Intelligent Ultrasound Share Discussion Threads

[40 fathoms] 18/8/2023 07:26

@bmcollins

In complete agreement, things look very interesting indeed. If they do reach profitability next year and look like they will get close to their 2025 revenue ambition the conversation will move very quickly from cash to appropriate valuation multiple. If this ambition for 2025 is realised they will be looking at a profit and using a 75% gross margin we will be looking at a PBT of GBP 3 to 4 million. That places the company on a FY25 P/E of between 10x and 15x. That seems very, very cheap to me for the very significant growth that they will still have ahead of them.

The other thing to keep in mind is the shareholder register is very, very tight. The top 10 shareholders and management hold almost 77% of the stock and they have been super loyal. The reason they were able to get the raise away so easily last year is that almost the whole raise was taken by existing shareholders. Over the next 18 to 24 months anyone that wants a slice of IUG is going to have to buy on market.

[40 fathoms] 18/8/2023 05:18

Looking at the presentation again one thing that I caught is that they are expecting to be @ breakeven on adjusted EBITDA basis in the 2H of the year.

Page 4 shows adj EBITDA in the first half of -1.2 million and page 16 shows they are on target for a full year adj EBITDA of -1.2 million. This indicates that 2H is going to be adj EBITDA breakeven. That suggest that on an operational basis we are now at operational profitability. Still have R&D and finance hurdle to clear but operational profitability is a major milestone.

[bamboo2] 17/8/2023 19:33

Recording of this evenings Investormeet now available...

[bmcollins] 17/8/2023 15:04

40 Fathoms
I have been listening lunchtime to this podcast, the arguments in favour of IUG sounded pretty compelling to me.

[40 fathoms] 17/8/2023 14:41

Results Podcast

[40 fathoms] 17/8/2023 13:42

For cash situation worth noting there was a 1.1 million build in the trade debtors and receivables and @ 200k build in inventory in the first half, these will unwind in the second half and to that you can also add R&D tax credits.

Company says "Cash utilisation in H2 is expected to be materially lower and the Group remains on target to reach profitability with its current cash"

[40 fathoms] 17/8/2023 13:27

@bamboo2 .... As you say given where we are in the back half of the year this years forecast results are close to in the bag at this point just based on the fact of the contracting cycle and lead-times between ordering placement and product to delivery.

[mr macgregor] 17/8/2023 11:02

Shocking cash burn given profitability isn't expected until late 2024.

[eeza] 17/8/2023 10:43

New Cenkos note out, but I can't access.

[route1] 17/8/2023 10:38

There may be highlights in this earnings report, but the current share price down 8.5% is certainly not a highlight to me, more like a crushing disappointment!

[bamboo2] 17/8/2023 08:30

40F, H2 is 25% gone already, so they should have some idea of sales.

I guess we are partly in the hands of GE.
They have a huge order book, and have been increasing production.

[bamboo2] 17/8/2023 07:48

17 August 2023

Half Year Report

Intelligent Ultrasound Group plc (AIM: IUG), the 'classroom to clinic' ultrasound company, specialising in artificial intelligence (AI) software and simulation, announces its unaudited half year results to 30 June 2023.

Financial highlights

-- Revenue for the period to 30 June 2023 has grown by 3% to GBP6.1m (H1 2022: GBP5.9m)
o H1 2022 revenue figures included GBP1.4m of one-off orders from the NHS in the UK, so on an adjusted 'like-for-like' * basis, revenue in H1 2023 increased by 35% (H1 2022 adjusted * : GBP4.5m)

o The Group's clinical AI products continue to gain traction and revenues more than doubled to GBP0.7m (H1 2022: GBP0.3m)

-- Operating loss increased by GBP0.2m to GBP1.5m (H1 2022: GBP1.3m) in the period
-- Cash at bank on 30 June 2023 was GBP3.3m (31 December 2022: GBP7.2m), impacted by working capital seasonality in respect of timing of revenues and receipts of inventory in H1

-- Cash utilisation in H2 is expected to be materially lower
-- The Group anticipates reaching profitability with its current cash
Operational highlights

-- ScanNav Anatomy Peripheral Nerve Block (PNB) AI software upgrades released in UK and US market

-- BabyWorks 2.0 simulator product update released
-- ScanTrainer Endometriosis simulator module released
Stuart Gall, CEO of Intelligent Ultrasound commented:

"This has been another positive start to the year. We are growing sales of our AI-related clinical products, as they move out of the early phase of commercialisation and we continue to have an excellent relationship with GE Healthcare, our OEM partner in women's healthcare AI. Our simulation products are performing well in the market and our new releases, including the endometriosis training module for the ScanTrainer simulator, have been well received.

