Oxford Biodynamics' (OBD) shares have moved sideways since mid-2018, trading roughly a quarter short of the 279p peak seen in October 2017. The stock didn’t react strongly to these final numbers either, even though demand for the group’s proprietary biotechnology platform, EpiSwitch, kept annual revenues flat, while a recent £9.8m investment from GL Capital has bolstered the cash coffers to £18m (FY2017: £10.8m).
Instead of focusing heavily on its financials, perhaps investors should concentrate on the slew of research partnerships won, including – post period-end – a fifth immuno-oncology collaboration with a new US biopharmaceutical partner. At last count, OBD had six revenue-generating research and development projects under way, spanning various fields such as immuno-oncology, fibrosis and thyroid cancer. There’s also been “significant progress” in applying the EpiSwitch technology to areas of human and equine fitness, specifically to sports-related concussions.
According to Shore Capital, this means revenues could nearly triple by the end of FY2019. However, the broker is taking a more “prudent” approach to the timing and structure of future deals, meaning cash – or pre-tax – profits aren’t due until 2021.
| OXFORD BIODYNAMICS (OBD) | ||||
| ORD PRICE: | 203p | MARKET VALUE: | £ 188m | |
| TOUCH: | 200-204p | 12-MONTH HIGH: | 226p | LOW: 152p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 22p | NET CASH: | £18.3m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014* | 0.7 | -0.7 | -1.0 | na |
| 2015* | 0.7 | -1.4 | -1.3 | na |
| 2016* | 1.1 | -2.1 | -2.1 | nil |
| 2017 | 1.2 | -4.0 | -4.5 | nil |
| 2018 | 1.2 | -2.4 | -2.2 | nil |
| % change | - | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Pre-IPO figures | ||||
