The outlook is slightly better for condom manufacturer Futura Medical (FUM) after the company signed a marketing agreement in April with US company Church & Dwight to sell its erection-enhancing condom in the US and other countries once the product is approved for sale.
A licensing agreement with Church & Dwight requires Futura to manufacture and develop the product with the manufacturing rights switching to the US company when the condom is ready for marketing. The rights have been sold on a regional basis - a Middle Eastern healthcare group has licensed the product for distribution in the Middle East and North Africa region, for example. This should avoid the situation that developed after rival SSL was acquired by Reckitt Benckiser, whereby the product ends up languishing within a corporate bureaucracy. Meanwhile, the CSD500 condom is awaiting to receive its CE mark from EU regulators (expected later this month), which will allow Futura to sell the product throughout the region.
Shore Capital forecasts Futura to report a pre-tax loss of £2.25m this year, a loss of £0.81m in 2014 before turning a profit of £1.87m and EPS of 2.2p in 2015.
FUTURA MEDICAL (FUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 76.25p | MARKET VALUE: | £59.2m | |
| TOUCH: | 75.5-77p | 12-MONTH HIGH: | 82.5p | LOW: 47.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 3p | NET CASH: | £2.12m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 0.07 | -1.08 | -1.30 | nil |
| 2013 | 0.32 | -1.03 | -1.14 | nil |
| % change | +357 | - | - | - |
