A small company with large potential – this week’s analysis by Aksjeanalyser.com
This week Aksjeanalyser.com has taken a closer look at an exciting, small company on the Oslo Stock Exchange!
Induct AS (ticker on Euronext Growth Oslo: INDCT), market cap of the company is currently around NOK 65 million.
Aksjeanalyser.com believes that the company can have significant potential both in the short and long term!
According to Aksjeanalyser.com’s assessment of Induct AS (INDCT), the share may have considerable potential in both the short and longer term. There has recently been very interesting and exciting news, which you can read more about below, regarding an agreement with one of the world’s leading and most innovative biopharmaceutical companies, AstraZeneca (ticker on the Stockholm Stock Exchange: AZN).
INDUCT: ASTRAZENECA IN AS PARTNER IN COLLABORATION WITH HOSPITALS!
Oslo (Infront TDN Direkt): AstraZeneca enters as a new partner in the collaboration Induct AS has established with Portsmouth University Hospital in England.
This was stated in a press release on Wednesday, December 18, 2024, 13:16, TDN Finans.
-“This is an important milestone for Induct and a huge opportunity for the company. Together, we will implement our system in six new hospitals in the asthma network run by Portsmouth. This will create a scalable model that can be used by hospitals all over the world,” says Synnøve Jacobsen, CEO of Induct.
The project, where Induct’s system will be established in six new hospitals, is funded by AstraZeneca. Induct will invite shareholders and interested parties to a presentation of the collaboration with Portsmouth and AstraZeneca this January. Read more below under the technical analysis of the share and other information about the company, Induct AS (INDCT).
First information about the company
Induct AS (ticker on Euronext Growth Oslo: INDCT) is a Norwegian company that develops software and platforms to follow up every step of an innovation process. The product is called Induct Innovation Communities, and helps organisations to develop, evaluate, test, implement and measure the innovation process, as well as produce related reports. The company was established in 2007 and is headquartered in Oslo. For more information about the company, visit their website here.
Induct and Portsmouth University Hospital expand their collaboration – Bringing AstraZeneca on board!
18 Dec. 13:10 Source: Oslo Børs, link to the news
AstraZeneca joins as a new partner in a groundbreaking collaboration Induct AS has established with Portsmouth University Hospital in England. The aim is to implement Induct’s patient pathway system in new hospitals. AstraZeneca has 57,000 employees in 100 countries and is one of the world’s leading and most innovative biopharmaceutical companies.
– “This is an important milestone for Induct and a huge opportunity for the company. Together, we will implement our system in six new hospitals in the asthma network run by Portsmouth. This will create a scalable model that can be used by hospitals all over the world,” says Synnøve Jacobsen, CEO of Induct, who adds: – “We are proud and excited that Induct is being given this opportunity for global expansion. We are grateful for the trust shown to us by our partners. We have earned this trust through hard work and solid deliveries”.
Induct has previously implemented a system to improve and streamline the treatment of severe asthma at the specialist center in Portsmouth. This system, a proactive clinical pathway management system, has produced remarkable results over the past year in both patient care and for healthcare professionals. The new project will implement the same system in six new hospitals, all part of the Portsmouth severe asthma network.
Further improvements are expected in terms of efficiency gains, reduced administrative tasks, improved data management and more effective communication and information exchange between hospitals through the sharing of patient records. It is these outcomes that AstraZeneca will help to realize in the new collaboration. The company will be closely involved with dedicated resources, and intends to become a market partner with Induct.
The potential of a collaboration with AstraZeneca extends far beyond the NHS and England. With AstraZeneca on board, the doors of hospitals around the world will be open to Induct. The project is funded by AstraZeneca. As the sole supplier, Induct will receive project funds to cover the costs associated with the project and will therefore have no need for share issues or other liquidity solutions. It is a great advantage to have AstraZeneca with its unique experience, network and expertise to drive the implementation of Induct – work for which Induct will not incur additional costs.
The main motivation for AstraZeneca is increased sales of biologic medicines and close collaboration with healthcare organizations, such as the NHS. The results achieved in England are exceptional and there is great interest in both the project and Induct. In this process, Induct will change its business model from advertising-based revenue to recurring license-based revenue. It is currently too early to specify how much revenue a license-based model will create, other than to state that it will be significant in relation to our market value. In parallel with the project, the license model is being further investigated, and we will provide the market with more information about the revenue potential as soon as this is clear.
Much will depend on the strategies for expansion and scaling, and there are four obvious axes for growth.
Technical Analysis of Induct AS
The Induct share (ticker on Euronext Growth Oslo: INDCT) has shown a weak performance in recent years and since the company went public in early 2016. The share has moved within a long-term falling trend (see Vikingen’s weekly chart below), but has recently turned upwards after testing the support level at the lower trend line in this long-term falling trend.
Several positive technical signals have been triggered for the stock recently. The stock has triggered a buy signal from an inverse head and shoulders formation (see day chart from Vikingen). Furthermore, the stock has broken above both 50-day and 200-day moving averages.
Also the BEST model in Vikingen has recently given a buy signal for the Induct share. This popular and effective technical analysis model was developed by Peter Östevik. He finalized the BEST model around 2019, and after 30 years of experience in technical analysis and Vikingen Financial Software.
The overall positive technical picture now signals further upside for the Induct share in both the short and medium term.
