vs. working exclusively in an office or at home

In the simplest of terms, flexible space helps companies become more agile by enabling them to lease smaller (or sometimes larger) office footprints that are available for relatively short time periods via a streamlined transaction process. Even in the decade prior to the pandemic, the global flex space sector was expanding rapidly at an average annual rate of 22%, much faster than the conventional office market over the same time period. JLL researchers say there are four main factors driving intense tenant interest in flexible space:

• Cost reduction. Pre-built spaces that are move-in ready can reduce initial out-of-pocket expenses, boost efficiency, and potential drive down total occupancy costs.

• Agility. Flex space allows organizations to ramp up faster and hit the ground running when they launch new initiatives or grow faster than anticipated. In the event of an unexpected event like a pandemic, flexible space allows companies to pivot more quickly to remote or hybrid work models without being trapped in a rigid, long-term lease.

• Innovation and collaboration. Unlike fully remote setups, flex arrangements encourage innovation by giving employees opportunities to interact in impromptu ways. Such interaction encourages cross-pollination of ideas and can lead to the development of new business concepts.

• Talent attraction. Flex space can give companies an edge in the war for talent by helping them quickly expand into a submarket with desirable workforce demographics or reduce commute times for existing employees. ..."

https://www.jll.co.uk/en/trends-and-insights/investor/flex-office-space-market-poised-for-more-rapid-growth

"Size of the flexible workspace market forecast in the United Kingdom 2019-2023

Published by Statista Research Department, Nov 30, 2021

According to the forecast, the volume of flexible office workspace in the United Kingdom is expected to nearly double between 2019 and 2023, reaching 167 million square feet in 2023. Flexible office space, also referred to as coworking space or shared office space, refers to commercial office space that allows short-term leases to individuals, freelancers, small and medium enterprises, and other professionals. In contrast to traditional offices, flexible offices provide equipped and serviced office premises without long-term rent commitment."

https://www.statista.com/statistics/754743/volume-of-flexible-office-space-united-kingdom/

"A Tonic for Uncertainty? The Post-Lockdown Demand for Flexible Office Space

... 1. Amid uncertainty, some businesses may prefer flexible contracts

The future is unclear. The operating environment is full of unknowns; moving forward, businesses concerned by this might be cautious with their plans. To ease that level of uncertainty, some will choose to start aligning their real estate strategies to ensure a sense of flexibility and freedom, which is exactly what flexible office space provides.

As we’ve said, the option for short-term, rolling contracts, combined with the flexibility to shrink and grow the amount of office space you’ve signed up for could offer some peace of mind – especially for startups and scale-ups.

2. Fitout delays will setback re-location projects

Bigger businesses that were undergoing fitouts and re-location projects may have had their timelines shifted back by supply chain constraints and construction delays, and “flexible [office space] will be an area that occupiers gravitate towards to cover that delay”, according to Elliott.

Those in need of a stop-gap solution will be enticed by flex’s ‘ready-to-go’ workspaces – especially considering the speed at which you can start your search and move in two weeks later.

3. Businesses will embrace an agile working model

Under social distancing guidelines, offices may no longer be able to welcome the same number of employees as they used to. For a period of time, businesses that are tied into traditional leases might find themselves with just 50% of their previous office capacity.

Naturally, this will create an overhang of employees who need space to work in. Some businesses will embrace a rota system and others will continue to work from home, but not everybody wants to.

Elliott explains: “Of course, many will continue to use working from home strategies to enable that, but some might actually go in to flex space because they’re unwilling to go down the remote working route”.

Younger generations will be itching to get back – especially those who have spent the past few months working from their bedrooms, sharing a WiFi connection with four other flatmates and having to walk to a park to enjoy the sun.

Responsive businesses who recognise the value of office space might choose to place these employees in satellite offices near their homes or in flexible overflow space near company HQs.

4. Businesses will restructure and opt for project space

As Elliott explains: “I think we’re going to see significant business restructuring coming in. We’ve got digital transformation pressures emerging with great gusto out of the Covid-19 crisis and we know that digital restructuring teams are often created by businesses and put away from motherships, often in flexible space”.

Separating initiatives like these from the business-as-usual environment and taking up a creative, collaborative project space can help drive innovation and inspire outside-the-box th

"A Tonic for Uncertainty? The Post-Lockdown Demand for Flexible Office Space

The case for the office has been made. The world’s workforce will eventually emerge from its #WFH hibernation. But amid global uncertainty and unpredictable change, traditional office leases may feel like too big a commitment for some businesses.

The tonic: Flexible office space. Though it’s not your only option, it might be a good one.

Flexible office space was popularised by providers like WeWork, TOG and Regus. Offering trendy, ready-to-go workspaces, networking events and stocked kitchenettes, they paved the way for a new world of work; one that celebrates the productivity power of a breakout space – and a weekly calendar of networking events.

Attracting disruptive tech startups and bigger corporates, businesses of all sizes have gravitated towards the ease, flexibility and cost-effectiveness of this serviced office route.

