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Elekta started FY 23/24 on a healthy note, with Q1 sales and operating profitability beating street expectations for the third consecutive quarter. Top-line growth was driven by healthy contributions from both segments. Notably, margin improvements, backed by healthy momentum in the top line along with lower logistic costs, and the gains from the cost-reduction initiative were a surprise factor. Overall, with a rising global cancer incidence along with Elekta’s focus on underpenetrated markets a
Companies: Elekta (EKTA-B:STO)Elekta AB Class B (EKTA.B:OME)
Elekta reported better-than-expected Q4 results – a second consecutive quarterly beat, driven by an easing supply chain which resulted in better order book conversion. Solutions continued to grow at a faster pace vs. Service. More importantly, the firm reported an improvement in operating profitability, backed by cost reduction initiatives. Overall, Elekta remains an attractive MedTech story, underpinned by promising market dynamics, easing supply chain challenges and innovation prowess; our pos
After persistent weakness in recent quarters, Elekta finally reported encouraging numbers. Sales growth was primarily driven by strong order-book conversion, which led to higher sales for Solutions. Even Service also clocked positive growth, albeit lower vs. Solutions. While operating profitability remained under pressure, there were some noticeable improvements. Overall, with the re-opening of China resulting in the gradual easing of supply-chain challenges and promising R&D initiatives and ord
Elekta reported weak Q2 results as global market challenges persisted. Despite the top-line and profitability headwinds, the performances in the US and Europe were however rather encouraging. The positive developments w.r.t. receiving new orders and CE and FDA approval for its linacs were also promising developments. While China remains a pain-point, the on-going protests in the country could pave the way for much-needed normalisation. Overall, our material upside on the Swedish MedTech should b
Elekta reported a soft Q1, with both the top line and profitability missing the consensus estimates. Additionally, the materially weaker gross order intake spooked the markets. This downturn was due to major ongoing external challenges – higher inflation, supply-chain challenges, and component shortages. However, the firm is trying hard to mitigate these challenges through price hikes and a cost savings programme, but this turnaround could take time and, hence, warrants patience.
Elekta ended FY22 on a healthy note, with Q4 results exceeding street expectations. Sales growth was witnessed in both segments. Importantly, order intake growth was maintained and the dividend was also increased by c.9%. Although profitability was visibly restrained and management expects challenges to remain in Q1, the firm’s innovation prowess, partnership initiatives and promising long-term oncology market dynamics support Elekta’s investment case and, hence, the firm emerges as one of our p
Elekta has released its Q3 21/22 results. While healthy order intake growth is a validation of the underlying recovery in oncology treatment markets, the firm’s performance is being restrained by supply-chain constraints (resulting in both lower installations and higher costs). While our estimates should reset lower and the near term could remain uncertain, looking beyond the transient challenges, Elekta’s long-term attractiveness remains intact.
Elekta reported weak Q3 21/22 preliminary results, with sales well below street expectations. Supply-chain challenges impacted both sales and operating profitability. Although order intake growth was maintained. Overall, while the firm has promising offerings, which should perform well as underlying demand recovers, the near-term (profitability) is expected to remain under pressure and, hence, our estimates should be rationalised.
Elekta’s Q2 results (particularly profitability) came in ahead of market expectations. While margin pressure has continued, the sales growth and order-book progression have remained encouraging. As oncology markets continue to recover and the promising market potential remains intact, the likes of Elekta remain in a sweet spot. Although, near-term profitability challenges are likely to persist and re-emerging COVID-19 risks could be another sentiment dampener.
Impact of recovering markets was evident in Elekta’s Q1 sales growth and adjusted order intake numbers. However, the material weakening of margins came as a surprise. While the re-emerging pandemic risks are guided to result in near-term margin pressure, the firm remains on track to unlock healthy sales growth opportunities. Moreover, with better-margin products expected to pick up momentum, the margin progression story remains intact. Add on top the expected recovery in oncology markets, and ou
Driven by a growing presence in the underserved emerging markets and an increasing proportion of faster-growing software/ service business in the total mix, Elekta’s sales momentum is set to accelerate in the mid-term. Moreover, innovation and strategic partnerships with industry bigwigs should ensure a sustained market share gain. Top-line growth will be accompanied by margin expansion on the back of operational leverage and efficiency gains, with Unity leading from the front.
Sales momentum decelerated in Q4 as installations took a hit, especially in emerging markets. Profitability came under pressure impacted by higher supply chain and service costs. However, Elekta’s order intake surged 18%, comfortably outpacing the market leader. As pent-up demand is now being unleashed, positive order growth is here to stay. Moreover, as the market situation continues to recover, Elekta’s ability to install systems should improve, thereby pushing up sales. Details on the new mid
Sales momentum accelerated in Q3 driven by improving market conditions and better access to customers’ installation sites – the solutions business grew faster than services business. Geographically, Asia-Pacific led the pack and the Americas returned to growth, though recovery lost pace in EMEA. Notably, profitability was hit by higher supply chain costs and an unfavourable product mix. Although the gross order intake was back in the black, it missed expectations with EMEA playing spoilsport. Gi
Despite the challenging market conditions, Elekta outperformed its rivals in Q2 – in both terms of revenue and order growth. Operating profitability reached a new high driven by a favourable product mix and strict cost management. Although Q3 could be negatively impacted due to the new wave of lockdowns, a new product launch, Harmony, which complements Unity, could enable Elekta to outgrow the market when a rival is undergoing an integration phase. The new reimbursement model could also be favou
Companies: EKTAB EJXB EKTAB EKTAF
Elekta’s Q1 results showed resilience in challenging market conditions. While the top-line benefited from higher service revenue and double-digit growth in China, profitability outperformance was driven by a favourable product mix and strict cost management. Importantly, in the weak radiotherapy market, gross order intake was in the black on the back of a big order from GenesisCare in the US. With Unity now in the growth phase of commercialisation and a new linac around the corner, Elekta’s mid-
Companies: Elekta AB Class B
Research Tree provides access to ongoing research coverage, media content and regulatory news on Elekta AB Class B.
