Disclosure: I was paid by Vox for interviewing Oncimmune.
Hi Paul - well another day another poor update from Oncimmune Holdings (LON:ONC) down 45%! Now a £14m market cap tiddler.....
What I don't understand is why on earth Adam Hill spent all that money he raised expanding facilities to sell just £1m worth of services in the half year. They can't be even remotely near capacity to have justified that. The CEO does talk a good game but delivery has been appalling and going back through his interviews this complete lack of revenue in the Immuno insights business really doesn't tally with the comments on progress at the time. Yes, I get that pharma had a bad 6 months but £1m......wtf! where was the advance profit warning on that? You certainly wouldn't have guessed it from the announcements in the RNS on the sale of the lung business just a few days ago. Only positive messages were in that announcement! Makes me stop and consider whether I can believe what management say - ie. what am I not being told? This is not a good indictment when investors start having to question that!
Just a year ago the expansion of the German facilities were designed to deliver 50,000 sample processing capability to meet pent up demand (up from 10,000 p/a). This was at a fixed sample price of €1080 so €54m of revenue with 85% gross margins and about £12m of corporate overheads/sales left us conjecturing at €30m+ PBT.
A year on and even if we believe the €3.5m revenue in H2 this means they are still at just 40% of capacity of the original facility (pre expansion) and just 10% of current capacity! Now we are being told they are just aiming for short term cashflow b/e? WOW!!!!
I'm afraid this is looking like a dismal failure that requires a change in management pronto in my view. The product may be best in class but the commerciality seems to be distinctly lacking and it probably requires a high quality hybrid Sales/CEO at the top rather than current structure.
Just saw your analyst comment on Vox. I know you're paid to do that but.................
