Cyprotex Share Discussion Threads

[buywell2] 07/4/2016 07:43

POST REMOVED

[battlebus2] 06/4/2016 19:14

They state to the benefit of ALL stakeholders so stop scaremongering please.

[redprince] 06/4/2016 18:52

bart26 - I have asked a legitimate question.

If you do not wish to discuss it then may I politely suggest you say nothing?
My comments are not in any way inane.

Thank you.

[bart26] 06/4/2016 18:40

Redprince please stop clogging this with your inane comments

[redprince] 06/4/2016 17:28

Now back to discussing this share - is it not likely that the large holders are positioning themselves for a private t/o of crx?
Is it a coincidence that the share price is hovering around £1?

Hopefully this is not going to be the case but I have a funny feeling it may be.

Thoughts please (from those that are capable of adult discussion).

[redprince] 06/4/2016 17:22

Buywell you are once again making yourself look bitter and very silly.

You have no idea what shares I hold in crx - btw fyi I sold part of my holding pre Christmas and cleared my mortgage - thank you very much.

I still hold the remainder.

If you are unable to discuss these matters like an adult I suggest you refrain from posting on any bb.You only make yourself look like a child who has not got over his scolding.

Grow up please.

[buywell3] 06/4/2016 12:57

£19k of trades so far

Latest trades

Time Price Volume Value
12:19:57 96.021 2,807 2,695
11:29:58 96.021 650 624
11:04:49 98 1,442 1,413
10:57:44 98 3,500 3,430
10:52:22 98 3,000 2,940
10:52:15 98 300 294
10:46:33 98 3,000 2,940
10:41:11 98 1,063 1,042
09:33:06 100 2,000 2,000
09:14:52 100 2,500 2,500


Form 8.5 (EPT/RI) Public Dealing Disclosure by an exempt principal trader with recognised intermediary status dealing in a client-serving capacity

[buywell2] 06/4/2016 08:28

POST REMOVED

[redprince] 05/4/2016 18:43

Personally I think there is a lot to the theory that the bigger holders could look to take this private.Look at who the largest holders are...if they were to do so I doubt we would get more than £1 or so for our shares.

Dyor.Aimho.

[p1nkfish] 03/4/2016 12:20

take a look at INS.
worth investigation on a 3-5 yr view.

am in sbs and odx as investments for 3-5 view.
odx has sneller as investor also, like crx.

[p1nkfish] 03/4/2016 12:17

well out of ITM some time back.
it was too early.
did exit at a profit but not what i had hoped for.
their time will come but low oil plus tight money doesn't help.
low £ will help in Germany but i now see it as a misadventure on my part.

i certainly wish them and all shareholders well, even norbus!

[buywell3] 03/4/2016 07:26

Yes I look forwards to the return to 80% margin ... something that drew me to Cyprotex in the first place when I was a lot younger.

Things are looking better for the company as this from the results shows

"The acquisition of the business assets of CeeTox together with internal R&D investments paid off handsomely, as we expected. We also saw substantial organic growth from our core assays across the ADME and Toxicology areas and indeed from all of the industry sectors we serve. The revenue growth contributed to a welcome return to substantial operational profitability for the Group with the UK sites delivering significant increases and our US based Watertown site returning to operational profitability in H2.

"Our other US based Kalamazoo site is within sight of operating at breakeven level and our new investments in GLP toxicity assays should benefit operational profitability during 2016. Further investments in other sites in 2015, including the creation of a new Bioscience division and capital purchases to support our new and bespoke toxicology assays and higher value ADME assays, means that we can expect further solid performances from all our sites in 2016."




Are you still in ITM pink ?

[p1nkfish] 02/4/2016 19:34

The impressive results were achieved whilst still addressing the US site problems during H1.

When they are well and truly in the rear view the costs associated with commissioning will be reduced (possible further margin increase) whilst adding a revenue contribution and freeing up management to look for new opportunities for growth.

[buywell3] 02/4/2016 19:05

Just been reading the results and saw this bit about the Kalamazoo Lab which broke even in 2015.



'' we have invested in new GLP compliant genotoxicity assays, which we aim to launch in H1 2016 to drive profitability at this site''



This looks like a great add on to the BioSciences Division offerings and it would be good if Cyprotex could get it done ASAP as GLP compliance is becoming a requirement in some areas for the FDA.


These assays should ensure Kalamazoo turns a profit in 2016

Also makes me think a sale if an offer is made would be better delayed till such assays have been released and sales begun.

This will depend upon Haywood Capital as I see it because they have enough CRX paper to block anything they don't like

[p1nkfish] 02/4/2016 18:39

Good luck to Baxter and team. They have executed stoically through thick and thin and overcome one obstacle after another. He has given me the impression of having a refreshing no non-sense competence.

[p1nkfish] 02/4/2016 14:00

One of the top 10 pharma highly unlikely to step in to buy CRX.

Why? Because the other top 9 would all walk to stop their work being exposed to the competitor that would have bought CRX.

They all demand tight confidentiality.

Look at INS. Another important process to gain FDA regulation.

I also suspect CRX and SBS could start something together if CRX don't remain independent.

There might be a chance the loan note holders will convert early if it is made advantageous enough but there will be a cost.

Whatever happens, if Baxter walks I think I will move on too.

[p1nkfish] 02/4/2016 13:54

Below is already in the bag with the automation invested in and all sites in 2016 should be rocking properly. They were not in all 2015.

