Member Info for vigneron53

I have become slightly overweight on EKF, but I am optimistic that they will deliver on their plan. I am still uncertain on the buy-back policy. More so after listening to podcast by Chris Bloomstran of Berkshire Hathaway. He says that buy back is now a trend with companies trying to boost their share price. His view that this would be better invested and the share price may mask underlying growth issues within the company. It is clear that advisors are pushing this to businesses right now, not least for the arrangement fees.
I think EKF have made their investment for future growth, so not such a worry here.
Next milestone is AGM in May.

After visiting Finland, Liberum have issued an upbeat note with target 130.

This is list of major shareholders. After the buy back this would equate to something like 55% of total shares in issue.
However it could be more if these shareholders are buying during the buy-back period.

Harwood Capital 130,875,000 28.21%
Canaccord Genuity Wealth Mgt 30,875,780 6.66%
Liontrust Asset Management 29,682,369 6.40%
Schroder Investment Mgt 20,100,000 4.42%
Octopus Investments 19,278,000 4.16%
Stock Invest 17,830,000 3.84%

Could be today, but certainly by end of the week.

Nice to to see the share price increase after the investor conference last week.
No doubt the hearing loss trial with the NHS is going to lead to revenue in the UK. After this is a proven success in the UK they will address the large US market. They were giving no indications when this could happen, but right now they have something unique in the market.
It looks like they are now starting to earn revenue after a period of development.

Dartron,
Manufacturing revenue (covid related) was still at 2021 rate for Q1, then it tails off. So if you strip out all manufacturing revenue that gives you a very conservative forecast. Margins on this are also low compared to other business.
The singer target is also quite conservative and so from current price there is upside potential.
I and other current shareholders are a bit miffed about the way the buy-back was done, which largely signalled a 45 p valuation.
I saw enough in the presentation the other week to accumulate at this price and expect a tick up leading to the AGM in May. At the AGM they are requesting approval to buy-back another 15% of issued share capital.

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They target to complete before the AGM in May.
At the May AGM they are requesting shareholders approve a mandate for buy back of a further 15% of issued share capital.
This does not guarantee they will execute, but they have the option.

On investor meet, I see they are still working through comments and Questions, so I might get an answer via that route.
As I have a fair investment in EKF I was trying to rationalise my thoughts yesterday evening. (main points only)
As far as competence in their field I got a warm feeling and also their CEO although a Brit clearly has a lot of contacts in the US an knowledge of their market.
They said Q1 2022 Revenue was running at same rate as 2021 and that 2021 should be seen as a spike in revenue due to Covid, so I am looking at 2020 as a benchmark to measure progress. Note Covid work was high revenue but low margin.
The Covid effect they think will tail off from Q2 onwards and their efforts now are to switch the testing to non Covid (and there are plenty of opportunities), which they are already pursuing. I think this will ramp up as the year goes by. In the US this means leveraging on ADL.
The other area they rely on for growth is via the investment they made in bio culture production. This would seem to have significant potential in the US and although they are marketing this capacity now to secure contracts. The new capacity will not be in place until 2023 Q1 and so sales will ramp up from there and thru 2024.

They were clearly conscious that investors may measure them based on 2021 spike and see any revenue reduction as a negative. I don't see this as an issue as what 2021 has done is allowed the to develop new areas that build the future.
I think 2022 is the challenge and it will be interesting to see how quickly they transition to the future business model.

As with most AIM companies, they rely heavily on advice especially on governance and Shareholder engagement.
I await clarification on my question on the share buy-back and this will shine a light on this.

I asked the question about the share price drop today after the buy-back RNS. They only answered in part saying that they were taking 9 million shares out of circulation as they had issued 9 million for the ADL deal. Also as that deal was done at 80p + per share they said if they could buy back at something like todays price it would be a good result for the company.
They didn't comment on the share price drop triggered by the announcement, which was the point I wanted to make.
I have left feedback post meeting on this point and I will share the response when I get it.

