Bioquell Share Discussion Threads

[harrogate] 07/3/2017 08:58

Has anyone got any info on what a clean 2017 is going to look like? With currency tailwind and the cash this could now be interesting if they can start to grow the volumes. Probably worth more than 1 x revenue ( ex cash ) I would have thought given the fairly high gross margins. Thanks

[18bt] 07/3/2017 08:22

Certainly some positives in this, but there seems no coherent plan on how to use the cash (40p / share) other than to buy in a couple more million shares - that's not delivering value to most shareholders.

[bountyhunter] 07/3/2017 07:58

Final results out.

Ian Johnson, Executive Chairman of Bioquell PLC, said:

"I am pleased to report substantial improvements in the financial performance of the Group for 2016. Following the conclusion of the strategic review in late August 2016 we made changes to the board and restructured the Company, placing greater emphasis on building a world class bio-decontamination business. The reported improvements are in part the result of these changes, but predominantly the result of a number of other factors including lower manufacturing costs, targeted cost reduction programmes and the effect of the Brexit vote on Sterling, which given our high level of export business enhanced gross margin."

"Management continue to focus on generating top line growth from the international Life Sciences market and on improving financial performance through further efficiency initiatives and generating additional recurring revenues from the Services business."

[pavey ark] 15/2/2017 15:54

Added 50% to my holdings recently and managed to buy at very slightly less than my initial purchase (see above).

Must add that the Current Ratio is (IMO) now over 4 and the EV/EBITDA figure is comfortably under 6 making this one of the best balance sheets I've seen in a long time.

The company generates a lump of cash and the cash balance is now £8.8m up from £7.3m in H1 and this after buying back £1.25m of shares in H2.
Some of this cash may come from a rebalancing of Trade payable/receivables but the EBITDA is likely to be at least £3.5m with 40p/share cash.(22m shares)

Bioquell is coming out of hibernation after the long drawn out review but very importantly it now has a new management team and although it's early days (appointed mid year)this looks a very safe bet and I suspect the new management will be putting their stamp on things as I type.

[effortless cool] 29/1/2017 19:27

This looks horribly overvalued. The business is in gradual but apparently inexorable decline and, even allowing for excess cash, I value this at less than £1.

It's too overvalued to invest in and too small to short, so I'm archiving my models on this now (not that I expect anyone else to care)!

Good luck to holders.

[bountyhunter] 19/9/2016 13:24

some good points, especially on the market cap which will affect some of the other data quoted by advfn - I wonder how long it will take for this to be corrected

[pavey ark] 19/9/2016 08:54

Couldn't resist a little punt here this morning.Got involved in BQE though the ST article and did well out of it but my initial involvement was simply based on the tender offer so sold out my second half at 145p when the sale of the remainder fell through.
Read ST's follow up piece and got the the calculator out (please note I like to read ST but only seriously consider a very small percentage of his recommendations and always do my own thing. I would never dream of blaming someone who recommended a share if that turned out to be a poor choice, it was MY CHOICE.)
BQE now looks very sound with:
1 new management
2 large and growing cash pile
3 very high Current Ratio of almost 4
4 EV/ EBITDA predicted to come in at a very low 6.5

NB ADVFN are giving the wrong market cap and it should be c. £30m not over £50m.
My calculations are based on 23m shares so please check this out if you are interested.

[topvest] 24/8/2016 19:27

Interesting company this one. Bio- decontamination business continues to exhibit high margins but low profits and no revenue growth. Think the company has real potential but it's never really delivered. Valuation looks high at the moment, but will keep on the watch list. A buy at around a £1 with Chris Mills heavily invested I feel.

[jbarcroftr] 24/8/2016 12:48

I got out this morning fearing a big drop
Happy to see what Simon Thompson has to say
On the face of it a uk company aiming to be a world class leader should be just the Brexit ticket
May return later

[ingroid] 24/8/2016 12:27

well well no sale and CEO goes after doing stated fine job

[bangalorebob] 24/8/2016 10:47

Bioquell's EBITDA increased 14% to £1.6 million in the six months to the end of June and the group has now terminated its strategic review.

Overall revenues declined by 3% to £12.1 million (2015: £12.5 million) but bio-decontamination revenues (excluding defence sales) rose by 8% to £11.1 million (2015: £10.3 million) and non-UK revenues amounted to £9.0 million (2015: £10.0 million) - representing 74% of total revenues.

