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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bioseek | LSE:ATD | London | Ordinary Share | GB0009231639 | ORD 5P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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| 0.00 | 0.00% | 0.50 | 0.00 | 01:00:00 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
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| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
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| - | O | 0 | 0.50 | GBX |
Bioseek (ATD) Share Charts1 Year Bioseek Chart |
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1 Month Bioseek Chart |
Intraday Bioseek Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 29/9/2016 | 00:55 | Asterand 2008/9 with charts | 910 |
| 16/6/2014 | 17:47 | AT's Diary | 1,403 |
| 29/5/2013 | 19:32 | Asterand - steady growth play | 367 |
| 27/8/2009 | 08:28 | Results out monday, Very good value to buy | 55 |
| 18/11/2008 | 07:37 | Asterand - Human Tissue Research. M/Cap covered by cash | 110 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
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Posted at 15/3/2013 22:46 by and then Hmmmmmm, i don't really know of many and of course, i'm biased towards EW, thus my answer would be based on that. I found 'Five waves to financial freedom' well worth the $10 asking price... but EW obviously isn't for everyone.I never was one for reading, mind you! I think most people simply approach trading wrongly. Find just one pattern that you recognise and trade ONLY that. You will make money, but the patience and discipline required is immense! That is the biggest test of all... |
Posted at 20/12/2012 10:14 by robertsajr See the following link for the latest news on the wind-up of Bioseek. All very oddly communicated. Unfortunately looks like it will be a long process, with an eventual return of under 2p per share. |
Posted at 12/11/2012 19:16 by the skipper Discover RX have forwarded my e-mail to Jack Davies. No response as yet, but will send a chaser. I am appalled that nothing has gone on the Bioseek website regarding the acquisition of the share capital. |
Posted at 27/7/2012 10:28 by the skipper Have been deliberating whether to sell my shares before ATD delists/goes into admin or hang on for the possibility of some decent gains (from here at least - I am of course resigned to taking a big hit on my original investment). So with a view to attending Monday's meeting I spoke to one of the Directors in the USA.Clearly he was not able to give me any specific price sensitive information but the overall tone was very positive. He confirmed that all the secured debt would be cleared on the sale of the human tissue business and they had 'shaken hands' with the other creditors on a commitment to repay them when a tax rebate is received next year. He was confident that there was good residual value in the Bioseek business going forward either from continued trading and growth or a sale of the company. I put it to him that employees must have been heading for the exits and questioned whether they would be able to retain and attract customers, but he indicated that there had been no issues in this respect in the Bioseek part of the business and they were in the course of launching a bespoke website which they could use to keep shareholders and customers posted following delisting. As stated in the circular, completion of the disposal would immediately be 'earnnigs accretive' and that is why they have secured the support of over 50% of the shareholders for the proposals. As to future value he kept referring me to the price that was paid for the Bioseek business as a guide and what this amounts to per share. Maybe that explains why we have seen some decent buys come through in the last week or so, now that the price has hit rock bottom? Selling now would only realise around £700 for me from my investment of almost £10k so I have decided to stick with it and see what pans out. I hope this provides some comfort for those who are in a similar position. Tot |
Posted at 27/6/2012 10:25 by buywell2 It's not a laughing matter I would have thought for ATD shareholders''Since the Interim Management Statement announced on 19 May 2012, trading conditions have remained challenging and the ongoing financial constraints have prevented the necessary investment in future growth. As a result, the growth outlook for the Company is diminished in the short term.'' Some bigger holders getting out with something Latest trades Time Price Volume Block Price Bid Ask B/S Type 9:29:30 1p 100,000 £1,000 1.18p 1.18p SELL O 9:17:03 1p 735,030 £7,350 1.18p 1.18p SELL O Hindsight has shown that the ATD board MASSIVELY OVERPAID for BioSeek It is now looking like they will get little for this business ..... just how little