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Hi vig - apologies if I came across overly negative - wasn't my intention. I agree the SRC team provide an air of confidence in their approach and I hope the market starts to see the real value of what is being achieved this year as the full year revenue and ebitda numbers start to do the talking. The scale and breath of SRCs operations show the ambition here - lets hope shareholders see some of the value being created before too long. SB
We got hammered on Nasdaq again yesterday - closed below $4 for the first time. Bonkers to think we raised $30m at £2.76 for equity and $7.25 for bonds just over a month ago. There appears to have been an investors call between US based investors and James M facilitated by Randy Barron last week to try and calm what is an increasingly disillusioned shareholder base who are all nursing heavy losses - management, II's and PIs all in the same boat. Does not appear to have made any difference to the slide. SB
Hi unhooked. This looks like it is part of the AGM shareholder resolutions which will be voted on at the AGM on Wednesday this week - my holding is with ii and for some reason I don't have the AGM details. Although a recently new investor here - my take is that EKF has both a core business and a number of commercial spin offs which required access to capital for growth as independent companies - Veirci, Trellus and Renalytix. EFK retained shareholdings in each business - with a stated aim to deliver the value (shares) in those companies back to its underlying shareholders. What is a bit different here is the distribution is taking place two years after Verici was floated - and after a further fund raise of £2.5m in March 2022. EKF now hold a total of 5.77% shares in Verici worth c. £2.8m - so looks like it is the total holding of c.10m shares which will be distributed to existing shareholders - timings to be finalised - presumably based on current prorata % shareholdings). I don't think we should overlook the role of Christopher Mills in anything to do with these four linked companies - noting he bought 1.3m shares in EKF a few days (also noting he pointed out the value at this price is significant looking at medium terms EBITDA projections) after this announcement was made....entitling those funds invested to 29% of the distribution ie an additional c.2% of the business (currently 17.5% ); with Mount Sinai picking up another 1%+ (currently 11.3%) . Together - those two parties will control more than 30% of Verici stock as it stands. All IMO of course.....SB
Does raise the question - what are the expectations!! Any ideas? H1 revenue could be c.£16m based on the AGM statement - running costs are not clear given the head count savings were not expected to impact until 2022 - and clearly both revenue needs to increase and costs need to come down as we will not have the benefit of a £4m tax credit in 2022 to offset the group trading loss. Going in the right direction though - growing, cash in bank, positive cash flow, potential beyond air settlement upside if lungfit gets FDA - but its going to take something quite special to hit the 63p Dec 2022 options bonus for our executive chairman. SB
Our dual listing on Nasdaq now coming back to haunt renx. $85m raised less than two years ago at $13.50 - threatening to go sub $4 today. Loss of shareholder value now in excess of £750m in last 12 months - company is now back to its 2019 IPO price if you add current cash balance to the float share price of £1.20. Quite incredible to witness. SB
unhooked - from what I can research RENX has lots of partnerships (Sinai, Wake Forest, Utah, Singing Rivers, St Josephs and the VA - with a target to secure up to a further 15 partners in 2022) - but only Sinai is actually processing tests - and is currently way below either the 300 PW target or the recently reduced 10,000 annual target. And Sinai has a vested interest given its significant investment and stock holding. All other partners deals appear to be focused on R+D activities - with an indication RENX is paying its partners to secure these deals ($5m paid in H1 2022 for 'R+D efforts' and 'utility studies'). We have invested heavily in our sales force and commercial team - the focus should be on how we effectively monetize our partner relationships - and totally agree there should be feedback on when these health systems become revenue generating clients as opposed to strategic R+D partners at significant cost to RENX. SB
The extremely worrying trend occurring in the sector is that company valuations are being linked to net cash - so as bad as RENX is there could be worse to come. The only positive sign for me relates to the timing of the fund raise - which coincided with the end of our Q3 trading - and as such both equity and bond investors would likely have been made aware of the (hopefully growing) test numbers at Sinai which remains the only source of revenue outside pharmaceutical services income. Us mere investors should hear in a few weeks how we fared in Q3 - and at that point the company will have pretty much full visibility on its Q4, H2 2022 and fiscal year 2022 which ends on 30th June. Also - Sinai, Mills and Directors hold more than 29% of the stock - at what point do they consider taking the business private? SB
Feel your pain unhooked. Valuation at its height was all about growth prospects and positive sector wide sentiment. We have a great product - but if the company cannot commercialise what do we have? Good news is we have some time given the cash balance - bad news is market appears to have no confidence in current business - selling 50 tests a week doesn’t really cut it does it…..ATB SB
