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This is the largest element of a c.$10m investment in our contract manufacturing business to support existing client base and develop new relationships. This investment is due to come online in 2023; and in full operation by 2024 is scheduled to deliver $6m revenue pa alone - with the overall fermentation business exceeding $10m revenue pa from its current $1m position. SB
Reassuring and supportive update from the CEO of Nordalk on current events - confirming the company's trading position in relation to countries impacted by the conflict. SB
https://twitter.com/arregius/status/1499669716775968770?s=21
£200k shares sold - best part of £50m wiped off market cap. Crazy times. SB
It would appear so jimmy! Although funds of this nature do have some price fluctuation - they are generally shielded from wider market chaos as a result of their largely recurring revenue, cash flows and quite frankly exceptional yield - with dividend cover the only issue which rears its head here. Not many shares up 10% in the last month.....SB
If we look on the bright side - as a 'buy and build' business there are probably opportunities in the market at present where price expectations will be lower than 12 months ago; main downside is any fund raising (placings, rights issue) we do will be based on our own lower share price. Good to talk guys - appreciate your thoughts - lets hope we hear from max and guys soon. SB
PAGE4 - you now own shares in a private company (with no option to trade your holding) which is currently winding down its operations, paying tax and adviser fees and is waiting on the repayment of $12m in escrow from Godaddy expected early next month. Whatever cash is left post those events will be distributed to remaining shareholders - the last estimate was 10.4p per share available for a final distribution later this year (or possibly sooner) - based on your holding at the point the shares were cancelled on AIM but remain recorded in the Crest system. The only bit I'm not sure about is how the company will communicate going forward (could possibly still use RNS) and how it physically intends to distribute its remaining funds. SB
Dartron - Nordalk would be the only business operation within the group with any direct exposure to current world events. We not not appear to have any quarrying operations from what I can find out but we do have sales offices in both Russia and Ukraine - however the latest information for those indicates less than 2% of sales ae made in those countries. A further 20% of Nordalk sales are made between the Baltics, Germany and Poland - the latter includes quarrying operations.
Blackrock are hedging their position - no surprise there.
One of our closest peers - Breedon - have been similarly hit over the last 6 months - full year 2022 should see us at roughly 50% of breedon revenue, 80% of EBITDA yet we are valued at less than 40% of their market cap (I have not looked at comparable debt so that could account for some of the difference). SB
Might just be me but I would have expected to see a full year 2021 trading update by now. For all the great progress made in 2021 all the shareholder value created in the last 12 months has been wiped out. For a business with our turnover and EBITDA growth projections we seem to be getting adversely hit in the market. Interesting to see if there is something up in the background impacting on sentiment here. SB
Don't disagree chique - sometimes its better to wait for a clear signal that the down trend is over before committing more funds. I think the business has used the cash uplift from its contract manufacturing business wisely - strategic capital investment in capacity to drive organic growth and market acquisitions funded using company paper. I would be surprised if there are no further strategic moves this year - our new CFO has a track record of delivering growth and this was likely a key attribute in his appointment. SB
I would agree on the buying opportunity point chelsea - and increased my holding here a couple of weeks ago. Turns out that wasn't the greatest piece of timing......! We do seem to be overly punished for our link to covid testing and the expectation that that revenues from this sector are in decline - with no support despite ongoing growth in our core business and acceleration into new testing markets. Can't imagine the ADL shareholders will be overly impressed with current performance - their $10m consideration was 100% chares in ekf - which were trading at 80p at the time of purchase - so that's a large dent in the purchase price on paper. Will be interesting to see how they have performed so far - there are some hefty earnout clauses. SB
Problem with growth stocks of this nature mommur is they are all based on a value gamble - if the company can achieve its stated objectives then it has a very bright future. In its short life it has already hit a $1b market valuation only to fall back to its current two year low - although still a decent return if you got in sub £2. It has already achieved a number of key milestones - with the next 12/18 months likely critical in the commercialisation of the business which leads to revenue growth which confirms the business model predictions and unlocks the value in the business. Is £3 the bottom - who really knows (although I hope so...) and until we continue to deliver the key milestones set by the management team we will continue to remain a volatile momentum stock - up and down. I'm optimistic - we have a great core product - but we do need to start showing growth if we want to see an improvement in the share price. ATB and all imo....SB
