Venn Life Sciences Share Discussion Threads

[adamb1978] 28/9/2016 10:09

LBO - why on earth would then need a placing when they have plenty of cash in teh bank, about to sell a business and have said that they'll become profitable in H2?!?!?

[rivaldo] 28/9/2016 10:06

VENN have 2.1m euros cash, a large excess of receivables over payables and likely £m's coming in from the sale of Innovenn.

Further acquisitions using that cash and perhaps an element of equity are more likely.

[lbo] 28/9/2016 09:58

Another discounted placing on the way?

[cocker] 28/9/2016 09:54

just topped up with 10k lets hope directors start buying asap

[adamb1978] 28/9/2016 09:42

Will have a look at buying more once I've been to the presentation later on (one of the unusually times when these things tie in with a trip in to town).

Share price reaction is a bit surprising - turnover is well-ahead of guidance, growing fast and stripping out the Innovenn losses it would be profitable.

It also doesnt feel like there's any value being attributed in the share price to Innovenn, so selling it and investing in the core business would make a lot of sense, particularly given some investors get nervous about investing in a £15m market cap co.

The valuation still seems compelling to me - company has an enterprise value of £13m, despite sales approaching £20m and growing fast and on the cusp of profitability

[mysteronz] 28/9/2016 09:27

Managed to top up at 24.4, slightly higher than my original buy which im happy with as my conviction in the stock has increased over the months. Hope for all this is the start of a reversal.

[bollers] 28/9/2016 09:17

Suspect some stop losses triggered which would exacerbate the fall.

[investordave] 28/9/2016 09:13

Not investing anymore at the moment. Too much of a slide in the share price today for my liking.

[mysteronz] 28/9/2016 09:08

Reaction is incredible, booting up PC to potentially double holding!

[investordave] 28/9/2016 09:04

Little? Now seriously out of pocket on this one - on paper anyway.

[cocker] 28/9/2016 08:52

My guess is that most thought that Innovenn dosh was coming to them & not fund future acquisitions. However, a little blip in a thin market.

[battlebus2] 28/9/2016 08:51

Expecting more profit, though one off didn't help. Nice doubling of revenue but still feel a little disappointed.

[investordave] 28/9/2016 08:50

What the hell is going on?

[investordave] 28/9/2016 08:38

The market doesn't seem to rate the results v much although I'm not sure I understand why.

[mysteronz] 28/9/2016 08:23

Thanks Adam. Enjoy the presentation later, if you do have time feel free to update the board on anything interesting :)

[adamb1978] 28/9/2016 08:12

No idea re the value of Innovenn - its very small and, to state the obvious, only worth what someone is prepared to pay. Given its losses last year were around 500k is can only have say 5 people. In the tech sector, if a business is pre-revenue one rule of thumb is $1m per engineer if its a decent team, dropping down to around $500k. No idea whether Innovenn has any magic which would make it worth more than an acqui-hire

[mysteronz] 28/9/2016 07:58

Anybody have any thoughts on how much Innovenn would fetch, must ne a nightmare to value.

As mentioned decent results, strengthened board, disposal of Innovenn, integration and turnover increasing. Sets up well for the future

[adamb1978] 28/9/2016 07:58

I think this also has the potential to really accelerate in 2017. given the H1 turnover growth, you could see them doing perhaps €22m in 2017...opex was €9.1m in H1, so strip out a bit from Innovenn and grow and perhaps its €19m next year?

You can see a scenario which gets VENN to say 4p EPS simply because they're on the cusp of profitability and have a very low share count. Any positive impact of acquisitions is a bonus - the investments story stands on its own organically

[adamb1978] 28/9/2016 07:51

Decent results. Turnover ahead of where they flagged and if you add back around €500k for losses from Innovenn then EPS would have been around 0.5p.

Have no problem them spending the Innovenn proceeds on M&A as scaling up will bring the company on to the radar of more investors

[cocker] 28/9/2016 07:41

Tidy results which we knew. Cash rising since year end which was obviously placed in for us to see. Innovenn about to be sold which is fine by me, a shame that the proceeds wont be going directly into our pockets. The trouble with having cash in the bank & being set on acquisitions is that sometimes rash decisions are made.

[adamb1978] 27/9/2016 11:49

Thanks Timbo. I bought in for the first time tomorrow as they seemed cheap, and am signed up fro tomorrow

[timbo003] 27/9/2016 10:34

>>>Adam

Time: 4.30pm for a 4.45pm start
Date: Wednesday 28 September 2016
Venue: Black bar, upstairs at Rocket bar, 6 Adam's Court, Old Broad St, London EC2N 1DX

[cocker] 27/9/2016 09:59

Expect a tick up before end of play today in anticipation of tomorrow results

[adamb1978] 25/9/2016 20:45

Hi Timbo - do you know what time the event is?
Thanks