BullsEye Insights

BullsEye: Daily London AIM RNS Round-Up

Tuesday 26 May 2020


Here is our summary of the day's hottest RNS alerts from across London's Alternative Investments Market (AIM).


Yourgene Health Plc (YGEN.LSE)

Yourgene COVID-19 testing service launch and business update

Yourgene, a leading international molecular diagnostics group, announced it has expanded its laboratory capabilities to offer COVID-19 testing service and it is developing its own COVID-19 test kit and targeting a pipeline of opportunities. In addition, the Company provides an update on its wider business activities.

Yourgene testing laboratories have now launched a COVID-19 testing service. This service will support private testing demand where there are defined testing populations such as UK GP surgeries, private clinics and other corporate clients across UK. The Company will provide further updates in due course.

Furthermore, the Company announces that it is currently developing its first infectious disease test called Clarigene™ SARS-CoV-2 test - a molecular PCR based COVID-19 assay, which is able to detect whether individuals are currently infected. The Clarigene™ SARS-CoV-2 test has produced preliminary data, which the Directors believe show competitive performance compared to other market leading products , and also has a rapid turnaround time and low false negative results.

The Company aims to release a "Research Use Only" version of Clarigene™ SARS-CoV-2 test by the end of June 2020 and a CE marked in vitro diagnostic kit to follow in July 2020. The test will initially be a manual assay and development has commenced with a fully automated version aimed at high throughput laboratories to follow in the coming months.

Yourgene already has over 300 laboratory customers and a growing global network of distribution channels in place through which to drive sales of the new Clarigene infectious disease portfolio of products. In addition, the test will be run in the Yourgene service laboratory once it is launched as a CE IVD kit.

The Company continues to explore additional opportunities to expand its contribution to global COVID-19 testing efforts with increased usage of its state-of-the-art manufacturing facility at Citylabs in Manchester, as well as exploring additional routes to market.

Given this is a new product in a fast-developing market, demand and uptake is difficult to forecast. Further guidance will be given in due course.

The core molecular diagnostics business continues to perform in line with management expectations and remains on track to build on the strong year end performance announced in the trading update for the year ended 31 March 2020. The Company remains confident of receiving CE marking for its Illumina-based IONA® test in the near future and has been informed that the product has now been recommended for approval and is in the final stages of evaluation.

Yourgene will announce results for the year ended 31 March 2020 by mid-July and will provide details of the confirmed date in due course.


For the full RNS, see: https://www.investegate.co.uk/yourgene-health-plc--ygen-/rns/covid-19-testing-service-launch--business-update/202005260700138400N/

Gfinity PLC (GFIN.LSE)

Gfinity launches Gfinity Digital Media

Gfinity,, a world-leading esports and gaming solutions provider, today announced that it has created a new digital media group within the Company, Gfinity Digital Media.  Gfinity Digital Media builds on the exceptional growth of Gfinity's web channels and social platforms over the last six months.  Its web channels now have more than 10 million users and its social platforms generated 31 million impressions in April 2020. In addition, the Company announces the launch of a new ecommerce platform and the launch of Gfinity Plus, a web-based rewards programme that utilises technical IP created within the Company that supports gamer forums and chat and facilitates data collection.


These new initiatives are in line with the Company's strategic focus on diversifying revenue streams, with an emphasis on delivering value from what Gfinity directly owns.  This includes its community and creating joint ventures to drive the commercial success of IP, products and services that it creates.


Gfinity Digital Media


The decision to launch Gfinity Digital Media is based on the success Gfinity has enjoyed in organically building its own community through its gaming websites, RealSport101.com, Gfinityesports.com and StealthOptional.com, all of which are delivering revenue growth for the Company.

Gfinity Digital Media  has three direct revenue streams: 1) website takeovers and programmatic advertising (CPM), delivered in partnership with global advertising platform Venatus and Bidstack; 2) a non-exclusive relationship with global affiliate marketing network AWIN and analytics platform Trackonomics, to drive revenue from ecommerce; and 3) content creation and community build product for partners, primarily as a joint venture, with the most recent example being with YaLLa Esports in the Middle East region.


