GM After January Results Statement Price Crash9 Apr 2021 20:22
Hello Porky9 (real name deleted)
Thank you for your email below.
You may not realise that at the last count we have over 30,000 shareholders, mostly retail with a large proportion based in France and so it is untenable to communicate with each query/concern that individual shareholders raise. However, I understand your points (well-made) below and so I will respond.
First and foremost, the RNS service used by listed companies is a regulatory service, it is not a tool to be used primarily as a PR machine. In fact if it was used in this way then the repercussions are severe for companies as well as individual Directors when it goes wrong. Second, I wish to make a point of style here. Novacyt has come (very quickly) from humble beginnings and as CEO I have tried to position the business in very difficult times to focus on delivery, not on hype. We continue to do this and we are building the foundations for a significant diagnostics business by ensuring we deliver performance, create expectations that can be realised and not to ramp the business. I know many companies that may have a different philosophy but in my experience hype without substance will always end up in misery.
The Company has made it clear it is reviewing where and how to deploy capital for the benefit of shareholders and when it is ready to reveal its organic and inorganic investment plans it will do so. The RNS yesterday was a Trading update and was never going to be platform to talk about strategy. As I say, when we are ready we will communicate this.
I could respond to each of your points but do not wish to appear defensive and at the end of the day with a 17% drop in SP despite our FY2020 performance means something can certainly be improved. As I am sure you can appreciate there are many things the Company is looking to strengthen when 10 years worth of “normal” high growth is compressed into 12 months. I am flattered when shareholders are already comparing us to companies such as Roche or Abbott who are very mature, been through many decades of growing pains and have much to teach a young business such as Novacyt.
One final point, today we have five sets of advisors help the Company deal with the regulatory and marketing aspects of its communication strategy whilst operating on two trading platforms in multiple languages and the priority is to be compliant with both sets of authorities.
Can we improve communications? Yes and we will do so in time but not without ensuring the business continues to delivers first.
Thanks again,
Graham
THEN after totally highlighting the Fck up of the RNS forward statement wording...
Dear Porky9
All noted and well understood.
Junior markets are sentiment led and despite fundamentals can react irrationally as we saw Friday.
IMO eventually sentiment will catch up with fundamentals. If they don’t then we can leverage these fundamentals in a different way to address the fickle nature of junior markets.
T
Sign In
Follow the stocks
