Cobra Bio-manufacturing Share Discussion Threads

[the_doctor] 07/4/2009 16:20

Classic
Maybe you should write to Cobra and their auditors
They could change the going concern section to say
'The directors feel there are no issues regarding the company's ability to operate as a going concern, because the company almost has a full order book'

Aside from cash flow, in terms of P&L, Cobra was loss making last year. The order book is only slightly bigger. As I said in the first place, that is fine - but they have to make sure that nothing else slips.

stick to golf jdb!



Jdb2005 - 7 Apr'09 - 16:00 - 4224 of 4225
D*c - you cannot be serious !!!
I thought you had higher IQ - if a company has almost a full order book, how can they go bust??

[alibongo612] 07/4/2009 16:17

With ridiculous statements like you have just made I wouldn't trade IQ scores if I were you !

It's not about order book size it's about cash flow

[jdb2005] 07/4/2009 16:00

D*c - you cannot be serious !!!

I thought you had higher IQ - if a company has almost a full order book, how can they go bust??

[the_doctor] 07/4/2009 15:41

No, I dont hold CBF. Just watched it for a while and interested in how it does.

Fwiw, I want success for the company. Just giving an objective view.

The fact is that the company is on a knife edge. As such, I suggest not expecting too much.

All said though, the main investors are probably long-termers and more relaxed.

[jdb2005] 07/4/2009 15:39

Looks like you have lost your rose-tinted glasses these days as per SLN, CRA and now CBF. lol.

[imabastard] 07/4/2009 15:38

Doc .... do you hold any stock of CBF ?

[jdb2005] 07/4/2009 15:38

New customers new orders and repeat orders so I have been adding more stock when I can. You can leave it all to me if you wish !!

[the_doctor] 07/4/2009 15:37

All very well, but they did and Cobra didnt.

In effect, that highlights the issues that can crop up!

Jdb2005 - 7 Apr'09 - 15:36 - 4216 of 4216
If GenVec had not asked for a delay with their project Cobra would have announced a profit for the year just ended.

[jdb2005] 07/4/2009 15:36

If GenVec had not asked for a delay with their project Cobra would have announced a profit for the year just ended.

Now with their larger order book they are already predicting £11m plus.

[the_doctor] 07/4/2009 15:35

"Cobra had cash and cash equivalents of GBP0.3m as at 30 September 2008 and
incurred a loss of GBP3.3m for the twelve months ended 30 September 2008."

Any slippage with contracts and they're in trouble

I spent years manufacturing biologics. Issues crop up!

I'm not saying it will go down the pan, but these concerns may well result in investors accepting a lower price than you think

[jdb2005] 07/4/2009 15:34

D*c you seem to be economical with the truth as per statement below:

Chief Executive's Review

Contracted Order Book

Cobra has made significant progress this year, despite operating in a very
competitive market and a tough financial climate. Our track record and
reputation in the market resulted in 12 new customers this year, in addition to
winning a significant amount of repeat business from our existing customers to
increase the secured contracted order book by 17% to GBP11m(1)(January 2008
GBP9.4m), GBP7.7m of which is scheduled for the current financial year (18
January 2008: GBP6m).


The current secured order book includes the payments that we will receive under the variation agreed with GenVec, Inc to place their contract on hold until the 30 June 2009 as announced in the trading statement on 23 March 2009, but excludes any remaining revenue from the existing contract, until we get
confirmation from the customer that they wish to either continue or terminate.


Notwithstanding, the secured order book now has a broader base of both European and North American clients than in previous years and reflects the strength of Cobra's reputation in the biopharmaceutical contract manufacturing market and confirms the potential for further growth within the sector.

[the_doctor] 07/4/2009 15:32

Not short jdb, just being realistic

[the_doctor] 07/4/2009 15:31

Operating cash outflow for the year was GBP1.3m



Going Concern


In determining the appropriate basis of preparation of the financial statements,
the Directors are required to consider whether the Group can continue in
operational existence for the foreseeable future, this being a period of not
less than twelve months from the date of the approval of the financial
statements.


The disclosures in Note 2 highlight that there are material uncertainties in
providing an accurate forecast for the Group, being the difficulty in accurately
forecasting the timings of contract signatures and the subsequent cash receipts,
and the renewal of the existing overdraft facilities with the bank at the end of
August 2009. This therefore may cast significant doubt about the Group's ability
to continue as a going concern for the foreseeable future and as a result it may
be unable to realise its assets and discharge its liabilities in the normal
course of business.


Notwithstanding, the Directors believe that they have a reasonable expectation
that the Group will be able to operate within its available resources and there
will be sufficient funds to enable the Group to continue as a going concern for
the foreseeable future.

[jdb2005] 07/4/2009 15:27

Oh d*c how do you work that out ??

Go and read their reports again. If you have taken out a short you will find you will have to be very careful otherwise your in deep water.

[the_doctor] 07/4/2009 15:23

"Company has a growing order book according to the CEO & Chairman's statement earlier so it will not be sold for 4p, 5p or 6p...."

It is also on the verge of going bankrupt!

[jdb2005] 07/4/2009 15:22

Once the traders have taken a quick profit we should see share price moving up again.

Company has a growing order book according to the CEO & Chairman's statement earlier so it will not be sold for 4p, 5p or 6p....
It would take a much higher bid to succeed IMHO.

[alibongo612] 07/4/2009 12:07

I have now trawled back

In june 2003 Oxford was acquired for £1.4m and was refurished in 2004 at a cost of £4.8m - in addition £200k was spent on acquiring adjacent land for future expansion

Total cost £6.4m

Keele must be worth at least that.

[hyper al] 07/4/2009 11:19

buying volume started in the afternoon yesterday, could it be a US business showing interest?

[the_doctor] 07/4/2009 11:12

That would be a useful number than ali

[alibongo612] 07/4/2009 11:09

? The assumption is that a purchaser would want them because they are 'set up' ie operational.

I haven't trawled back but I recall CBF spent a decent sum acquiring the Oxford site and then expanded/upgraded it

[the_doctor] 07/4/2009 10:55

'The two sites must be valued at £10m replicated & validated'

Less IMO.
Furthermore, they'd cost £xm to set up, but would be worth only a portion in situ to others perhaps.

[alibongo612] 07/4/2009 10:53

The two sites must be valued at £10m replicated & validated.

Add on to that the value of its patented technology, carried interest in products,contracts/order book and tax losses and you have a big number.