Its probably not a huge surprise that we are trading around the rights issue price of 85p - but agree there is much to come here - I think we have at least another 2 years of acquisitions and the only negative is there may be further dilutive fund raising which is possibly impacting on price. All good though. SB
possibly the sub 50p trades yesterday finally created a bottom point - there seems to be some support albeit small volumes - and it would be reasonable to expect a move upwards towards the results which should come out end of March '22. What a year to date. SB
You might be onto something there unhooked - although that said it would appear the majority of my current investments also trade in the Ukraine.....sheez who would be an investor eh....SB
Company now formally delisted. Shares removed from trading and ISA accounts as predicted. For those who held on until they turn off the lights - lets hope they can pay the bills and wind the business up as quickly as possible with a minimum of fuss and a maximum of cash! SB
I see it both ways FOTP - the rapid loss in company value in such a short period is not something which should sit well with any investor. We have lost 75% of our market cap in 9 months - more than £600m in shareholder value wiped out. The argument could be that the £1b valuation was completely out of line with actual progress in terms of revenue - but the medicare test price agreement and number of healthcare partner deals boded well for the future hence the growth speculation. Todays non exec RNS referred to the company coming to an " important commercial inflection point" - which we have to assume is a clear indictor that progress is positive behind the scenes - whether this is a nod to higher revenue coming on line, FDA approval, further partner deals or funding - remains to be seen. In the meantime - its painful. SB
'*preceding 12 months'. Getting ahead of myself.....
We are due both a Q2 and H1 2022 update - and should hear this week when results are due but based on previous updates first week in March highly likely. As you say - very low liquidity - £50/100k sales a day regularly knocking off £tens of millions off the market cap. We are also being shorted which doesn't help - introduces fear into the investor community there is something larger at play - funding concerns probably the largest. The whole market is nuts at the moment - fear and uncertainty rule the day. Lets hope for some strong reassurance in March. SB
We have now crashed through 80p, 70p, 60p. 50p......wiping £160m+ from our market value. Our single largest investor alone - Harwood Capital - have taken a near £50m hit - all in the last six months. Our executive directors were all paid significant bonus payments last year (£500K) directly related to the appreciation in share price over the proceeding 12 months. All that and more has now been lost. Ironically the base line price for further bonus payments triggers at 33p so further awards could be made in March 2022 despite the huge loss in shareholder value - accepting this is not all down to the company but at what point does it offer some support - we have £20m in cash - imo now is the time to consider sharebuybacks given the share price hammering of late. SB
andypa - our current fiscal year runs to 30th June 2022. Q1 (July - Sept '21) reported $0.5m revenue - which is highly likely to be attributable to our Mount Sinai programme - and equates to just over 500 tests being undertaken in Q1. MS has a target run rate of 300 tests per week - however there is a current aim to deliver 6000 tests in the current fiscal year (with an indication this may increase to 10,000). It is unclear as to the test rates from our partnerships with University of Utah, Atrium Health, Wake Forest Baptist Health, Capital District Physicians' Health Plan and the latest in 2022 - Singing River. I would like to see H1 2022 (July - Dec '21) revenue of at least $1m which would show a doubling of tests being delivered in the period; with a further acceleration into H2 2022 towards the MS 300 per week target with other systems coming on line - so the second half of the year should see a decent hike in revenue - but this is clearly all predicated on the ability to increase testing - and we need evidence from our Q2 update on how this is proceeding. IF we can achieve 6,000 tests - we are looking at c.$6m full year revenue - plus what ever else we can achieve from the rest. It is also important to look at our cost base - $12m per quarter is high - although there were a number of one off costs in Q1 so that should come down a bit. That all said - it is likely FDA approval would provide the market with much greater reassurance at this stage than revenue - which is not entirely logical...buts the the market. SB