We currently have 33 research reports from 4
Companies: Totally Plc
ReNeuron has announced its H124 results (to end-September 2023), reaffirming its commitment to advance CustomEX(TM), its proprietary stem cell-derived exosome delivery platform. The key operational update from the period included in vivo data, marking a crucial step towards validating CustomEX(TM) and distinguishing it from peers in the exosome delivery space due to its cellular and tissue-targeting capabilities. As of 30 September 2023, ReNeuron had a cash balance of £5.1m, which we estimate sh
Companies: ReNeuron Group plc
Cambridge Nutritional Sciences (CNS) has published its H1 2024 results to end September 2023. Group revenues grew 44% to £4.9m and gross profits increased by 63% to £3.1m, with the company benefitting from newfound operational efficiencies. With its now streamlined strategy focussing on the core Health & Nutrition business and the initial signs of an encouraging uptick in sales momentum, we believe the company is well positioned for growth that will help create future value for shareholders. We
Companies: Cambridge Nutritional Sciences PLC
TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone (BioRinse®). It has a broad portfolio of regenerative medicine products for the biosurgery, orthopaedics and dental markets. 1H’23 results highlighted the benefits and efficiencies being derived from investment and reorganisation in manufacturing capacity, with the first underlying EBITDA-positive reporting period. With further strong growth forecast
Companies: Tissue Regenix Group plc (TRX:LON)Tissue Regenix Group plc (TRX:LON)
Hardman & Co
Creo Medical has announced that its EU notified body has guided for an accelerated clinical pathway for its Speedboat UltraSlim device, the slimmest Speedboat Inject version that is compatible with most endoscopes. The reduced regulatory path will enable the company to launch the versatile product in Europe in early 2024, roughly 18 months earlier than planned. As the FDA application was submitted for this device in February 2023 (management expects clearance in Q423), UltraSlim is now projected
Companies: Creo Medical Group Plc
RUA have released a trading update ahead of its December interim results announcement. In contrast to the previous year, revenues have been weighted to the second half and while this has suppressed first half revenue growth, October’s and November’s revenues have largely caught up to align with management’s budget expectations.
RUA’s recent strategy update and its trading update have several common themes. The reliance on partnerships to fund the development of RUA’s products in RUA Structural
Companies: RUA Life Sciences Plc
Companies: MRL BBSN POLB
FY22 was a key inflection period for Creo with significant traction in the adoption of Speedboat Inject (its flagship electrosurgical device) and its proprietary CROMA technology platform, reflected in major robotic deals with Intuitive Surgical and CMR Surgical. Total revenue growth (8% y-o-y to £27.2m) was in line with consensus (£27m) and was primarily driven by Creo’s core technology business. Operating losses rose to £30.8m, affected by increased personnel and R&D expenses, although managem
In a well-attended Capital Markets Day on Nov 7, Creo made no new announcements but showed qualitatively how the next few years are likely to evolve with insights from three enthusiastic medical users. We took on board three important qualitative observations from the event.Firstly, the importance
Macro issues dominate investor sentiment - Some basics for investors
The big topics in the investment world at the moment seem to be macroeconomic. With that in mind, we thought it would be useful to revisit some of the basics of the terms being used in the current environment, and to remind investors of the things to look out for (indeed, many younger investors may not have come across some of these influences in their investing lifetime):
• Recession does not affect
Companies: OCI ICGT FAS FJV IBT APP ARBB RECI PANR TRX FCSS AVO DNL FEV FSV STX VTA E7F0
Companies: CNSL HEIQ JOG
Companies: Futura Medical plc
Feature article: Equity Income – UK or Global? Should investors widen their horizons?
► The UK Equity Income sector (UKEI) is the fourth-largest investment company (IC) sector in the Association of Investment Companies’ (AIC) universe, with £12.5bn of assets (as at August 2023), and is the traditional home for investors looking for income in the equity market.
► The UKEI not only provides investors with a better dividend yield than the ge
Companies: CTY EDIN ICGT DIG JCH CTUK TIGT PIN LWI AEI SDV SCF ARBB SHRS TMPL BRIG LWDB RECI HAT IVPU CHI DIVI AVO STX VTA APAX PIN
29th November 2023
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj
Companies: SOU Z29 SNX IQE NTBR ADME ARK 123F AREC
Avon Protection should be well positioned to recover strongly following the value destruction caused by the relatively small Armor activity, which now faces a managed closure over the next two years. Future growth rates are diminished by the exit but remain healthy in the further focused core of Respiratory and Head Protection. Management needs to restore investor confidence as it continues with its growth strategy, in order to regain the historical premium rating to its UK defence peers. In thi
Companies: Avon Protection PLC