Venn Life Sciences Share Discussion Threads

[cocker] 15/9/2017 08:54

Exactly yump. Costs are to high & any downturn will send venn shares south big time. My business turns over no where near as much & yet profit in % terms is in orbit compared to venn.

[yump] 15/9/2017 08:31

Davy must be looking at something I'm not seeing ie. growth. Also, it would be nice to know why margin improvement is needed to make profits, in a business with this turnover.

What exactly are the fixed costs weighing it down ? I can't imagine there are variable costs causing the margin issue, as they are not manufacturing widgets of any sort.

[cocker] 15/9/2017 08:27

They have the same chance as us to buy in now, rather than have the licence to print their own money. Wouldn't we all like the chance to buy shares at 13p if the share price rises to 25p +. Come on directors, spend some of your huge wage that you have received for a mediocre performance.

[rivaldo] 15/9/2017 08:23

Davy Stockbrokers have produced a new note on VENN - client-only, but the intro sounds positive enough:



"Venn Life Sciences

H1 results: Solid revenues; building on its operational capability

Sep 12 2017, 08:00 IST/BST Company Report 5 page(s)
Sectors: Pharma and healthcare
COMPANIES: Venn Life Sciences

DAVY VIEW
Venn’s interim result reflects a business in the growth phase of its development. Infrastructure and systems initiatives are being implemented to improve profitability. The management team was further strengthened with the appointment of a new COO. H1 revenues and EBITDA were adversely affected by the deferral of a late phase project to Q1 2018, which needs to be reflected in our full-year forecasts. With significant scope to increase margins in a growing sub-segment of the healthcare market, we remain confident on Venn’s long-term prospects."

[rivaldo] 14/9/2017 22:10

I for one will be extremely happy for the directors if the share price exceeds the 45p required for full vesting:

"The options vest in three equal instalments when the Company's share price trades at 25p, 35p and 45p for twenty consecutive days."

Most options are exercisable either at the current share price or, in some cases, with no exercise price at all - pure profit.

VENN's options tonight strike me as rather shareholder-friendly. And also an indication that perhaps the bottom has been reached.

[yump] 14/9/2017 10:03

This is just like some interviews I've done. Interviewee says something and then when you say 'can you give an example of how you...?', they back down.

[buywell3] 14/9/2017 07:34

Read all my posts lazy bones ... you know how ... go back 3 years
Then you will learn a lot more than you currently do and become a better stockpicker

[yump] 13/9/2017 20:12

Perhaps you could explain what you are doing here and DEMG etc. first - that would be interesting... you have a habit of popping up as soon as any news can be interpreted negatively.

Point me in the direction of a stock you thought was overrated when the news was good, where you took a negative stance and I'll say sorry.

Although still very curious about the first point. Easy to kick stocks when they're down.

[buywell3] 13/9/2017 19:42

yump

If you look I have had many pops at ALL banking stocks , ALL the big 4 supermarkets
GSK,AZN, G4S plus many more FTSE 100 stocks and several FTSE250 OIL stocks

So a sorry would be nice

[yump] 13/9/2017 15:14

Yes, your credibility goes through the roof when you find bombed out share prices and make negative comments. Well done.

Or you could find some shares that are doing really well and have a go at them.
Unlikely I think.

[buywell3] 13/9/2017 12:45

IMO the last acquisition was a bummer

The top guy that owned it and was touted as going to be a leading light in the new VENN ... left soon afterwards

Then others left ... perhaps to join him elsewhere

Nothing short of a disaster I would say

The VENN chart as it happens ... tends to support my view/s

[yump] 13/9/2017 12:27

... or at least there should be some detail about scale-building, if that is indeed why costs are relatively high.

If its extra sales effort, its not doing anything.
They don't manufacture, so its not going to product increased margin vs. fixed costs.

So what are the costs that are going to level out, so that increased revenue drops more to the bottom line ?

imo cash and Integumen are side issues in valuing the business, unless its wound-up.

[cocker] 13/9/2017 10:56

All about profit Riv. If you T/O that amount then profit should be at least 2mill +

[rivaldo] 13/9/2017 10:18

My post 1008 stated I didn't think VENN would achieve Hybridan's forecasts this year - I reckoned on a €600k PBT rather than Hybridan's €1.27m PBT.

Well whaddyaknow - Hybridan's new forecast is €0.77m PBT, with €0.9m EBITDA. So I wasn't too far off :o))

They "understand that the pipeline remains strong and should significant deals land in Q3 or early Q4 there remains the possibility of upgrades."

VENN have:

- €2.9m of cash (forecast to rise to €3.1m at the year end)
- £1.25m of shares in Integumen PLC
- trade on an EV/EBITDA of only 6, with sector deals being struck between 13 and 25
- should have €18.5m of revenues this year
- now more realistically forecast to make €0.77m PBT this year

Pretty good against a mere £7.5m m/cap.

[cocker] 12/9/2017 17:13

Exactly Yump. Not a great profit considering T/O. Running costs most be to high & thus need sorting asap.

[yump] 12/9/2017 11:42

Another acquisition and its pretty much guaranteed that Venn will never make a clean profit and there'll be a never ending sequence of exceptionals and waffle about scaling. All of which I've seen and lost on painfully before over a lot of years.

If the business is turning over £2mln and doesn't make a profit yet, fair enough. If its turning over at Venn's level, then the business model should be working profitably.

Its not as if they are building some massive software infrastructure that requires years of investment.

[jpuff] 12/9/2017 11:26

Any company which seems to have Beaumonts as the broker seems to be crashing! I'm using their name associated with any share as a filter for "avoiding with a barge pole"

[cocker] 12/9/2017 06:58

Keep the cash, as this underpins the company & stops any discounted rights issue. Concentrate on making a decent profit before embarking on an acquisition trail.

[rivaldo] 12/9/2017 06:51

Indeed - as already posted, I wasn't expecting much from H1, so good to see that small core profit, particularly given the project delay.

VENN have approaching £3m cash, so another acquisition may still be on the cards.

Not many specifics as regards H2 performance except a general optimism re numbers of clients, recurring revenues etc.

Given the cash and revenues I'm of the opinion that VENN is undervalued. It's hopefully a question of a contract win or two, a steady improvement in PBT and/or another acquisition to kick-start a re-rating.

[curlly] 12/9/2017 06:45

At least we made a profit

[chadders] 12/9/2017 06:41

Results as per the update, no surprises either way. All depends on second half and delivering well on the pipeline.

Valued at 3 times cash so we are pretty much at the bottom methinks.

[yump] 12/9/2017 06:41

Same old mushroom management of shareholders.

"As we now fully integrate Kinesis, we are confident that an improved performance will validate the strategic and financial merit of the transaction for the Group"

Yes it would wouldn't it ?

500% growth in the next would as well, wouldn't it ?

But are there any clues as to whether it will happen or not.

No.

At least the first half is flat, while having a delayed project hit and some underperformance.