will reveal tthe true extent of that overpayment It would now seem as I posted weeks back that NO FINANCIAL entity wants to lend monies to ATD as it would be like throwing down the drain. Good staff must be leaving if they can find a job ..... and the remainder must be a sorry demotivated bunch. De-listing will only prolong the inevitable ...... the BOD have clearly shown by their actions that they can't run a company properly. The least they could do is to stop taking saleries till either the company was sold or put into liquidation If I were a shareholder I would be looking for redress ADDED On advfn .... share price has gone back up but trades showing are BUYS which is at odds with others .... I think the adverse comment has triggered SELLS at 1p Latest trades Time Price Volume Block Price Bid Ask B/S Type 10:50:47 1p 60,000 £600 0.85p 1.5p SELL O 10:29:02 1p 9,950 £100 0.85p 1.5p SELL O 9:29:30 1p 100,000 £1,000 0.85p 1.5p SELL O 9:17:03 1p 735,030 £7,350 0.85p 1.5p SELL FT showing it 15% DOWN |
Posted at 18/5/2012 13:05 by buywell2 No answer eh This lot are CLUELESS By the time they send stuff out to shareholders in A FEW WEEKS 1) There won't be many cos anyone with half a brain has bailed 2) The share price will probably be less than 1p But the BOD members are still getting paid ..... for incompetance on a grand scale They have NOT GOT A FEW WEEKS ..... they have got days and still they dilly dally all the way to administration Since 1 January 2012, the Board has been focused on resolving the funding crisis that arose in the fourth quarter of last year. As previously announced on 30 April 2012, it has not been possible to find a single buyer for the whole Group and, instead, the Board has focused on securing buyers for the constituent parts of the Group. Negotiations regarding the sale of the non BioSeek Tissue based Solutions ("Tissue") business are continuing and the Board expects that a circular, seeking shareholder approval for the sale, will be sent to shareholders in the next few weeks. The Board also continues to explore a number of alternatives in respect of the BioSeek business including the continuation of the business on a stand alone basis or the sale of the business after the potential disposal of the Tissue business. In an effort to reduce costs, the Board is also considering whether or not it is appropriate for the Group to continue as a listed company following a disposal of the Tissue business. Worst still is BioSeek revenues are declining .... which is what I hinted at a few months back when I said that had reached a plateau ... BioSeek was the ONLY bright spot for ATD ... now even that has dimmed .... it also now looks like Asterand MASSIVELY OVERPAID for BioSeek Which is why they are in la merde now bigtime and without a paddle to get out the same creek. Despite these distractions and volatile trading conditions, revenue for the period ended 31 March 2012 is flat over the previous year, although the mix has changed with Tissue revenues improving and BioSeek revenues declining. Cash remains tight and the Group continues to manage its cash flow carefully in order that it may have sufficient funds to complete a transaction for the Tissue business. The Group maintains a constructive dialogue with its major creditors regarding the settlement of its secured loans, in which regard Asterand remains in default, and believes that it continues to receive the support of its lenders during this process. The lenders are supporting a business ... they reckon .... probably because they now it is the only way they are going to get ANYTHING back Don't kid yourselves .... this is a dead duck in the water ....as the market cap declines the creditors will PULL THE PLUG After all paying such a load of nincompoops for effectively doing nothing is wasting THEIR money Then the final sting in the @rse Shareholders should note that the proceeds from a successful disposal of the Tissue business should enable the Group to repay its secured creditors but that its cash resources will not be sufficient to cover transaction costs and retained liabilities. Further funding will be required after the disposal of the Tissue business to sustain the BioSeek business on an ongoing basis or until a sales agreement for the business can be reached. Shareholders should be aware that the completion of any disposal or the securing of additional funding for the Group is not guaranteed. |
