Morning! Paul is off today, so there's no need to look for a Part 2.
The LSE is closing very soon - at 12.30pm.
It feels very quiet in terms of RNS announcements, as should be expected before the long weekend to ring in 2017.
Share price: 0.87p (-6%)
No. shares: 1,750m
Market cap: £15m
I don't normally cover early-stage pharmaceuticals - the lack of news this morning has forced me into covering this one!
Half-year Report (for six months to 30 September 2016)
Make of it what you will, but this company has announced results on the very last day before it would have broken exchange rules. Not exactly confidence-inspiring to me!
Provexis develops Fruitflow®, a tomato extract which is scientifically proven to improve blood health.
It has been listed on AIM for 11 years, but revenues remain limited, despite trebling in the current period.
- Total revenue for the period £123k (2015: £41k), a threefold increase from the prior year. Revenue for the half year to September 2016 exceeds revenue for the full year to March 2016.
- Revenue from profit sharing Alliance for the period £88k, a 115% year on year increase (2015: £41k).
(GN note: The "Alliance" is the profit-sharing arrangement by which the company outsources manufacturing, marketing and selling)
- Underlying operating loss* reduced to £128k (2015: £196k), a record low for the Group
There are plenty of encouraging announcements/initiatives included in the statement, but I find it somewhat hard to believe that the company is on the cusp of major financial success, so many years after discovering its technology.
That said, the share price has performed extremely well this year (up about 200%), so investors have clearly been impressed by news flow.
On a bigger-picture view, the number of shares outstanding has increased by about five times over the last ten years, and dilution is set to continue in the short term:
The Company remains keen to minimise dilution to shareholders and it is focussed on moving into profitability as Fruitflow® revenues increase, but while the Company remains in a loss making position it will need to raise working capital on occasions...
Based on its current level of cash it is expected that the Group will need to raise further equity finance in the coming four months. The funding proceeds which the Company expects to receive will help…
Disclaimer:All my own views. I am not regulated by the FSA. No advice.