Sourcebio Share Discussion Threads

[boonboon] 27/7/2021 09:01

They have mobile testing sites and have a deal with Oxford nanopore to offer their lateral flow test.

[jane deer] 27/7/2021 09:00

Great share price reaction today - it shows how low expectations had become.

[jane deer] 27/7/2021 08:57

Boonboon. I am not so sure. SBI always stress its exposure to the travel market and as far as I understand the Nottingham facility does PCR tests. Most work place testing will be lateral flow - I don’t think SBI is set up for this trend.

[brummy_git] 27/7/2021 08:49

SBI commentary here

www.linkedin.com/posts/paul-hill-a5994116_sbi-activity-6825671688533946368-tLLi

[boonboon] 27/7/2021 08:35

1200 testing sites being set up on company premises to enable testing rather than isolation. Should benefit Source

[redwing1] 27/7/2021 08:34

Samewe - I think you are getting a bit carried away here. I hold SBI and I'm hopeful that the covid testing will generate sufficient cash to further grow the core business via acquisition. However, no sane investor is going to value a business at 15x EBITDA when the bulk of current revenues will disappear in two to three years. You need to focus on a multiple of core underlying revenues and add a net cash figure for the covid testing return (say £50m) and that that gets you to nearer 200-250p.

[hastings] 27/7/2021 08:29

Echo others take on the update as the numbers really build. Just had another look at the last Liberum note with full year net cash of £51.2m and EPS of 60.4p pencilled in.Obviously the coming months will tell us more, but given that testing and more testing is clearly going to prevail, then things do look good here.

[pngasef] 27/7/2021 07:42

Let's hope this finally provides a rocket under the share price. No debt and they are sitting on lots of cash......I wonder what the plan is for that!?! No mention of a special divi, though an acquisition was mentioned in the past.

[boonboon] 27/7/2021 07:36

And tests more than doubled in July from the first half average

[samewe] 27/7/2021 07:29

As SBI is expected to perform even better in the second half, 2021 whole year EBITDA should be at least £25 million. If the company is valued at 15 times EBITDA, the share price should be at least £5.

[rivaldo] 27/7/2021 07:17

Today's H1 trading statement looks excellent!

Against a £108m m/cap, SBI now have £17m net cash and achieved £11.2m adjusted EBITDA in just the first 6 months.....

SBI have confirmed they're trading nicely in line. The non-Covid businesses are now all trading normally, and COVID testing is booming - 9,000 tests are now being carried out every day, expected to grow to 20,000 and possibly more.

And "with significant growth anticipated in second half" SBI are suitably bullish going forward.

Extremely undervalued now?

[pngasef] 22/7/2021 18:10

We REALLY need a trading update. Why aren't the board buying at these low levels?

[scepticalinvestor] 14/7/2021 17:18

was contemplating a punt but think i might wait for 50p

[scepticalinvestor] 14/7/2021 17:17

dropping off a cliff this

[smithless] 13/7/2021 10:10

Well that's me done. Final purchase of 5k and most probably just before a profit warning. See where we are in 12mths. Although I think good underlying value here, Jay the chairman/ceo has got to start communicating a more coherent story. What happened to Mitie, which incidentally on June 28 were awarded a £365m contract for test centres and mobile units. Stop saying your going to sign this and that, but can't say too much and nothing happens. The market is telling the FD and house broker their forecasts are hopelessly optimistic. Why doesn't the management buy any stock if it thinks it can still reach its forecasts? I just hope this is not becoming a Chris Mills boo boo value trap stock

[andre2499] 12/7/2021 10:30

Covid testing is at all time highs, markets are at all time highs... and the stock goes down every day... no insiders buying... when good news are out the stock goes up at the open and then fades every time... zero volumes... I am starting to lose hope !

[smithless] 09/7/2021 10:12

Picked up a few more for my long term portfolio. I can understand reduced demand for 5 day and 8 day tests, but the volume of traffic will have increased dramatically on the back of UK gov announcement yesterday. Said at AGM doing av tests in the high single digits per day, so say 7,500 and indicated 10,000+ per day in June and increasing. Hopefully we will get a better idea in a trading update due soon.

[smithless] 08/7/2021 16:33

Thought today's news on travel would have helped the share price!

[boonboon] 04/7/2021 22:40

Interesting that myhealthchecked are also listed for Boots. And they've announced they're working with Boots.I wonder why we can't/won't announce the name. I would have thought it would help the share price.

[pldazzle] 04/7/2021 21:32

boonboon - Yes, we know it's Boots

[boonboon] 04/7/2021 20:46

Do we think the high street chain we're working with is Boots? If so this could be big news.hTtps://travelweekly.co.uk/news/air/easyjet-collaborates-with-boots-for-covid-tests

[boonboon] 30/6/2021 22:58

Agreed about the testing. I think revenues and profits for this year could potentially be lower than estimated due to the delay in travel pcr testing. However I think it just prolongs the whole testing landscape. Who would have thought a couple of months ago cases would rise as much as they have due to the delta variant. Testing is currently increasing on a week by week basis. Hopefully SBI are getting a good proportion of that.I think there will be significantly more testing revenue next year than currently anticipated and if we keep getting new variants it could carry on for years still albeit at a reduced level. So my personal take is this years figures will be Lower than expected but next year's will be higher. I also think the combined figure for the two years will be bigger than expected.

[rivaldo] 29/6/2021 11:22

Nice Buy tip here:



"SourceBio International Ordinary Shares SBI is the laggard of the five recommendations, although at one stage the share price did reach 235p. Demand for Covid-19 laboratory testing services remains strong and there has been diversification into mobile testing, but Covid-19 also seems to cloud investors’ views on the valuation of the business.

There is uncertainty about how much the continued travel restrictions could hamper demand for tests and thereby SourceBio’s ability to achieve expected group revenues of £156 million and pre-tax profit of £55 million this year. Whatever happens SourceBio will make a significant profit this year.

Even with this uncertainty, the potential cash generation will be impressive. Net cash was £7.8 million at the end of 2020, and it is expected to rise to £51 million at the end of 2021 and £73 million one year later. SourceBio has a market capitalisation of £115 million.

The annual growth rate of the health diagnostics, genomics and stability storage businesses is expected to be in double digits, after a tough 2020. Hospital waiting lists will have to be addressed and that will help demand for the company’s services to increase.

Forecasts assume no revenues from Covid-19 testing in 2023, but SourceBio would still make a pre-tax profit of £4.9 million. It seems likely that there could still be a contribution from Covid-19 testing for a few more years.

There has been no sign of earnings enhancing acquisitions yet, but there is plenty of cash to fund them. The share price is below last year’s flotation placing price of 162p a share. It is possible that the share price may not show the growth I had expected by the end of this year, but this should just be a timing issue, and it should do so over the medium-term. Buy."