kanabo group share price: What Investors Need to Know

Understanding Kanabo Group plc: Share Price Dynamics and Core Fundamentals

Welcome, aspiring investors and seasoned traders! Today, we’re going to take a deep dive into a company that’s making waves in the fascinating intersection of digital health and medicinal cannabis: Kanabo Group plc (KNB:LSE). As you navigate the complex world of financial markets, understanding not just the recent price movements but also the underlying business and its financial health is absolutely crucial. Think of us as your guide, helping you piece together the puzzle of this unique company.

When we look at any stock, the share price is often the first thing that catches our eye. It’s like the company’s immediate pulse. But beneath that surface beat lies a wealth of information about its operations, finances, and future prospects. Our goal is to equip you with the knowledge to look beyond the ticker symbol and understand what’s really going on.

Kanabo Group is particularly interesting because it operates in relatively nascent and evolving sectors. Analyzing such companies requires a slightly different lens, one that considers both current performance and future potential, alongside the inherent risks of pioneering industries. Are you ready to unravel the story behind Kanabo’s numbers?

Let’s start with the immediate picture. Observing a company’s recent share price action gives us a snapshot of current market sentiment and activity. As of a recent snapshot (April 30, 2025), Kanabo Group plc’s share price closed at 0.225 GBP on the London Stock Exchange (LSE). This single number tells us where the market valued the company’s equity at the end of that trading day.

Now, let’s put that number into perspective. Comparing the current price to historical levels is a common practice for traders. We see that this closing price of 0.225 is 50.00% above its 52-week low, which was set at 0.150 on April 09, 2025. This significant percentage increase from the low point might suggest a recent positive shift in sentiment or a reaction to specific news, even if the absolute price remains relatively low.

Looking at the trading day itself (April 30, 2025), we can examine the intraday figures: the stock opened at 0.300, reached a high of 0.322, and dropped to a low of 0.225 before closing at that level. This indicates volatility within the day, with the price experiencing a notable decline from its open and high points to close at its daily low, matching the previous day’s close. Understanding this intraday movement, along with the overall trend relative to the 52-week range, provides valuable context for traders.

The company’s size in the market is represented by its market capitalization. For Kanabo Group plc, based on 632.43 million shares outstanding and the closing price of 0.225, the market cap is approximately 1.42 Million GBP. This figure categorizes Kanabo as a relatively small-cap company on the LSE, often implying higher potential for growth but also potentially higher volatility and risk compared to large, established corporations. Trading volume is another key indicator, reflecting market liquidity and interest. While the specific volume on April 30, 2025, was reported as 0.00 (potentially due to data reporting specifics or inactivity near the close/delay), the 3-Month Average Trading Volume stands at 10.73. Analyzing volume alongside price action helps us understand the conviction behind price movements.

Unpacking Kanabo Group’s Business Model: More Than Just Medicinal Cannabis

To truly understand a stock’s potential, you need to grasp what the company actually does. Kanabo Group plc isn’t just a single-product company; it positions itself as a United Kingdom-based patient-focused provider of digital health services and specialist medicines. This is a broad scope, encompassing several interconnected areas within the healthcare and wellness industries.

At its core, Kanabo is involved in the distribution and development of cannabis-derived medical and wellness products. This includes focusing on medicinal cannabis specifically for patients requiring it for therapeutic purposes, as well as non-THC (CBD) products targeted at the wider consumer market for wellness applications. This dual focus allows them to tap into different regulatory environments and consumer needs.

A key part of their strategy involves Research and Development (R&D). They are active in developing specific cannabis extract formulas, as well as innovative delivery methods like vaporizers and non-smoking solutions. This R&D, interestingly, is conducted in Israel, a country known for its advancements in cannabis research. Developing proprietary formulas and delivery technology is crucial for differentiation in a competitive and evolving market.

Kanabo also holds a notable place in history on the London Stock Exchange, being the first medicinal cannabis company to IPO on the LSE. This pioneering status brought early attention but also the challenges of navigating a new regulatory landscape for publicly listed cannabis companies in the UK.

