Motif Bio Plc (LON:MTFB) – BUY*: Clinical trial ahead of schedule
Market Cap: £56m; Current Price: 52p; Target Price: 140p
Data readout now expected in Q2-17
Motif Bio plc announced an update to REVIVE-1, one of Motif Bio's two Phase 3 clinical trials currently enrolling patients with Acute Bacterial Skin and Skin Structure Infections (ABSSSI).
Patient enrolment for REVIVE-1 has exceeded projections and data readout is now expected in the second quarter of 2017, rather than the second half of 2017, as previously stated.
REVIVE-2 remains on track with data readout continuing to be expected in the second half of 2017.
Also, Motif has renegotiated the terms of $3.55m of convertible promissory notes with key shareholder Amphion Innovations Plc.
NORTHLAND CAPITAL PARTNERS VIEW: Motif consistently exceeds expectations. Today the group announced that one of its two pivotal Phase 3 trials (on its flagship antibiotic iclaprim) is now anticipated to read-out earlier than originally planned. A positive read-out in this trial—which is now expected to be less than 10 months away—would justify a significant re-rating of the group’s shares. We reiterate our 140p Target Price, BUY.
PHSC (LON:PHSC) – CORP: Pre-AGM Trading Update
Market Cap: £3.6m; Current Price: 24.5p
Four months’ EBITDA loss of £94,000; improvement expected by end of H1
PHSC, provider of health, safety, environmental consultancy services and security solutions, has announced a trading update for the first four months of the March 2017 financial year, ahead of its AGM due to be held today. At the AGM, Group Chief Executive, Stephen King will comment on performance to the end of July 2016.
In the first four months of the financial year PHSC recorded an EBITDA loss of “around £94k” on sales of £2.3m. PHSC expects that this position “will improve before the conclusion of H1 and that this improvement will be sustained in the second half of the year”. Cash at bank - as at 6 September - stood at £565,000, including net proceeds from the recent share placing of 19 August.
The Company provided an update on performance at each of its eight operations.
B to B Links Ltd recorded a loss of around £4k and is currently forecast to deliver sales of approximately £1.2m in H1. PHSC reports that the outlook for the second half of the year “ is strong for key national account activity and management is taking a number of steps to turn around a sales shortfall in independent retail”.
SG Systems UK Ltd had a loss of £37k due to a hiatus in new store opening by one of its larger customers, but is expected to return to monthly profits in August and September.
RSA Environmental Health Ltd generated profit of £24k. Following a seasonal lull in activity in August, activity is expected to pick up as schools return in September.
Quality Leisure Management Ltd was profitable, at £8k, although Q1 income was affected by reduced Local Authorities spending.
Personnel Health & Safety Consultants Limited is expected to deliver £100k of profit for the first half, having reached £70k by the end of July. A contract due to expire at the end of August has been extended for three months.
Inspection Services (UK) Ltd achieved a profit of £15k and is expected at £20k for the first half. It recently secured its largest single contract, valued at £25k, through an insurance broker.
QCS International Ltd achieved a profit of £40k with £60k expected H1. Management is confident of second half performance, with bookings already received for training.
Adamson’s Laboratory Services Ltd recorded a loss of £54k and is reported as continuing to face “considerable difficulties in what has become a highly competitive market” for asbestos management services.
Interim results are expected to be announced in early December.
NORTHLAND CAPITAL PARTNERS VIEW: The breadth of PHSC’s offering means that alignment of performance at its eight operations should necessarily remain subject to a range of specific factors. However, the overall tone of the trading update indicates a positive outlook from seven out of its eight operations for the remainder of the year.
Petrel Resources (LON:PET) – CORP: Ghana update
Market Cap: £7.35m; Current Price: 7.4p
Clontarf Energy (LON:CLON) – CORP
Market Cap: £2.38m; Current Price: 0.5p
From yesterday: Discussions held with Ghanaian officials
Pan Andean Resources, 60% held by Clontarf and 30% held by Petrel, have met with Ghanaian officials and negotiations are now underway in relation to the possible award of acreage in respect to prior application on deep-water Tano Basin acreage, as well as, replacement acreage for the signed Petroleum Agreement on Tano 2A Block.