Interactive Investor

The Insider: City deals uncovered

23rd October 2014 13:45

Lee Wild from interactive investor

Bioventix sale is good news

A huge sale of shares by the chief executive and chairman of any company might sound alarm bells, but not at Bioventix (BVXP). Recent full-year results easily beat City expectations and shares in the AIM-listed firm, which develops monoclonal antibodies for use in immunodiagnostics, have surged to a record high.

In fact, at 689p they've risen over 5% since boss Peter Harrison and his wife sold 80,000 shares at 655p. Chairman Ian Nicholson shifted 8,000 at the same price. That's because institutional investors were desperate to get on board, and demand has clearly exceeded the £576,400 of stock sold by top brass. Harrison, who still owns a 15% stake, may have to sell more.

By developing sheep monoclonal antibodies (SMA) to improve pharmaceutical testing, Bioventix works in the areas of clinical diagnostics and drugs of abuse testing. Its vitamin D research has been progressing well, especially with the vitD3.5H10 antibody. Revenue from this avenue is steady with 13 licences in place and the company is sure that this will continue to grow over the next year.

Broker finnCap has upgraded its price target to 750p.

Buying at Wilmington after CEO exit

A month after Wilmington's veteran leader made way for new blood, finance director Anthony Foye has spent £140,000 on shares in the provider of information, compliance and education to professionals.

Charlie Brady stepped down after 12 years in charge, handing over to ex-WPP board member Pedro Ros at the start of October. He timed his departure to coincide with the announcement of a 13% increase in full-year pre-tax profit to £16.6 million. Revenue rose 6% to £90 million.

Of course, these are big boots to fill. Over the past decade, Brady has switched Wilmington’s focus from advertising-funded print magazines and directories to online subscriptions and training. But Numis Securities certainly thinks there’s plenty more to go for.

"Increasing industry demand, particularly following the imposition of substantial fines, should ensure further progress in compliance and antimony laundering going forwards," says the broker, predicting double-digit earnings growth in the year to June 20145 and high single-digits therafter.

At 216p, Wilmington shares have found plenty of backing at a significant technical support level near 211p, which is reassuring. Further acquisitions seem likely, too.

Synthomer man at it again

A week after we first covered heavy buying by Synthomer's Dato' Lee Hau Hian, the non-executive director has been at it again. He snapped up 252,000, but has just spent almost £500,000 on another 261,000 shares at between 187p and 190p. He now owns 19.7% of the business.