Posted at 04/5/2012 11:19 by buywell2 IF any 3rd party emerges .... then they will not give a hoot about existing shareholders .... they will be weighing up the various debt obligations V the asset worth at MINUS 75% of present book value MINIMUM. I just can't see hardly anything left when the hardball game gets played.The technicals for this stock have taken a turn for the worse as one would expect .... 2 Bullish but 8 Bearish 27 Apr 2012 Commodity Channel Index W Short-Term Bearish 26 Apr 2012 Short-term KST Short-Term Bearish 20 Apr 2012 Price Crosses Moving Average W Intermediate-Term Bearish 18 Apr 2012 Price Crosses Moving Average Long-Term Bearish 13 Apr 2012 Momentum W Short-Term Bearish 16 Mar 2012 Double Moving Average Crossover Intermediate-Term Bullish 16 Mar 2012 Williams %R W Short-Term Bearish 06 Jan 2012 Intermediate-term KST Intermediate-Term Bullish 27 May 2011 Double Moving Average Crossover W Long-Term Bearish 06 May 2011 Price Crosses Moving Average W Long-Term Bearish It looks like the share will bang around the current 1.75p to 2.25p range till the next update. Been a strange road to travel for ATD shareholders I can imagine .... lucky for me the ATD share price chart kept me away ..... they are very good I find. dyor |
Posted at 01/5/2012 18:47 by buywell2 From the results , and the most important bit I reckon''Assuming that definitive agreements are executed the Board is expecting to issue a circular to shareholders in the coming weeks with details of the proposed transactions. Then the likely process will be disposal of the assets of each of the two businesses and a solvent liquidation of the Group to return cash to shareholders. Whilst the level of a liquidation dividend, if any, cannot definitely be determined at this time, the Board's current estimation, based on the letters of interest from the buyers and the current share price, is that the maximum payout to shareholders is unlikely to show a significant premium to the share price as of the close of business on 26 April 2012. '' Now it seems to me that any company/s still interested in buying bits of ATD with the share price now as it stands ... is in a very strong position How much actual cash do ATD have as of today ? I did not see this in the results , one would imagine it is now very much , also we know that the biggest tissue contract has now ended , so turnover now must be down and staff knowing that the business is not self sustaining any more will be leaving .... from results ''The modest decrease is attributable to a reduction in sales staff salaries expense due to attrition'' thus creating a downward circle of pressure on whatever business ATD are still managing to achieve, the only bit that seems any good is BioSeek and even that seems to have now flattened out. So IF the potential buyers delay .... then at some point the administrators get brought in Then the bits get even cheaper Why should any buyers rush to make offers ? buywell2 26 Apr'12 - 08:37 - 765 of 771 edit I wonder if selling volumes will rise as Finals Day approaches ? Last 3 days trading suggests they are If they haven't got a buyer by that date surely a statement regarding the break-up of the company will be made Bioseek owners are owed circa $9m by Asterand equivalent to 4.5p a share ´´Additionally, the Group has taken on a total of $9.3 million in debt to finance the BioSeek acquisition with corresponding debt service obligations. ´´ With interest payments this has now probably reached circa $10m I can't see shareholders getting much Technicals now suggest 2.25p coming Fundementals suggest less ..... why ? ATD LOSS for 2011 was OVER $8.2m ...... the present Mkt Cap is $7.9m which is too high considering there is NO INTANGIBLE value to ATD whatsover now, the book value of 4.26p peviously quoted on FT.com included $6m CASH ..... there MIGHT be circa $2m now a shortfall of $4m , and debt has now probably risen to over $3.5m from $3.24m figure in the results This equates to a difference in the FT.com book value of $4.5m or 2.75p 4.26 - 2.75 = 1.51p Which is what the share nearly hit on the last slump after I had posted that it was what I thought the share was nearly worth as it happens dyor |
Posted at 15/3/2012 15:27 by buywell2 what deal is that ?thus far all we read is about talks which have dragged on or ended I think ATD will get broken up into bits Can´t see any one company taking on the whole , also after poor results any prospective bit buyer will be able to bargain harder with the administrator , hence the delay I think. Mind you .... we might not get results .... has anyone heard yet ? After all there was some doubt as to the ability of ATD to continue trading 31 August 2011 12:48 Inability to meet demand takes Asterand to the brink Author // Lautaro VargasPosted in // Medtech 8 -------------------- Asterand today revealed the extent of its financial problems: crippled by its inability to meet customer demand for its human tissue services, the Cambridge biotech needs to raise new financing if it is to avoid defaulting on its debts and continue as a going concern. On a day that Asterand CFO, John Stchur followed the lead of former CEO Martyn Coombs and stepped down, the company's interim results said that a combination of poor