The company structures its operations into two primary segments to manage its diverse activities:

• Primary case: This segment focuses on telepharma services, primarily delivered through their subsidiary, The GP Service. This digital health approach provides remote consultations and prescriptions, a critical component of modern healthcare delivery.
• Secondary case: This encompasses the core cannabis product business, including the distribution and development of both medicinal cannabis and CBD wellness products.

Understanding these segments helps you see how the company generates revenue and allocates resources. It’s not just about cultivating or selling cannabis; it’s about integrating it into a broader healthcare and wellness framework, particularly leveraging digital platforms.

The Financial Landscape: Revenue Growth vs. Profitability Hurdles

Numbers don’t lie, but they do require careful interpretation. Let’s look at Kanabo Group’s reported financial performance over recent years, specifically from 2021 to 2023 (figures in Millions GBP). This gives us insight into trends in their growth and cost management.

Revenue is the top line, showing the money generated from sales and services. Kanabo has shown positive growth in this area:

• 2021: 0.073 Million GBP
• 2022: 0.603 Million GBP
• 2023: 0.895 Million GBP

This trend indicates that the company has been successful in increasing its sales year over year. Revenue growth is a positive sign, suggesting market traction for their products and services, particularly the expansion seen from 2021 to 2022 and continued momentum into 2023.

However, revenue growth alone doesn’t tell the whole story. We must also look at Gross Profit (Revenue minus the direct costs of goods sold).

• 2021: 0.007 Million GBP
• 2022: 0.199 Million GBP
• 2023: 0.134 Million GBP

While gross profit increased significantly from 2021 to 2022, it saw a decline in 2023 despite continued revenue growth. This could be due to various factors, such as increased costs of goods, changes in product mix towards lower-margin items, or pricing pressures. A decreasing gross profit margin (Gross Profit / Revenue) while revenue increases warrants further investigation for an analyst.

These figures show that Kanabo Group has been consistently unprofitable, and alarmingly, the net losses have been increasing year over year. This growing deficit indicates that the company’s operating expenses, R&D costs, administrative overheads, and potentially financing costs are significantly outweighing its gross profits and revenues. For a company focused on growth and R&D in emerging markets, initial losses are not uncommon, but the trend of *increasing* losses is a critical point for investors to consider. It raises questions about the path to profitability and the rate of cash burn.

Finally, looking at Cash from Operating Activities gives us insight into whether the core business is generating or consuming cash.

• 2021: -2.078 Million GBP
• 2022: -3.779 Million GBP
• 2023: -2.520 Million GBP

These figures consistently show negative cash flow from operations. This means the day-to-day running of the business requires more cash than it generates. While the negative outflow decreased in 2023 compared to 2022, it still highlights the company’s reliance on external funding (through financing activities) to keep operations running. Understanding this “cash burn” rate is vital for assessing how long the company can survive without raising additional capital.

So, while revenue is growing, the financials paint a picture of a company still heavily investing and incurring significant costs, leading to persistent and increasing bottom-line losses and negative operating cash flow. This is a common phase for growth companies in new industries, but it comes with inherent funding risks.

Diving Deeper: Financial Health and Key Ratios

Beyond the income statement, looking at the balance sheet and key financial ratios provides a more complete picture of Kanabo Group’s financial health and how its market value compares to its fundamentals. Think of ratios as shortcuts that help us compare companies or track a single company’s performance over time.

First, let’s touch upon the balance sheet components. Total Assets represent everything the company owns.

• 2021: 5.599 Million GBP
• 2022: 14.452 Million GBP
• 2023: 8.351 Million GBP

Total assets saw a significant jump in 2022 before declining in 2023. This fluctuation could be due to acquisitions (which they made, like The GP Service), investments in R&D or infrastructure, or changes in working capital. The decrease in 2023 assets warrants investigation – was it due to asset sales, depreciation, or writing down values?

Next, Total Debt and Total Liabilities show what the company owes to others.

• Total Debt: 0 (2021), 0.707 (2022), 0.272 (2023)
• Total Liabilities: 0.415 (2021), 2.008 (2022), 0.838 (2023)

Kanabo took on debt and liabilities in 2022, likely related to acquisitions or funding operations, and then reduced them in 2023. Managing debt levels is important for a company’s long-term stability.

