Bioquell Share Discussion Threads

[money multipier] 18/10/2007 12:06

Cheers Wes1 - as I suspected big bucks if it comes off. Definately one to keep hold of for the long term.

[wes1] 18/10/2007 10:49

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Money Multipier - 297 of 308

Can anyone help me interpret the end of yesterday's RNS?

'The DOD's request for proposal dated 13 March 2007 described a SDD phase which
would last two years - and requested firm prices for two production options: the
low rate initial production ("LRIP") option of 23 JMDS units and the full rate
production ("FRP") option of 1,843 units.'

So we get $7M over 2 years for the SDD phase and have quoted for options of 23 or 1,843 units once in production. My guess is 1,843 represents a serious amount of cash - anyone any rough idea how much revenue we'd be looking at per unit?
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$100 million goes to Bioquell if the full option of 1843 units is taken up

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ANDOVER company BIOQUELL PLC has landed a multi-million dollar deal with the US Department of Defense to develop a decontamination system for military equipment.

The company, which employs about 120 people at Walworth Industrial Estate in Andover and now has three bases in America, clinched the major sub-contract working with the US firm Teledyne Brown Engin-eering.

Teledyne told BIOQUELL last week the defence department had awarded them the initial development and demonstration phase of the contract worth about $14.7 million - of which BIOQUELL's share is expected to be $7 million.

But the deal includes firm prices for two production options and if the US Department of Defense goes for the full production option of 1,843 units it could be worth in the region of $100 million to BIOQUELL.

Chief executive Nick Adams said the Andover company was up against worldwide competition. "Much to our delight BIOQUELL's technology was the one they wanted.

"Having scoured the world BIOQUELL slightly improbably, got the contract."

The technology involves the decontamination of sensitive equipment and the interiors of vehicles, aircraft, ships and fixed site facilities that have been exposed to chemical, biological, radiological and nuclear warfare agents.

Users will include the United States Army, Navy, Air Force and Marine Corps.

Just getting a contract with the US Department of Defense is a feather in the company's cap.

Already it is looking to employ 10 more people.

But if the full production option is taken up it would have a much bigger impact on the Andover company.

BIOQUELL hit the headlines three years ago with its bio-decontamination technology designed to battle Clostridium difficile and MRSA superbugs.

[wes1] 12/10/2007 06:54

Daily Mail article linked earlier has been changed - CE of Kent Trust resigned last week and now in line for £400,000 pay-off.

Here is how they eventually decontaminated - The hospital has been clear since last November, thanks to Bioquell

Trouble is, it's not just Kent trying to save pennies in the short term - Check out this article

When I read the article last April, I wrote to the James Paget Hospital asking if they had heard of Bioquell and hydrogen peroxide decontamination, here is their reply -

"I am sorry for the delay in responding to you but I did need to liase with the relevant department first.

I can confirm that our Infection Control Team are aware of the cleaning system using hydrogen peroxide as mentioned in your email.

This system would only be considered as a last resort when all other cleaning systems have been implemented."

Last Resort!!! 17 deaths in one hospital, 20 deaths in the other, and HPV still hadn't been implemented!

[bountyhunter] 11/10/2007 13:30

apalling!
didn't realise it was that bad and very glad not to live near that hospital!

[wes1] 11/10/2007 10:31

This is the current state of the NHS in Kent



"Half the trust's doctors and nurses wrongly thought alcohol wipes could kill the bacteria"

[wes1] 10/10/2007 12:35

I posted the following on another bb recently -

In the Interim Results 12 September, the Chairman said – "The Group has also recently won a substantial NBC filtration and crew cooling defence order from a Middle Eastern customer.
Deliveries against this order will commence at the beginning of 2008 and continue until the end of the first quarter of 2009".

What he didn't say was that the Defence Division, MDH Defence, had just been awarded a major contract by FNSS Savunma Sistemleri to supply 300 chemical biological radiological and nuclear (CBRN) filtration and air-conditioning systems as part of the M113 armoured personnel carrier upgrade package for Saudi Arabia.

FNSS Savunma Sistemleri A.S. is a leading manufacturer and supplier of armoured combat vehicles and weapon systems for the Turkish Armed Forces and Allied Armed Forces. It is a Turkish-based joint venture between the Nurol Group of Turkey and BAE Systems

The work will be carried out in Saudi, with the first vehicles expected to be returned to service during 2008. This initial contract covers the CBRN filtration upgrade of about 300 vehicles.

It is important to note the word initial in that Saudi contract, a lot of MDH's work is follow-up orders.

For example, in 2005 MDH Defence was awarded a contract to provide 84 nuclear, biological and chemical filtration systems for the US armed forces Joint Explosive Ordnance Disposal Rapid Response Vehicle programme. The filtration systems were fitted to the Cougar 4x4 and 6x6 vehicles that were supplied for the project.

In June 2006 they were awarded a $1 million follow-on contract for another 84 filtration systems and in Jan 2007 a $10million follow-on contract to supply nbc filtration systems for the MRAP (mine resistant, ambush protected) programme on the Cougar 4x4 and 6x6 vehicles manufactured by Force Protection inc.

