These full-year figures from Consort Medical suggest that the long integration process that followed 2005's acquisition of medical devices unit King Systems is nearing an end. For example, exceptional items - which have long affected the income statement - fell from £4.7m to £1.6m. And, despite worries over eurozone exposure, new product launches and organic inhaler sales growth helped reiterate Consort's defensive qualities - leaving the shares looking attractive.
However, despite the diversification that came with King Systems, Bespak Respiratory - which makes inhalers for big pharmaceutical companies - remains Consort's core business. Revenues there rose 12 per cent to £91.9m, driven by a brisk first-half following a sudden rush of orders. That contrasted with a more mixed period at King Systems, where revenues were flat at £43.3m and like-for-like operating profits fell 10 per cent to £3.3m. That reflected a combination of such factors as higher raw materials costs and duplication in manufacturing processes, although these should fall away as new production lines are commissioned. But management acknowledged a high level eurozone exposure, even though products are paid for in sterling.
Broker Peel Hunt forecasts pre-tax profit for 2013 of £20.8m, giving EPS of 53.6p (from £19.4m and 52.2p in 2012).
CONSORT MEDICAL (CSRT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 605p | MARKET VALUE: | £175m | |
| TOUCH: | 599-605p | 12-MONTH HIGH: | 675p | LOW: 490p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 311p* | NET DEBT: | 42% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 133 | 4.20 | 9.30 | 19.1 |
| 2009 | 130 | 12.0 | 26.2 | 19.1 |
| 2010 | 125 | 10.5 | 27.8 | 19.1 |
| 2011 | 132 | 12.7 | 36.0 | 19.1 |
| 2012 | 141 | 17.8 | 49.5 | 19.1 |
| % change | +7 | +40 | +38 | - |
Ex-div: 19 Sep Payment: 26 Oct *Includes intangible assets of £72m, or 249p a share | ||||
