Horizon Discovery (HZD) only joined London’s Aim market in March, but has already completed its first acquisition as a listed company. This helped drive 37 per cent growth in group revenue at the half-year stage. Horizon, which develops research tools for studying the genetic root of various diseases, bought US company CombinatoRx for nearly £5m in June.
The IPO raised £37.8m in new money for Horizon, which will now be put towards a number of growth initiatives. Chief executive Darrin Disley said investing in the group’s product range would be a top priority for the next two years or so, but he didn’t rule out the possibility of more acquisitions. That said, full-year forecasts are achievable "whether there’s more M&A activity or not."
Current trading is good, says Mr Disley. The group has signed a service contract worth $840,000 with clinical development outfit Otsuka Pharmaceutical Development and Commercialisation, and its reagent products division has taken $750,000 worth of new orders. City analysts agree that revenues for Horizon will be weighted towards the second half, with only 40 per cent of full-year sales likely to be generated during the first six months.
House broker Panmure Gordon expects losses of £4.8m in 2014.
| HORIZON DISCOVERY (HZD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 161p | MARKET VALUE: | £ 108m | |
| TOUCH: | 157-165p | 12-MONTH HIGH: | 215p | LOW: 148p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 65p | NET CASH: | £33m | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 3.0 | -1.9 | -5 | 0 |
| 2014 | 4.1 | -3.0 | -5 | 0 |
| % change | +37 | - | - | - |
Ex-div:n/a Payment:n/a | ||||
