I'll sell you the rest of my shares if you want @Seymourbutts

I thought the financials themselves were fine and they're doing a good job on gross margins and opex control. But there were a few things that have me leaning towards a sell:

• It's the fourth consecutive half future revenue contracts (the pipeline) has reduced - albeit only marginally from six months ago. Contracted revenue is down 47% from the peak two years ago. The 'renegotiation' of the Eisei healthcare deal accounts for a chunk of that but future clinical trials revenue has been down for the past four halves also.
• They dropped their slides around Alzheimers trials. Maybe there's nothing nefarious in it and just reflects their desire to diversify revenue. But they are significantly leveraged to Alzheimers and if that market is looking less rosy, so too are their future prospects.
• I thought Brad was flat. That's a completely subjective view but I got the impression he wanted to be anywhere else. The slides, the Q&A - it all felt a lot more focused on the short-term outlook than I'm used to with this mob.
• No dividend? They have $44 million of equity and $34 million of that is cash with no debt. That's a lazy balance sheet. They just delivered a $4 million profit for the half (slightly higher FCF) and are forecasting similar in 2H. If they're not returning the cash are they planning M&A or do they need a buffer to get through a tough period? I don't particularly like the idea of either.

Over the next six months I think they'll be fine. Their outlook that 2H should look similar to 1H looks very doable and that should deliver a record annual result at the top and bottom line. It's FY26 onwards I'm less sure of. I still like many aspects of this company, but with this morning's pop I took the opportunity to sell most of my holding. I could be wrong though and if I am I hope to get the chance to buy back in.