Epistem has just reported its first full year profit and seems to be going from strength to strength. It's fortunate to have the backing of a contract research division blessed with a US Government bio-defence contract worth around £600,000 a year to test treatments to counter radiation sickness. This subsidiary increased sales from £2.3m to £2.52m in the 12 months to end-June 2010 while operating profits advanced from £563,000 to £722,000.
The other key contributor to the results was the research and development novel therapies collaboration with Swiss drug giant Novartis which saw revenue increase from £1m to £2..4m. This contract formally ends next February but is likely to be extended in some form. The US defence contract, the agreement with Novartis and work for several US drug companies meant that last year the US accounted for 79 per cent of sales while UK work slipped from 18 to just seven per cent.
Next year Epistem launches its first "I Pad" size mobile electronic device. It's called Genedrive and will diagnose diseases from, for example, swabs and urine samples, within 30 minutes. Brokers expect 2010-11 sales of around £6.5m and pre-tax profits of between £400,000 and £500,000 depending on the cost of marketing Genedrive.
EPISTEM (EHP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 345p | MARKET VALUE: | £ 27.4m | |
| TOUCH: | 335-355p | 12-MONTH HIGH: | 450p | LOW: 327.5p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 91 | |
| NET ASSET VALUE: | 73p | NET CASH: | £5.33m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£000) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 0.90 | -756 | - | nil |
| 2007 | 1.36 | -1197 | -22.4 | nil |
| 2008 | 2.07 | -1333 | -17.0 | nil |
| 2009 | 3.97 | -669 | 1.1 | nil |
| 2010 | 5.74 | 350 | 3.8 | nil |
| % change | +45 | - | +245 | - |
Aim: Life sciences | ||||
