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Omega Diagnostics (ODX) has been doing rather well recently, multibagging from 7.625p at the start of this month to its current s.p. of 31p.
Fueled by announcements that it is to manufacture COVID-19 tests.
And IDH looks like it will also be entering into such agreements shortly, judging from its recent trading update.
But the market doesn't seem to have picked up on this yet.
Probably because IDH is currently 'under the radar screen' of most investors, and the RNS was released after close on Friday (17th. April).
17th Apr 2020 4:35 pm RNS FY20 Trading Update
" ... Cash position
Closing cash and cash equivalents were £27.6m at 31 March 2020 (31 March 2019: £27.7m). ...
Looking forward
So far in April 2020 we have seen a reduction in revenue versus the same period last year, caused by a reduction in routine medical testing in hospitals and laboratories as their focus has been on COVID-19 treatment and testing. IDS intend to take appropriate action, including utilising the various schemes available from governments to provide business support, to minimise our costs during this period of uncertainty. From a liquidity perspective, IDS is in a very strong position with cash holdings of almost £28m.
We are offering our production facilities, and sales network, to several new and existing partners who are in the process of developing COVID-19 test kits. ... "
https://www.lse.co.uk/rns/IDH/fy20-trading-update-ls1laez9k3328x5.html
IDH is a former 20-bagger: rising from below 60p in 2005 to above 1,200p in 2011.
And it has plenty of facilities and cash to help address the COVID-19 testing shortage.
This could fuel another great period of share price performance.
IDH is a very substantial company, which is looking massively undervalued given the current shortage of COVID-19 testing capacity.
Here are the IDH figures:
Full year revenue for year ending 30.3.20: £39.3M. (an increase on 2019).
Cash at 31.3.20: £27.6M. (an increase on the year).
https://www.lse.co.uk/rns/IDH/fy20-trading-update-ls1laez9k3328x5.html
Current market cap. at 225p: £64.76M.
Less cash, = £37.16M. for the business above cash levels.
I.e. a revenue multiple of under one times revenue.
Omega Diagnostics (ODX) in comparison:
Half year revenue of £4.46M., a fall from previous first half.
As at 30.9.19: No net cash. Net current liabilities £3M.
Half year loss of £0.29M.
https://www.lse.co.uk/rns/ODX/interim-results-q4qktr6c1xzv3zc.html
Current market cap. at 32p: £48.58M.
I.e. a revenue multiple of over five times annualised revenue.