Bioquell Share Discussion Threads

[bountyhunter] 26/7/2017 12:12

header updated

[qs99] 26/7/2017 10:59

thanks 2niffy, also the broker note I have read looks like more upgrades likely so DYOR but happy to be in this...

[2niffy] 26/7/2017 10:55

Tristel trading update last week indicates 17%growth. Expect £20m revs. Mkt cap now over £110m. Trades north of 4x sales.Bioquell just reported 19% growth, similar t/o expected 2nd half gets to £30m t/o. Striping out the cash, 1x sales for gross margins of 52% and expected to improve further. 1.5x gets to 250p not a demanding rating in the short term. Downside protection with ongoing share buyback.

[qs99] 26/7/2017 10:13

So less than £40m market cap, £2.5m EBTIDA at half year and upgrade for full year, so say £6m EBITDA? and adding to cash pile and growing? 10 times EBITDA gives 50% upside from here? Lots to play for and great that it is now on an upward growth curve and well done to those having bought much lower!! DYOR etc

[bountyhunter] 26/7/2017 10:07

there was talk in the past about selling the company for £2/shr, I guess that price has just gone up! :)

[cfro] 26/7/2017 10:05

Bought in this morning. Great interims and strong outlook statement.

[18bt] 26/7/2017 07:54

Great interim. Should look out for a Simon Thompson update in the IC. BQE is highly rated but not when you disregard the cash and it is now on a clear growth track. Cash is £11.8 out of £39m market cap.

[18bt] 26/7/2017 07:54

Great interim. Should look out for a Simon Thompson update in the IC. BQE is highly rated but not when you disregard the cash and it is now on a clear growth track. Cash is £11.8 out of £39m market cap.

[bountyhunter] 26/7/2017 07:37

The half-yearly report out this morning looks pretty good to me...


Financial highlights

-- Total revenues including defence sales increased by 19% to GBP14.3 million (2016: GBP12.1 million); up 10% at constant currency rates.

-- Bio-decontamination revenues increased by 27% to GBP14.0 million (2016: GBP11.1 million); up 17% at constant currency rates.

-- Non-UK revenues amounted to GBP11.3 million (2016: GBP9.0 million) - 79% of total revenues (2016: 75%)

-- Gross margin increased to 52% (2016: 46%)

-- EBITDA increased 56% to GBP2.5 million (2016: GBP1.6 million)

-- Profit before tax more than trebled to GBP1.4 million (2016: GBP0.4 million)

-- Basic earnings per share were 5.5p (2016: 0.8p)

-- Net cash of GBP11.8 million at 30 June 2017 (2016: GBP7.3 million)

Ian Johnson, Chairman of Bioquell PLC, said:

"I am pleased to report that after a number of years of little growth, total revenues increased by 19% in the half year and that our core bio-decontamination division produced strong revenue growth of 27%. Profitability improved as a result of a significant improvement in margins coupled with tight cost control. Management continues to seek ways to simplify and focus the business around the core bio-decontamination products and services driving higher margin sales and yielding higher quality earnings. Given the momentum in the business the Board believes that the Company's profit before taxation for the current financial year will exceed current market expectations"

[bountyhunter] 06/4/2017 12:19

Bed & ISA @148.4p - a good move by the FD...

[bountyhunter] 20/3/2017 08:50

a bit of both I would have thought

[pavey ark] 20/3/2017 08:41

Article published on the 15th so written after the options announcement but no mention of this.
Main points were cash and share buy-back.
I am pretty sure that the recent price rise was due to this article.

[bountyhunter] 19/3/2017 21:16

That's interesting, but surely they mentioned the point I've made above or was the IC article prior to or on 10 March (the date the share options news I mentioned above was released)? The recent rise started soon after that so I still think that that news was at the very least a contributing factor for the reason I stated above.

[pavey ark] 19/3/2017 20:18

bh, I suppose you've discovered this by now but the rise was very probably due to the recent positive update in Investors Chronicle.
I sold on Friday simply because I expect the price to drift back and a 15% gain in a couple of months was more than OK.

