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I'd been a holder here since 2017, but had sold a while ago worried about the cyclical nature of this business and potentially deep global recession. However today's results look solid to me and given that US is likely to have a soft landing plus SOM growth in Australia and Europe, I'd added back this morning sub £4. Looks a decent hold to me, especially as global supply chain unlocks. Profitable, high dividend payer. I'll add more as this year plays out.
Yeah, I thought Shares was poor coverage of todays update. Proactive investors far more detailed and balanced.
IMV Nothing has changed from yesterday, apart from we now have more detail on the Genmab deal and upfront payment.
I've taken advantage of the 10% dip and added some more!
Rich
Scancell Holdings PLC (AIM:SCLP, OTC:SCNLF) hailed a period of significant progress, including a major licensing agreement with Genmab (CSE:GEN) worth up to US$624mln per product, as it unveiled its interim results.
The deal, announced in October, will allow the US giant to develop and commercialise an anti-glycan monoclonal antibody. Scancell said it provided strong validation for its platform.
In a statement accompanying its financials for the six months ended October 31, the group, a specialist in immunotherapies for cancer and other diseases, also highlighted strong clinical progress with ongoing ModiFY and SCOPE trials, with further safety, immune and clinical response data expected in 2023.
Additionally, Scancell has in-licensed the SNAPvax technology from Vaccitech (NASDAQ:VACC) to formulate and manufacture Modi-2, with the aim of initiating a phase I clinical study in cancer patients during the first half of next year.
Financially, the group is solidly placed with £24mln in the bank as of the period-end, providing a cash runway until the first quarter of next year. It received its first Genmab licence payment last autumn.
As is common for companies investing heavily in research and development, Scancell was loss-making during the period – to the tune of £3.2mln.
"We are pleased to report another period of progress for Scancell, including strong clinical and commercial developments," said Professor Lindy Durrant, chief executive of Scancell in the statement.
"The licensing agreement with Genmab provides strong commercial validation of the company's scientific approach and strategy. It is a defining period for our proprietary antibody platform as we have signed a licensing agreement with Genmab for the development and commercialisation of an anti-glycan mAb.”
Scancell Holdings PLC- Nottingham, England-based cancer immunotherapies developer - In the six months to October 31, turns to pretax loss of £4.1 million from a profit of £2.5 million a year prior. Development expenses widen to £4.9 million from £4.0 million as administrative expenses widen to £2.4 million from £1.9 million. Reports finance expense of £910,000 relating to revaluation of derivative liability, swung from a gain of £2.4 million a year earlier. Does not yet generate revenue. Meanwhile, gives an update on a study on a vaccine trial. 14 patients were enrolled and dosed in expansion phase of the cancer-focused Modi-1 trial, with no safety issues to date. Expands SCIB1 phase 2 combination trial to include doublet therapy, meaning patients will receive two agents, namely skin-cancer focused ipilimumab and nivolumab, which is used to treat several cancers. Says expansion leads to significantly increased recruitment rate. Notes that recruitment for its Covidity clinical trial in South Africa is complete. Expects safety and immunogenicity data from Covidity in the first quarter of 2023.
From IC
Accrol (ACRL) prides itself on being the UK’s leading independent tissue converter. In other words, a producer of toilet tissue, kitchen towel, and biodegradable wet wipes.
Given recent history, you would imagine that market trends have been running in its favour, particularly as consumers ditch name brands in favour of value options. It's true that the top line has risen appreciably since 2019, but a positive transition from gross profits through to net earnings has proved elusive. The group’s interim sales surged through to the end of October, but the gross margin – at 18 per cent – is down by 6.7 percentage points year on year, continuing the slide that was evident at the group’s April year-end.
Accrol’s chief executive, Gareth Jenkins, said the group “successfully leveraged [its] supply position with customers to recover all additional costs incurred in the period”. But there were no apparent scale benefits flowing through to net earnings despite a 14 per cent increase in volumes, suggesting that any claw-back of rising input costs will be a lagged affair.
To counter rising costs and supply chain disruption, the group has increased inventories by 77 per cent since the 2021 half year. Net borrowing has also swollen through the period, although management points to a multiple equivalent to a manageable 1.5 times cash profits.
The outcome of a strategic review, undertaken in 2022 with the support of Deloitte, was published alongside the half-year figures. In short, it prioritises the construction of a sustainable paper mill and the return of cash to shareholders through dividends and/or share buybacks. Unfortunately, these ambitions seem at odds with the group's current finances – last April’s quick ratio came up well short of the five-year average of 0.66, as per FactSet. Admittedly, the shares were marked up on results day, but the 23 per cent premium to net asset value is difficult to justify. Sell.
As always seem to under deliver on results - however still making £1.7m minimum profit on £24.1m revenue. No debt, £14.0m cash held as security. Market cap is around £16m and paying 1.5p dividend (over 5% at 27p)
Eventually this will either be taken over or become a real cash cow. A hold for me.
Morning All,
Anyone here using II for buying / selling shares? The website has been updated over the weekend and the previously easy to navigate buy / sell quotes page has been "modernised" so its no longer a model of clarity, but is a complete mess. Looks like it was written by an IT programmer who never bought or sold a share in their lives. I've dropped II a complaint this morning. Maybe I'm a dinosaur, if other are happy with new layout, then feel free to disagree!
Rich
Yeah wouldn't it be lovely if MM announced a MBO at say £2.50 with the Qatari fund.
Love to be a fly on the wall in Marshall Wace's office when RNS dropped.
If I was MM, I'd drop it at around 1625 on Friday afternoon, so these disaster capitalists had a butt clenching weekend, whilst we all party and have a few beers!
Assume drop is due to share buyback completed 14th Dec - so shorters will get teeth into this share before FY results due in a months time. Great opportunity to buy more for dividend and hopefully more share buybacks to be announced in 2023..
moniman - there's a major problem with Interactive Investor trading platform this morning. You can't get a firm buy or sell price for any shares AIM, FTSE250 etc. This is probably why there is a muted response and low volume to POLB great RNS.
Anyone know what's happening here?
4 x 2.2 million plus 1 x 2.0m share blocks traded this morning at 87p
On level 2, ask is showing 88p, bid 87p, but of course they are both a buy and sell at 87p.
Funds dumping / acquiring but for what reason???
I'm a holder here - agree it continues to perform and acquire quality and profitable businesses for further growth.
The weird thing is the muted reaction to the RNSs. For some reason this company is completely off the radar for most investors and daily volumes are small. Price seems to be controlled by a few algo buys / sells each day for some reason.
Clearly needs wider media coverage and some broker upgrades.