 It was clear from this interview that Paul Jordan does not really understand Ixico's market positioning. He is would be right if he were talking about Huntingdon's in isolation, but he was talking about the broader neurodegenerative space. Here their position is not strong and they have significant competition and importantly that includes AD.
I think last week’s RNS confirming the appointment of Dr. Lynne Hughes as an advisor is a confirmation of how they are struggling in these other area. If you were market leader, as Paul Jordan suggests, why would you need such an esteemed expert to help you break in to new areas ?
The other problem is to break in to a new area you need to start with Phase I and these will be small contracts and only when you have a sufficient number of these will you start to pick up Phase II and Phase III. Given many of these trials are long in nature it will take 4 or 5 years until you start to see meaningful revenue. Put another way, if you are already in the clinic you will not take the risk of switching your methodology for Neuroimaging, so that means Ixico need to feed the top of the funnel in these areas where they are not competitive and that means preclinical.
The other point I will make is she will not be cheap and they do not have money to burn. If they lose one of their two big contracts accounting for almost 65% of their backlog then they are in trouble in my view. Time for a reset at the top and where the C suite are way, way, way overpaid. |
Paul Jourdan of Amati Global talks positively about IXICO here (starts 27:00)
www.youtube.com/watch?v=0nJJIpsI9Uo |
Heads I win. Tails you lose. Worthless "contracts". |
Well said:
buywell thinks that larger Institutional shareholders should take a look at this bonus scheme that the remuneration committee are operating
It has effectively meant that the CEO and the Chairman have doubled their already generous pay
Giulio Cerroni CEO 30th Sep 2020 salary 279,239 bonus 258,421
Giulio Cerroni CEO 30th Sep 2019 salary 215,865 bonus 330,300
Grant Nash ... CFO 30th Sep 2020 salary 149,300 bonus 38,196
Grant Nash ... CFO 30th Sep 2019 salary 59,410 bonus 47,142
For a small cap AIM company this is way too much IMO on top of huge bonus payments both have had decent wage increases why ?
Ixico operates a discretionary bonus scheme that takes account of the underlying financial performance of the Group, meeting KPIs and achieving strategic objectives.
All performance targets are set by the Remuneration Committee.
The award of bonus payments to employees, including Executive Directors, are subject to the Remuneration Committee’s review and approval.
For the year to 30 September 2020, the Remuneration Committee determined that bonus related KPIs and strategic objectives were largely met, resulting in the majority of bonus entitlements being achieved
buywell can't see how this share price performance justifies the remuneration committee to make such awards
II's need to get themselves involved ASAP
Just who is on this Remuneration Committee ?
Can't see the names
dyor imo |
Rocketblast, I am afraid your expectations of revenue growth might be too optimistic. On the last call the company said that if over the next 5 years they were to achieve revenue growth of 100% it would require an acquisition. 100% revenue growth over 5 years is decent but not spectacular (that is 15% pa compounded) and to get to that level they will likely need a CR with everything that entails.
The other thing to keep an eye on is further trial cancellations, they mention the possibility a number of times in the interim report. Two clients represent 70% of revenue (one is 55%) and if one of those was to halt after a futility analysis it would be pretty hard to claw back in any sensible time frame. This concentration will improve over time but is a real risk for the next 18 months
I also think without material improvement in the business the CEO's and CFOs pay should be reviewed. Combined, on a cash basis alone (i.e. before options) the two of them account for over 10% of total revenue if you were to add in the US and UK COO/CBOs then you are getting beyond 18% of revenue. The CEO pulls down in excess of 650k year after year. I think the next 12 months will be the test of the C suite team, if they don't deliver we will see if the Chairman is up to the task of bringing about significant change or selling the business or maybe he is too busy with his role as Chairman of CREO. |
Looking good for a Xmas Rally. Market for IXI is massive and its in a sweet spot with demand rapidly increasing. Lets see RNS on a massive deal and contract this month, some say it will be a game changer for IXI. |
It is a good business but it they have a number of issues they need to address and I am not sure I see that happening. I also don't like to see a @ 2.7 million difference between the EBIDTA number and the taxman's number. The capitalisation last year was very significant and (on this scale) is new.
1) They need to quickly shift their revenue from Huntingdon's towards AD. They dominate in Huntingdon's but have limited exposure in the AD market.
2) They need to demonstrate that the significant R&D spend they are making actually allows them to meaningfully grow revenue rather than maintain their position.
3) They need to get a post marketing surveillance product in to the market. This is where I am most hopeful. If they can adapt Assesa for Aria detection in AD patients they might be on to something. But this is going to require a significant investment but on the plus side would probably be paid for by a Biogen or a Lilly.
4) They need to work on more points of differentiation versus competing products. You will not win against ERT/Bioclinca in areas that are not niche. |
Creeping up nicely.
DC |
Bought a few for 60 new pence a go |
Market for IXI is massive and its in a sweet spot with demand rapidly increasing. Lets see RNS on a massive deal and contract this month, some say it will be a game changer for IXI. |
Great results Sales and Cashflow strong. IXI will have a rapid rise as expected. I still bet on a takeover at these prices and sure that a number of organisations are looking at IXI. Get ready for liftoff great Products and Services. IXI AI algorithms are a great differentiator and asset. |
Cashflow was poor. |
Nobody got any comment on the results, they look encouraging to me as an outsider.
DC |
Just looking in trading update it says :-
"Outlook
Benefiting from a strong order book, and an improving business outlook resulting from the initiation of new neuroimaging clinical trials during the 2022 financial year, the Company expects a return to revenue growth, albeit at a lower rate than recent historical levels. In the coming year, the Company will continue to pursue its investment plan to accelerate long-term sustained growth. Due to these investments, and the one-time beneficial impacts on EBITDA seen in 2021, the Company expects to see lower profitability in 2022."
"HTtps://www.investegate.co.uk/ixico-plc--ixi-/rns/trading-update-for-year-ended-30-september-2021/202110180700063038P/"
Maybe worries about 2022 profitability ? |
stock getting smashed recently. does anyone have any view as to the driver? now below £30m market cap
feels like an opportunity to top up. not sure why people would be selling at this valuation? |
Yes but at these prices great value with cash in the bank, revenue going up and sales improving its all to gain for. Im topping up for future gold!! |
indefinate sounds more than a month... |
This as a chance to top up. The halt is just a review so not an issue. It will restart after review this month. Be patient as revenue increases Q4 |
Yep and I bought yesterday - argh! |
terrible rns just before close. :/ |
Always good to read an RNS that says “ahead of expectations”. Excellent trading update and financial metrics. AI is definitely the future of medicine and imaging. |
Trading update this morning includes:-
£9.2 million revenues outperform market expectations
EBITDA profitability expected to be materially ahead of market expectations
Strong £18.8 million order book and £6.7 million cash position
Growth story remains exciting! |
IXI looking to break 100p plus as news flow. Some say takeover RNS soon and news over the next weeks...lets see. Looking great as they are leaders in Scanning AI and looking to utilise Quantum Computing as well as AI. HOW HIGH HOW SOON? 100p plus some say 120p plus… |
Blogpost update at michae1mouse.blogspot.com |
Ixico seeing success with a number of contracts awarded covering multiple therapeutic indications.
Well worth watching |
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