I've been wrong before but the gain is fine even if the price doesn't come back down. If the price falls I'll almost certainly buy back in as I like the company.

[bountyhunter] 16/3/2017 11:22

a delayed reaction to this recent statement?

"These grants represent in aggregate approximately 4.95% of the current issued share capital and are in accordance with the rules of the PSP. The options and forfeitable shares shall vest and the options shall become exercisable on a change of control within 3 years of the date of grant at a price of more than GBP2 per share."

That's quite an incentive to the BoD to find a buyer at £2+/share!
imho

[bountyhunter] 13/3/2017 12:35

buybacks to continue

[bountyhunter] 11/3/2017 12:33

header charts updated

[bountyhunter] 11/3/2017 10:41

I've added a couple of links to the end of the header for future reference as I'll probably forget about this within a year or so otherwise!

[bountyhunter] 11/3/2017 10:28

cheers, it's a bit clearer in that document:

"7. Performance conditions
Awards will not vest unless the performance conditions are satisfied. The performance condition in respect of the Initial Awards is a takeover event (or similar corporate event) in relation to the Company ("Takeover Event") satisfying one of the conditions below.
Where the Takeover Event takes place within three years of the date of grant, the condition is that the value of the consideration received by the shareholders of the Company as a result of such a transaction must equal or exceed £2 per Share;
If there is no Takeover Event within three years of the date of grant either:
• the Initial Award shall remain capable of vesting on the same basis as set out above, save that the references to "£2 per Share" shall be taken to read as "£2 per Share plus 10% per annum (calculated on a daily basis) for the period between the third anniversary of the date of grant and the date of the Takeover Event"; or
• at the discretion of the Committee, the Committee may instead set a new performance condition to be satisfied following the third anniversary of the date of grant, such new performance condition to be materially neither more difficult nor easier to satisfy than was the condition set out above as at the date of grant."

...a bid at £2 would be a 50% premium to the current share price @133p so would be a good return at any point in the next 3 yrs (and the BOD have quite an incentive!), may as well hold on to these I think, imho

[nw1234] 11/3/2017 07:11

Detail was included in the notice of the General Meeting on the BQE website.

hxxp://www.bioquellplc.com/downloads/press-releases/Bioquell_Circ_v1.pdf (see section 7).

[effortless cool] 10/3/2017 21:08

I agree with your interpretation, although the wording is poor.

Of course, a share buyback will help with that ....

And they'll be worth £2m then. Not bad for a business that made just £0.4m for its shareholders last year.

[bountyhunter] 10/3/2017 20:50

yes but doesn't the shareprice have to reach £2 for them to be exercisable, or a bid be received at greater than £2/share?
...surely that would indicate confidence that the share price will hit £2 within 3 years

"the options shall become exercisable on a change of control within 3 years of the date of grant at a price of more than GBP2 per share"

not crystal clear so I stand to be corrected if not the case

[effortless cool] 10/3/2017 20:36

Or alternatively:

The Group expects to return further cash its directors by way of nil cost shares and options during the course of 2017 in lieu of paying a dividend. Further details of this venality are announced here.

[effortless cool] 10/3/2017 19:32

You might also want to add that the Board have just awarded themselves £1.5m worth of shares and options at no cost to themselves.



Very well deserved, I'm sure.

[bountyhunter] 07/3/2017 09:37

header updated replacing out of date info with...

"The Group has a strong balance sheet. GBP40.8 million of cash generated from the sale of the TRaC business in 2015 was returned to shareholders by way of a tender offer in June 2016. The Group spent a further GBP1.3 million on share buybacks in December 2016.

There was a net cash inflow before share buybacks in the second half of the year of GBP2.5 million.
Net cash at 31 December 2016 was GBP8.8 million (2015: GBP47.6 million)

The Group expects to return further cash to shareholders by way of share buybacks during the course of 2017 in lieu of paying a dividend. Further details of these buybacks will be announced in due course."