SourceBio International PLC

SourceBio International PLC (LSE: SBI) is an FTSE AIM All-Share index listed Company. It is an international provider of laboratory services to clients in the pharmaceutical industry, the NHS and to private healthcare providers.

Investment Rationale – SELL at GBX 109.75

• Delisting Update: On 09 November 2022, SBI updated that it is planning to de-list from the AIM platform of the London Stock Exchange. This move will save around £600,000 a year for the Company. Moreover, the Company is planning a Tender Offer at a price of GBX 115 per Ordinary Share to certain shareholders.
• Reduced Cash Balance: The cash balance has reduced from £17.2 million as of 30 June 2021 to £15.2 million as of 30 June 2022.
• Decline in Top-Line Business: SBI has shown around 45% YoY decline during H1 FY22.
• Macroeconomic Uncertainties: The market sentiments can remain weak in the short-term due to 40-year high inflation, geopolitical tensions, and political risks.

SBI’s Daily Chart

Considering the Company’s plan to get delisted, current trading levels and risks associated, it is prudent to exit at the current levels. Hence, a 'Sell' rating has been given on the stock at the current price of GBX 109.75 (as of 10 November 2022 at 08:32 AM GMT). 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 10 November 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

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