Anyone trying to accurately predict the intimate vagaries of government covid testing policy is onto a hiding to nothing.
What's far less uncertain however, is that given the NHS’ 6m patient backlog (& climbing) of elective procedures. There’ll be robust demand for the type of healthcare services offered by SourceBio International Plc (SBI ) over the next few years.
Indeed in today's better than expected trading update, the company announced record FY21 results. Posting EBITDA of circa £24.1m (+70% vs £14.2m LY) on sales up 82% to £92.4m. With net cash closing the year strongly too at £33.3m (£8.4m LY), equivalent to 44p/share.
Here the core Healthcare Diagnostics (eg Cellular Pathology testing), Genomics and Stability Storage divisions “are all back to pre-Covid levels, and poised to accelerate their growth”.
Wrt 2022, house broker Liberum anticipating sales & EBITDA to decline to £52.6m & £8.5m respectively due to fewer PCR tests. But with the base business continuing on its long term growth trajectory.
Elsewhere the valuation has been increased from 190p to 205p/share with a BUY rating on the stock.
To me, there continues to be plenty of upside here for patient investors.