Gross margin increased to 46% (2015: 42%).

Earnings per share were 0.8p (2015: 82.5p, 0.2p excluding the profit on disposal of TRaC).

Following the completion of the June tender offer, £40.8 million of cash was returned to shareholders via a share buyback, leaving net cash of £7.3 million at 30 June, 2016 (2015: £47.7 million).

Chairman Ian Johnson said: "Whilst overall revenues declined slightly as a result of lower defence sales compared with the first half of 2015, I am pleased to report that our bio-decontamination business grew by 8%.

"Profitability improved as a result of our cost reduction programme - and management continues to seek further improvements in the financial performance of the business through greater focus on the international Life Sciences market and driving up the proportion of recurring revenues.

"The board has now concluded the strategic review announced in 2015 and believes that Bioquell shareholders' interests would best be served by continuing to build a world class bio-decontamination business and focusing on further improving its financial performance.

"Accordingly the management of the business will be restructured. I have become Executive Chairman and the current Chief Executive, Nick Adams, has stepped down. In addition, Jay LeCoque has joined the board of Bioquell in the new role of Commercial Director.

"On behalf of all Bioquell shareholders I would like to thank Nigel Keen for his seven years as chairman.

"I would also like to thank Nick Adams for his substantial contribution as chief executive. Under his leadership Bioquell has changed beyond all recognition from a low technology manufacturer of safety cabinets to a leader in specialist bio-decontamination.

"The board is confident that the improved financial performance seen in the first half of the year will carry through to the full year."

At 8:17am: (LON:BQE) Bioquell PLC share price was -8p at 145.5p

[bountyhunter] 09/8/2016 18:37

and now 3.99%

[bountyhunter] 05/8/2016 18:17

and now 3.73%

[bountyhunter] 04/8/2016 18:08

Martin MAcleish is still accumulating, it's 3.47% now...

[bountyhunter] 04/8/2016 16:10

yes that 80% of sales overseas is something I have had in mind while holding on here

[pavey ark] 04/8/2016 15:46

” (BQE) generates 80 per cent of its sales overseas, something worth bearing in mind considering the company is up for sale and in bid talks."
From an update in IC 11th July.

"in bid talks" !!!??.......how long can this go on ?

Fifteen months to sell the company....time to sell or get on with building up the remainder of the company into a position where it can be sold.

[bountyhunter] 04/8/2016 15:06

lots of buys accumulating to 3.28%

[cockerhoop] 03/7/2016 15:53

PA,

Yes received the cash on Friday with idealing.

[bountyhunter] 03/7/2016 13:21

Thanks PA that's helpful. I agree that the sale process may stall for a while in the face of the current uncertainty. Yes finally (after some confusion!) to the last part.
Cheers, bh

[pavey ark] 03/7/2016 09:58

Bountyhunter, detailed geographical breakdown in the results.
C.£7m out of £26m.
My understanding is that things are not very straightforward regarding the non EU exports as these would be covered by the existing trade agreement with these countries and the EU. The existing trade agreements remain until a final settlement is concluded but much bobbing,weaving,ducking and diving to be done before that.
None of the above matters to Bioquell holders if the company is sold but I can't think that this uncertainty will speed up the sale process.
One thought is that the fall in the value of the £ makes it more attractive to a foreign buyer.

(Do other people have the cash in their accounts yet ?)

[bountyhunter] 02/7/2016 21:41

Anyone know offhand what proportion of Bioquell's sales are to the EU?

[cockerhoop] 27/6/2016 10:10

I like being able to phone as well as trade online for the same price and they're always happy to contact the MM's if i'm trying to get well inside the spread on something illiquid. They offer DMA as well.

I do maintain a Crest sponsored account in addition, previously with Stocktrade now with Charles Stanley which allows easy attendance of AGM's etc as on the share register but find idealing more flexible, easier to trade at better prices.

[cockerhoop] 27/6/2016 09:47

PA,

Idealing updated my account last Wednesday, They've generally been very quick in updating the tender information and resultant share holding but occasionally have been tardy in funding the account with the proceeds from the corporate actions. I have had a few tender offers on holdings over the last 18 months and have generally been happy with the service.