We are building an exciting 'Classroom to Clinic' ultrasound business and we continue to anticipate reaching profitability with our current cash"

[40 fathoms] 17/8/2023 07:19

All looking good, Page 16 is my favorite. In particular the forecast of the significant pick up in Clinical AI revenue in second half. They are tracking slightly under the 2.2 million target for the year. That suggest we are looking at close to 1.5 million clinical AI revenue in second half of the year. That is double the first half and 4x the whole of FY22.

[bamboo2] 16/8/2023 09:23

40F, perhaps we will get an outlook update tomorrow?

[bamboo2] 16/8/2023 09:21

40F, Thanks for posting.

I noticed the older model had been discounted by GEHC, so now we know why!

[40 fathoms] 16/8/2023 06:08

This was approved by the FDA in June.

We have been waiting for the launch of autocapture .... I wonder if that is the AutoLive addition in this FDA 510k approval ?

I also wonder if the Auto-Caliper addition might not also be from us, it would seem to fit with the second agreement that was signed that which covered and area outside of the scope of women's health covered by the original agreement. The auto-calipers would be used in fertility area and both Noble and Asmo have published work in this area in prior years.

[40 fathoms] 16/8/2023 05:54

Ok, it looks like a new product cycle is about to start at GE.

It is an upgrade to the Swift range and will be called .... Voluson SWIFT Breakthrough 23.



Below is a little teaser video from GE with a focus on AI tools (in addition to the sonolyst demo in the video note the reference to Sonolyst and IUG in the closing slide)



This post below is from 1 week ago is also showing GE is starting to push/focus on the AI/Sonolyst angle as part of the overall sale.

[bamboo2] 09/8/2023 11:29

Flags and pennants always have a flagpole.
The flagpole or mast is often in two halves.

Is the second leg of ours about to start?

[40 fathoms] 06/8/2023 04:29

One thing to like about IUG is the upgrade and improvement cycle they have for all of their products.



This is new, posted in the last week, it starts the FDA approval pathway for adding 5 more PNBs to the Scannav PNB product. It is worth noting that the Femoral Block already has CE mark approval in but was not included in the FDA approval package. So the product sold in Europe haas 10 blocks in the US only 9 blocks, this will expand the number of blocks to 13.



Also posted last week. It is for the Scannav assist range and focused on the abdomen but it is not clear to me at this point exactly where it fits in to the product development pathway. It would allow for the pressure being applied to a probe to be measured from the images captured rather than from a physical sensor. Interestingly it also mentions self scanning and has something to do with scan dating which would suggest to me it is acquiring background ground truth data for neonatal dating scans. However there is no requirement in the study for a particpant to be female or pregnant so, one to watch.

[eeza] 04/8/2023 09:22

Looks like the opening 41606 buy was flipped at 13.10p (@ 0851hrs).

[40 fathoms] 04/8/2023 09:07

It certainly does not feel normal. Not that I am complaining because it feels so much better than when it moves like this to the downside.

[bamboo2] 04/8/2023 08:15

Can auto sell 100k at 12p
No quote to buy above 1000 shares.

Is there something going on in the background?

[bamboo2] 04/8/2023 08:07

If the opening gap remains unfilled for the day, it could be seen as a measuring gap which would target the recent highs at approx 16p

[bamboo2] 04/8/2023 08:05

41,606 at 13p just traded.

Getting up to a more reasonable valuation now.

[bmcollins] 03/8/2023 08:47

Bamboo
Thanks for this info, most useful.