trading and repayment of the debt used to acquire BioSeek will result in a breach of banking covenants. In words that sent a chill through investors and precipitated a huge sell off of stock, taking the share price down by over 54 per cent, Asterand's interim statement said there was: "a material uncertainty that casts significant doubt upon the Group's ability to continue as a going concern." BioSeek, the provider of human disease models purchased by Asterand at the beginning of 2010 for a valuation that is now at $9.5m, has single-handed grown revenues for the group which actually saw revenues climb 36 per cent to $11.9m (H1 2010: $8.7m) in H1 2011. However, its acquisition has also led Asterand to take on $9.3m in debt. Meanwhile, the rest of the business - the human tissue based solutions - has been flat, bringing expectations down below previous forecasts. Chairman and interim-CEO, Jack Davis says demand for these products and services remains high, however meeting these needs has been challenging, resulting in a retraction in the non-BioSeek revenues, including the anticipated revenues under the $24.3m NCI contract. Davis, said that following discussions with potential investors there was a reasonable expectation that sufficient funds will be raised within an appropriate time-frame to continue operating as a going concern and provide enough working capital headroom to fund improved tissue sourcing strategies, however, there is no guarantee of shareholder approval for a deal. The board is also reviewing its listing on the premium section of the London Stock Exchange, the costs of which may now be too high. From the following it looks like BioSeek revenues have levelled off .... not good RNS Number : 3316S Asterand PLC 18 November 2011 For Immediate Release 18 November 2011 Asterand plc ("Asterand" or the "Group") INTERIM MANAGEMENT STATEMENT Asterand plc (LSE: ATD), a leading provider of human tissue and human tissue-based services to pharmaceutical and biotechnology companies engaged in drug discovery research, today issues its Interim Management Statement. In the Company's Interim Results statement on 31 August 2011, Asterand announced that volatile trading conditions had led to a reduced outlook for the year and that further funding would be required as the Company was in breach of its banking covenants. After a downturn in the Tissue business during the third quarter, trading conditions have improved and the Company now expects Tissue revenues to be in line with 2010. BioSeek has consolidated its trading in the second half to date after achieving strong growth in the first half. Overall, the Company continues to expect that Group revenues for the full year ended 31 December 2011 should exceed 2010. Whilst the Company is encouraged with the upturn in the operational performance, the balance sheet remains an issue that needs to be resolved. The Company previously announced that events of default had occurred in respect of both the Silicon Valley Bank debt and the loan notes with former BioSeek shareholders. These debts amount to approximately US$9m in aggregate. The need to settle these notes led the Board to look first at a re-financing of the Group and then to commence, on 24 October 2011, a formal sale process. The Board's initial estimates of the cash available to the Company have been reviewed and in light of both the upturn in trading and improvements in cash collection and working capital control, the Board now believes that it has sufficient working capital to continue into the early part of 2012. As a consequence, the Company has extended the timeframe for the formal sales process and continues to evaluate the options of either a sale of the business or a re-financing. As well as experiencing challenging trading conditions since 30 June 2011, the Company has also experienced management changes with both the CEO, Martyn Coombs, and the CFO, John Stchur, leaving the Company. Alan Fishman was appointed as Interim CFO with Jack Davis, the Company's Chairman, taking on the role of Interim CEO. Discussions regarding the appointment of a new CEO have been suspended for the period of the formal sale process. Jack Davis, Asterand Chairman and Interim CEO, commented: "The second half of 2011 has been a turbulent one for the Company. Asterand started the year with high expectations only to experience volatile trading in the first half which adversely impacted certain key financing arrangements and a weakening of our balance sheet. Whilst the expected increase in revenues for the final quarter has improved the general outlook, our balance sheet issues continue to dominate the actions of the Company." A re-financing IF IT HAPPENS might be at a discount of circa 50% of the SP My guess would be they need to raise around 15m USD with over 9m debt and money needed to improve offerings, and this could be at circa 1.5p to get investors interested Chart seems to indicate a return to somewhere between the blue lines dyor |
