Extract from Turner pope Research Note23 Jun 2022 12:00
DeepVerge’s recent record of delivering triple digit annual revenue growth is set to be sustained in 2022. Having already seen its
revenues double during its 12 months of of ownership, the new year is now starting to witness a step-change in both international
need and longer-term demand for Modern Water’s unrivalled pathogen testing equipment. In tandem with this, Group receipts
continue to grow rapidly as processing capacity for Skin Trust Club’s home test kits expands in response to surging demand, while
Microtox BT’s regulatory tests and joint venture negotiations with China Resources remain ongoing. Recognising the scale of the
opportunities being presented and in expectation of further significant news releases in coming months, TPI retains its current
year forecasts for DeepVerge along with a DCF-based valuation, which suggests the shares presently trade at less than 5x its 2022E
EBITDA multiple while implying a share price target of 94.7p.