A refocused business, a strengthened management team and progress with its underlying research programmes suggest Deinove (PA:ALDEI) is on course to generate commercial revenues in 2018. Delivery in line with our long-term forecasts would indicate a potential valuation of €4.3/share.
Net loss stable and healthy cash position
The results for H117 were broadly in line with our FY17 projections at the net profit level. Lower revenue and higher costs (the result of the consolidation of Deinobiotics from 1 January 2017) contributed to a bigger operating loss (€4.8m) than we might have expected (Edison FY17e: -€8.0m). However an exceptional gain on the sale of shares in Carbios (€0.4m) and an R&D tax credit of €1.3m (€0.7m H116) left the net loss at €3.3m for the year (€3.4m loss in H116). Net cash was €6.6m at H117, vs €9.3m at FY16 (Edison previous FY17e: €5.4m).
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