Posted at 01/3/2012 17:22 by saud2237 SummaryAsterand plc has shown a dramatic improvement in its financial report for the year 2008 and has turned its consistent financial losses into a £3.9 million operating profit. The revenues doubled from being £7.6 million in 2007 to £15.2 million in 2008. The company has consolidated its position in the human tissue and human tissue-related services market by deals with clients such as the US Department of Defence Armed Forces Institute of Pathology (AFIP) Tissue Repository. Asterand's stock was also listed as the top performing stock at the London Stock Exchange for the year 2008. The company now finds itself with cash resources of £6.9 million with no long-term debt. These changes along with the rapidly growing market for human tissue and related services make Asterand plc an attractive option for acquisition. On comparing the financial performance of Asterand plc with that of Concateno plc (a chosen standard company), it can be concluded that Asterand is a very lucrative company and is headed in the direction of generating high revenues. A detailed explanation is provided in the report and an acquisition of Asterand plc by GlaxoSmithKline is recommended. Company Overview Asterand plc, a holding company, is the leading supplier of high quality human tissues and tissue-based research services to drug discovery scientists globally. The company primarily operates in the UK, US and Japan. It has its headquarters is in Hertfordshire, the UK and employs 90 people. (Asterand plc, Annual Report and Accounts 2008). The company recorded a revenue increase of 100%, from £ 7.6 million in 2007 to £15.2 million in the year ending December 2008. The company's operating profit was £ 3.9 million in 2008, a significant increase from the operating loss of £ 2.1 million in 2007. The net profit for 2008 was £ 3.9 million as compared to the net loss of £ 1.9 million in 2007. Pharmaceutical research is at a critical stage in the business of drug discovery. Despite the ever rising R&D budgets, the success of drug applications is low because failure during the stage of clinical trials is very high. Animal models just help researchers in assuming the effect of a newly found drug on humans. However, it is just an assumption and can always go wrong. This has resulted in the scientists relying upon human tissue based models for a more detailed and satisfactory experiment. It is here a company like Asterand comes in. Asterand provides researchers with access to human tissues through its global network of 83 collaborative donor institutions. The company's XpressBANK, which is a biobank, contains several hundred thousand specimens from a wide range of therapeutic areas and also diverse ethnic representation. The company provides another service called ProCURETM , where human tissues and clinical data can be custom collected to meet special requirements. Another known service is the PhaseZERO drug discovery, where the company provides a collaborative scientific approach in delivering human tissue-based data on target and biomarker validation as well as the safety, efficacy, potency and disposition of the compound. The company boasts of its experience of over 10 years in providing top multinational pharmaceutical companies with human tissue-based services. The turnover generated by the company over the last 5 years and the profit before taxation has been on the rise at a constant rate. The turnover and profit before taxation are graphically analysed below: In the year (2008) the company saw a sudden jump in its revenue (~100% increase) and its profit before interest. This is mainly accounted for by a successful deal with the US Department of Defence Armed Forces Institute of Pathology (AFIP) Tissue Repository. This deal lead to the generation of £1.4 million for the one year contract, and also added to the market value of Asterand due to the image AFIP carries. There are possibilities of successful deals in the future between the two parties. Company History § Asterand was founded as BioSamplex in 2000. § The name of the company was changed from BioSamplex to Asterand in 2001. § In 2005, Asterand started its office in Europe. § In 2006, Asterand entered into a licence agreement with BTG, where BTG acquired the rights to a series of compounds discovered and developed by Asterand. § In 2006, the company became a public company by the reverse takeover of Pharmagene by Asterand. Also in 2006, the company entered into a partnership with Rubicon Genomics to discover a novel biomarker for cancer diagnostics. § In October 2007, Asterand entered into an agreement with the US Department of Defence Armed Forces Institute of Pathology (AFIP) Tissue