Sourcebio Share Discussion Threads

[pob69] 19/4/2021 08:22

New contract award for SBI as part of National Microbiology Framework - Lot 4: Clinical Laboratory Diagnostic Testing Services (share of £15B over est 4 years)

[smithless] 19/4/2021 08:16

Prior to its admission to AiM it had invested heavily in infrastructure. With debt now repaid from the listing proceeds it has a clean balance sheet. It's Covid testing has proved profitable, but that was not the only reason investor put money into the company. It's other divisions, especially Healthcare can take up the slack from Covid testing. Covid testing anyway is likely to go on for years as new variants keep emerging. The stock was only floated in Oct '20 and I'm sure to market would like to see a few sets of results before fully getting behind it. When it does SBI only has a free float of around 16%, so any won't take much to push it higher

[gary1966] 18/4/2021 16:27

Not currently invested but taking a look.

Obvious question really and probably why investors are not confident enough to pile in longer term is what happens when COVID testing isn't required much anymore and how soon that will be? If you strip out the COVID effect what would the profit figure look like then? I suspect not a lot. Would be useful to have some figures pre COVID but not sure where they can be got with these having only been listed since October.

Any thoughts/answers would be much appreciated.

[pob69] 18/4/2021 08:25

That contract is a restatement of the Feb award, due to "IT issues".

This contract award notice is published as a replacement for Contract Award Notice 2021/S 028-070725 as the previous notice contained incorrect information due to a IT systems error

Contract Award Notice 2021/S 028-070725 related to contract notice OJ S 2020/S 202-492264 and incorrectly stated that a number of contracts had been awarded under Lot 2 of the framework. In fact, all of the contracts included in Contract Award Notice 2021/S 028-070725 were awarded under Lot 1. No contracts have been awarded under Lot 2.

[go2nc] 18/4/2021 05:31

https://twitter.com/chandragosavi/status/1383638608087687173?s=21More NHS contracts! Steadily market cap will build up. Sometimes it takes time for the market to catch up. More IIs will be interested in company soon.

[blind lemon] 15/4/2021 20:27

None of this steady news stream is having much of an influence on the share price. Why has it slipped from 240p

[pob69] 15/4/2021 17:00

Bullish interview with Chair

"... airport and sport facility testing is going to be crucial through to 2024."

[hastings] 15/4/2021 14:42

Speaking with them on Monday of next week, so will also provide something for hopefully further flavour.

[smithless] 15/4/2021 13:23

From the BBC today 4.7 million waiting for operations in England. Good for SBI Healthcare Diagnostics division

[rivaldo] 15/4/2021 10:56

Excellent interview, cheers pob69. Lots of excitement to come, including potential acquisitions from the fast-growing cash pile and I suspect more news re COVID-19 testing (including LFTs) - which is now expected to continue until 2024.

[scruff1] 14/4/2021 22:30

Not a lot of confidence here. After decent results there is hardly a buy today if the board can be believed. Something is not sitting right for the bigger players -there were some hefty sells today. My worry is its a one trick pony

[pob69] 14/4/2021 14:18

Chair being interviewed on Vox from 2:30mins

[rivaldo] 14/4/2021 12:34

New article today in the IC mentions SBI and how "testing will only become more important – in turn drawing greater levels of investment":



"SourceBio International's (SBI) IPO on the junior market took place in October. While 2020 results showed a more than doubling of annual revenues to £50.7m, over two-thirds of that figure stemmed from SourceBio’s new infectious disease testing business, which includes workplace Covid testing and consumer ‘test to release’ travel kits."

It also notes re SBI's partner Oxford Nanopore:

"Oxford Nanopore is a case in point. The group secured a £113m contract last summer to supply the UK government with its ‘LamPORE’ rapid testing kit for Covid-19. Quite a sum compared with Oxford’s 2019 revenues of £52m.

The company, which was spun out of Oxford university in 2005, focuses on genomic sequencing technology. Its expertise has been used during the pandemic to track Covid-19 variants around the world.

In March, Oxford unveiled plans for a London flotation – and as Nilushi Karunaratne explored last week, it could be valued at more than £4bn by one estimate."

[smithless] 13/4/2021 15:27

Currently on a P/E of 11.5x (based on 74m shares and adding back exceptional, less depreciation) Looks under valued for a growth stock. Should be trading north of 200p, but looks like some sellers need to be cleared out first

[rivaldo] 13/4/2021 12:24

Good to see the Private Punter picking up on SBI this morning - should bring in more interest here....



"#SBI very impressive results this morning, but much more to come in full year 2021! Hoping to speak with management in the next day or two, but suffice to say they look excellent value. Hence, my picking up some shares earlier."

[dubai123] 13/4/2021 10:56

The company are presenting today to retail investors but you need to register for free to get your own link. It's happening on investormeetcompany in case that's useful to anyone

[mfhmfh] 13/4/2021 10:01

hxxps://bidstats.uk/tenders/?q=source+bioscience

[rivaldo] 13/4/2021 09:53

There's some stock currently available to buy at 199p, i.e just below the mid-price. A bargain imho.

[gre] 13/4/2021 07:56

One other significant point to note is that finance costs last year were £7.9m reducing profit before tax to £2.8m

With all debt now eliminated PBT this year is going to rocket. Add on the effect of rising revenues and we are surely in for another bumper year.

[gre] 13/4/2021 07:30

Wow. Really impressive results.

It is is significant that "The Group performed over 758,000(PCR)tests by the end of 2020(and exceeded one million tests in the first quarter of 2021)."

These testing services generated revenues totalling £34.5 million in 2020 so it appears that revenues in the first quarter of 2021 mean that they are well on target to exceed this figure on 2021 unless there has been any volume discounting!

Interesting to see now what they do with all that cash on the balance sheet.

[rivaldo] 13/4/2021 07:29

Outstanding results - 19.8p adjusted EPS puts SBI on a single-digit P/E. With a rapidly growing £8.4m cash pile which will grow hugely again this year.

The outlook remains rosy:

"SourceBio is well positioned to deliver further substantial growth in revenue, earnings and cash generation in 2021"

Plus:

"It will also continue to consider potential acquisition opportunities"

Core services will of course come back nicely too this year too, so combined with the continued need for COVID testing - which today's narrative sees continuing into 2024 - this year should be a very good one.

[brummy_git] 13/4/2021 07:27

There is no such thing as a “dead cert” wrt investing.

Yet, given SourceBio’s record results, strong secular tailwinds, operating leverage, pentup demand & attractive valuation, the company may be as close as it gets.

Why? Well, find out here.

www.linkedin.com/posts/paul-hill-a5994116_sbi-activity-6787621471037517824-wDIl

[pngasef] 12/4/2021 17:27

Good luck to all the longs for tomorrow. Here's hoping for a massive pile of cash in their bank account and hopefully news that they won the DHSC contract from Novacyt.

[brummy_git] 09/4/2021 15:42

Agreed pngaseF - my thoughts too.