Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I always though that was a typo and they meant 2021, but may be it was 2022 all along, feel odd to ratify after being in role for a year!
The appointment of DA wasn’t a resolution that I could see, so I don’t think it’s voted on, but presumably they need to hold a quorate AGM or an extraordinary meeting to ratify and appoint him to the board, so if they don’t get quorum for this AGM I don’t know what happens. Also not sure what happens with Anthony Dyer resigning from the board today and James McCarthy due to be appointed today, if voted through. Presume Anthony hasn’t resigned now
Interesting first day for DA! Note the resolutions haven’t changed and also it’s unclear if you have already voted, whether you can change your vote. They need to now convince those that haven’t voted to actually vote in the next 2 weeks…
Bluelight, can’t disagree with any of your points. The Brokers have been awful, part of the issue is the lack of IIs and I agree bonuses should be based on the SH return.
So I voted as I was doing it as a vote for the new regime, rather than the old.
If you didn’t vote, what would do you feel would need to change in resolutions for you to vote in the rearranged AGM?
That’s half what I paid BioGrad only 2 weeks ago, admittedly for a postal not walk in, but I expect postal to come down as well at some point. Shame this couldn’t have happened before Gov discussed publicly removing Day 2 requirement. May be the Gov haven’t confirmed when the Day 2 PCR requirement will end (unless they have since and I’ve missed it) because they’ve hoping the PCR market forces will improve and Co’s will drop their prices… then they get low cost for consumers and more accurate testing… Win/Win for them and us consumers
Went into the AGM logon link earlier and there was nothing on the site apart from the AGM Agenda and the Speakers. All of the resolution votes had disappeared, presumably as voting has closed.
Agenda
Quorum and Notice of Meeting
Welcome and Introduction
Business Update
Resolutions
Close of Meeting
Speakers
James Wakefield
Graham Mullis
James McCarthy
If you go to the site @ 1pm on Wednesday then you’ll be able to watch the AGM. There doesn’t seem to be any opportunities for new questions.
Hillseeker - It is overly cautious accounting IMO, but I’m not sure it would scare off any would be buyers. We can see just looking at the accounts and the RNSs how profitable they are and it wouldn’t take long for anyone doing light touch DD to do the same. An MBO at this market cap could be a possibility and I imagine there would be a lot of PE interest with the revenue size and these margins, if they could get it at a good price, but I’m not sure they’d get anything near the current SP.
I don’t suppose that showing a loss in H1, rather than showing a sizeable profit, is going to hurt when saying to the DHSC that they have to pay up. Also think that it helps to separate out the cash that they can use for an acquisition.
I’d also prefer the £49m in revenue as well. What everyone is saying is that H1 is ultra conservative, as if the dispute income, inventory and production costs are all written off, you should really account for the tax paid coming back as well.
It’s £77m H1 Cash + July, August and September, so c.£87m IMO for Q3 YTD
Or somewhere in between. BOD predict Covid revenue will drop by 50% YoY, but they will make up the shortfall with non Covid revenue and achieve overall 5% CAGR going forward.
As Butchers says it’s all in the RNS…
“We also remain focused on strengthening our long-term position and executing against our strategy by building our product and instrument platforms and expanding our commercial infrastructure for growth beyond COVID-19.”
“As announced on 22 June 2021, the Company is focused on key areas of test menu, instrument, and geographic expansion. The test portfolio expansion in COVID-19 and beyond COVID-19 will be achieved by leveraging the Company's strong bioinformatics and design expertise. With instruments, the Company is focused on improving capabilities in near-patient testing and offering full work-flow solutions which will include extraction and sample handling automation. Expanding the geographic footprint will be helped by selective investment in key countries and by leveraging the international relationships and reputation Novacyt has built up over the last 18 months.”
https://www.lse.co.uk/rns/NCYT/half-year-2021-results-25htu0dw34gr5u4.html
Innovations in near patient testing, outside of Covid, could be significant in terms or revenue and competitive advantage!
