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Research Tree provides access to ongoing research coverage, media content and regulatory news on BASTIDE LE CONFORT MEDICAL. We currently have 3 research reports from 1 professional analysts.
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BASTIDE LE CONFORT MEDICAL
BASTIDE LE CONFORT MEDICAL
Bastide strikes a fifth acquisition within a month
01 Feb 17
Bastide announced the acquisition of TCM Pharma (€4m of sales) located in the Paris region, specialised in the set-up and the follow-up of drip nutrition devices for patients at home. TCM Pharma’s current CEO will step down but will remain committed to the company’s development and the company’s integration (TCM to be consolidated from 1 January 2017). The acquisition is financed by a mix of cash and debt.
Strong start of the year for Bastide
12 Jan 17
In early January, Bastide announced the acquisition of four companies, all profitable, one specialised in stoma therapy and urology and the other three specialised in services dedicated to breathing assistance. The three acquisitions in breathing assistance are the following: 1) ATS (100% stake, €3m sales) located in the Auvergne-Rhône Alpes and offers medical equipment in breathing assistance. The bulk of revenues are qualified by management as recurrent; 2) Air+ Santé (100% stake, €1.7m) located in Occitanie and whose sales have been experiencing a sustained momentum; 3) Bordo2 Médical (95% stake, €0.5m of sales) in Nouvelle-Acquitaine which offers strong growth prospects. The acquisition will bulk up Bastide’s market shares and generate economies of scale in terms of procurement (medical equipment). These three acqusitions will provide Bastide with 36,000 new patients within its network. Bastide has also acquired Medsoft (100% stake, €2.6m sales), which is specialized in stoma therapy and urology, based in Ile-de-France. In this still very fragmented market, Bastide ranks in the three top players with pro-forma revenues in this segment which should reach over €20m (full year).
Strong growth driven by network expansion and acquisitions
02 Jan 17
Recommendation and upside We are initiating coverage on Bastide Group (market cap. of €174m and a free float of 44.79%) with a ADD recommendation and a target price of €26.7 (c. 12% upside). Our upside is driven by the company’s high revenue growth in a dynamic sector, the decrease in cost of borrowing, the increase in margins and the highly growing shareholders’ return. The stock has risen strongly since April to reach its all-time high (€23.25) in early August, and despite this important upside we still believe there is room for another all-time high considering the annual results in early November 2016. Business and trends Bastide Group is a French home medical equipment (wheelchairs, walking frames, specialised beds, etc.) retailer and home care services provider, specialised in small medical accessories, medical product renting and services to keep patients at home rather than hospital. The sector follows a strong and highly predictable growth trend due to the ageing population in France and Western Europe. Bastide addresses its customers through its dense and wide-spread own or franchised shop network (about 70 shops) while it also sells to an important number of establishments such as retirement homes. The services it offers (51% of revenues for services and 49% for retail) are made for patients in need of breathing assistance or nutritional drips. These services are reimbursed by the French social security, where Bastide almost exclusively does business (97% of its revenues in 2015), giving it secured revenues without credit risk. Need to know The CEO and founder of the group, now 76, might soon hand down his position to his deputy CEO who is also his son, and who has been working in various positions within the company for a long time. Even though it seems to be well planned, this could bring upheaval in the family-controlled company (55.21% of the total capital held by the family). Main drivers The company, being well established in France with a wide network, now focuses its external growth on foreign countries like Belgium and Switzerland, but some more might come. Bastide aims to see its deal sizes increase to benefit from a volume effect which is crucial to be the best positioned in terms of pricing power. Since 2010, the company has been fostering its growth thanks to acquisitions, while previously the company was mainly concentrating on opening new shops. These new acquisitions could help it develop new products and access new markets.
20 Apr 17
Although the last two months have seen a broadly neutral performance from the UK healthcare sector compared to a significantly more volatile 6 months prior, we continue to expect macro-events and increased geo-political risk to result in an overall neutral performance from the sector over the next period. However, company specific news is likely to drive a strong outperformance from selected mid-market companies. We retain our neutral sector stance whilst highlighting those we expect to outperform.
N+1 Singer - Morning Song 24-04-2017
24 Apr 17
First Derivatives (FDP LN) FY slightly ahead as strong trading momentum continues | Goals Soccer Centres (GOAL LN) A potentially exciting corporate development | mporium Group (MPM LN) 2016 results: course set for exciting 2017 | Vectura Group (VEC LN) VR315 risk outweighs longer-term potential
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
N+1 Singer - Sinclair Pharma - EBITDA upgrade for 2017, but lower TP due to warranty claim and costs
19 Apr 17
We have updated product-level forecasts and included the £10m SVB debt facility and £5m warranty claim settlement with Alliance Pharma in our forecasts. The 6.3% upgrade to our FY2017 sales estimate (from £46.0m to £48.9m) brings expected EBITDA profitability forward by one year (to FY2017 from FY2018). We remain positive on the ongoing rollout of Silhouette Instalift® in particular and retain our Buy recommendation. However, higher expected sales & marketing costs and the warranty claim weigh on our valuation: we downgrade our target price from 42p to 37p.
24 Apr 17
Lok’nStore* (LOK): Growth supported by a strong balance sheet (CORP) | Mortice* (MORT): UK acquisition (CORP) | Avacta* (AVCT): Another milestone – 1st non-therapeutics licence (CORP) | Petra Diamonds (PDF): Trading update and Q3 results (BUY) | Nasstar* (NASA): Growth and margin focus (CORP)