Talal Musa, responsible for Gfinity's web and social channels, has been appointed Head of Gfinity Digital Media, with immediate effect. He will oversee the development of the Company's owned websites, as well as being responsible for delivering on the significant revenue opportunities.


The Company will leverage the in-house team's SEO expertise and proven success in building domain authority to add new websites during the year.  These will tap into other areas gamers care about, as well as offer social tournament play utilising Gfinity's Tournament as a Service product, most recently used by the Premier League for its ePL competition.


In the space of a year, Gfinity has grown Gfinityesports.com monthly users from 5,652 in May 2019 to 6,316,269, delivering more than 21,000,000page views in April alone. RealSport101.com meanwhile, has grown its user base by nearly 70% since May 2019 and is on track to reach 4,000,000 users this month. Tech-focused StealthOptional.com is growing at an unprecedented pace, reaching more than 110,000 users since its launch in March this year.


Ecommerce


Gfinity today launches 'Stealth Optional, Purchase Mandatory', an ecommerce focused section of Stealthoptional.com targeting ecommerce revenue via a partnership with AWIN and Trackonomics. It is in prime position to take advantage of the launch of next-generation hardware - new game consoles and peripherals - by the end of the year.  A supplementary CPA strategy is also being rolled out across the entire Gfinity portfolio, to tap into all the network's 10m plus users.


Gfinity Plus


Gfinity Plus is a rewards-based product, that will deepen engagement with its growing user base. Gfinity Plus offers exclusive content, forums, gamification, giveaways and perks to those who sign up - gathering data and paving the way for the Company to offer online social tournament play.


For full RNS details, see: https://www.investegate.co.uk/gfinity-plc--gfin-/rns/gfinity-launches-gfinity-digital-media/202005260700138349N/

Panoply Holdings Plc (TPX.LSE)

Contract win, trading update and webinar

The Panoply, a digitally native technology-enabled services company, announced that Group business FutureGov has signed a significant digital transformation contract with a large, global philanthropic organisation.

This contract, which is worth a total of US$5.2m over 14 months, will see FutureGov supporting the organisation's teams across EU capital cities to focus on and transform local government services in order to deliver better outcomes. Using its extensive experience and expertise in the digital transformation sector, FutureGov will produce bespoke, digitally-enabled community focused services that seek to address current major issues facing communities.

This contract is another success for the Group in the public sector, further demonstrating the strength of the Group's offering in this field, the importance of its purpose-driven work and also its ability to continue securing significant new business wins even during this time of heightened uncertainty.

Trading update


Coming into the current financial year, the Group had a confirmed backlog deliverable in the year, including annualised recurring revenue, of approximately £15m. The contract with the philanthropic organisation is one of a number of new business wins the Group has signed in the last eight weeks (since 1 April 2020), which comprises a total value of £9.5m, the majority of which will be delivered this financial year.

The Group expects to report a strong performance for the first quarter of FY21 with year-on-year organic growth on a like-for-like pro forma basis*. Margins are expected at pre-COVID-19 levels, driven by the volume of new work secured. Alongside this the Group expects continued profitability and strong cash generation.

Whilst the uncertainty created by the COVID-19 pandemic means it remains very difficult to predict performance going forward, the Group remains confident in its market offering that spans technology, design and strategy, with around 70% of pro forma revenues now coming from public services.

*Q1 FY20 revenue on a pro forma basis, including Ameo and FutureGov, would have been approximately £9.1m. Ameo and FutureGov have been included to show a true like-for-like comparison.

Investor webinar


Further to this update, The Panoply's CEO, Neal Gandhi and CFO Oliver Rigby will be hosting a private investor webinar on Tuesday, 2 June 2020 at 14.00. Registration for the webinar is available via the following link: https://bit.ly/TPX_Update

Issue of consideration shares


As announced on 28 April 2020, the acquisitions made by the Group to date have traded in line with expectations and so it is anticipated that further consideration in line with previous guidance of approximately £17m will become payable. This consideration will become payable following the release of the Group's FY20 results, expected to be in July 2020, and will result in the issue and allotment of c.21.5m new shares in The Panoply. This represents c.40% of the current issued share capital.


For full RNS details, see: https://www.investegate.co.uk/panoply-holdings-plc--tpx-/rns/contract-win--trading-update-and-webinar/202005260700138337N/

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