Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Twix,
Joining you??? I'm not sure what you mean - I've been here years and never been against a buyout!
I also wouldn't rub it in too much for fear of looking like a d1ck when we've had opportunities to sell in the 20's over those years ...
At the current SP, NCYT could take us out with their cash mountain, fire the BOD and management and end up, giving them a broader product portfolio, increased global presence and a cash generating business.
One day a red dot will appear ... It would normally be the day after I sell out!
You could also look at it that with £37m rev and an MCAP of £88m, it would be easy for any potential acquirer to simply strip the management and have a very profitable cash generating business.
IMO, one day we'll wake up to that red dot....
I now wish I'd asked a question about relative revenue for sequencing compared to PCR processing!
There's a new job post for night shift added to the web site - fixed term 'til end March ..
Looks like the cash is still flowing in and the bigger the number is, the bigger the EBIDTA is, the more attractive we are to investors and T/O ..
£23m rev for 8 months is damn impressive compared to last year!
Like most breakouts, it's not the drivers you foresee that cause them because they'll already be priced in, it's the ones you don't expect.
So without a crystal ball, it's that unexpected red dot!
At the very worst, with the SP like this we could get taken out at a moderate premium, the buyer would fire many of the BOD, management & duplicate roles to slash costs and they'd make a tidy net profit from day 1.
So BOD - get the SP up quickly to save your jobs and enable me to quit mine!
Would it actually make any difference if they did? A 0.5p spike, and ...
If we're running flat out on the government surge testing contract for PCR and sequencing to bring the coffers in, that will do for the foreseeable!
If the SP wallows around here for much longer, I wouldn't be surprised if we wake up one day to a red dot with a takeout offer at an insulting price.
GLTader,
I agree, they must absolutely make their number this year. I see no benefit to increasing the forecast if they haven't got the
money in the bank and / or with visible existing contract revenue for the rest of the year, it's simply not worth the risk. Ignore potential contracts and covid for upgrades, just forecast the minimum and make that number.
If we have a good Q3, bump the estimate by the beat, but don't go predicting a bumper Q4 until it's in the bank!
So you think Ygen is good value at 13.5p and couldn't think of any other company to invest your spare cash in that might provide a better return?
Hemo, this is the trading update. The detailed breakdown normally comes with the HY results IIRC.
Core doesn’t look great, but the covid hedge is working a treat. The can present it any way they like, but until the world starts operating more normally, we can’t tell whether there will be a smooth transition back to core and core growth.
The DHSC contracts and our accredited lab may also open other opportunities.
If H2 matches H1, I quite frankly don’t give a toss where the revenue comes from!
The H1 number coming in at £17.5m is a nice surprise compared to the “at least £15m” guidance given last month. Even though there was the slip indicating it was likely to be near £16m, that’s still another 10% on top of the £16m
A very solid H1. At the start of the year, who would have expected a £17.5m H1?
With the delta plus variant gathering traction, I would expect the sequencing work to maintain revenues on the DHSC contract for some time even if the basic PCR processing tails off! Core business and the US contracts coming online should support the FY22 £27m estimate with minimal covid testing anyway!
A few chunky 200-250k sells from 8:35-8:50 at approx 14.5, followed up by an 800k buy at 15p at 9:06 …
Yourgene has experienced strong demand for its Covid-19 tests, which propelled H1’22 revenues to £17.5m, ahead of the >£15.0m indicated at the AGM last month. This is more than double the revenues booked in H1’21 and close to the whole of FY21. Both Genomic Services and Genomic Technologies grew strongly in the period, with Covid-related revenues now acting as much more than a natural hedge in both segments. Despite the ongoing uncertainties and lack of forward visibility around Covid-testing volumes, we nudge up our FY22E revenue assumptions by £2.0m to £27.0m but prudently leave our profit forecasts unchanged. Our FY23E and beyond forecasts are also unchanged, underpinned by the positive outlook and strong pipeline of business in the US in particular, which we expect to contribute materially from next year onwards.
Nice to see a bit of blue - Hopefully the update (next week?) will get us a close above 17/17.5p resistance for the year!
Last year, the Half-year Trading update was on the 26th October ...
They were reading questions that came in after the presentation, including one literally as they were going to end it. You had a chance to cross examine or re-ask questions if you weren’t happy with the answers given. Obviously it’s not the same as being in the room, but the opportunity was there.
I’m not disagreeing that the SP has been disappointing and I would obviously have preferred less dilution, but until we know how the US pans out with the NIPT contracts, can we really tell if it was a bad investment choice? How much is that US NIPT / Ranger pipeline and North American presence worth going forward? Was there any other realistic way of funding it? 20-20 hindsight in a few years will be the only way!
Since you feel so strongly, why didn’t you ask these questions at the AGM?
Yeh, I heard the £16m too - wasn't sure if it was a slip or error, but a solid £15m H1 is fine with me!
The H1 results due around the end of October should give a good opportunity to shout about the £15m+ with full supporting figures. IMO AR was right, we got caught out and missed raised estimates hitting confidence, the market wants to see proof that we don't do that again!