Consort Medical (CSRT) has not been too hurt by recent failure to launch an un-branded version of GlaxoSmithKline's (GSK) asthma drug, Advair. Consort makes the inhaler device for both GSK and Mylan and neither management nor analysts think the latter's setback will have too great an impact on Consort's numbers. That's because the device maker has a huge customer base. In fact, according to chief executive Jon Glenn: "every second, 1,000 people around the world are using our devices."Consort Medical (CSRT) has not been too hurt by recent failure to launch an un-branded version of GlaxoSmithKline's (GSK) asthma drug, Advair. Consort makes the inhaler device for both GSK and Mylan and neither management nor analysts think the latter's setback will have too great an impact on Consort's numbers. That's because the device maker has a huge customer base. In fact, according to chief executive Jon Glenn: "every second, 1,000 people around the world are using our devices."
In the year to April 2017, Bespak - the group's medical device manufacturing division - reported a 3 per cent increase in revenues to £121m. This was ahead of broker expectations in spite of the Mylan delay. New customers, particularly outside of the group's core respiratory division, more than offset this.
Once again, like-for-like revenue growth from the group's pharmaceutical ingredients business, Aesica (which was acquired in 2015), was slightly disappointing at just 1 per cent. But, a 60 basis point improvement in margins helped to send adjusted operating profits up 4.5 per cent to £13.9m.
Given the outperformance in 2017, Panmure Gordon is likely to update its expectations for the year to April 2018. Prior to these results, the broker had pre-tax profit and EPS forecasts of £35.5m and 59.8p respectively (FY2017:£35.6m and 65.1p).
| CONSORT MEDICAL (CSRT) | ||||
| ORD PRICE: | 1,034p | MARKET VALUE: | £509m | |
| TOUCH: | 1,030-1,038p | 12-MONTH HIGH: | 1,175p | LOW: 940p |
| DIVIDEND YIELD: | 2.00% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 431p* | NET DEBT: | 44% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 95 | 14.4 | 43.2 | 22.5 |
| 2014 | 100 | 16.1 | 41.5 | 18.1 |
| 2015 | 185 | 5.5 | 15.4 | 18.1 |
| 2016 | 277 | 11.3 | 32.7 | 19.3 |
| 2017 | 294 | 21.9 | 46.2 | 20.3 |
| % change | 6 | 94 | 41 | 5 |
| Ex-div: 21 Sep | ||||
| Payment: 27 Oct | ||||
| *Includes intangible assets of £184m, or 374p a share | ||||
