The previous set of full-year results from Futura Medical (FUM) showed a business stuck in neutral following the collapse of its commercial deal with Reckitt Benckiser (RB.). Fast forward a year and the picture has improved, with a new product launch in the lucrative US sexual health market providing a much-needed recurring revenue stream.
This week Futura will start selling its ‘Epic’ product for enhancing sexual performance in 900 Walmart stores, a marketing deal with US partner Ansell having proved successful. Chief executive James Barder said Futura hoped to supply the existing market with a "credible and reputable mainstream product" that consumers "could trust" if choosing to purchase online.
The second half of 2014 also holds promise. The group will launch its condom product CSD500 into several regions, including North America, Europe, the Middle East and China, having achieved regulatory approval and the necessary licensing deals in 2013. Mr Barder believes capturing a marginal 1 per cent of the market could be enough to make Futura profitable.
The post-year-end fundraising, worth £12m, will be put towards the clinical development of Futura's "next generation" pain-relief products. The placing follows various failed partnerships that have discouraged Futura from seeking further assistance from big pharma.
Brokerage N+1 Singer expects pre-tax losses of £3.3m for 2014.
| FUTURA MEDICAL (FUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 55p | MARKET VALUE: | £54m | |
| TOUCH: | 54-56p | 12-MONTH HIGH: | 83p | LOW: 49p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1p | NET CASH: | £1m | |
| Year to 31 Dec | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 50 | -1.5 | -2.2 | nil |
| 2010 | 125 | -1.3 | -1.6 | nil |
| 2011 | 158 | -2.1 | -2.5 | nil |
| 2012 | 75 | -2.4 | -2.9 | nil |
| 2013 | 371 | -2.5 | -2.9 | nil |
| % change | +395 | -3 | +2 | - |
Ex-div: na Payment: na | ||||
