Roadside (ROAD) announced an update to its 1 October 2024 announcement relating to the partial stake sale of its investment in Cambridge Sleep Sciences to CGV Ventures 1 Ltd. The Company confirmed that CSS has satisfied the terms of the contingent consideration, with orders and commitments of more than 25,000 units across multiple channels.
Consequently, the Company expects CGV to pay the additional £1.5 million in the first half of Q2 2025. As a result of the contingent consideration being paid, the book value of the Company’s holding in CSS has increased from £41.0 million to £47.8 million. Upon receipt, the funds will be used to repay part of the Company’s borrowings.
Comment: We are reminded that Roadside is firing on both cylinders, in terms of its moves in the real estate assets development, and the ongoing and increasing exposure to key investment CSS. So far this twin pronged growth has meant that shares of ROAD continue to build on last year’s 359% gain.
Oxford BioDynamics (OBD), a precision clinical diagnostics company bringing specific and sensitive tests to the practice of medicine based on its EpiSwitch® 3D genomics platform, today announced its final results for the year ended 30 September 2024. OBD said “Notwithstanding the developments and challenges this business has faced over the past year, I believe our world-class clinical tests and pipeline assets remain potentially very valuable. With the support of shareholders our immediate focus is on seeking further meaningful partnerships and collaborations with diagnostic and pharmaceutical companies and increasing direct sales as a route to achieving sustainable commercial success. We are well aware we need to demonstrate clear and rapid progress in order to deliver a substantial increase in shareholder value.”
Comment: As we are reminded in the CEO comments, OBD is fully aware that the ball is in its court in terms of building internation partnerships to boost not only its footprint, but also its bottom line.
Andrada Mining (ATM), a critical raw materials producer with mining and exploration assets in Namibia, announced that the Namibian Competition Commission has approved the Company’s earn-in agreement with Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd. ATM said “This is an exciting development for both Andrada and Namibia, SQM’s up to USD40 million foreign direct investment will not only expedite the development of the spodumene-rich Lithium Ridge but should also drive socio-economic growth in the Erongo region. This strategic partnership will create direct and indirect employment opportunities, enhance local skills development, and strengthen local procurement of goods and services.”
Comment: Although the trajectory of the ATM share price continues to be very much on the soft side, it is clear that the company continues to finesse its position in Namibia, something which the latest RNS reminds us of.
Rightmove (RMV), the UK’s largest property portal, today announced its audited results for the year ended 31 December 2024. Revenue up 7%, as estate agency and new homes developer partners continued to upgrade their packages, increased their use of digital products and renewed contracts. Underlying operating profit up 4%, with underlying operating profit margin of 70%, in line with guidance. Operating profit down 1% due to the impact of one-off transaction-related charges of £9.2m.
Comment: Just in case we have forgotten the old Dotcom era saying of “first mover advantage”, RMV continues to underline how important and useful it is to have a commanding position in a key market sector. That said, few would argue that the £5bn market is on the cheap side.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