Now, let’s look at some crucial financial ratios, often derived from the income statement and balance sheet (TTM = Trailing Twelve Months, Quarterly figures are also relevant):

• Forward Price-to-Earnings (P/E): -99,999.99. This astronomically negative number simply tells us the company is not profitable on a forward-looking basis. P/E ratios are typically used for profitable companies, so this isn’t a useful metric here except to confirm the projected lack of earnings.
• Dividend Yield: 0.00%. Kanabo does not currently pay dividends, which is common for growth companies that reinvest any available cash back into the business rather than distributing it to shareholders.
• Price to Sales (P/S): 1.25 (TTM). This ratio compares the company’s market capitalization to its total revenue over the past twelve months. A P/S of 1.25 means the market values the company at about 1.25 times its annual revenue. This can be useful for valuing companies that aren’t yet profitable but have significant sales. Compared to other sectors, this ratio might be considered relatively low, potentially indicating the stock is undervalued *relative to its sales*, but it doesn’t account for profitability issues.
• Price to Book (P/B): 0.24 (TTM). This ratio compares the market capitalization to the company’s book value of equity (Total Assets minus Total Liabilities). A P/B ratio below 1.0 suggests the market values the company at less than the value of its net assets on the balance sheet. A very low P/B like 0.24 could indicate severe market skepticism about the company’s future prospects or the real value of its assets. However, for companies with intangible assets (like R&D or brand value) not fully captured on the balance sheet, or those facing significant losses, interpreting P/B requires caution.
• Total Debt/Total Equity: 3.48 (Quarterly). This ratio measures how much debt a company is using compared to the value of its shareholders’ equity. A ratio of 3.48 is quite high. It means the company has £3.48 of debt for every £1 of equity. A high debt-to-equity ratio can signal higher risk, as the company has significant obligations to creditors, especially if earnings are negative. The Long Term Debt/Equity is 1.23 (Quarterly), indicating a portion of the debt is long-term, which might have different repayment terms.
• Return On Investment (ROI): -81.16% (TTM). ROI measures the efficiency of an investment or the profitability of capital used. A strongly negative ROI like -81.16% confirms the company is currently losing significant money relative to the capital invested in the business.
• Return On Equity (ROE): -75.70% (TTM). ROE measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested. A significantly negative ROE of -75.70% reinforces the picture of substantial unprofitability, showing that the company is eroding shareholder value, at least in the short term, through its operations.

Collectively, these ratios paint a clear picture: Kanabo Group is a company experiencing revenue growth but is currently deeply unprofitable, with high operating costs and a notable level of debt relative to its equity base, particularly given the negative equity implied by persistent losses potentially exceeding asset value over time (though the P/B is calculated against reported book value). These are common characteristics of early-stage or rapidly expanding companies in capital-intensive or R&D-heavy sectors, but they underscore the financial risks involved.

Inside Kanabo’s Operations: Subsidiaries Driving the Strategy

Understanding a company’s structure, especially its subsidiaries, is like looking at the different engines powering the main vehicle. Kanabo Group plc operates through key subsidiaries that support its supply chain, R&D, and service delivery. These are not just names; they represent crucial operational capabilities.

One important subsidiary is Kanabo Agritec Ltd. As the name suggests, this entity is focused on the agricultural side, providing cultivation consultancy services. In the medicinal cannabis space, controlling the quality and consistency of the raw material is paramount. Kanabo Agritec’s role suggests the company is either involved in guiding cultivation partners or potentially preparing for future internal cultivation capabilities, ensuring a reliable and high-quality source for its products.

Another key part of the puzzle is Kanabo Research Ltd. Located in Israel, as mentioned earlier, this subsidiary is the engine for the company’s R&D efforts. Beyond developing specific cannabis formulas and delivery systems (like vaporizers and inhalation devices, often referred to as ‘VapePod’ technology), Kanabo Research is also responsible for navigating the complex regulatory landscape and ensuring quality assurance procedures. Rigorous R&D and regulatory compliance are non-negotiable in the pharmaceutical and medicinal cannabis sectors, making this subsidiary critical for product viability and market access.

