Following its signing of a three-year revenue-sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’) on 18th January 2020.
Modern Water’s subsequent confirmation of a Q1 2020 spike in demand for its water contamination detection consumables, the Company has today announced the commencement of shipping to meet both back-orders and growing demand for water contamination detection bacteria from existing clients.
Indeed, the recent increase of water hygiene controls by governments, utilities and agencies around the world in response to the COVID-19 public health crisis, appears to present the two companies with significant new short-and-longer-term sales opportunities.
In response, a doubling of their originally planned production volumes to a list price value of £500,000 per batch has been agreed, with revenues from reagent sales produced under the Agreement being split 60%/40% in favour of Modern Water, after costs. The Company expects that that sales under the Agreement will have a value of at least US$1.25m in the current financial year.
We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Modern Water plc . Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.
The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.
Copyright © 2020 Turner Pope Investments (TPI) Limited, all rights reserved.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned