Shares in Consort Medical (CSRT) have been in an uptrend through much of 2019, buoyed, in part, by news that the US Food and Drug Administration (FDA) had approved Wixela Hub, a generic respiratory drug made by US-listed pharma group Mylan (US:MYL), which employs one of Consort’s drug delivery systems. The indirect benefits of the FDA decision have yet to be fully realised due to delays in the launch of Mylan Wixela, so revenue at the related Bespak segment was flat on FY2018.
The decline in the group top line was largely attributable to a 2.6 per cent constant-currency fall at Aesica, a developer of active pharmaceutical ingredients (API), where lower volumes of mature products in the UK business impacted sales. Statutory profits were also held in check due to reorganisation costs and inventory impairments linked to the closure of an API facility in Kent.
Investec expects adjusted profits of £40.2m for the April 2020 year-end, giving EPS of 65p, rising to £46.3m and 74.9p in FY2021.
| CONSORT MEDICAL (CSRT) | ||||
| ORD PRICE: | 988p | MARKET VALUE: | £488m | |
| TOUCH: | 968-988p | 12-MONTH HIGH: | 1,294p | LOW: 700p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 46 | |
| NET ASSET VALUE: | 482p* | NET DEBT: | 41% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 185 | 5.5 | 15.4 | 18.1 |
| 2016 | 277 | 11.3 | 32.7 | 19.3 |
| 2017 | 294 | 21.9 | 46.2 | 20.3 |
| 2018 | 311 | 17.3 | 32.9 | 21.0 |
| 2019 | 305 | 12.5 | 21.3 | 21.4 |
| % change | -2 | -28 | -35 | +2 |
| Ex-div: | 19 Sep | |||
| Payment: | 25 Oct | |||
| *Includes intangible assets of £166m, or 335p a share | ||||
