There's plenty going on at Futura Medical. A few weeks ago, it was finally awarded an EU Kitemark to sell its erection-enhancing condom safety device, CSD500, in 29 European countries under a 10-year deal that will be marketed by Reckitt Benckiser under the Durex brand name. Moreover, a 30-year agreement with rival condom maker Ansell will soon lead to the US launch of Futura’s PET500 topical spray to delay ejaculation.
Both products should be launched in 2012 and the company estimates that a 5 per cent share of the global branded condom market could, in time, earn it royalties of between £9m and £13m a year from worldwide sales of CSD500. For a similar share of the global premature ejaculation market, PET500 is expected to produce royalties of between £8m and £10m a year. To keep its head above water until then, Futura raised £3.1m through a placing in March, although the cash-burn remains at a modest £100,000 or so a month. Meanwhile, half-year losses increased as research and development spending on other potential products increased from £380,836 to £515,117. For the full year, and before the royalty streams build up, expect a loss similar to 2010's £1.32m.
FUTURA MEDICAL (FUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 57p | MARKET VALUE: | £41.3m | |
| TOUCH: | 56-57p | 12-MONTH HIGH: | 93p | LOW: 51p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 5p | NET CASH: | £3.4m | |
| Half-year to 30 Jun | Turnover (£000) | Pre-tax profit (£000) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 125 | -598 | -0.65 | nil |
| 2011 | 121 | -701 | -0.85 | nil |
| % change | -3 | - | - | - |
