Consort Medical's figures aren't as impressive as they seem - adjust for for various special items and pre-tax profit rose by a fairly modest 1.5 per cent year on year to £17.9m.
Consort began the year in a state of adjustment following the termination of its Exubera insulin inhaler contract with Pfizer. And chief executive Jonathan Glenn admits that, while the group's primary business of inhaler devices and associated airway management products is largely shielded from economic trends - and has a high barrier to entry, too - many of the Consort's markets are relatively mature.
So management is now utilising the group's strong cash flow to develop new products and target new markets. And while Consort can boast an encouraging pipeline of new business, management says that diversification into fresh revenue streams could also come through acquisitions.
Meanwhile, the Bespak unit saw underlying revenue flat at £81.2m - although cost savings helped to boost margins there from 15.1 per cent to 16.6 per cent. And new product launches helped to secure a modest increase in sales in the Kings Systems division. Additionally, group costs were cut by £5m.
Subject to revision, Investec Securities expects adjusted pre-tax profit of £18m for 2010 (£18.2m in 2009) and EPS of 42.9p (45.8p).
| CONSORT MEDICAL (CSRT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 385p | MARKET VALUE: | £111m | |
| TOUCH: | 385-397p | 12-MONTH HIGH: | 609p | LOW: 322p |
| DIVIDEND YIELD: | 5% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 262p* | NET DEBT: | 25% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 79.4 | 4.82 | 8.70 | 19.1 |
| 2006 | 87.6 | 14.30 | 39.40 | 19.1 |
| 2007 | 124.0 | 15.70 | 40.60 | 19.1 |
| 2008 | 133.0 | 4.18 | 9.30 | 19.1 |
| 2009 | 130.0 | 12.00 | 26.20 | 19.1 |
| % change | -2 | +187 | +182 | - |
Ex-div:23 Sep Payment:23 Oct *Includes intangible assets of £59.8m, or 207p a share | ||||
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