TWOSHEDS. That’s your choice, but it’s a H1 loss, after writing off (in accounting terms, not legally under the contract) the income, the inventory and the operational costs related to the DHSC contract. Any revenue now received or inventory sold goes straight to bottom line profit. There are also potential tax rebates.
H2 should be in profit, based on the FY £100m revenue and the current 71% gross profit margin and 43% EBITDA. IMO the profit in H2 will turn the FY from a loss to profit, even without any benefit from above...
Hardly “tanking” it’s the usual 8am drop. There’s no new headline news. Just need to have some patience. AGM only on Weds and who knows, may be some other updates as per last year’s AGM…
Nothing has changed with these interim results from the RNS on 16/09
“ Consistent with the announcement on 22 June 2021, the underlying business will generate gross profit of approximately 71% of sales and EBITDA of approximately 43% of sales for the half year, excluding the impact of the DHSC dispute. The Company's cash position as at 30 June 2021 was £77.2 million.”
We already knew the cash position and on these margins July, August and September will be adding more to it. IMO another c.£9m.
They’ve also reiterated the 2021 FY revenue forecast of £100m ex. DHSC.
So nothing new in the headlines, some interesting bits of detail around tax rebates, accounting treatment and if there is anything additional on the dispute it will go straight to the bottom line.
Aim is Aim, but this, IMO, should not impact the SP negatively as we already know it, but we’ll see what the market thinks. We’ve all wanted the DHSC dispute to be replaced and now the 2021 part has been accounted for and the positive bit is that the non-DHSC revenue and profit allows us to write it off in accounting terms and we’ll still, IMO, make a profit this year. That’s pretty amazing!
Thanks Wilson, I used BioGrad for my two recent trips abroad and unlike some other organisations the tests arrived the next day after ordering and I got the results back within 24 hours of the tests arriving at their labs. They were also pretty much the lowest cost offering available. It’s some of the other “testing” organisations that have given PCR testing a bad name…
Local secondary school has just cancelled our new children/parents tour tomorrow, due to a Covid outbreak and yesterday marked the most PCR tests (463,397 for 23/09) conducted since 13/01/2021, source from today’s Gov testing data. PCR testing is still going strong!
Let’s hope Monday’s H1 Results is followed by some blockbuster news and a solid AGM. I’ve voted for the resolutions as we need to support the new CEO to protect our investment. Let’s hope the SP starts to reflect the progress, the fundamentals and the future growth opportunities outside of Covid that NCYT offers.
Need to switch off this weekend now and not think too much about Monday morning, lucky there is football, boxing and F1 to distract!
GLA LTHs
Thanks to Kilkenny. This shows the variety of industries some our partners are serving. You can see testing continuing in industries where you just can’t take the risk, or cost, of a TV show or cruise being impacted or cancelled by Covid or other diseases.
https://twitter.com/kilkennyted/status/1441342606756044838?s=21
I’ve used BioGrad for my Day 2 PCR when back in the U.K. and BioGrad’s (don’t know who actually manufactured it) LFT, which you use abroad for your certificate to fly back. For the LFT, you take the test and then photo the test result next to your passport and upload it. A couple of hours later you get a certificate back, which is then checked by the airline before letting you on the plane. I did it properly, but it’s open to abuse, especially if it’s the process, which will replace the fail safe Day 2 PCR test. On PCR you actually need a sample for a valid test. On LFT you just need to add the reagent for a negative result. It’s a recipe for disaster in letting in VOCs and there’s not really that much cost difference between PCR and LFTs at the moment anyway, so the families that the Gov is so worried about aren’t going to save a lot.
Bluelight, you’re correct you can’t use the free ones. It even states on the government website that the free LFTs should not be taken out of the country either. You need medical validation, via either a video or photo of the test result, even if self-tested.