In the first instance, Aksjeanalyser.com sees a potential for the share at around NOK 5.00, and if the share were to break above the NOK 5.00 level, the potential for the share is considered to be up to the next important technical resistance level, which would then be around NOK 10.00. What could possibly change the currently positive technical picture that the Induct share shows would be if the share were to fall back below a technical support level around NOK 2.50, and back below the 200-day and 50-day moving averages. Finally, it should be mentioned that the undersigned (Bjørn Inge Pettersen) owns shares in Induct (INDCT).
Below are some recent more news about the company, Induct (INDCT)
INDUCT: INTERIM REPORT Q3 2024
14 Nov. 08:00 ∙ Oslo Stock Exchange
The Interim report for Q3 2024 for Induct AS has been approved by the Board of Directors.
– Total revenues decreased by NOK 1.1 million, from NOK 6.3 million in Q3 2023 to NOK 5,2 million in Q3 2024. The reduction is mainly due to a decrease in platform revenues caused by the loss of subscription customers in Bidra, Induct and in Spain.
– Gross margin on platform revenues is stable and very good, with an increase of
0.3% from 94.5% in Q3 2023 to 94.8% in Q3 2024.
– EBITDA decreased by NOK 1.7 million, from NOK 2.4 million in Q3 2023 to NOK
0.7 million in Q3 2024. YTD EBITDA increased by NOK 1.0 million, from NOK 5.9 in
Q3 2023 to NOK 6.9 million in Q3 2024.
The decrease in Q3 EBITDA is caused by two short-term and temporary situations. The cost associated with the organizational streamlining carried out in the first half of the year impacts our results in the second half of the year, and furthermore, the subsidiary Bidra AS had a significant loss of revenue from customers in the banking sector whilst costs grew notably. The cost increase is largely related to an unfortunate dispute that ended in a court case.
– Bidra AS is without profitable products and will consequently be dissolved, as announced on Brønnøysundregistrene 28 October 2024.
– Tilskuddsportalen is entering the Swedish market.
– Partnership with Portsmouth University Hospitals NHS Trust and pharmaceutical company expected to be signed in Q4.
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INDUCT: The grant portal expands to the Swedish market
24 Oct. 15:26 ∙ Oslo Stock Exchange
Induct, via its subsidiary OSINT Analytics AS, is entering the Swedish market with a Swedish version of Tilskuddsportalen. Tilskuddsportalen is already well established in Norway, where around half of the country’s municipalities have subscribed. This contributes an annual recurring revenue (ARR) of NOK 11 million for the company.
A qualitative market survey among Swedish municipalities indicates that the need for such a service is at least as great in Sweden as in Norway. Pre-marketing of the Subsidy Portal started recently in Sweden, and the response has been extremely positive. Torsby municipality has already signed a letter of intent to subscribe when the Swedish version of the product is ready. Several other Swedish municipalities are expected to sign similar agreements in the coming weeks.
The product and business model will essentially be similar to that which has been successful in Norway, while the grants in the portal will be adapted to the Swedish market. The technical framework is the same as that used in Tilskuddsportalen.no, and the investment required to adapt the Grants Portal to the Swedish market will therefore be limited.
A specific delivery date has not yet been set, but the company expects the product to be ready for launch in Sweden shortly.
The expansion represents an exciting growth potential for the company and is an important milestone in the company’s strategy to expand into new markets.
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INDUCT: Induct AS cuts its product portfolio and focuses on products with the highest profitability and profitable growth 17 Oct. 10:30 ∙ Oslo Stock Exchange
Induct AS has carried out an assessment of the large number of products and services in the company. In the opinion of the Board of Directors and management, the company has too many products and focus areas. This has led to dispersed resources, limited the organization’s focus and resulted in a cost base that is too large in relation to sales.
The process started in 2023, and in 2024 a comprehensive reorganization and efficiency project has been implemented, as previously communicated in the quarterly reports for Q1 and Q2. The project has been necessary to reduce costs, increase productivity and secure shareholder value. We are now well positioned for the future, with a focus on our core areas.
One of the key changes has been the appointment of Ignacio Orteu as our new Chief Technology Officer (CTO). We have evaluated our technical operating costs and estimate a significant cost reduction by the end of Q1 2025. Despite fewer resources, we have maintained the pace of development and delivered high quality customer deliveries.
In the third quarter, the company prioritized reviewing the profitability of its product portfolio. As part of this work, products that do not provide sufficient returns are being removed. Instead, resources will be concentrated on our core products, the Grants Portal and Innovation & Process Management in the healthcare sector, as well as our strategic focus area in the UK healthcare sector. In other words, products offered to the Nordic healthcare sector will be continued and further developed. The products that the UK healthcare sector uses to increase efficiency and reduce costs will of course also be offered to other healthcare providers, including Nordic healthcare providers.
These processes can be carried out in Induct as a parent company and in the subsidiaries with one exception, and this concerns Bidra AS. After the review, this company will have no profitable products and will consequently be wound up, either through voluntary liquidation or compulsory liquidation through bankruptcy.
Incidentally, Bidra AS is the only company where the liquidation has created challenges, as a hired consultant went to court to demand a ruling that he was employed by Induct AS. His claim was not upheld. After his consultancy agreement was terminated, he believed that he should receive compensation, but the court did not rule in his favor. Induct AS is therefore pleased to have won on both counts. However, this is in accordance with what Induct AS has previously claimed and thus contains nothing new.
With a reduced and sharpened product portfolio, a streamlined organization and a solid foundation for further growth, Induct AS is well equipped to create increased value for both customers and shareholders going forward.
Vikingen Financial Software reminds you that past positive results do not always indicate future profits and that all trading is at your own risk.
Yours sincerely