'Which means TURNOVER has to grow in order to get it WITHOUT spending too much money'

[buywell2] 02/4/2016 13:25

been said before

I would assume note holders would take additional shares just before, or as part of any buyout

The total number of shares could be then around 30,943,710 shares

see

[indi123] 02/4/2016 11:50

Buywell2, in your opinion, how would the loan notes affect takeover/merger negotiations ?

[indi123] 02/4/2016 11:24

Thanks for the above buywell2. I hope you are correct and the share price moves up accordingly.

[buywell2] 02/4/2016 08:49

....... Reasons to be Cheerful ( Part 3 ) ..........





Firstly the AGM has to take place because of:-

Section 656 of the Companies Act 2006 requires a public limited company whose net assets have fallen to half or less than half the amount of its called up share capital to call a general meeting to consider whether any, and if so what, steps should be taken to deal with the situation.


Secondly , from the above:
what steps should be taken to deal with the situation ?

such steps could be a sale(whole)/part sale(ie Cyprotex UK or Cyprotex US ) /merger/strategic partnership deal/re-financing arrangement(getting rid of loan notes) to name but a few

All avenues need to be explored to find the 'best value for shareholders'

The company is obligated to undertake such actions and is doing it by means of a 'strategic review'





Producing the results that Cyprotex has produced , with a depressed valuation in terms of the turnover, profits , cash in the bank, and improved trading due in no small part to a much improved website, has made Cyprotex an attractive target for a larger predator.

Financial Highlights

-- Strong revenue growth up 34.9% to GBP15.61 million (2014: GBP11.57 million)
-- Gross margins increased to 77.3% (2014: 75.0%)

-- Operating profit of GBP1.98 million, (2014: Operating loss, excluding goodwill impairment, of GBP0.71 million)

-- Underlying EBITDA^ of GBP3.40 million (2014: GBP0.61 million)
-- Cash generated from operations of GBP3.48 million (2014: used in operations GBP1.32 million)

-- Underlying basic earnings^^ per share of 6.94 pence (2014: loss 19.67 pence)
-- Cash of GBP5.4 million as at 31 December 2015 (2014: GBP2.9 million)



Even more so with a decent outlook regarding trading prospects for 2016.


Cyprotex can't stop a predator from coming along with an offer , for all we know one or more may be sniffing around as I key.


I would be surprised and somewhat disappointed if they were not as in normal circumstances Cyprotex should have a market valuation of an average of 2 X its turnover and 20 X its profits.

Which would be circa £35M instead of £22.5M ie the share price should be over 50% higher than it is or OVER 150P (ignoring the loan notes)

In other words Cyprotex is a SCREAMING BUY at the current depressed share price.










What I can't argue with however, is that IF Cyprotex improves turnover in 2016 by say 15%, less than half of the increase in 2015 , 2016 Turnover goes up to £17m and profits should come in at around £3M due to the exceptional margins of 77% that Cyprotex operates at.

The market value would then be an average of 2 X 17M together with 20 X £3M

Which would be £47M nearly 40% higher just 1 year later




It is that 20 X profit aspect of the formula that makes ALL the difference.


Which means TURNOVER has to grow in order to get it WITHOUT spending too much money


Hence my addition to the thread header regarding a strategic partnership with Source BioScience , where Harwood Capital is also the main Institutional holder of shares.

It is my belief that if done correctly with a simple selected targeted approach to achieve maximum benefits for both companies at minimum costs on a 50/50 basis

The turnover of both and hence profits of both would increase in the first year of implementation and then grow in the second and third years.





Now comes the interesting bit :



Both Cyprotex and SourceBioScience service the MAJORITY of the WORLDS TOP TEN PHARMAS


Both Cyprotex and SourceBioScience are specialists and excellent at what they do.

The expertise is such that many of the TOP 10 WORLD's PHARMAS collaborate with them because Cyprotex and SourceBioScience have the technical nous, the IP, the assays , the predictive computer models, molecular diagnostics and testing, staff, labs , and equipment that RIVAL or in some cases exceed their own.

And these are multi $ BILLION comanies

But would any TOP 10 WORLD PHARMA ever buy Cyprotex or SourceBioScience ?

NO .... not yet ... because they are too small in terms of Turnover and Profits

An absolute minimum Turnover of £50M plus ($100M would be better) and profits of £5M ($10M would be better) would be needed before any one of the TOP 10 would make a bid.

Source BioScience expect to turnover £30M in 2016 (£26.5M in 2015, profits should come in at about £3M (£2M in 2015)

Like I have just outlined above Cyprotex should turnover around £17M in 2016 with profits of around £3M

It will take a minimum of 5 years for either company to turnover £50M


BUT

If both companies form a strategic partnership their combined turnover should exceed £50M and profits exceed £5M WITHIN 12 MONTHS of such an announcement.

This would be based if there was a combined increase of just 7% on expected numbers due to strategic partnership benefits in the first year after its commencement.


BIG Cap companies pay DOUBLE the current share price if they want something , by BIG Cap I don't just mean the TOP 10 Pharmas I include the middle tier Pharmas as well as many Life Sciences Businesses.


Hence the potential UPSIDE increases as well as the number of potential predators IF TURNOVER AND PROFITS fit the investment requirements under which such bigger companies operate.



Get it ?


....... .....
Nice one Ian

[indi123] 01/4/2016 23:58

Could anyone explain the rationale behind the strategic review ?

Why look for a buyer or partner if the business is profitable and looking forward to a strong year's performance ?