DeepVerge has announced its unaudited interim results for the six months ended 30 June 2021. Once again delivering on best financial expectations, H1 2021 revenues expanded by 231% to £3.319m (H1 2020: £1.004m) in tandem with gross margins rising to over 52% (H1 2020: 41%).
EBITDA losses crept up by only 26% as a result, despite a 172% hike in administration costs in anticipation of sharply higher levels of activity again being seen in the second half. With over £9m finance available at period end to support not only a production ramp-up of Modern Water’s Microtox® PD wastewater SARS-CoV-2 detection systems, high volume processing capacity for the Skin Trust Club’s home test kits and ongoing joint venture negotiations with China Resources, the Board’s overall revenue guidance presently remains unchanged at £10 million given that it is still too early to provide an accurate prediction of their impact on year end numbers.
Recognising the scale of the opportunities being presented and in expectation of further significant news releases between now and the year end, however, on 3 August 2021 TPI updated its forecasts and financial model for DeepVerge, resulting in an increased price target of 94.7p for the shares (up from 84.8p that was previously).
(Please note that TPI’s valuation is based on financial modelling and there is no guarantee that such a valuation will ever be realised, therefore please do not base investment decisions on this valuation alone. Also please note that past performance is not a reliable indicator of future results.)
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