Its messy in all sector's at the moment - but certainly comments made by the BoE in relation to a potential recession if they don't get the balance between inflation and interest rates correct is sending SRC into further freefall - along with others in the building sector. To be trading at 20p a share less than the rights issue last year seems completely OTT - but as noted earlier this week there also appears to be a large seller in the market and MM's could be sitting on stock they cannot shift and need to balance the books. The cost of borrowing to build the business is not going to get any cheaper either - so further dilutive placings (short term) may be required to finance any large scale growth. In the meantime its behind the sofa stuff on the investments front atm. SB
No problem Italian. The only other issue kicking around in the background is Blackrock's 10m CFD holding - which they probably used as a hedge given their core long holding - and given what has occurred here over the last few months was a good play whether you agree with trading of that nature or not. Will be interesting to see if any of the CFD's have been closed out in the recent trades. ATB. SB
Just had a look - yesterday someone sold 8.375m shares in 6 trades over 100K at 73p; and today another 4m in two trades at 73p. All in all just under 1.9% of shares in circulation sold in last 24 hours. Blackrock reduced a bit last week - but nothing of this scale - so possibly they are reducing their position here. SB
Looks like the previous management team got a deal and exited the premises! Rightcast have 30+ employees, decent client base and adds another business to our precast group. Didn't notice the trades referred to yesterday Italian - current performance is not what we expected to see here - but same can be said for lots of companies/sectors. SB
Interesting potential hypothesis Vig! Only time will tell if there is a larger game at play here as has been alluded to previously. In the meantime - at least Mills/Harwood have tried to show some support for the business following the buy back disaster. Hopefully this signifies the end of the recent slump and we get a decent trading update as part of the AGM announcement later in May. SB
I will top trump you unhooked - I’m in ekf, Renx and cir - all following Mr Mills. And mmx which he was into as well - just about ok on the last - current disasters on the rest!! SB
£200m in lost shareholder value in 3 months - more than 50%. The current price even makes the buy back look like an ill timed judgement call which accelerated the price decline. SB
Despite broker views and the much heralded positioning of the business for growth - we are now price wise back to where we were 2 years ago pre pandemic hits. For a business with decent cash in bank, strong EBITDA and PBT, cash generating, some decent investments in other companies and in its own business lines and paying a 3% yield - it doesn't half feel like there is real market downer on the business. The bonuses paid out to senior and now departed managers last year based on creating shareholder value feels a bit raw. SB
Hawker - I spotted the same in my posts over last 24 hours. If you go back to 13th April there were 1m shares traded on that day - the day after millennium started to reduce to 1.47% from 1.52% on 12th April. Something is definitely up - just possibly they closed up on 13th through the 1m purchase and now sit under the 0.5% reporting threshold - but I cant definitely say this is the case. SB
Not as sorry as I am with my purchase price JTT!! But as I said I'm going to hold and might add if we start to see an uptrend and more importantly when we see evidence that testing revenue is accelerating quarter on quarter with a bit of scale. As for your observation Timelord - I am linking (perhaps not correctly) my observation that short positions appear to be in decline (there is evidence on the FCA's short position tracker to support this) and this should allow the price to move north in the near future given the clearly stated cash position of the business and the potential for some of the 'milestone' events to occur in the coming months. SB
Disappointing to see a poor price response to what appeared a strong trading update. Our peers - Breedon and CRH - are in a similar position (and also posted healthy updates) so clearly there is a lot of nervousness on how the sector will perform in the medium term on macro economy growth issues - and companies such as SRC who are in the 'buy to build' space need to raise money through equity and debt to fund acquisition - with the cost of debt increasing as we enter a new interest rate cycle. Free cash flow will become increasingly important to grow the business - so in some ways the timing of the nordalk acquisition and how it was funded in particular was a great bit of business - accepting the negative issues on trading in eastern Europe which as we know is limited but there is a risk of contagion. SB
Turnover slightly below my estimate - but period did include xmas trading period and with the addition of Johnston we should be in the region of £450/460m full year turnover. If we get anywhere near our EBITDA target of 20% (2021 - 18%) then we are in great shape. 2021 eps - 5.4p, targeting 6.7p in 2022. The focus will be on driving eps into financial year 2023 given the trigger levels for LTIP awards based on 2023 results with maximum vesting based on an 8 pence eps. SB