Lifeline impresses prior to merger completion

For investors, however, the main interest in the second half will be whether or not shareholders approve the recently announced mergerwith Shanghai Genext Medical Technology, a private company that specialises in organ transplantation and associated medical equipment. This merger comes as the culmination of a year-long strategic review, during which management has been searching for alternative strategies to "enhance shareholder value". But the offer price, which represents a 51 per cent premium to the value of the company when management launched the strategic review, was not all that well received by shareholders, and Lifeline's share price fell heavily following the announcement.

Merger aside, so far 2016 has been an excellent year for the company. Growth has come from both the core US market and overseas, including a major stocking order in China. Demand for consumable products were up by almost a quarter, while strong cash inflows helped boost the group's net cash position.

Broker Panmure Gordon has placed forecasts under review following the announcement of the definitive merger agreement.