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Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Adam Reynolds is a man to do an RTO, a man to chair a small company. There comes a time - you hope - when the company grows to a bigger level and you need a bigger company man as Chairman. That time has come at Optibiotix (OPTI).
Adam is to step down at 31 December and will be replaced by Neil Davidson CBE the next day. Davidson has a cracking CV with over thirty years of operational and board experience as Chairman and Chief Executive of FTSE 100, AIM and private companies in both an executive and non-executive capacity.
He started his career with Northern Foods plc, where he rose to become Managing Director of its milk division. He subsequently became Chief Executive of Express Dairies plc and then Arla Foods plc before taking on a number of board positions in FTSE and private companies. He is still a NED at William Morrison (MRW), a FTSE 100 company.
His contacts in food and dairy will clearly be useful. He is, in the words of one close to the action, "the right man as we go to a £200 million company."
We know from the six contracts signed already that Optibiotix will more than cover its £1 million fixed costs in 2018. The question is when will other contracts be signed and come onstream. We are aware that the company is targeting another 30 worth £250,000-500,000 net to Optibiotix per annum to be signed over the next three years. But we are now led to believe that there could be some much much larger deals in the pipeline. And we expect a big re-rate when those deals are announced.
The shares are 66p-68p, which is just the wrong price. At up to 80p BUY as this will be at well over 100p on contract news.
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