Myhealthchecked Share Discussion Threads

[dual] 02/9/2024 07:56

Very interesting post on LinkedIn by MHC.They celebrated a fantastic year so far, and they have excited news, which they can't share just yet.

[tia01] 01/9/2024 08:57

What ever happens MHC will produce an update this month. Will September be a positive month for MHC.
This is a question only to be answered when update delivered.
One thing is noticeable is the sales increase of the 25pk af Covid test since they were discounted on Boots site. That could prove a smart sales move.
Schools heading back after the holidays could easily see a new wave hit in the next month!.
Anyway all eyes on Penny’s update.

[tia01] 29/8/2024 19:32

Muck 166
Great raise from ABDX and I wish them well with their strategy but what it does show is how undervalued MHC with its cash position alone.
That said they must demonstrate growth in new products. Hopefully both companies can make money with individual strategies.
MHC has chose a path with Boots which suggests phlebotomy testing because I see little in pure LFT testing. Margins are thin.
ABDX offers the same iron and vitamin D test as MHC in Boots home brand however it participates in the 3 for 2 offer so can’t see any profit in that deal really for ABDX. It does demonstrate they are doing deals which is great.
I can’t help think Penny must have a plan otherwise surely she would have tried to deals with other retailers like competitors have.

[muck166] 29/8/2024 15:25

Hi Tia - no, ABDX offered existing shareholders the opportunity to buy shares through a bookbuild process at the same price as the recent placing, to raise up to £500k. Despite the very small discount to current SP, the offer was 80% taken up.

I agree - good news here should see a bit of a re-rate.

[tia01] 29/8/2024 09:34

After looking at the situation in MHC it’s easy to realise they could also become a take over target. When you realise the market cap and cash in bank it’s quite plausible to see a takeover. Other companies will realise they have both products and cash which makes them fair game.
The only way the board can prevent this is to offer something to raise the market cap otherwise it’s definitely prey to someone

[tia01] 29/8/2024 07:05

Muck166
So it looks like ABDX raised another 500k through share placement.
80%?take up but no Directors participation.
Raised at decent share price with little to no discounts.

It’s definitely an interesting market for MHC given MHC has self funded growth plan.
If MHC can demonstrate growth in new products and a profit generating use for the digital data investment then this could easily re rate inline with ABDX.

Crucial to see what’s said in update due.
Need a deal with Boots to offer phlebotomy testing and possibly a an expansion of products offered on pharmacy first and we move up quickly.
A lot to wish for but Penny must deliver as cash don’t last forever unless we have a plan for growth of new products

[tia01] 29/8/2024 06:31

Still no update!.
Surely due any day.

[tia01] 27/8/2024 21:31

Muck166
The one thing to note is people say MHC is reliant on Covid revenue!
Well the fact is a car runs on diesel then we move to petrol and on to electric.

Companies use the revenue to evolve and develop and provided they use the funds to adapt and grow its a good thing.
For some reason people hate the world COVID revenue however if Mpox said it had a test for Mpox it would go up ten fold!.
So strange but hope Penny offers positive news with update overdue

[tia01] 27/8/2024 16:32

Muck166
MHC need to demonstrate a path to growth with Covid and I believe that path lies with both new tests but more phlebotomy testing to be confirmed by way of a deal with Boots. It’s all a risk but I do like the fact MHC have been focusing on growth by adding 200 new stores whilst able to expand without needing any dilution.
Covid revenue is will definitely reduce year on year but hopefully they have a plan to grow new products. As you say all the LFT tests are the same from China and repackaged. Not a fat lot of profit in them at all. I do believe Penny has a plan and believe the investment being made in digital data will pay off.
Update due shortly so will be interesting to see what’s said. Also Penny did state in the investor Meeting that she hoped to share news shortly so I guess that news is overdue. I guess her hands are tied until Boots are happy for press release.
Definitely worth more the 4.5m market cap in my opinion

[muck166] 27/8/2024 14:19

Thanks Tia - and like I say, I'm not trying to be provocative!

And yes, the cash burn over there has been a problem, but its been a problem the Directors have been laser focussed on for the last couple of years, having a primary target of cash flow breakeven. They achieved that in Q4 of the last financial year.

It is one of the reasons I like that business - unlike many AIM stocks its run by people who have a clear plan, who focus on it, and who deliver on it.

Good luck here - I do hope it comes good for you.

[tia01] 27/8/2024 14:09

Muck166
A fair response and well explained.
My point is whilst ABDX does generate revenue from other tests and not so reliant on Covid the cash burn is alarming. Hence why they had to issue shares to make the recent acquisition

[muck166] 27/8/2024 11:32

Tia - I don't want to get in a spat with you about valuations, especially on the MHC board. And I am not saying MHC is a bad company - it isn't.

