Cozart Share Discussion Threads

[cfb2] 08/3/2007 22:30

Conan The Trader: Thanks for bringing the report to the attention of the thread. I've speed read the entire report and, whilst it appears comprehensive and intelligent, it has the air of utopian solutions.

You might like to read the context around the page 14 sound bite. It starts on page 221, "A better way for the criminal justice system to bring people into treatment".

The commission acknowledges the importance of breaking the link between drugs and crime and the role that drug testing plays. They state that there is waste caused by insufficient personnel to deal with the care of offenders found to be in need of aid and subsequently to scale it back to 70 areas where levels of crime are highest.

Cozart reported that 173 areas were currently testing offenders of a suitable crime profile. Given that the 70 areas have a higher level of crime anyway, and hence more testing will be taking place in them, we might expect a reduction of revenue of, say, 50%. From Cozart's interims that would mean a loss of revenue of around £550K or 7%. Purely in fiscal terms it isn't that serious and Cozart are, very wisely, continuing to reduce their dependence on the Home Office. And that scenario is only based around the Home Office taking up this particular recommendation.

Oh, and the £0.5m they save will probably just about pay for the cost of producing the report :)

CFB

[jimmyloser] 08/3/2007 21:41

Conan,

The news is a report and is not law, holders should of course, 'watch this space' as I am sure the directors of Cozart will be doing.

It is not only the police that Cozart products are aimed at.

[conan the trader] 08/3/2007 20:23

Anyone care to hazard an opinion on how today's new might affect Cozart?:

Drug laws in Britain have been criticised as being "not fit for purpose" in a two-year study into Britain's drug policy by the RSA. Panel members included Deputy Assistant Commissioner John Yates of the Metropolitan Police.

"The Commission believes the policy of universal testing on arrest is ineffective, wasteful and ultimately unsustainable and recommends that
it should be abandoned forthwith."

The above excerpt is taken from page 14 of the March 2007 Report which can be found on the following link: www.rsa.org.uk/acrobat/rsa_drugs_report.pdf

[etarip] 02/3/2007 08:08

Cozart PLC
02 March 2007



Cozart plc

Acquisition of Nemesis Scientific Limited

Expansion of presence in the workplace drug testing market


Abingdon, 2 March, 2007, Cozart plc ('Cozart' or the 'Company'), the medical
diagnostics company, today expanded its presence in the workplace drug testing
market with the acquisition of Nemesis Scientific Limited ('Nemesis').

Nemesis is a provider of workplace drug and alcohol testing services and
products to a blue-chip client base. Nemesis offers a variety of services
including 24 hour 'round the clock' sample collection and pre-employment, random
and 'for-cause' drug testing. Nemesis has established a network of 86
collection agents in the UK and overseas, and provides the workplace customer
with a full range of services from drug testing policy provision through to
training, sample collection, drug testing and result review.

Cozart is currently active in the workplace drug testing sector with clients in
the UK and continental Europe. The acquisition enables Cozart to integrate
Nemesis' services with the Company's own drug testing products and services:
on-site saliva and urine testing systems together with laboratory screening and
confirmation testing. This complete offering will allow Cozart to compete both
in the UK and internationally with a more comprehensive workplace service
offering.

In the year ended September 2006, the unaudited accounts of Nemesis show
turnover of £705k, profit before tax of £88k and net assets of £48k.

The upfront cash consideration of £1.14m will be financed (net of expenses) by a
vendor placing of 3,636,363 new Cozart ordinary shares with institutional and
other investors. The vendor placing has been fully underwritten at 33p per share
('the Placing Price') by Numis Securities, nominated adviser and stockbroker to
Cozart. In addition to the institutional investors, Edgar Wallner, a
non-executive director of the Company will be subscribing for 1,200,000 shares
at the Placing Price under the same terms as the institutional investors.
Following the vendor placing, Edgar Wallner will be interested in 14,215,933
ordinary shares in the Company, representing 13.3% of the Company's enlarged
issued share capital. The shares are expected to be admitted to trading on AIM
on 8 March 2007. In addition, earn out consideration of £0.4m will be payable
upon the achievement of revenue targets in the first two years following
completion.

The acquisition is expected to be earnings enhancing in the first full year of
ownership.

Commenting on the acquisition of Nemesis, Dr. Chris Hand, Chief Executive of
Cozart, said:

'Drug testing in the workplace is increasingly common place as employers and
employees recognise its importance, especially in sectors where safety is
paramount. The acquisition of Nemesis expands Cozart's position in this rapidly
growing market and brings a blue chip customer base and strong product offering
to the group.'