The now mainstream success of flexible office space has invited many to simply call it ‘office space’. But before flex, the 25-year leases of the 1980s, and today’s traditional, seven-year London leases involve long-term commitment to the same square footage, hefty upfront costs, and the chore of having to furnish a completely empty space (and of course, clear it out once when you leave).

But today, flexible offices give you the agility to move straight in, shrink and grow your space depending on your headcount, budget accordingly with an all-inclusive cost and stay flexible with a monthly rolling contract. ...

4 market shifts that could drive businesses towards flexible office space post-lockdown

Speaking on the re-occupancy of office space, Lee Elliott, Global Head of Occupier Research at Knight Frank explains: “We do see value in offices going forward, but we also see significant evolution of the office product through twelve predominant dynamics. One of those dynamics is about flexibility. Over the course of the Covid crisis and beyond, there will be further drivers for the flexible market”. ..."

https://www.knightfrank.co.uk/office-space/insights/help-with-moving/flexible-offices-tonic-for-uncertainty

"SUCCESS STORIES

We’ve helped hundreds of flexible office providers deliver exceptional workspace experiences

From provisioning services for occupiers with just a click, to companies taking their workspaces to the next level, we’ve helped hundreds of CRE and flex-space operators transform their operations. ..."

https://essensys.tech/success-stories/

OTAQ has multiple revenue streams, and strong revenue growth looks likely on a number of product fronts.

In particular, there are two products that in aggregate could potentially deliver revenue growth of say c. £2M. in OTAQ's coming financial year, which would be a step change in the company's turnover:

1. OTAQ sonars to Minnowtech.

Hedgehog100 Posts: 1,695 Price: 27.50 Strong Buy Minnowtech Marching On! 9 Feb '22
" ... So 127 OTAQ sonars to Minnowtech will deliver over £200K. of revenue to OTAQ in its H2 to 31.3.22.
If a high three figure number of sonars are expected to be supplied in 2022, say 800, then that would mean 700 in April-December 2022.
Which on the basis of over £200K. for 127, would suggest over £1.1M. for a further 700."

2. OTAQ Sealfence systems in Chile.

20th Jul 2021 7:00 am RNS Final Results
" ... Final Results for the year ended 31 March 2021.
... In the meantime, our ADDs are being deployed in increasing numbers in Chile, notwithstanding the ongoing Covid biosecurity restrictions that are in place. The number of operational ADDs in that market has increased from 142 as at April 2020 to 264 at the end of June 2021 and several large-scale trials are currently underway utilising our technology. The Chilean aquaculture market is substantial and estimated to be over three times larger than the Scottish market where we are currently most active. We look forward to further growth of our ADDs in Chile and other geographic markets where similar trials are currently underway and the regulatory framework is more settled. ... "
https://www.lse.co.uk/rns/OTAQ/final-results-per68letf081xak.html

15th Dec 2021 7:00 am RNS Interim Results
" ... Interim Results for six months to 30 September 2021
...288 Sealfence units rented by Chilean customers in the period ...
Post-Period Highlights
· Successful conclusion of a six-month ADD trial with a major Chilean salmon farmer...
The successful conclusion in October 2021 of a six-month trial with a major Chilean salmon farmer has resulted in discussions about a further rollout to the customer's sites. ...
As a result of the Group diversifying and developing its interests outside of the Scottish salmon market, Chile has seen growth in the first half of the year and the recent successful conclusion of a six-month trial with a major Chilean salmon farmer is expected to lead to increased growth in Chile in the second half of the year and beyond. ..."
https://www.lse.co.uk/rns/OTAQ/interim-results-pjcbcd45x2fm49r.html

So potentially an increase in OTAQ's annual turnover of c. 50% or more, from about £4M. to £6M.+.

And potentially also a very strong move into pre-tax profitability.

20th Jul 2021 7:00 am RNS Final Results
"... Final Results for the year ended 31 March 2021.
... 18.5% increase in revenue to GBP4.05m (FY2020: GBP3.42m) ..."
https://www.lse.co.uk/rns/OTAQ/final-results-per68letf081xak.html

15th Dec 2021 7:00 am RNS Interim Results
"... Revenues for six months to 30 September 2021 of GBP1.8m (H1 FY21: GBP2.0m) ...
The Board anticipates that revenues for the full year will be broadly in line with the full year to 31 March 2021,..."
https://www.lse.co.uk/rns/OTAQ/interim-results-pjcbcd45x2fm49r.html

OTAQ's financial year ends in just a fortnight, and they appear to be expecting a strong second half recovery.

Full year revenue of about £4.05M. is expected, i.e. about the same as last year.

Following on from H1 revenue of £1.8M., this would suggest H2 revenue of about £2.25M.

Which would be an impressive half-on-half increase about £450K., i.e. a c. 25% rise.

"A "cluster buy" like this from the BOD is hugely predictive of better times ahead."

I totally agree, Unhooked.

And the combination of multiple directors buying, with the large sum invested, is particularly impressive in this case.

The five ESYS directors/PDMRs concerned have spent £328,463.70 in aggregate on buying ESYS shares this week.

In addition, they obviously felt that they couldn't wait just one month longer until the interim results on 21st. April!

Though of course they could always come in for second helpings after that ...