Repository. This was a big achievement as the one year contract was valued at £1.4 million, and the group also hopes to conclude further agreements with AFIP which a prestigious reputation worldwide. § In June 2008, the company entered into an agreement with Eolas Biosciences to represent its product lines in Japan. Business Strategy Asterand came up with a changed strategic plan in June 2007, shortly after Martyn Coombs joined the company as CEO. The new strategy is aimed at enhancing the selling model and developing more collaborative relationships with key customers. They also aimed at improving the company's tissue supply logistics to ensure enhanced availability of specimens whenever the clients needed them and to increase the efficiency of the company in order to reduce costs and improve profitability. These measures have paid off and the latest financial statement speaks for itself. The company formed an alliance with Eolas Biosciences to improve its performance in Japan. The relationship between the company and customers has been placed high on the priority list. Asterand has also gone to the extent of involving their scientists in order to get a better understanding of their customer needs. The company ensures it provides a proper and friendly environment for all its employees. It has been named in one of the top 20 "Best Places to Work" for 2008 in a survey conducted by The Scientist magazine. This is another important strategic plan of the company. Employees that are happy and satisfied with the company they work for will definitely perform to their best potential. A successful financial year for Asterand resulted in gains in share prices. The company's stock was the top performing stock of 2008 on the London Stock Exchange. The prices continued the upward trend and showed very positive results in the first few months of 2009. The share price of Asterand is compared against the share price of Techmark mediscience in the graph below: In the latter half of 2008, the world faced a severe economic crisis. However, Asterand has achieved strong results amidst this crisis. The reason why Asterand seems to be resistant to recession is that the number of companies requiring their services has increased. Asterand aims to further strengthen their ties with hospitals with which they collaborate and also to establish new ties with hospitals globally. Current Market And Competitors The global market for human tissues and associated research services is estimated to be around £350 million and is growing annually at a rate of 20% to 30%. The high growth rate of this market is mainly driven by the ever increasing demand of human tissues by pharmaceutical industries. The leading pharmaceutical companies now are relying heavily on human tissues for pre-clinical testing of their drugs. At the same time, several pharmaceutical companies are outsourcing their R&D to lower cost specialist companies in order to cut down on costs. Either of the two trends is beneficial to Asterand as it specialises in both. This market has been strong despite the economic crisis and has not been hit significantly. Another important factor in the market of human tissues is that there is no single dominating company in terms of market size and share. There is no single company holding more than 3% of the global market. As a result, the scope of growth is considerable. Asterand claims to be the largest player in the industry. The advantage Asterand has is that its biobank already has over 200,000 samples from a broad range of human tissues. This makes its position safe with almost no threat from new entrants because for a new company to establish and construct a biobank that is comparable in size to Asterand will take years. Asterand stands out in the quality and range of samples and is unmatched by its competitors. The company has positioned itself so well in the last one year that it has also received takeover bids that have failed to work as both parties could not agree upon a common 'fair' price. The annual turnover for Asterand consists of a major contribution from the overseas market. The annual revenue from the UK and the revenue from the overseas market are compared in the graph below. It can be seen that the annual turnover from the UK accounts for a very minor percentage of the Gross Turnover. This indicates that Asterand has a relatively small market in the UK. With the increasing number of research experiments in the UK, penetrating this market is very important. Asterand has a wide range of products and services. The company's key products and services include: Products: § Human Tissues and Biofluids § RNA and DNA § Biofluids § Cell Lines § Tissue Microarrays § Human Primary Cells Services: § XpressWay Profiles § CustomMapping § In situ Hybridization § Immunohistochemistry § Autoradiography § Biochemical