Finablr Plc

Finablr Plc (FIN) is an Abu Dhabi, United Arab Emirates-headquartered global platform for payments and foreign exchange solutions serving consumers and businesses in over 170 countries, which is underpinned by agile and scalable technology and combines robust operating capabilities, including sophisticated treasury, customisable rule engine and payments processing infrastructure.

Recent News
On 15th November 2019, Finablr announced the selection of Barclays Bank PLC, Goldman Sachs International and JP Morgan Cazenove as its Corporate Brokers effective immediately.

Financial Highlights – H1 Financial Year 2019 (30^th June 2019, $, million)

(Source: Interim Report, Company Website)
 
In the first half of the financial year 2019, due to higher processed volumes and stable take rates across the platform, the group’s adjusted income in H1 2019 grew by 9.1 per cent to $742.2 million, while due to an increase in the foreign currency exchange gains and fee income, reported income increased by $42.7 million, or 6.2 per cent, from $690.8 million in H1 2018 to $733.6 million in H1 2019. Driven by a mix shift reflecting the strong growth in B2B and Payment Technology Solutions and improved margins in all segments, the group’s adjusted EBITDA was $103.3 million, up by 26.9 per cent. The reported loss for the period rose to $30.1 million from $9.5 million in the prior year, while loss per share widened to $0.05 against a loss of $0.04 in H1 2018. Net debt was reported at $334.1 million, which was reduced by $230.9 million from 31 December 2018, and due to stable take rates across the platform, aggregate processed volume was $64.9 billion for H1 2019 (H1 2018 $56.7 billion).

Share Price Performance

Daily Chart as at 2^nd December 2019, before the market close (Source: Thomson Reuters)

On 2nd December 2019, Finablr Plc shares were trading at GBX 207.40 at the time of writing before the market close (at 8:28 AM GMT), down by 0.29 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 209.40/GBX 133.01.

Conclusion
Driven by continued double-digit growth in the B2B & Payment Technology Solutions and Cross-Border Payments & Consumer Solutions, the company is targeting high single-digit Group Adjusted Income growth over the medium term. With a leverage ratio remaining under 2.5x net debt to adjusted EBITDA, it is targeting capital expenditure to trend towards 3.0 to 4.0% of adjusted income, also targeting a Group Adjusted EBITDA margin of 20.0% in the medium term. However, the positive outlook by the company seems to be factored in by investors, as the company is trading near its 52-week high, indicating a limited upside potential. Moreover, the company operates in competitive markets which are subject to rapid technological changes, and its operations may be affected by global and regional economic, social and political changes, not least from the United Kingdom's potential exit from the European Union.

Based on the headwinds faced by the group, we have given a "WATCH" recommendation at the closing price of GBX 208 (as on 29^th November 2019), while we look for any upcoming catalysts in the near term.

Oxford BioMedica Plc

Oxford BioMedica Plc (OXB) is a United Kingdom (Oxford) based biopharmaceutical company. The group provides research, development and bioprocessing services of gene and cell therapy. The Group has also entered into several partnerships through which it has a long-term economic interest in other potential gene and cell therapy products and has created a valuable proprietary portfolio of gene and cell therapy products in diverse areas. 

Financial Highlights – H1 Financial Year 2019 (30th June 2019, £, thousand)

(Source: Interim Report, Company Website)
 
In the first half of the financial year 2019, driven by low licence income received for the period, the company’s revenue declined by 9 per cent to £32.1 million as against £35.3 million in H1 FY2018. In H1 FY2019, the company’s gross profit was at £20,397 thousand versus £25,210 thousand in H1 FY2018. Due to an increase in the operating expenses and non-operating expenses for the period, the company reported an operating loss of £6,061 thousand in H1 FY2019 versus an operating profit of £9,386 thousand in H1 FY2018. Driven by an increase in the financial expenses, the company reported an LBT (loss before tax) of £12,113 thousand in H1 FY2019 versus a PBT (Profit before tax) of £5,180 thousand in H1 FY2018. The company’s LAT (loss after tax) stood at £10,168 thousand in H1 FY2019 versus a PAT (Profit after tax) of £5,180 thousand in H1 FY2018. The basic loss per share stood at 14.83 pence in H1 FY2019 versus basic earnings per share of 8.05 pence in H1 FY2018. The diluted loss per share stood at 14.83 pence in H1 FY2019 versus diluted earnings per share of 7.56 pence in H1 FY2018.

Share Price Performance

Daily Chart as at 2^nd December 2019, before the market close (Source: Thomson Reuters)

On 2nd December 2019, Oxford BioMedica Plc shares were trading at GBX 625.00 at the time of writing before the market close (at 8:30 AM GMT), up by 0.32 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 794.88/GBX 461.50.

Conclusion
The company had shown a decline in financial performance in the first half of the financial year 2019. Both the top-line and the bottom-line have declined, and the profitability remained in the negative zone for the period. However, the company’s commercial pipeline remains robust, and its customer base continues to diversify, enhancing its revenue expectations. The company continue to sign new commercial contracts in 2019, which will bolster its commercial development and bioprocessing pipelines. The company is focusing on increasing programmes and partners for feasibility studies on cell therapy and potential gene. The company is building new OxBox bioprocessing facility, which will help Oxford Biomedica to capture more partners and take full advantage of the opportunities present in the Pharmaceuticals & Biotechnology sector in the near future.

Based on the above rationale, we have given a "HOLD" recommendation at the current price of GBX 600 (as on 2nd December 2019, before the market close at 8:00 AM GMT).

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