SAVANNAH RESOURCES (LON:SAV)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £74m
CURRENT PRICE – 8.6p#
ANALYST – DR RYAN LONG
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.8)
(2.8)
Adj. pre-tax Profit (£m)
(1.8)
(2.8)
Adj. EPS (p)
(0.46)
(0.53)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.7
1.2
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and provides commissioned research coverage to Savannah Resources and therefore this information should be viewed as a Marketing Communication.
From yesterday: Portuguese Exploration licences applications rejected
NORTHLAND VIEW
§ Savannah Resources has been advised by the Directorate General for Energy and Geology in Portugal that it has rejected six of nine exploration licence applications made by its subsidiary, Slipstream Resources Portugal LDA.
§ The six rejected license applications are Villar, Almendra, Beca, Caminha, Reigoso and Caramos.
§ The rejected licences will now go through a round of public tenders and Savannah intends to make tender offers once the process is launched.
While this is disappointing news for Savannah Resources, it is important to note that these exploration license applications are completely separate from Savannah’s flagship Mina do Barroso Lithium Project. Mina do Barroso has a 30 year Mining Lease, granted in 2006, and is in no way affected by these rejections.
COMPANY DESCRIPTION
Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £38.7m
CURRENT PRICE – 46.2p#
TARGET PRICE – 100p
ANALYST –BARRY GIBB
Year-end Dec
2017A
2018E
2019E
2020E
Revenue (£m)
16.1
18.4
22.0
24.4
EBITDA (£m)
1.9
2.2
3.4
4.7
Adj. pre-tax Profit (£m)
0.1
0.5
2.3
3.3
Adj. EPS (p)
(1.0)
0.4
2.1
3.3
DPS (p)
0.0
0.0
0.0
0.0
Net Cash/(Debt) (£m)
(6.3)
6.8
7.2
8.9
P/E (x)
-
115.5
22.0
14.0
Dividend yield (%)
-
-
-
-
EV/EBITDA (x)
23.7
14.5
9.3
6.3
SOURCE: Northland Capital Partners Limited estimates. #Priced at market close, *Northland Capital Partners Limited acts as Nomad and Joint Broker to Venture Life Group and therefore this information should be viewed as a Marketing Communication.
Positive Trading Update
NORTHLAND VIEW
§ Venture Life announces a trading update and gives notice that release of its interim results to 30 June will be on 20 September 2018.
§ In its statement, VLG details further geographical expansion of UltraDEX sales and H1’18 revenues up by 6% (to c.£8.3m) driven entirely by organic growth, while also anticipating a much stronger H2’18. Organic growth has been boosted by an order book up 20% on H2’17, augmented specifically by business with its partner Alliance Pharma (APH.L), along with a first contribution from the newly acquired Dentyl operations.
§ The Company has further extended its partnership with its key French partner, La Brosse et Dupont SAS, to launch products from the UltraDEX range in Spain, Portugal and Belgium into the mass market (grocery multiple) channel from Q4’18. La Brosse will also launch UltraDEX One Go liquid sachets and UltraDEX sensitive toothpaste into the French mass market channel in Q4’18.
§ In addition, UltraDEX was recently partnered in Austria and the United Arab Emirates. Launch is scheduled in these markets for Q4’18/Q1’19. In total, UltraDEX has now been partnered in 15 geographic markets to date, a figure the Company expects to rise to at least 30 markets by the end of 2020.
Delivering on all fronts, VLG’s international distribution and development platform continues to drive organic growth while, in tandem, management has funded what Northland believes will become a step-change in its high margin Brands business. This, in turn, is expected to considerably improve the Company’s underlying quality of earnings, operational visibility and financial leverage ratios. Having achieved this at the expense of just a modestly higher post-transaction 2019E EV/EBITDA multiple underlines the opportunity the Company is now seizing. Northland considers this has yet to be reflected in the share price and reiterates its Buy recommendation.
COMPANY DESCRIPTION
Venture Life Group plc is a consumer healthcare company. The Group develops, manufactures, and commercialises self-care products which target the ageing population.
SKINBIOTHERAPEUTICS (LON:SBTX)
SECTOR – HEALTHCARE
RATING – CORP*
MARKET CAP – £28.5m
CURRENT PRICE – 24p#
ANALYST – LIAM GASCOIGNE-COHEN
Year-end Jun
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(0.0)
(0.7)
Adj. pre-tax Profit (£m)
(0.0)
(0.7)
Adj. EPS (p)
(0.03)
(1.11)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.3
4.0
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker to SkinBioTherapeutics and therefore this information should be viewed as a Marketing Communication.
Significant manufacturing scale-up achieved for SkinBiotix®
NORTHLAND VIEW
§ SkinBioTherapeutics announced that it has achieved significant manufacturing scale up of SkinBiotix®, the Company’s proprietary skin-health technology, consisting of extracts taken from beneficial bacteria.
§ Furthermore, the scale-up had no detrimental impact on the active properties of SkinBiotix® and the technology has now been successfully freeze-dried. The ability to freeze-dry is key for commercialisation as it enables mass production, storage and transportation of the material.
§ The Company expects to provide an update on the human study for the cosmetic application of SkinBiotix, scheduled to begin in September 2018, in the coming weeks. Positive data from this trial should permit labelling of the cosmetic application as ‘dermatologically tested’.
§ The Company ended the 12 months to 30 June 2018 with a cash balance of £3.2m (31 December 2017: £3.6m) and will publish its full year results in October.
The successful manufacturing scale-up is a key commercial milestone for SkinBio. Potential commercial partners will likely require the Company to demonstrate that the SkinBiotix® formulation can be manufactured on an industrial scale sufficient to meet prospective consumer demand.
COMPANY DESCRIPTION
SkinBio Therapeutics is a preclinical healthcare company focusing on skin health.