Futura Medical's (FUM) management was candid about the lack of progress during the year and the company is now deciding how best to proceed with its product portfolio. The cancellation of its distribution agreement with Reckitt Benckiser in August does give it the freedom to find new licensing partners for its erection-enhancing condom CSD500. However, with only a year's worth of cash left, it's reasonable to ask whether a fresh deal can be negotiated on decent terms.
Indeed, achieving any kind of scale will be difficult when its disparate product portfolio requires investment far greater than its current resources. Under such circumstances licensing partners, if at all interested, can dictate terms. The product closest to market is the PET500 enhanced control spray which marketing partner Ansell has licensed for sale in the US. Ansell is trying to interest retailers by selling PET500 under the well-known "Lifestyles" brand. Futura's other products are split between topical pain relief and cellulite treatment. The pain treatment product, TPR100, is being developed by GlaxoSmithKline's consumer healthcare arm in a deal that generates fees for Futura. The CRF100 cream for cellulite is currently undergoing a trial with results due in September.
Research & development costs for the year were slightly lower at £1.44m, while general administration costs rose 41 per cent to £1.1m. A lot of management time was spent on licensing negotiations in 2012 - so far, that has been unsuccessful.
FUTURA MEDICAL (FUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 65.5p | MARKET VALUE: | £33.2m | |
| TOUCH: | 64-67p | 12-MONTH HIGH: | 110p | LOW: 39p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 6p | NET CASH: | £2.82m | |
| Year to 31 Dec | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 150 | -2.08 | -3.40 | nil |
| 2009 | 50.0 | -1.51 | -2.20 | nil |
| 2010 | 125 | -1.32 | -1.61 | nil |
| 2011 | 158 | -2.07 | -2.53 | nil |
| 2012 | 75.0 | -2.43 | -2.91 | nil |
| % change | -53 | - | - | - |
Ex-div:- Payment:- | ||||