Perhaps one of Kanabo’s most strategically important assets is its ownership of The GP Service (Thegpservice.co.uk). This is a telehealth provider, notably approved by the UK’s National Health Service (NHS). This subsidiary is the backbone of Kanabo’s ‘Primary case’ segment and its digital health ambitions. The GP Service offers video consultations, online prescriptions, and various treatment forms. Critically, it provides a platform through which patients can potentially gain access to Kanabo’s own medical cannabis products and wellness CBD products, assuming regulatory pathways are met. This vertical integration into service delivery via a digital health platform gives Kanabo a direct channel to patients and potentially clinicians, setting it apart from companies solely focused on cultivation or product manufacturing.

These subsidiaries illustrate Kanabo’s strategy: build capabilities across the value chain, from potentially influencing cultivation (Agritec) and driving product innovation/compliance (Research) to controlling a direct patient access channel (The GP Service/telehealth). It’s an ambitious structure, requiring significant investment and coordination, but it positions the company to operate in multiple facets of the medicinal cannabis and digital health ecosystem.

Navigating the Medicinal Cannabis & Digital Health Sectors

Kanabo Group operates at the nexus of two rapidly evolving and potentially high-growth sectors: medicinal cannabis and digital health. Understanding the dynamics of these industries is essential for evaluating Kanabo’s future prospects and the context of its current financial performance.

The medicinal cannabis sector is still relatively young in many parts of the world, including the UK, where regulations are gradually developing. Patient access pathways are being established, and the medical community is increasingly exploring the therapeutic potential for various conditions, from chronic pain to neurological disorders. However, this sector also faces significant hurdles: regulatory complexities vary widely by region, clinical research is ongoing but still limited compared to traditional pharmaceuticals, and public perception continues to evolve. Companies in this space require deep scientific knowledge, robust regulatory expertise, and strong distribution channels to reach patients and prescribers.

Simultaneously, the digital health sector has experienced exponential growth, accelerated by technological advancements and, more recently, global health events that highlighted the need for remote healthcare solutions. Telehealth services, like those offered by The GP Service, provide convenience, improve access to care, and can streamline the prescription and delivery of medicines. For Kanabo, integrating its medicinal cannabis products into a digital health platform offers a potentially efficient and scalable way to reach eligible patients. However, challenges remain, including ensuring data privacy and security, integrating with existing healthcare systems, and maintaining the quality and safety of remote consultations and prescriptions.

Kanabo’s decision to combine these two areas is strategic. Leveraging a digital health platform (The GP Service) to facilitate access to medicinal cannabis products creates a unique business model. It attempts to solve one of the key challenges in medicinal cannabis – patient access – by using modern technology. This requires navigating not just the regulations around cannabis but also the complex landscape of healthcare provision and data handling.

The success of this integrated approach depends on several factors: the continued development of favorable medicinal cannabis regulations, the clinical validation and acceptance of their specific cannabis products, the ability of The GP Service to attract patients and clinicians, and the seamless integration of the telepharma service with product distribution. It’s a high-reward, high-risk play in dynamic markets.

Understanding the Importance of Data Sources

In the world of financial analysis, the reliability of your information is paramount. When you see financial data presented, whether it’s on a website, in a report, or through a data terminal, it’s crucial to know where that data comes from. For the information we’ve discussed regarding Kanabo Group plc’s share price and financials, the data is provided by reputable financial information providers.

Sources like LSEG (London Stock Exchange Group), S&P Global Market Intelligence, Factset, Morningstar, and S&P Capital IQ are industry standards for financial data. These organizations collect, process, and disseminate vast amounts of financial information from exchanges, company filings, news sources, and other market participants globally. Their involvement lends credibility to the figures we’ve analyzed.

However, it’s also important to be aware of the caveats that often accompany such data. Providers typically state that the content is for general information purposes only and is not intended as investment advice. This is a critical distinction. Analyzing data helps you form an opinion, but it doesn’t replace professional financial advice tailored to your specific circumstances and risk tolerance.

Furthermore, financial data, especially real-time market data like share prices, is often subject to delays. The information presented for Kanabo’s share price was indicated as being delayed (at least 20 minutes as of the timestamp). This means that the absolute price you see might not be the *exact* price at the current second, but it’s accurate enough for historical analysis and understanding general trends. Financial data might also be rounded, which can lead to minor discrepancies in calculations, though these are usually negligible for high-level analysis.