Pharmacology Services § Metabolism and Toxicity Services Despite several advantages that Asterand has over its competitors, it has its share of weaknesses. One of the biggest threats to its revenues is the company's heavy dependence on one country for supply of tissues, Russia. In 2007, Russia enforced restrictions on biometric exports. This had an effect on the sales of Asterand. The company is now trying to expand its donation sites in several locations such as Europe and Asia. Over 10% of the sales of the company are accounted for by its top three clients including AFIP. The threat here is that if these companies end their contract with Asterand, sales may be affected. Growth of sales has to be ensured by the company in order to consolidate its position in the market. Porter'S Five Force Analysis: The following companies are the biggest competitors of Asterand: (1) LifeSpan BioSciences, Inc (2) Stem Cell Sciences Plc. (3) CryoLife, Inc. (4) Aastrom Biosciences, Inc. As mentioned earlier, there is no clear cut leader in the market as even the biggest of companies in this sector hold a market share of no more than ~ 3%. However, the above mentioned companies are the closest rivals in terms of products and quality of services provided by Asterand. Financial Analysis To carry out the financial analysis, various ratios for Asterand plc (2008) have been compared against those from Concateno plc's annual financial report 2007. Concateno is Europe's leading drug and alcohol testing provider and also manufactures clinical diagnostic products. The financial statements in Asterand's annual report have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, International Accounting Standards (IAS) and IFRIC interpretations and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. (Asterand plc - Annual Report and Financial Statements 2008). The company follows the policy where every financial year ends on the 31st of December. Comparison of the ratios for Asterand plc against Concateno plc: Comparison Of Performance Ratios: The performance ratios of Asterand have been compared to that of Concateno in the above table and show a very positive result. It can be seen that the Return on Net Assets for Asterand are very high, 31.8%, as compared to Concateno, 1.31%. This indicates that Asterand has utilized its assets very well in the last financial year. It is a significant change from the previous years where the RONA was constantly a negative value. The gross margin Asterand generates over its sales is a decent 56.37%. Although it is lower than that of Concateno which is at 59.27%, it is a steady increase over the values from the previous years. The sales margin for Asterand is a good 25.83%, far better than that of Concateno at 7.58%. The sales margin has shot up significantly and indicates that the business is highly profitable. Asset turnover for Asterand is 1.23 as compared to 0.17 of Concateno. This indicates that Asterand has the upper hand at managing its assets to generate revenue. It should be noted that this ratio has fallen from 1.35 in 2006 to 1.29 in 2007 and finally to 1.23 in the year 2008. However, it was relative very low in the years before that. The asset turnover output is good but steps need to be taken to ensure that the ratio does not suffer further. The sales generated per employee at Asterand are £169,101 which is again better than the £129,030 generated per employee at Concateno. This is an indicative that Asterand are getting more out of every employee which is good for the business. This has increased by over a hundred percent in the last one year. The credits for this can be given to the effective management of the company. The profit before interest and tax generated per employee for Asterand was £43,667. This is very high and is far better than Concateno which generated £9,777 per employee in 2007. In the previous years, this value was constantly negative for Asterand as the company was suffering losses. The graph above shows the significant change in the sales and profit generated per employee over the last five years. This is a very promising sign for the company and also for potential buyers. The stock days for Asterand are fairly high at 245 and are far better than that of Concateno. Debtor days for Concateno are 75 days which is a reasonably small time in which they receive payments from the customers. It is again better than Concateno and helps Asterand maintain a good cash flow. Creditor days for Asterand are 39 days which indicates that the company is in a strong financial position. As far as the working capital is concerned, Asterand are far better placed than Concateno. The graph given below compares the working capital ratios of the two companies and indicates the clear edge Asterand has over Concateno. The current ratio of the financial status of