-----------------------------------------------------------------------------
A show of confidence by Mr Edgar Wallner

[jimmyloser] 14/2/2007 15:59

Another director share purchase?

[gombie] 09/2/2007 11:22

More buys today. Anyone know if it's tipped anywhere this week?

[cfb2] 06/2/2007 10:41

...at a very small premium to the present price (36p) might...

Only 10 or so posts above I've explained that the option price is the highest share price attained over the past year.

...a very generous self award of options...

The options are performance related; again, see my posts above. If a company doesn't provide financial incentives then they will lose key staff to companies that do. As a shareholder I'd rather staff were sensibly renumerated with bonuses proportional to the increase of my shareholding value. By industry standards the awards are not overly generous.

CFB

[swwikmi] 06/2/2007 10:17

futher director buying - a good sign - but a very generous self award of options at a very small premium to the present price (36p) might see a temporary brake on the share price - next results should be interesting

[gombie] 06/2/2007 08:50

Edgar buys again.

[lennox lnx multibagg] 05/2/2007 01:15

GUYS I HOPE YOU DONT MIND MY INTRUSION.

PLEASE TAKE A LOOK AT LENNOX HOLDINGS, THE EX PAT FOOD STORE.

TINY MARKET CAP. JUST 0.2 MILLION. ONLY 24.02 MILL SHARES IN ISSUE, INTEREST IS RISING.

THIS WILL BE A 600% CLIMBER TOMORROW, GET IT ON YOUR MONITORS..

LENNOX IS GOING TO RISE LIKE A PHOENIX.

DONT MISS THE BOAT FELLAS.. WE GOT A MULTI BAGGER ON OUR HANDS.

[Abuse team] 04/2/2007 21:05

Post removed by ADVFN

[qut] 04/2/2007 21:05

It's jimmy's brain

[nakedmark] 02/2/2007 17:40

Is that Space Invaders ?

[qut] 01/2/2007 21:50

jimmy - bought 50k? Thought you said there's no stock around.

[meenashah] 31/1/2007 19:30

I THINK THE MM'S ARE FILLING AN ORDER FOR AN INSTITUTION WHO HAS A SPECIFIC PRICE LIMIT ON THE PURCHASE. THUS THEY KEEP OFFERING A LOT LESS TO THE SELLERS THAN THEY ARE PREPARED TO OFFER THEMSELVES. THIS IS A GOOD SIGN.

[jimmyloser] 31/1/2007 19:25

Macca,

I have added 50k over the last week, had to pay over the odds though.

I will now put this away and wait until late Spring, anything earlier would be an added bonus.


A good company with class management and potentially leading products in its sector...what more could anyone want.


Philips to take it up commercially...mmmmm

[gombie] 31/1/2007 16:43

cfb2 many thanks for your response.

[cfb2] 31/1/2007 15:44

Gombie: The MMs tend to move the price around on the lightest of volume for this share.

Is it justified based on the announcement? No. The RNS says that the number of share options given is based on the performance within the EPS range. The upper range (7.25p), giving all the share options, is challenging. I don't know how many options the lower range gives. The maximum share options are only a dilution of 1% and with an EPS of 7.25p would result in a share price approaching £2.00. As a shareholder I wouldn't be complaining if they achieved that target :)

ABUBRYN: No problem at all.

CFB

[abubryn] 31/1/2007 14:55

Quite right cfb2 had a senior moment again.Got my p/e and eps and everything else mixed up .stand corrected .

[gombie] 31/1/2007 14:53

Did the price dip as a result of the announcement? If so, please could anyone explain why.

[cfb2] 31/1/2007 14:18

ABUBRYN: The option share price is normally chosen from, as appears to be the case here, the highest share price for the past year. The condition for granting the option is the earnings per share, which is independent of the current share price (it's simply the profit / (weighted average shares) ).

For the moment, let me assume that a commercial deal is signed with Philips so the number of shares ~= 105m. The lower 1.75p EPS would be a profit of around £1.8m. Using a sector PER of 22x that'd be a share price of around 40p. If the profit margins can be kept at around 50% then that's hardly challenging. However, an EPS of 7.25p would be £7.6m profit and relate to a share price of £1.60p. Something I believe that would only be achievable with some roadside testing contracts.

CFB