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Data drives progress in Sensyne’s first year

The healthcare technology company has sealed its first year with its first major pharma deal
October 9, 2019

Staffing shortages and overflowing demand mean there is huge scope for the use of technology within the NHS. Sensyne Health (SENS) aims to improve the situation with a software portfolio that helps to manage illnesses in and out of hospital. In the year since its initial public offering (IPO), the company has licensed its technology to five NHS trusts.

IC TIP: Hold at 101p

But licensing software is not key to Sensyne’s business model. Instead, the company plans to sell the anonymised data collected from that technology to global pharmaceutical companies to help them identify new drug targets. In July this year, the company signed its first drug development collaboration project with Bayer which will see Sensyne receive £5m in revenue over the next two years in exchange for patient cardiovascular data. That’s a major boost to the £136,000 of revenue generated in the year to April 2019 which came largely from the roll-out of technology.

The £60m of cash raised at IPO is starting to be deployed on expanding the research teams, which meant employee costs rose to £7.9m from £3.5m in the 2018 financial year. Revenues might be expected to accelerate in the next two years, but no profits have yet been forecast. Still, the company is sitting on plenty of cash.  

SENSYNE HEALTH (SENS)  
ORD PRICE:101pMARKET VALUE:£ 130m
TOUCH:100-102p12-MONTH HIGH:205p98p
DIVIDEND YIELD:NILPE RATIO:NA
NET ASSET VALUE:50.9p*NET CASH:£49.3m
Year to 30 AprTurnover (£'000)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2018**81-7.3-8.0nil
2019136-19.0-16.0nil
% change+68---
Ex-div:na   
Payment:na   
*Includes intangible assets of £18.1m, or 14p a share **Pre-IPO numbers