Beaufort tip VENN today11 Jan 2016 10:20
Beaufort Securities have summarised as follows this morning:
"Venn Life Sciences (VENN.L, 23.0p) - Speculative Buy
On Friday, Venn Life Sciences (Venn) released a trading update for the year ended 31st December 2015. The company expects revenue for the full year to be at least twice as much compared to last year (2014: €4.9m). Cash at the end of period stood at €3.4m. In a separate announcement, Venn informed that David Evans, Non-Executive Chairman, resigned from the board, in line with his personal commitment to reduce his number of non-executive chairman roles currently undertaken.
Our view: In 2015, Venn experienced a sharp jump in revenue, led by some major contracts won during the period. Moreover, the addition of drug development and service capabilities has enhanced the company’s service offerings. Furthermore, Venn is seeking acquisition opportunities in Central and Eastern Europe in wake of huge opportunities in the region at minimal costs. Venn is well funded with sufficient cash to expand its international coverage. Overall, the company is well placed, with a strong balance sheet and enhanced contract base, to maintain its growth momentum in 2016. Therefore, we maintain our Speculative Buy rating on the stock. "