The mood at Consort Medical's annual meeting at the end of the month is likely to be cheerful after a noticeable re-rating in the inhaler company's share price, which is up nearly 50 per cent since the start of the year.
Apart from a few directors buying, there hasn't been any obvious news to drive the share price, but City analysts have consistently upgraded the outlook for the company as product launches and automation of its production facilities finally deliver long-awaited improvements in Consort's profit margins.
The final integration of King Systems, which supplies disposable products for anaesthesia, is also helping improve sentiment, particularly as the division will benefit most from automation and other operational improvements. Broker Singer Capital reckons this will add 4.5 percentage points to the division's current profit margin of 7.5 per cent.