Yes, ABDX supplies Boots with some own label tests. In fact, they are exactly the same Chinese tests that MHC also sell through Boots, just in different packaging.

And yes, ABDX makes and sells pregnancy tests, as well as other tests.

But even a cursory look at its accounts will show you that revenue it makes from total product sales is less than 10% of its total revenue. The bulk of its revenue comes from CDMO/CRO activities on a fee for service model, ie it helps third party lateral flow developers move an idea to a commercial, approved LFT product that can be manufactured at scale and robustly.

That is its main business, and its NOT the same as MHC.

I don't know why MHC has an MCAP of less than ABDX, but if I were to guess I would say it's because MHC remains heavily reliant on COVID revenue (which is falling) and seems to be stagnating rather than growing, whereas ABDX has growing revenue from a multitude of different customers and streams, as well as some huge potential in its pipe.

There are very good reasons why 3 institutional investors took almost all of the recent raise at less than a 10% discount - I assume it's because they see real growth potential in ABDX. Sadly, MHC isn't showing investors anything at the moment.

[tia01] 27/8/2024 09:02

Muck 166
Educate me!.
Explain why it’s worth 3x MHC!

[muck166] 27/8/2024 07:17

Tia - I’m afraid your last post about ABINGDON Health just demonstrates how little you understand that business. To say most of its current revenue comes from a pregnancy test, for example, is laughable.

[tia01] 24/8/2024 20:34

hxxps://www.institute.global/insights/public-services/preparing-the-nhs-for-the-ai-era-a-new-tool-to-map-untapped-health-data.

Is MHC focusing on digital data because they are looking to the future. Does Penny have something up her sleeve to really put digital data on the map!!!!.
I don’t think MHC have invested so much in digital data for no reason.

[tia01] 22/8/2024 19:56

You do really have to question why MHC have been so slow to do any deals given the cash they had through Covid etc. No new deals since Boots. You have to wonder if all the plans are geared solely around Boots which makes you think what they know we don’t. Penny is 100% on the ball I think

[dual] 22/8/2024 15:46

Newfoundland now has a deal with WHSmith to distribute their self test.WHSmith have stores within hospitals good deal for Newfoundland.Still very quiet from MHC.

[tia01] 21/8/2024 18:16

Muck
I don’t see Albington has being completely different!. Most revenue derived from a pregnancy test where MHC started life.
Albington providing tests to Boots in Boots brand that MHC does in own brand.

Mhc in a better state financially and remember revenue is revenue and profit is profit.
However the companies are extremely similar and I’m sure mHC/concepta sold Albington it current testing premises!.
I feel the financial position of MHC is 100x healthier and any one knows revenue isn’t profit

[spacedust] 21/8/2024 06:20

Sorry just stating blatant hard-core facts

[spacedust] 21/8/2024 06:20

September 2023 also had schools re-opening. There was up tick in infection. Mhc.made more money more growth more revenue more profit.
More cash in bank.

But share price still declined.

The same thing will repeat. Last year we sa8d this time it'll be different.

We're singing the same song still.

[muck166] 20/8/2024 21:36

You really should stop comparing MHC to ABDX - the businesses are NOT the same. There are very good reasons why ABDX just managed to raise c40% of its MCAP at less than 10% discount (in these markets), with the entire raise taken by 3 new institutional investors. And its revenue last year was £6m having grown from £4m the year before.

[tia01] 20/8/2024 20:15

Just looking at the market Cap of Albington Heath which is 18m.
They have grown revenue from £400,000 to £700,009.
They have 1.3m in the bank.
Has to issue 9.5m shares for a small acquisition.

MHC market cap 5.8m
8m in the bank.
No debt!
Revenue growth new products
Earning 4% interest on 8m alone is around £320,000.
Way undervalued

Time for Penny to update us on plans because the recent share rise is nothing compared to what it could be with news. Surely the deal with boots is close

[tia01] 20/8/2024 14:30

The HIV test in Boots is selling daily so a bit of extra revenue to add. Schools back in a few weeks so probably a winter pick up in Covid sales. Possibly MPOX outbreak!. Definitely things to start helping the sales

[tia01] 20/8/2024 06:34

Spacedust
This time round it could be a situation where the government try to get people to buy them privately.
Mpox is completely different to Covid.
The key would be a deal with boots pharmacy plus and NCYT if its test is approved!.

Anyway last year results/ update wason the 9th August!.
Surely due now