Reassurance on RCF funding and FCF in Q1

VLG has issued a reassuring statement regarding its RCF/funding. Liquidity is sufficient and stable, and no impact or risk to the business is expected to arise from events at Silicon Valley Bank, one of the lenders under its RCF. The Board is confident of being able to refinance that portion of the RCF either at or before renewal in Jun24. In addition, VLG reports a strong start to the year, including good cash generation following the strong final quarter of FY22.

Cenkos: Venture Life Group Plc -- Strong revenue performance

Venture Life has provided a trading update for the 12-months to December 2022, noting revenues are expected to be £44.0m, up 34% YoY and 6.5% ahead of our forecast £41.3m. Adjusted EBITDA is expected to be ‘at least in line' with estimates (Cenkos FY22E est £8.7m). The company has seen continued trading momentum in 2023, with the group's order book 114% ahead of the same period last year, on a like-for-like basis. Group leverage, expected to be c1.4x net debt to adjusted EBITDA, remains comforta

Positive full year update highlights upside risk

VLG has reported a positive year end update after a strong Q4 performance, particularly across its Customer Brands division. The team at Biokosmes delivered an exceptional year, helping to protect key customers against the ongoing supply chain difficulties. This performance puts VLG on track to at least deliver FY profit expectations, and we have upgraded FY22 EPS by 5.5%. While we make no changes to FY23 forecasts at this stage, on balance we see risk to the upside. On just 5.0x EV/EBITDA, and

New agreements provide good underpinning for ‘23

VLG has signed new licence and distribution agreements for its oncology support products, in Canada, Vietnam, the EU and other markets. The news should be well received as it provides underpinning for 2023 growth forecasts, and delivers growth in the acquired Helsinn business, as highlighted at the time. Trading on just 4.7x EV/EBITDA or 9x P/E to Dec23, we believe the market is discounting this level of forecast growth (86% EPS growth YoY), leaving scope for rating expansion. Next news will be

Cenkos: Venture Life Group Plc -- Commercial development

Venture Life has announced a new license agreement and three new international distribution agreements. The license relates to a new mouth ulcer product developed by the group's Biokosmes division, highlighting the company's innovation and development capabilities. International distribution agreements have been signed for Gelclair and Pomi-T, demonstrating the group's global reach and its ability to maximise the value of acquired brands. We believe these new agreements epitomise Venture Life's

In-line update and accretive acquisition

Positive trading since the last update means VLG remains well on track to deliver expectations for the full year, and we continue to see potential risk to the upside given a strong order book. The £13m acquisition of HL, a specialist in ear-nose-throat products, is complementary to the existing portfolio and highly accretive. We have upgraded Dec’23 EPS by 22%. Our target price increases 10% to 72p on the back of this, providing a compelling 170% TSR from current levels.

Cenkos: Venture Life Group Plc -- Acquisition and trading update

Venture Life has announced the acquisition of HL Healthcare Ltd (HL) and its three Ear-Nose-Throat (ENT) brands, Earol, EarolSwim and Sterinase. Venture Life will pay £13m for the business which generated £4.5m of sales and £1.7m of EBITDA to the year-ending March 22, indicating trailing acquisition multiples of 2.9x and 7.6x, respectively. The portfolio is expected to grow in the year to March 2023 and we expect the acquisition to be accretive. The company has also announced additional distribu

Clean exit from ADL Health

EKF has announced a clean solution has been found for the non-core Laboratory Testing business ADL Health, selling the business back to one of its management team. Having pared back our estimates for this division in February, we expect no further material impact on earnings from this move. Strategically, we view it as positive, removing a distraction and further re-focussing activities back towards the core established Point-of-Care & Central Labs business and the growing new Life Sciences acti

SHORE CAPITAL - Destiny Pharma plc+ (DEST, House Stock at 30p)

Hybridan Small Cap Feast - 06 Mar 23

6 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objective

LIBERUM: Futura Medical* - Eroxon live in EU, FDA decision now Q2

Hybridan Small Cap Feast - 23 Mar 23

23 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Positive momentum persists

2022 was a pivotal year for NIOX as it moved firmly into sustainable profitability and cash generation. The foundations for a scalable platform are now well-established and the group enters 2023 with strong momentum (revenues in the first two months of the year were +19%). Having upgraded our forecasts following the trading update in January, we push through further EBITDA upgrades on improved margin assumptions. NIOX is a rare asset and fully deserves a premium rating. We stay at Buy, with an i

Tissue Regenix - FY 2022 – a pivotal year to a sustainably profitable business

Tissue Regenix reported full-year results to 31 December in line with its January trading update that indicated it had reached EBITDA profitability in Q4. What was undisclosed then was that it included a $0.45m provision, without which it would have generated an adjusted EBITDA of c.$0.4m in H2, illustrating the positive underlying progression to a profitable and sustainable growth company. The outlook remains positive – new products, new geographies and additional distributors/strategic partner

FY22 in line – focus on core increasing

FY22 results are in line with revised estimates. Management continues to intensify its focus on the growing, profitable and cash generative Point-of-Care and Life Sciences activities, where confidence in the latter opportunity is increasing. We make some modest changes to our forecasts to reflect further streamlining post-period end and point to the strong growth outlook from FY24 onwards. We believe this is being overly discounted by the market and view the shares as being in deep value territo

Morning Note – 27 March 2023

Hybridan Small Cap Feast - 21 Mar 23

21 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Hybridan Small Cap Feast - 24 Mar 23

24 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Morning Note – 21 March 2023

SHORE CAPITAL - Warpaint London+ (W7L, House Stock at 198p)

Destiny Pharma - Positive Phase II data with XF-73 published in medical journal

Destiny Pharma announced the publication of Phase II data with anti-bacterial drug XF-73 nasal gel in the peer-reviewed medical journal, Infection Control & Hospital Epidemiology. The data showed that XF-73 treatment in an 83-patient study resulted in a >99% reduction in nasal Staphylococcus aureus burden (after three applications of nasal gel 24 hours prior to surgery) measured 1 hour prior to cardiac surgery, which was the primary end-point of the study. The data are consistent with previous s

Hybridan Small Cap Feast - 14 Mar 23

14 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv