In what are indeed strange times, it has been good to see two AIM newcomers that I both invested in and covered here, putting in such excellent performances on the share price front.
Namely Calnex and Fonix, both of which have recently attracted wider market attention and look set for continued and accelerated growth. Although it is far from easy, as many will know, to identify and achieve such fast and notable returns as with those mentioned. I am nevertheless hopeful that my latest subject is also very well placed to provide a decent return for both the near, but perhaps more importantly the longer term. Intuitive Investments (IIG) only came to the market back in December 2020 at a price of 20p per share which saw it raising gross proceeds of £7.85m in order to execute on its strategy. This will see the company investing in science based businesses, such as medical device developers and producers or other science focused operators that are disruptive, fast growing and operating predominantly in the UK, but also continental Europe and the US. Undoubtedly this is now a popular area for investors to home in on and that looks like remaining the case moving forward which could provide plenty of opportunities for IIG to make investments and take a stake in order to build a growth portfolio. This in turn should subsequently deliver returns to investors. Whilst IIG has thus far seemingly been overlooked since it’s floatation, that could well change in the coming months. With an excellent board headed by the highly regarded and seriously successful David Evans, and at a current 21.5p, the shares are worthy of a closer look, or even as I have elected to do take an interest. Despite it being relatively early days, the company has already announced to the market its first major investment and it looks highly likely that more will follow in due course, which should then lead to a good run of news and thus the shine a light on IIG, highlighting the investment potential going forward. Its first investment certainly looks to be a decent one, coming in the form of Light Science Technologies based in Derby which is a provider of lighting and complementary patented technology that aims to delivers solutions to vertical farming.
In an increasingly uncertain world, vertical farming is seen as a game changer in addressing the challenges of an increasing global population and associated issues resulting from climate change. LST first developed a novel lighting product for large scale plant production where there is a lack of sun light with an emphasis on quality and relevant light distribution. Following this, it is now focused on developing and producing sensor technology that both supports and monitors plant growth in such a closed environment, supporting quality and yield, whilst also providing cost efficiency. Operating in what is very much a growth market, LST is planning to come to the market itself in the first quarter of this year where given its potential and obvious attractions it could provide for an early uplift for IIG which has invested £1m by way of convertible loan notes. However, the story with LST doesn't end or rather I should say begin here, as there is another more established arm to the business that is already cash generative and profitable, this being UK Circuits & Electronics Solutions which is intended to be the main part of the group on its IPO.
UK Circuits already generates revenue of £5.6m and on the back of that a gross profit of £1.3m where it works for some major blue chip customers.
Evans, who has been involved in numerous success stories over the years is on record as saying that LST has the key ingredients for success namely; an excellent management team, a deep knowledge of the light spectrum and the application of that knowledge to areas where substantial growth can be obtained. It appears that he has been advising LST over the last year with a view to its goal of coming to market. Although investing in IIG at this stage is very much a play on Evans track record and ability to identify future success stories, the other board members also have strong credentials.
These include CFO Robert Naylor who has an extensive corporate banking background which has seen him involved most recently at Cenkos and in previous years active across life sciences where he has advised the likes of EKF Diagnostics and Yourgene Health to name but a few.
There are also some impressive names on the companies list of advisors including EKF CEO Julian Baines who I personally rate highly having spoken with him on a number of occasions.
I am hoping to arrange something with the IIG management in due course, in order to learn more of the business and the prospects where I can then hopefully pen something more substantial
For now though, suffice to say that with a market cap of just £9m and the shares standing at little more than the IPO debut, I consider it worthy of an early interest.
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