Serious supply-chain disruptions coupled with sleep device recall headwinds resulted in a Q3 organic sales decline of 7.6%. Despite productivity improvements, even profitability came under pressure. However, there were various positive takeaways in the respective segments – also reflecting in healthy order intakes and/or sustained innovation. While 2021 guidance was downgraded, the mid-term targets remain intact – thanks to the unchanged strong potential of focus markets. Hence, our positive sto
Companies: Koninklijke Philips N.V.
Driven by the acceleration in sales in Personal Health and D&T, Philips reported better-than-expected results in Q2, though this was overshadowed by a product recall in Connected Care. Corrective actions could take up to 12 months and the FY21 profitability outlook has been narrowed to the lower end of the guidance range. To soothe some investors nerves, a new three year €1.5bn share buy-back programme has been announced. The double-digit order growth in D&T, indicating hospitals spending are im
Sales momentum accelerated in Q1 21 driven by a strong show in Personal Health and a strengthening performance in D&T. Order intake growth in D&T was in double-digit territory, which is also encouraging. Margin advancement – driven by sales growth and productivity measures – was better than expectations. Given the robust momentum, FY21 sales target has been upgraded. However, the strong results were overshadowed by some quality issues (booked a €250m provision) with certain sleep and respiratory
FY20 ended on a promising note with strong organic sales and order growth as well as margin expansion – mainly driven by the third consecutive quarter of double-digit growth in Connected Care. Notably, Personal Health sustained its mid-single-digit growth, while D&T returned to growth in Q4 20. Given the pandemic is still continuing, management expects a strong H1 21 on the back of sustained demand for acute care and precision diagnosis equipments. Easy comps should also lend support.
Sales growth momentum is likely to accelerate in the mid-term on the back of the growth in core businesses and increasing demand for integrated AI solutions. Connected Care should benefit from structural tailwinds and growth in Personal Health should be innovation-driven. D&T should profit from its solution-centric approach. Top this up with the operating margin advancement target of 60-80bp, including the targeted productivity savings of €2bn, adjusted EPS is likely to grow by c.10% p.a. until
Philips returned to growth in Q3, driven by robust demand for patient monitors and ventilators and a solid rebound in Personal Health. D&T also saw an improvement, though it is still in the red. Profitability improved considerably, benefiting from operational leverage and productivity measures. Management anticipates low single-digit sales growth for FY21 and an acceleration in the mid-term (+5-6%) with all segments growing within this range. The EBITA margin is likely to improve 60-80bp annuall
The Q2 slump was less severe than feared. Connected Care saw a double-digit increase, led by ventilators, though momentum was offset by reduced consumer demand for Personal Health products. D&T was impacted by the postponement of installations and elective procedures. In H2, the robust order book should ensure steady growth in Connected Care and a rebound in elective procedures could bolster growth in D&T. Improving consumer demand bodes well for Personal Health. Ergo, sales should be back in th
COVID-19 lowered sales by 5ppt in Q1 as increased demand for professional healthcare products was more than offset by the decline in demand for personal health products, particularly in China. Lower sales and an unfavourable product mix suppressed profitability. Considering that the virus has spread to the western world, Q2 is expected to be worse. Nonetheless, management anticipates a recovery in H2 and thus guided for modest sales growth and margin improvement for FY20. Robust order intake gro
Impacted by slowdown across all three segments, Philips’ organic growth slipped to +3.3% in Q4 – D&T was held back by imaging and CC was affected by SRC. PH suffered due to negative growth in domestic appliances. Nonetheless, the FY19 revenue and profitability targets were achieved. Considering that domestic appliances does not fit into Philips health-tech strategy anymore, management is exploring strategic options – the proceeds could be channelled towards acquisitions in the healthcare space.
Led by double-digit growth in China and the robust performance in D&T and PH, sales accelerated slightly in Q3 19. However, order intake was flat due to softness in North America. Also, margins were held back by the adverse effect of tariffs, particularly in CC. As the mitigating actions (to counter tariffs) begin to bear fruit, we anticipate a margin advancement in Q4. Also, the c.100bp margin improvement target for FY20 appears within reach, given the positive growth trajectory in D&T and PH.
