As with most other early-stage healthcare companies, Vectura's (VEC) reported figures don't tell the whole story. For while the half-year pre-tax loss widened significantly - reflecting increased amortisation costs associated with March's acquisition of Activaero - cash profit actually rose 30 per cent year-on-year to £3m. That was down to a 45 per cent increase in royalty revenue to £10m.
What's more, chief financial officer Paul Oliver - he'll step down in January and will be replaced by Andrew Oakley, formerly of Swiss group Actelion Pharmaceuticals - reckons the income stream should ramp up further in the second half. Vectura also has nine products in its pipeline which are expected to launch by 2021, while $200m (£128m) in potential milestone payments are due from existing deals.
For now, however, Vectura is celebrating a new licence agreement for its latest asthma product, VR506. That was signed with an existing, undisclosed US partner - the same one which collaborated with Vectura on its VR315 product for asthma and chronic obstructive pulmonary disease.
Broker Investec Securities expects the group to merely break even at the full-year stage, down from an adjusted pre-tax profit of £4.6m in 2014 with adjusted EPS of 1.2p. But that's set to rise to £14.8m and 3p in 2016.
| VECTURA (VEC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 124p | MARKET VALUE: | £499m | |
| TOUCH: | 123-124p | 12-MONTH HIGH: | 172p | LOW: 101p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 54p* | NET CASH: | £85m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 17.0 | -1.2 | -0.1 | nil |
| 2014 | 19.4 | -7.1 | -1.1 | nil |
| % change | +14 | - | - | - |
Ex-div: - Payment: - *Includes intangible assets of £180m or 45p a share | ||||
