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.
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: | 101p | MARKET VALUE: | £ 130m | |
TOUCH: | 100-102p | 12-MONTH HIGH: | 205p | 98p |
DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
NET ASSET VALUE: | 50.9p* | NET CASH: | £49.3m |
Year to 30 Apr | Turnover (£'000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2018** | 81 | -7.3 | -8.0 | nil |
2019 | 136 | -19.0 | -16.0 | nil |
% change | +68 | - | - | - |
Ex-div: | na | |||
Payment: | na | |||
*Includes intangible assets of £18.1m, or 14p a share **Pre-IPO numbers |