Asterand is 3.62, indicating that the firm has high liquidity. It is far better than the modest current ratio for the financial status of Concateno. This is very attractive from the creditor point of view and will in turn help in maintaining a healthy working capital. The acid test ratio for Asterand is 2.57 and this is highly attractive for possible bidders that look at taking over the company. Concateno on the other hand is not in a position to pay their current liabilities immediately. This is not a very good sign for the company. Asterand fares better than Concateno in the Interest cover as well. The figures from Concateno indicate that it is not in a position to take additional debt, whereas the figures of 115.59 from the Asterand's annual report indicate that it is in a position to comfortably repay its debt. A gearing ratio of 0.35 for Asterand indicates that it is capable of withstanding downturns in the business. The gearing ratio for Asterand has been unsteady over the past few years. It is indicated in the graph below: It can be observed that the company was very vulnerable to changes that were taking place in the business in the year 2006, and the company was in a critical financial position. It has recovered well from there and now seems to be back on track. The return on equity for Asterand was at 31.43% indicating that the company has had a successful financial year overall. It was far more efficient as compared to a mere 0.64% for Concateno. Earnings per share for Asterand are more than 3 times that for Concateno. It should be noted that Asterand plc's stock was the top performing stock in the London Stock Exchange for the year 2008. The financial ratios have given a very positive indication of Asterand and it has done much better than Concateno plc on an overall financial performance basis. The company has come through the global financial crisis seemingly unaffected and has also turned around its losses into high profits with successful and calculated changes in the management and company policies. It is a promising company and generates serious interest for acquisition. Conclusion & Recommendations For Acquisition A thorough financial analysis of Asterand plc indicates that acquiring the company will be a good move. The company has doubled its revenues in the last one year from £7.6 million in 2007 to £15.2 million in 2008. The operating costs of the company have been successfully reduced by 4% from £5.6 million in 2007 to £5.4 million in 2008. Out licensing of certain pre-clinical compounds has lead to an upfront payment of £3.4 million. This deal could also provide payments and royalties of around £36 million in the future. The performance of the company has significantly improved with the Core business revenue up by 60% to £11.8 million as compared to £7.4 million in 2007. The company saw 2008 as the first profitable year of its existence as a public company and this is set to improve. The basic earnings per share went up to 3.53p per share in contrast to a 1.83p loss per share in 2007. The cash resources of the company were written down as £6.9 million. Profit for the year was £3.9 million as compared to the £1.9 million loss in 2007. EBITDA went up to £3.8 million profit, a change of £5.0 million from the £1.2 million loss in 2007. In all the company looks to be promising despite a gloomy history it has had in terms of its financial statements before the 2008 report. The demand for human tissue and related services is bound to increase in the future. Also, valuable clients like the US Department of Defence Armed Forces Institute of Pathology (AFIP) can be made regular clients by ensuring that their standards for quality are met at all times. This will attract several other clients to work with the company. A significant advantage our company GlaxoSmithKline will have after acquiring Asterand plc is that the R&D expenses of GSK will be cut down. We will have the human tissue samples and other services available at our disposal to carry out our pre-clinical trials for various drugs. This in turn will increase the success rate of our products and help improve the global image of the company and make it better than what it already is. Therefore, to conclude, acquiring Asterand will be a good investment that will strengthen the position of GSK further and will lead to increased revenues. References: Asterand plc, 'Annual Report and Accounts 2008'. Asterand plc, 'Growth and Profitability'. Piper Jaffray Conference, June 2009. Concateno plc, 'Annual Report and Accounts 2007'. Datamonitor, (2009), 'Asterand plc - Company Profile'. Daniel Stewart & Company, (2008), 'Asterand healthcare'. (Daniel Stewart & Company acts as broker to Asterand). www.asterand.com (Visited several times during 15/01/2010 and 08/02/2010). |
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