IDT Australia Ltd

Saville Capital Emerging Companies Fund continues to hold its investment in IDT Australia Ltd, highlighting the recent signing of a Master Service Agreement with Sanofi Australia. This partnership positions IDT to support the cGMP manufacture of Sanofi’s global mRNA assets, with an estimated initial contract value of $3m to $3.5m, accounting for over 25% of IDT’s current annual revenue run-rate. The agreement provides flexibility for Sanofi to select various services from IDT, with expectations of significant ongoing work. IDT's Advanced Therapies vertical will benefit from this contract, aligning with the company’s strategic focus on high-value contracts that necessitate complex formulations. Furthermore, IDT's recent 3Q FY24 update indicates strong growth across its business pillars, a 48% increase in revenue, and $4.9m in new contracts secured, leading to a burgeoning sales pipeline of $26.6m. Given these factors, the company remains on a promising trajectory towards profitability by FY25.

Saville Capital Emerging Companies Fund is updating its investment thesis on IDT Australia Ltd, noting a recent non-binding takeover bid of $0.15 per share from Mynd Biotech, alongside a $7 million capital raise at $0.09 per share. This interest is particularly salient given IDT's trading history, which saw its stock as low as $0.055 last November. The fund acknowledges that while the current bid may not prompt the Board to pursue a Scheme of Arrangement, it indicates increased acquisition interest in IDT, highlighting the significant undervaluation present in the micro-cap sector. With IDT's facility being GMP-certified and TGA licensed—and having an NTA of around $0.08 per share and a replacement value of $0.24—Saville Capital sees potential for further strategic interest from other parties, including international investors. The fund recently increased its position in IDT, which now constitutes approximately 10% of its portfolio, positioning it to be a potential strong performer as developments continue.

Saville Capital Emerging Companies Fund continues to hold its position in IDT Australia Ltd, having experienced a robust performance in FY24, with revenue increasing by 92% year-on-year to $13.5 million, driven predominantly by its higher margin Advanced Therapies division. The strong growth in the final quarter, with a remarkable 87% revenue rise compared to the prior corresponding period, reflects IDT's strategic focus on rapidly advancing sectors, such as Antibody-Drug Conjugates and mRNA technologies. The company is optimistic about maintaining this growth trajectory into FY25, supported by a healthy pipeline of $24.7 million in proposals, particularly within Advanced Therapies. Notably, June 2024 saw a significant increase in sales leads, escalating to 114 from just 29 in the preceding months. While there has been no recent update on the non-binding proposal from Myndbio to acquire IDT at $0.15 per share, further developments on this front are anticipated soon.

Saville Capital Emerging Companies Fund continues to hold its position in IDT Australia Ltd following the company's recent announcement of a follow-on contract with Sanofi valued between $2.5m and $4m. This contract pertains to the preclinical formulation, development, and manufacture of Sanofi's mRNA technology, building on an earlier Master Service Agreement established in April 2024. The MSA enhances collaboration by providing Sanofi with the flexibility to select services from IDT and pursue additional work packages. Given that IDT reported $13.5m in revenue for FY24 and ended with an annualized run-rate of $18.4m, this new contract is expected to significantly support the forecast for over $20m in revenue for FY25 and pave the way towards achieving profitability.

Saville Capital Emerging Companies Fund continues to hold its investment in IDT Australia Ltd based on a strong quarterly performance, reporting unaudited revenue of $5.2 million in Q1 FY24, reflecting a 70% increase year-over-year and marking the highest revenue since the initiation of its strategic transformation. The company secured $6.8 million in new contracts, all from returning customers, highlighting a solid foundation for repeat business which typically leads to enhanced profitability as clients move from development to higher-margin manufacturing agreements. IDT also submitted 37 new customer proposals worth $24.7 million, with around 60% directed at existing clients. This expanding pipeline, alongside IDT's proven ability to convert proposals into contracts, underpins expectations that FY25 results will exceed those of the previous year and facilitate a shift towards sustainable profitability.

Saville Capital Emerging Companies Fund updates its investment thesis on IDT Australia Ltd following the recent developments with Myndbio Pty Ltd's non-binding proposal. Although the Board of IDT has terminated discussions with Mynd due to a lack of timely updates, they remain open to future discussions if Mynd submits a revised proposal. Meanwhile, IDT's Board is committed to maximizing shareholder value and pursuing a growth strategy aimed at achieving sustainable profitability by FY25. Saville Capital believes the market's focus on the bid has overshadowed IDT's strong operational performance, and the resolution of this proposal may enable the share price to better reflect the company's ongoing positive developments. The fund continues to hold its position in IDT, anticipating that the share price will respond more favorably to future updates as the company progresses towards its profitability goals.

Saville Capital Emerging Companies Fund continues to hold IDT Australia Limited following its announcement of a three-year $20 million loan facility with Scottish Pacific. This financial support enhances IDT's capacity to manage its growing sales pipeline and leverage recent contract wins, positioning the company for sustained growth. The new facility replaces IDT's previous $4.7 million agreement with NAB, reflecting a strategic commitment to scaling operations amid increasing demand and market opportunities both domestically and internationally. With a term of 36 months and an interest rate of 10.60% per annum, the facility secures funding until IDT reaches cash flow positivity, alleviating the need for additional equity from shareholders and reducing potential pressure on the share price.

Saville Capital Emerging Companies Fund continues to hold IDT Australia Ltd (IDT) due to its strong growth trajectory and successful strategic transformation. IDT's 2Q FY25 revenue of $5.3 million marked a 97.7% increase compared to the previous corresponding period, driven by continued expansion in the high-margin Advanced Therapies vertical. The company has attracted a more geographically diverse customer base, with repeat business and increasing demand from US-based clients. IDT benefits from Australia's attractiveness for clinical trials, thanks to its cost advantages, high regulatory standards, and tax incentives. The company's solid reputation in drug development and manufacturing positions it as a key player in this growing market. Additionally, IDT has submitted 20 customer proposals valued at $17.8 million, which, coupled with its strong track record in securing contracts, provides confidence that FY25 results will exceed the previous year. The fund remains optimistic about the company’s ongoing success in capitalizing on these trends.