80. HORIZON DISCOVERY
Horizon Discovery (HZD) provides research tools and services to larger institutions or laboratories that develop treatments derived from the genetic roots of serious diseases. Since its arrival on Aim last year at 200p a share, it has built the business with the help of three acquisitions. The latest will see Horizon pay out £6m for Vienna-based biotech Haplogen Genomics – a deal analysts said “makes sense” given Horizon has sold the group’s inventory for the past year.
Despite this spending spree, Horizon said it could still finish the financial year with £12m in the bank – not too shabby for a small healthcare services outfit. Final results out this week revealed that the company had outperformed expectations, with full-year revenues rising to £11.9m, 8 per cent ahead of consensus estimates. This is down to growing demand for Horizon’s products and doesn’t include £158m in milestone payments which could be earned in coming years. We advised buying the shares at 160p after a post-IPO dip, giving any investors who followed that advice a 30 per cent return on the bounce back to 215p. Buy. HR