Turner Pope report17 Mar 2021 08:46
What a great read!!!!
Anticipating an exceptional 2021 for Deepverge
Current year expectations for Deepverge are already high. On 11 January 2021, the Group confirmed that Q4 2020 was its first ever profitable (at the EBITDA level) quarter, during which time order books had built strongly with the signing of 12 new contracts for Labskin Services. At the same time, the Board also provided revenue guidance of £10m for 2021 (representing 127% annualised growth on the full year 2020 figures), while noting that several large projects, including two ‘multi-million pound opportunities’ due for decision in coming months offer potential to drive this figure substantially higher still. Today’s news not only reinforces such expectations, but potentially offers to dramatically reset targets. Recognising that the current year will likely see the world transition from one that has struggled to contain the catastrophic effects of a global viral pandemic, to one that needs to urgently understand how to provide rapid, ongoing detection, containment, monitoring and response in a post-Pandemic environment whose principal challenge must be to ensure such outbreaks cannot undermine humankind’s future well-being, Deepverge’s seemingly ideal range of core competences, technologies, innovative skillsets and global reach potentially positions it to enjoy years of exceptional, high margin growth. On 11 January 2021, TPI updated its valuation for Deepverge, indicating a revised figure of £140.6m, or share price target of 84.8p. For now, this remains current, although TPI recognises that Microtox® BT’s full clinical validation followed by rapid progress toward its CE marking in the coming months could lift this substantially higher.