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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Kooth - US$188m contract win

August 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • KOO
  • Price:
  • 335p
Shares in Kooth, the digital mental health services provider for children and the under 25s, surged by over £1 after it announced a massive US$188m four-year contract with the California Department of Health Care services. Contemporaneously it raised £10m gross, through a placing at 300p (9% of enlarged share capital) to recruit the staff to fulfill the contract and provide funds for additional investment. In my May note I said you should expect an upgrade from California but this dwarfs even  my wildest hopes and leaves old forecasts for sales of c. £24m, £28m and £31m for FY’23-’25 trailing in the dust. Top-slice some profit if you want, but remember California alone allocated US$4.76 billion for child and youth behav ...

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Kooth - Digital mental health services firm wins transformational US contract (May 2023)

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