Recent Developments In Two Companies: IXICO Plc and Clearstar Inc

  • Aug 09, 2019 BST
  • Team Kalkine
Recent Developments In Two Companies: IXICO Plc and Clearstar Inc


IXICO Plc (LSE: IXI) is a London-Headquartered data analytics company engaged in delivering insights in neurosciences. The company offers analytics services to biopharmaceutical companies to analyse data from brain scans and digital scans and digital biosensor to facilitate the better trial design and provides technology-driven services across all phase of clinical evaluation. The group is partnering with associates to establish new analytical techniques and associate digital health products to improvise patient outcomes. On October-15-2013, the company got listed on the Alternative Investment segment of the London Stock Exchange and is a constituent of FTSE AIM All-Share- Healthcare. Hargreave Hale Ltd., Amati Global Investors Ltd., Henderson Global Investors Ltd., Goldman Sachs International and Hargreaves Lansdown Asset Management Ltd. are several institutional investors in the company. (Source: TR)

In the exchange filing made by the company as of August 09, 2019, the data analytics company came up with an update on contracts. The company said that two new biopharmaceutical contracts were secured from clients for an aggregate value of over £1mn. It received a change order contract worth £0.9mn and also notified that one of its clients had discontinued their study, which will reduce £3.5m in contract value over the full terms of the agreements up to 2025.

The new contracts that the company has bagged have originated in North America and Europe; these contracts will be under execution for approximately two years.

Giulio Cerroni, Chief Executive Officer | IXICO Plc

In the exchange filing, the group's CEO said, "IXICO welcomes two new clients to the company and expand the services with a longstanding client. The Board of directors of IXICO Plc is optimistic of reporting results in line with the market expectations in 2019 and backed by its robust order book, is confident about the future prospects of the company."

In the recent trading update released by the company as on April 25, 2019, the company's reported revenues are estimated to be approximately £3.43mn for the six months ended March 31, 2019, and about 22% above the reported revenue of £2.82mn recorded in the year-ago period. Cash balance at the end of March 31, 2019, stood at £7.5m and order book at the end of the period stood at £21.2mn as of 31 March 2019.

In the same release, the company stated that taking consideration of half-year revenue recorded by the company it expects revenue to be in line with their expectation on the full-year basis at £6.6mn and this would be 22% higher against the previous year's reported revenue of £5.4mn.

Stock Performance

Daily price chart (as on August 09, 2019), before the market close. (Source: Thomson Reuters).

At the time of writing (before the market close, at 12:08 AM GMT), shares of the IXICO Plc (LSE: IXI), were quoting at GBX 36.01 and declined 2.5 points or 6.49% against the previous day's closing price level. In the year-ago period, the company has registered a 52-week high of GBX 43.0 and a 52-week low of GBX 18.78, respectively.

From a price-performance standpoint, on a YTD basis, shares of IXI have delivered a price return of approximately 63.83% and were up by about 30% in the past one month. Also, at the current trading level, shares of the company were trading substantially above its 30-day, 60-day and 200-day simple moving average price levels, which indicates an uptrend in stock prices. Also, the 14-day RSI level is strengthening the uptrend as it is tending towards the overbought zone.

However, in the day's session, the stock has breached its 10-day exponential moving average support and is trading marginally above its 20-day exponential moving average price. The stock has strong support at GBX 35.24, which is a 30-day exponential moving average price for the stock.

From the volume standpoint, 5-day average daily volume in the stock was about 48% below the 30-day average daily volume in the stock traded on the London Stock Exchange. The outstanding market capitalisation of the stock stood at £16.84mn.

Clearstar Inc

ClearStar Inc (LSE: CLSU) is a Unites States-headquartered company, listed on the Alternative Investment Market (AIM) segment of the London Stock Exchange. The group is engaged in "technology and service" and provides services to the background check industry, supporting background screening of companies, employers and employees along with their recruitment and employment application decision. On July-11-2014, shares of the company got listed on the AIM segment of the London Stock Exchange.

In the exchange filing made by the company as of August 08, 2019, the company notified the exchange that it had secured a key milestone sales in its Medical Information Services business segment with monthly sales crossing £1mn in the month of July 2019, the first time as the company ramped up growth in this segment.

In July 2019, the company recorded MIS sales growth of 37% on Year-on-Year basis and stood at $1.06 mn and contributed approximately 47% of the total revenues of the company in July 2019 against 45% in July 2018. For the full year FY19, MIS sales recorded a growth of 27% on a Y-o-Y basis. This was primarily driven by decent demand of its technology differentiated mobile solutions, ClearID, which is integrated with customer's human capital management system to enhance work efficiency.

Robert Vale, Chief Executive Officer | ClearStar- statement

In the trading statement, the chief executive of the company said, "We are delighted to have secured key milestone of over $1m in monthly revenue for MIS business segment. We are also glad to position our new combined drug and breath alcohol testing service, which is an initial step taken towards company’s goal of offering complete medical review services. He also added that" We are getting record-growing demand as customers now largely recognise the value that our solutions can add to their screening programmes - to benefit both the employer and the employee.

In the trading updates, released by the company as on July 09, 2019. The company recorded revenue growth for the six months ended June 30, 2019, of approximately 17% to $11.6mn on a Y-o-Y basis. Direct services business channel revenue grew by 49% against the same period of the previous financial year, the segment accounting for the 36% of the company's total sales against 28% in the year-ago period. Medical Information System continues to be the main growth driver for the company and revenue of this business segment shot up by 25% on a Y-o-Y basis for the six months ended 30 June 2019.

The recorded growth during the period under consideration was strongly backed by recurring revenue and upselling of further services to a bunch of its largest clients.

Considering the decent performance recorded by the company in the past, the company expects to deliver full-year results in line with market expectations.

Stock Performance

Daily price chart (as on August 09, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (before the market close, at 02:02 PM GMT), shares of the LSE: CLSU was quoting at GBX 65.0 and added 6.3% in day's session. The stock has registered a 52week high price of GBX 87.0 on August-16-2018 and a 52-week low price of GBX 50.22 on June-07-2019.

From a price-performance standpoint, shares of CLSU have delivered a price return of 13.89% in the past one-month and were up by 4.24% in the past three months. However, on a Y-o-Y basis, shares were down by 15.17%. In the last one month, the stock has ended 8 times up, 9 times down and remained flat for 6 times against the respective closing prices.

At the current trading level, shares were quoting above its 30-day, 60-day and 200-day simple moving average prices, which is a positive technical measure. Also, the 14-days and 9-day RSI of the stock is hovering in a neutral zone.

From the volume standpoint, the 5-day daily average volume traded in the stock was approximately 60% above the 30-day average daily volume traded on the London Stock Exchange. Also, the price has risen in the past five trading sessions, which indicates that buying interest in the stock is higher.

The outstanding market capitalisation of the company stood at £22.38mn. However, free float outstanding shares of the company is about 36.5% of the total outstanding shares, which indicates lower liquidity in the stock.

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