Ekf Diagnostics Share Discussion Threads

[ppmm] 19/5/2021 15:20

Yes, the process is set out on the investor section of the trellus website but the pricing and shares available are expected to be known some time today apparently

[cisk] 19/5/2021 14:11

Does anyone know how to apply for extra trellus shares? Hold mine through ii isa so guess I have to go through them?

[wan] 19/5/2021 12:29

The cannabidiol market is predicted to increase from $2.8 bn at a CAGR of 52.7% from 2020-2026 and I forgot that it was in fact referenced to EKF's new Purissima account win during a previous meeting (I checked my notes).


Background -
SAN FRANCISCO--(BUSINESS WIRE)-- Purissima, a health and wellness company, announced their launch today. Purissima has developed a bio-based ingredient platform technology that enables large-scale production and supply of natural, high-demand compounds currently derived from plant sources. Purissima partners with leading brands in the global health and wellness industry to provide pure, natural compounds and pharmaceuticals, made-to-order, at unprecedented commercial scale and economics for everyday personal care, consumer health and nutrition. The ingredients support overall health and nutrition, plus provide affordable, high-impact therapeutics for people suffering from a wide range of neurological and metabolic indications, chronic pain, inflammation, sleep disorders, cancer and other chronic conditions that impact most individuals at some point in their lifetimes.


Investors will note the reference to addressing a wide range of health related conditions, including chronic conditions (whether there is any read across to treating IBD remains to be seen).

[wan] 19/5/2021 12:16

Apologies, I think the new customer for synthetic cannabanoid may in fact be Purissima -

Nonetheless, Stepan is a very large new customer that I believe also requires large scale fermenters.

[sharw] 19/5/2021 12:15

mginvestor - no, I heard him say 'week of 7th June if that's the Monday' (which it is).

[sharw] 19/5/2021 12:11

faz - yes, good points. I also found it encouraging that Julian Baines gave Mike Salter plus someone else the credit for the deal with the 'large customer'. 57% of revenue last year was in the US and that will probably increase sharply so I hope he doesn't get too much hiraeth.

I make no apology for use of the word alarming in relation to director movements because they always unsettle the market. Hence it is necessary to look carefully at them - there are often all sorts of reasons lurking in the background. The recent announcement of the departure of the CEO of Aveva (AVV) is one contributor to the 19% share price drop over the last month despite a really good replacement having been appointed.

[mginvestor] 19/5/2021 12:11

Just to add a bit more to what Faz said,

Mike, the incoming CEO, stated that the fermentation business is forecast (internally) to bring in revenues of £15m by 2024.

A question was asked as to whether Amazon could bring testing capabilities in-house and if they're worried that they could become a director competitor to EKF. Julian emphasised that they are not concerned. It looks like Amazon would much rather work with EKF due to their know-how in this area and totally rely on them. There are discussions to expand with the partner into home testing and more genomics works and enzyme manufacturing.

I thought it was interesting that they stated that the upgrades today were due to the core business growing rapidly.

Personally expect more upgrades as the year progresses.

Finally, did anyone get WC July as the roadshow week? I seemed to have misheard July instead of June.

Thanks

@mginvestor

[wan] 19/5/2021 11:48

Faz...As previously covered by myself and Hastings (Martin Flitton on his Private Punter blog) the new fermenters will indeed be supporting the synthetic cannabanoid market, for which the new customer is Stepan, a two billion dollar turnover company that produces disinfectant for the healthcare market -

[faz] 19/5/2021 11:11

Well that was interesting! At the AGM, the major customer was all but named: 'I think we all know who it is' said JB; apparently their PR company is restricting the naming. Relationship is close and growing as the customer expands into home testing. WHat I particularly liked was bringng in the new CEO, Mike Salter, to emphasis how the core business was currently very strong- the chief reason for the trrading update - and and how it will grow. I just caught that one of the markets the new fermenters will be supporting is the synthetic cannabanoid industry. I'm sure some will be very interested in that potential. Mike Salter is Welsh, (well his accent is heavily Welsh anyway) and he spends one month in three over here. However the business is mainly done abroad - always has been (EKF was a German company and reversed into Admiral years ago to get onto AIM).

Trading update wc 7 June and a roadshow same week.

[crazycoops] 19/5/2021 08:59

There was some chatter this week that Amazon were planning to start a full home diagnostics service. That could become very interesting for EKF

[wan] 19/5/2021 08:50

Thanks Crazycoops. The Broker is aligning/maintaining the conservative line, and thus the backdrop of under promise and over delivery looks set to continue.

So it's also worth keeping an eye on the likely Private Sector Partner, where news continues to percolate out.

[crazycoops] 19/5/2021 08:26

From N+1 Singer this morning, On the back of this, we upgrade our FY21 forecasts again (+8% to revenues and EBITDA) and see further potentially material upside to forecasts given the ongoing strength in the Covid-19 test kits business.

[wan] 19/5/2021 08:23

"Alarming" is a ridiculous and absolutely erroneous description/use!

[sharw] 19/5/2021 08:21

Richard Evans will be 65 in June next year. If they had used the word retirement it would not have made the board departures quite so alarming.

[wan] 19/5/2021 08:18

So, we now have at least part of the reason for what is it that is making it confidentially restricted as to who EKF's private sector partner is....and who has massive plans too!

[wan] 19/5/2021 08:12

James...But perhaps more importantly, the CEO is not exactly leaving, and the change will enable him to give very focused attention in the delivery of earning enhanced investments and exposure to exciting opportunities via the Mount Sinai partnership.

[faz] 19/5/2021 08:09

James, JB has forged the deals with Sinai and now will do that full-time. A twelve notice period for a CFO over 60 years old and has just been given a big bonus is not too alarming in context. A new strategy, driving by success, requires new blood and ambition to drive it and with only one departing in 2022 I think it's pretty good

[tigletpiglet] 19/5/2021 08:07

Agree James. My read is CEO change is to get exposure to US. He remains involved. Only time will tell how his new global role evolves. Richard Evans - CFO - looks like planned retirement with decent notice to put succession into place. Reynolds has been there 12 years or so. Not a concern imo.

[masurenguy] 19/5/2021 08:03

In auction at the open !

[tigletpiglet] 19/5/2021 08:01

I think the private sector partner is Avacta AVCT who have developed the gold standard LFT test but are short of capacity for anticipated demand. They are making equivalent reciprocal noises about gearing up production capacity with partners. AVCT being an UK company and having a great test are likely to get a big chunk of any UK Govt contracts going forward.

[james188] 19/5/2021 07:56

I am surprised that there has not been more comment on the extent of the management changes. Change is inevitable, but to replace both the CEO and the CFO within the space of 12 months (plus a long serving non-exec)is pretty unusual. It also suggests that management control may be centred in the US - something that I have asked the company about this morning. Other than that, I agree that the AGM statement is very positive.

[mginvestor] 19/5/2021 07:38

That whole AGM Statement is glowing with ambition, confidence and vision.

The short term catalyst will be expansion of their services with Amazon but we have a strategy from them that clearly shows we are on the next leg of our "accelerated growth" in the core business

Ain't no stopping us :-)



@mginvestor

[wan] 19/5/2021 07:35

Todays' news represents even more than I was wishing and hoping for! And see's EKF at a very significant inflection point in terms of further growth, increasing earnings and on the cusp of realising a raft of exciting opportunities.....fantastic news.....and a fantastic growth plan!