Medical firm delays results but reveals new contracts
● Trading in first quarter in line with board’s forecasts ● Purchase orders received from Africa and China
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The first is from its distributor in Nigeria for 50,000 units of its Visitect CD4 HIV test, conditional on the Nigerian Ministry of Health approving it for use.
It has also received a purchase order for 20,000 units of a new version of its food intolerance product aimed at the Chinese market.
Analysts at house broker Finncap said although the Nigerian order is conditional, it expects it to represent the beginning of the roll-out of a product range “that will ultimately be bought at scale” by non-governmental organisations (NGOS).
Finncap is leaving its target price for shares in the company under review pending clarity over timing and full-year results. However, it said the two purchase orders “provide real evidence of the opportunities that exist.
“We believe the current valuation of £12m to be underpinned by the value in the food intolerance business, leaving substantial upside from the potentially significant opportunity that exists for Visitect CD4 .”
In yesterday’s update the firm said it had used £740,000 of its £2m overdraft.
Earlier this year investment banker Jeremy Millard, a former partner at Londonbased corporate finance firm Smith Square Partners where he advised clients in the science, technology and telecommunications sectors, joined the board as a non-executive director.
Millard is the brother-in-law of Richard Sneller, who has a substantial shareholding in the company.