Chelsea,
Once you have registered with the investor meet company, you will get a weekly mail informing you what company presentations are upcoming.
I find it a a great service and free to investots.

Hi Silver,
Totally agree with with your comment below, which is what I alluded to in my post.
The market makers had set the price long before the markets opened based on the buy-back.
Can the price be clawed back, of course but this was un-necessary and may spook private investors who perhaps don't get into the detail as they probably should.

I am also accumulating today.
Clearly the buy back kicked in this morning and my only comment is that its very coincidental that the drop in price today coincided with share buy back.
Singer issued a note to day with a 12 month target of 62 with a +_ 0f 21.6% . I think the margin tells us they haven't got a clue :)
I am looking fwd to the Investor meet call later,

I have to agree with that sentiment. This BOD have screwed shareholders and could have done even more damage if they had not been blocked.
Now they got lucky because of the high POO and people forecasting large gains on Monday.
By all means trade if you can make some quick profit, but hanging around in this company should come with a wealth warning.

When they announced that it was an RTO and there needed to be a suspension, there was an air of surprise. I think this caught the company by surprise or at least late in the day.
Having to go through formal M&A process in my experience takes some time, so no surprised it has taken so long.
Personally happy for it to be suspended on the current climate.

Its been a bit strange hoe EKf price has dropped as we know the results are v good.
Someone is still selling, even today, which is puzzling. Perhaps they are still considered to be reliant on Covid, which is far from the truth.
I have been accumulating in the past weeks, so will be listening closely to the results podcast next week.

EKF Diagnostics Holdings plc (AIM: EKF), the?AIM-listed global diagnostics business, announces that EKF Life Sciences, a division of EKF which manufactures diagnostics enzymes and contracted custom products for use in medical diagnostics, pharmaceutical and industry, has signed a partnership agreement (the "Agreement") with ABEC, Inc ("ABEC"), a leading global provider of engineered solutions and services for biotech manufacturing.



The Agreement provides EKF Life Sciences' South Bend, Indiana facility with customised, large-scale bioprocess equipment and will include a 14,500 litre total volume stainless steel fermenter and an 8,000 litre media preparation system. This will significantly enhance EKF's production capacity of enzymes used in a variety of diagnostic and Life Science applications, and is a positive progression of the Group's strategy of investment to drive organic growth through the expansion of EKF Life Science's fermentation capabilities.



ABEC has over 45 years of experience in large-scale fermenter design and complete in-house engineering and manufacturing capabilities. ABEC will provide engineering services for EKF's new fermentation facility to ensure optimal process performance and seamless facility integration. The 14,500 litre fermenter will feature ABEC's patented internal cooling panels, which will enable efficient sanitation, optimal heat removal and the highest possible fermenter productivity.

Some notable selling today. I am at a loss to understand why, but your last post may offer an explanation.
Most of the buys are automatic trades, so someone also accumulating.
I have added some more today and I now on the limit of what I will hold for one share. I cannot see anything concerning and I expect to see a rise into the results, which we now are good.
Some forward guidance for 2022 would help, just allay fears that this EKF is not dependant on Covid for revenues.
Its altogether a strange market at the moment,

More automatic sells showing up, but one large 100k buy this afternoon.
No real idea on who is selling, but the share price seems to be pegged back at circa 63p.
Release of 2021 results I understand may not be until March.

Yes, I was in SXX and thought that was pretty solid. That was a painful experience. . I think Anglo American got a bargain! and I guess the government were not focused on the shareholders as the jobs and project were assured by AA.
Re EKF it looks clear someone is offloading shares, so the price is drifting down.
I will post on here if I can get any information to throw light on this. Vig.

I think you could be right about people making assumptions that EKF are reliant on Covid ( like ODX, GDR etc) and thinking they will take a hit from related revenues in 2022. I personally don't think so as they quite well diversified.
I was selling up a lot of holdings last week, but decided to hang on to EKF. You can never be completely sure in this game as sentiment plays as big a part as fundamentals at times.
FYI Research note from Singer Capital Markets yesterday was pretty bullish with conservative target of 86p