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Welcome to taking stock on...on Thurdsday 13th July 2023
It's a look at today's top business news & investment views, companies that are: The most followed, the winners, the losers & the most read including:
Most Followed
Destiny Pharma
Destiny Pharma is a clinical stage, innovative biotechnology company focused on the development of novel medicines that can prevent life-threatening infections. Its pipeline has novel microbiome-based biotherapeutics and XF drug clinical assets including NTCD-M3, a Phase 3 ready treatment for the prevention of C. difficile infection (CDI) recurrence which is the leading cause of hospital acquired infection in the US and also XF-73 nasal gel, which has recently completed a positive Phase 2 clinical trial targeting the prevention of post-surgical staphylococcal hospital infections including MRSA.
It is also co-developing SPOR-COVTM, a novel, biotherapeutic product for the prevention of COVID-19 and other viral respiratory infections and has earlier grant funded XF drug research projects.
3 Seperate Broker targets, the average of which is 950% higher than the current share price.
MCAP = £25m
Cash Circa = £10m
Two late stage assets going into Phase 3, partnerered on one, NTCD-M3 and currently engaging on partner for XF73 which has a $2bn market potential and twice as big as NTCD-M3
The broker target, is only based on NTCD-M3, so target prices could get a lot bigger.
HVIVO
hVIVO plc (ticker: HVO) (formerly Open Orphan plc) is a rapidly growing specialist contract research organisation (CRO) and the world leader in testing infectious and respiratory disease vaccines and therapeutics using human challenge clinical trials. The Group provides end-to-end early clinical development services to its large, established and growing repeat client base, which includes four of the top 10 largest global biopharma companies.
Final Results for 12 months ended 31 December 2022.
Financial highlights
· Revenue up 30% to £50.7m (2021: £39.0m)
· EBITDA increased threefold to £9.1m (2021: £2.9m)
· EBITDA margins of 17.9% (2021: 7.4%), ahead of guidance due to positive impacts of over £1m
· Cash and cash equivalents of £28.4m as at 31 December 2022 (2021: £15.7m)
· Adjusted diluted EPS increased to 0.90p per share (2021: (0.19)p)
· Contracted orderbook increased by 65% to £76m as at 31 December 2022 (2021: £46m)
· One-off special dividend of c.£3.0m, being 0.45p per share reflecting strong cash generation during the year, payable on 9 June 2023 to shareholders on the register on 5 May 2023. The corresponding ex-dividend date is 4 May 2023
MCAP = £106m
Ondo InsurTech
Ondo InsurTech Plc is on a mission to become the world's leading provider of claims prevention technology for home insurers. Ondo's focus is on the global scale-up of LeakBot - an end-to-end internet of things solution which protects homes from the impact of water damage.
Water damage is the single biggest cause of home insurance claims, accounting for $17bn of claims every year in the USA and UK combined. LeakBot is a patented self-install solution that connects to the home wireless network and, if it detects a leak, notifies the customer via the LeakBot mobile app, and provides access to a team of expert LeakBot engineers to 'find and fix' the problem.
Recent independent research by Consumer Intelligence found LeakBot can reduce the cost of water damage claims by 70%.
LeakBot partners with 13 insurance carriers - including Admiral, Direct Line Group, Hiscox, Mapfre and TopDanmark - across 5 different countries, in Europe and the USA.
Market Cap = £17m
E/V = £23m
Cash = £1.8m (as of 31/08/22)
Debts = £6.4m (as of 31/08/22)
Recent News:
11th July 2023 - Ondo InsurTech agrees Loan Note restructuring to support rapid growth.
12th May 2023 - Ondo InsurTech Plc raised £815,000 at a price of £0.12
Interim Results for six months ended 31/08/2022
Revenue of £1 million for the six-month period ended 31st August 2022 was 55% higher than for the same period a year ago (6 months to end 31st Aug 2021: £0.6 million)
Loss for the period was -£2,057,000
Cash £1,872,000
Loans & Borrowings -£6,401,000
Publication of audited accounts for the 13 months to 31 March 2023 will be on or before 31 July 2023
Most Read RNS
Powerhouse Energy - European Patent Application Allowed
Powerhouse Energy, a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, is pleased to announce that its European Patent Application No 20751207.0; "Method and Apparatus for the Treatment of Waste Material" has been "Allowed".
The application will now be progressed towards a full grant of patent which will be granted on payment of the applicable fee and will provide protection in the UK and Ireland as well as across Europe.
The patent application is in relation to protection around the control of the heating of the waste within the Thermal Conversion Chamber ("TCC") over several zones to allow the optimum synthesis gas to be produced.
Audited Results for the Year Ended 31 December 2022
Operational Performance
· Substantial progress made in developing the Company's business strategy, exemplified by new project arrangements.