Being mindful of data sources and disclaimers is part of developing a responsible approach to investing. It reminds us that financial analysis is based on reported information, and while reputable sources strive for accuracy, the information is a tool for analysis, not a crystal ball or a personalized recommendation.

What Does This Mean for Potential Investors?

If you’re an investor, particularly one new to the market or exploring opportunities beyond large-cap stocks, looking at a company like Kanabo Group requires a balanced perspective. What insights can you draw from the data and analysis we’ve just walked through?

First, let’s consider the potential upsides. Kanabo operates in sectors with significant growth potential – medicinal cannabis and digital health. Their strategy of integrating a digital health platform (The GP Service) with product distribution is unique and could provide a competitive advantage if successfully executed. The revenue growth, while starting from a low base, shows some market traction. The share price bouncing 50% off its 52-week low could be seen by some as a potential turning point or a sign that the market sees some value at depressed levels.

However, the financial figures also highlight substantial challenges and risks. The persistent and increasing net losses are a major concern. This indicates that the company is burning through cash and will likely require further funding in the future, which could dilute existing shareholders or add more debt. The high debt-to-equity ratio adds another layer of financial risk. The negative profitability ratios (ROI, ROE) confirm that the business is not currently generating value for shareholders from its operations.

For a beginner investor, this analysis underscores the importance of looking beyond headlines or simple price charts. A company with an innovative business model in exciting sectors might still face significant financial headwinds. For a more experienced trader interested in technical analysis, understanding these fundamentals provides crucial context. A bounce off a 52-week low might look appealing on a chart, but the underlying financial health will influence the sustainability of any price recovery. Technical analysis indicators work best when applied to a security where the fundamentals don’t present an immediate, overwhelming risk.

Investing in companies like Kanabo is often considered speculative. It’s less about current earnings and more about the potential for future profitability if their strategy in these emerging markets succeeds. This type of investment may be suitable only for those with a higher risk tolerance and a long-term perspective who are willing to accept the possibility of significant losses. It requires careful consideration of your personal financial goals and risk profile.

Conclusion: Balancing Potential and Challenges

In summary, our journey into Kanabo Group plc reveals a complex picture. We’ve seen a company whose share price has recently shown recovery from a 52-week low, trading within a specific range that reflects recent market activity and a relatively modest market capitalization.

The company’s business model is innovative, combining the development and distribution of medicinal cannabis and CBD products with a strategic push into digital health via its telehealth subsidiary, The GP Service. This positioning places them in potentially high-growth, yet still developing, sectors.

Analyzing their financial performance tells a story of growing revenue from 2021 to 2023, indicating increasing market reach. However, this growth has come alongside significant and increasing net losses, leading to negative profitability metrics like ROI and ROE. Key financial ratios, such as the Price to Sales and Price to Book ratios, offer valuation perspectives, while the high Debt to Equity ratio highlights potential financial leverage risk.

The operational structure, supported by subsidiaries like Kanabo Agritec and Kanabo Research, demonstrates an effort to control aspects of the value chain from cultivation insights to R&D and regulatory compliance. The GP Service is a critical asset for direct patient access via a digital platform.

Ultimately, Kanabo Group plc represents a venture with significant potential tied to the future growth and regulatory evolution of the medicinal cannabis and digital health industries. However, its current financial state, marked by substantial losses and negative cash flow, presents considerable challenges and risks. For anyone considering this stock, a thorough understanding of both the exciting business strategy and the challenging financial realities is absolutely essential. As always, conducting your own due diligence and potentially consulting with a financial advisor is prudent before making any investment decisions.

We hope this analysis has provided you with a clearer understanding of Kanabo Group plc, helping you connect the dots between share price movements, business operations, and financial health. Navigating the markets effectively is about building knowledge, one company at a time.

kanabo group share priceFAQ

Q：What factors influence Kanabo Group’s share price?

A：Factors include market sentiment, financial performance, developments in the medicinal cannabis sector, and any regulatory changes affecting the business.

Q：Is Kanabo Group a profitable company?

A：As of 2023, Kanabo Group has not yet achieved profitability, reporting consistent net losses over recent years.

Q：What are the growth prospects for Kanabo Group?

A：Kanabo operates in high-growth sectors, including medicinal cannabis and digital health, suggesting potential upside if their business strategy is executed successfully.