Also in Jan 2007 they supplied filtration systems for the new Swiss Mowag Eagle IV. A ballistic and mine protected 4x4 vehicle with nuclear, biological and chemical (NBC) defence system.

In July 2006 there was a contract award to supply a Crew Cooling system to General Dynamics M3 Amphibious Bridge Layer vehicle.

Other military vehicles that MDH have fitted with NBC filtration systems and/or crew cooling systems include the Hagglund CV90s for the Swedish Army, Vickers Challenger 2 and Sabre, Scorpion, Spartan and more recently the Stormer and Shielder vehicles.

The US Department of Defence programme to replace the High Mobility Multipurpose Wheeled Vehicle (HMMWV or Humvee) with a Joint Light Tactical Vehicle (JLTV) was put on temporary hold just last month whilst the Army and Marines make up their minds over what they actually do want.

It is interesting to see that both MDH Defence and their American partner Teledyne Brown Engineering have put themselves up for sub-contract work on the programme.

[bountyhunter] 07/10/2007 09:41

Thanks Wes, it seems that the CEO's persistence and tact may be finally be paying off with the NHS, and as we all know Gordon Brown needs a vote winner so what better way than cleaning up the hospitals! Should have been done properly years ago of course, but better late than never, although this no doubt still remains a hugely sensitive issue politically. Tragically currently it often seems to take a few deaths in a hospital from Cl.dif./Mrsa before any effective action is finally taken.
This case study seems particularly conclusive:

Eradication of persistent MRSA using hydrogen peroxide vapour (HPV) decontamination.
Lewisham Hospital NHS Trust.

[bountyhunter] 06/10/2007 20:40

header updated - about time after 3 years!
...glad to have got back in recently @173p

[bountyhunter] 06/10/2007 20:07

re NHS potential - case studies - worth a read:

[wes1] 06/10/2007 14:58

Money Multipier - Decisions about the 2 options won't be made until 2009.
TBE brought in BQE as part of the team for the base contract which is on a cost plus incentive basis and lasting 2 years. That part of the contract is for $14,673,688
Options 1 and 2 are on a fixed price incentive basis - Option 1 will last 12 months, option 2 will last 40 months.
Market hasn't seemed to notice that TBE chose BQE to be part of their team and not Steris, a $billion American Co.

[basketbob] 05/10/2007 11:03

SP is now 4p above its 3 year high. Another 10p and it will be at its all time high.

[money multipier] 03/10/2007 22:19

Can anyone help me interpret the end of yesterday's RNS?

'The DOD's request for proposal dated 13 March 2007 described a SDD phase which
would last two years - and requested firm prices for two production options: the
low rate initial production ("LRIP") option of 23 JMDS units and the full rate
production ("FRP") option of 1,843 units.'

So we get $7M over 2 years for the SDD phase and have quoted for options of 23 or 1,843 units once in production. My guess is 1,843 represents a serious amount of cash - anyone any rough idea how much revenue we'd be looking at per unit?

[bountyhunter] 24/9/2007 17:07

Yes you are quite right there scots, it's a good thing that Bioquell have not been dependent on the NHS but could be the icing on the cake now if GB's plans do go ahead. Well done staying in with this one while I was out - I wish I'd stayed in all along now of course!

[scotswhaehae] 24/9/2007 12:51

true...that sort of news helps but be aware that it is USA military contracts that seem to be providing the real boost these days...

that USA stuff has a long way to run yet imo...and in any event, although BQE looks pricey on an historic basis it looks very cheap indeed imo on a 12-18 month earnings view....never mind the fantastic longer term opportunities.

as people/ institutions 'wise up' we should see a great share price perfomance imo...

good luck all!

[bountyhunter] 24/9/2007 12:25

absolutely! that's why I'm back!

[money multipier] 24/9/2007 12:08

Guess the following is giving us a lift today:



NHS hospitals are to be ordered by Prime Minister Gordon Brown to conduct a "deep clean" to tackle the spread of infections such as "superbug" MRSA.

Sounds promising..

[bountyhunter] 24/9/2007 08:38

back in here now after being away too long!

[money multipier] 12/9/2007 12:32

I suspect the forecasts are in need of revising as I don't think as much progress was expected by the interims. Good forward looking statement too.

[wjccghcc] 12/9/2007 12:03

Good results but not sure they're that cheap. Next year's EPS is currently forecast to fall as tax kicks in. Puts them on a forward PE of 20 for 2008.

[scotswhaehae] 12/9/2007 10:12

Excellent figures and similarly good outlook statement.

These look very cheap on a 12-18 month view and should be strongly rerated imo!!

[money multipier] 05/9/2007 22:29

Cheers pinkie - we seem to be waking up here.

[pinkie] 05/9/2007 13:43

A week today I think. Put your safety belt on!

[money multipier] 05/9/2007 12:24

Anyone got a date for the interims? Anyone here?