· Creation of, and continuous progress on the Powerhouse Technology Centre at Bridgend, with view to placing Powerhouse Energy Group at the forefront of the waste-to-energy sector in pyrolysis and gasification.
Financial performance
· Company reported revenue for the year of £380,277.
· Gross profit for the year of £84,365.
· Significant goodwill and trade debt impairment due to Company's changing business strategy. This reduction in the balance sheet value has no implication on the ongoing business of the Company.
· Cash at bank of £5,882,897 as at 31 December 2022.
They didn't feture their loss figures in their highlighs:
Operating loss (pre exceptional items) -£2,113,486
Operating Loss (post exceptional items) -£46,419,152
This included Goodwill Impairment -£40,660,000
In 2020, Goodwill of £57,152,699 was recognised on the acquisition and hive up of Waste2tricity Limited.
MCAP = £17M
WINNER
Predator O&G Hldgs - MOU-4 Update
MOU-4 update with results of NuTech petrophysical analysis
Highlights
· 64 metres of likely gas sands interpreted by NuTech in MOU-4
· Likely gas reservoir at top of Jurassic carbonate target
· Rigless testing programme will now include the Jurassic
· Significant Jurassic gas potential if rigless testing is successful
Rigless operation:
A well-intervention operation conducted with equipment and support facilities that precludes the requirement for a rig over the wellbore. Coiled tubing, slickline and snubbing activities are commonly conducted as rigless operations.
MCAP £55M
LOSERS
Aptitude Software - Trading Update and Directorate Changes
Aptitude Software Group plc (LSE: APTD), the specialist provider of Finance Digitalization and Subscription Management software, today provides an update on trading for the six month period ended 30 June 2023 as well as notification of changes to the Board.
Trading Update for the six months ended 30 June 2023
The Group will show modest revenue and profit progression to H1 2023 despite the macro economic headwinds faced by the sector and the economy generally. The Board are confident that the Group will meet profit expectations for FY2023.
Annual Recurring Revenue ('ARR') grew at an annualised rate of 3% on a constant currency basis to £49.8m at 30 June 2023 (31 December 2022 £50.5m, 30 June 2022: £48.1m - both restated for prevailing exchange rates at 30 June 2023). ARR growth has moderated as the higher levels of churn experienced in 2022 persisted through H1 2023 for Subscription, Billing, and Revenue Management as certain clients monitor spend as a result of wider economic uncertainty and high inflation.
Board Changes
The Board announces that Jeremy Suddards, Chief Executive Officer, will be stepping down as Chief Executive Officer. Jeremy joined the Board in September 2019 and became Chief Executive Officer in January 2020.
MCAP = £159M
3 Top Business Stories
1. The UK economy contracted in May as it continued to perform sluggishly, official figures show.
The economy shrank by 0.1%, partly down to the extra bank holiday for the King's Coronation, which meant there was one fewer working day than normal.
The UK has barely grown since 2019, before the pandemic, with one expert describing the economy as "listless".
UK GDP
Month on month to May (there were no strikes in May)
Actual -0.1%
Forecast -0.3%
Previous 0.2%
Year on year to May
Actual -0.4%
Forecast -0.7%
Previous 0.5%
Contruction is looking even more worrying.
UK Construction Output year on year to May, missing by a house width.
Actual 0.2%
Forecast 0.8%
Previous 2.7%
Month on month for May
Actual -0.2%
Forecast 0.0%
Previous -0.9%
2. Markets rallied yesterday as U.S. inflation data came in below expectations fuelling rally.
Core CPI year on year to June :
Actual = 4.8%
Forecast = 5.0%
previous = 5.3%
Core CPI Month on Month to June:
Actual = 0.2%
Forecast = 0.3%
previous = 0.4%
UK CPI Data is out next Wednesday and it will give the BoE a steer on what they do with interest rates.
Currently UK CPI (YoY) (Jun) is 8.7%
3. US regulator the Federal Trade Commission has moved to appeal against a decision to allow Microsoft to proceed with its $69bn (£53bn) purchase of games publisher Activision Blizzard.
Earlier this week, the FTC's request to block the takeover was rejected by a district judge in San Francisco.
The technology giant's deal to buy the Call of Duty maker would be the biggest of its kind in gaming industry history.
Microsoft said it planned to fight the regulator's appeal.
The UK's Competition and Markets Authority (CMA) blocked the deal in April, saying it was concerned the takeover would offer reduced innovation and less choice for gamers.
But they recently said it was open to Microsoft changing its acquisition of Activision Blizzard to address its concerns that blocked the deal in April, after a U.S. court ruled on Tuesday that the $69 billion deal could go ahead.
Activision Blizzard spokesperson said: “The CMA’s report contradicts the ambitions of the UK to become an attractive country to build technology businesses. We will work aggressively with Microsoft to reverse this on appeal.
We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”