BTG's (BTG) shares seem to have found renewed momentum following a 12-month trough in July, and these half-year numbers – which included an FY2019 guidance upgrade for the company’s pharmaceuticals division – have inspired further confidence. The company has also made its final $73.3m (£56.9m) payment to settle its ongoing legal dispute with Wellstat Therapeutics, albeit sending free cash flow down by nearly two-thirds during the period.
But having started the year facing "a number of near-term uncertainties", bosses say these are now largely resolved. For example, varicose veins treatment Varithena has relaunched in the US, and is expected to be profitable next year, while the timing of a potential generic launch of the group’s prostate cancer drug Zytiga continues to be in line with management’s expectations. Emphysema treatment PneumRx might have failed to win the US regulatory thumbs up, but costs have been cut while the company explores other options. Broker Peel Hunt has suggested the coil system could be sold or licensed to a partner.
Analysts at Peel Hunt expect pre-tax profits of $216m for the year ending March 2019, giving EPS of 45¢, compared with $213m and 43.7¢ in FY 2018.
| BTG (BTG) | ||||
| ORD PRICE: | 655p | MARKET VALUE: | £2.54bn | |
| TOUCH: | 653-656p | 12-MONTH HIGH: | 784p | LOW: 467p |
| DIVIDEND YIELD: | nil | PE RATIO: | 139 | |
| NET ASSET VALUE: | 345¢* | NET CASH: | $285m | |
| Half-year to 30 Sep | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2017 | 442 | 59.7 | 17.8 | nil |
| 2018 | 496 | 87.5 | 20.0 | nil |
| % change | +12 | +47 | +12 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of $908m, or 235¢ a share £1=$1.29 | ||||