After a soft start in Q1, organic sales accelerated significantly in Q2 as mature markets and the Connected Care segment returned to growth. The D&T segment also reported a step-up in sales, while the Personal Health division continued with its MSD growth. With comparable order intake growth also witnessing acceleration, sales in H2 are likely to be stronger than in H1. Profitability should also improve further, led by operational leverage and efficiency initiatives.
Q1 was soft with negative lfl growth in Connected Care, decelerated sales growth momentum in D&T and a dismal showing in mature markets. But, Personal Health regained momentum and emerging markets posted double-digit comparable sales and order intake growth, which was a positive. Given the robust order book, particularly in Europe and North America, momentum should accelerate in the coming quarters and thus the FY19 financial targets should be met.
Royal Philips ended the year on a high with revenue as well as profits exceeding expectations – sustained growth in D&T overshadowed the slowdown in PH and CC&HI. Shareholders were rewarded handsomely with a 6% increase in dividends for FY18 and a new two-year €1.5bn share buy-back programme. Given the robust order intake growth (for D&T and CC&HI) and the continuous focus on new product launches (particularly PH), Philips remains on track to meet its financial targets for FY19.
At its Capital Markets Day, Royal Philips reiterated its financial targets of 4-6% comparable sales growth pa during FY18-20 and EBITA margin expansion of 100bp per year until FY20. Segment-wise, the revenue guidance for the Diagnostics & Treatment/D&T segment (c.39% of sales) has been upgraded to 5-7% pa (vs. previous guidance of 3-5%) while the EBITA margin target of 14-16% has been maintained (to allow for extra room for investments). The revenue and profitability guidance for the Personal He
Q3 was a weak quarter. While the sales momentum was held back by a dismal show in the CC&HI segment and a slower than expected recovery in the Personal Health division, profitability was impacted by adverse currency movements and increased investments in sales and marketing. However, robust comparable sales as well as order intake growth in D&T should enable Philips to meets it financial targets for FY18. Nonetheless, the US-China trade war and Brexit remain the key headwinds for FY19.
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Full-year results were in line with the trading update of 21 July, with revenues of £31m (-2%), reflecting the impact of COVID-19 on out-patient procedure rates, resulting in 14% and 24% declines in adjusted EBITDA and pre-tax profit, respectively. Lower than expected procedure growth rates and the decision to discontinue non-core (non-chlorine dioxide products) reduces forecast revenues by c.£3m to £33m in FY 2022. However, higher gross profit and tight control of costs (+6%) results in an unch
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Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive and susta
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TMT Acquisition (TMTA.L) has joined the Main Market (Standard) pursue opportunities to acquire businesses in the technology, media and telecom sector. Raised £5m, mkt cap £5.5m.
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Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive
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IXICO has provided an upgraded trading statement for FY21E following its previous update in August 2021. Revenues are now expected to be £9.2m (vs £8.7m previously), broadly in line with FY20A, which we see as a strong result given the pandemic and Huntington's Disease (HD) trials de-scope. EBITDA is expected to be materially ahead of FY20A's £1.3m, supported by strong Q4/21 trading, cost control and positive one-offs. The company has ended FY21 with a strong order book (£18.8m) and cash positio
Companies: IXICO Plc
Today’s prelims are in line with management’s expectations with losses before tax in the period of £30.3m (vs. £29.4m prior year). Post-merger, 4D pharma is clearly a different beast with access to the largest global capital market for Pharma/Biotech, and supported by £25.2m (net) proceeds from corporate activity. The company has cash runway until Q2 2022 and is well placed to successfully execute its clinical development strategy with multiple shots on goal. Primary focus is on MRx0518 with two
Companies: 4d Pharma PLC
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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SkinBioTherapeutics has announced it will launch its lead commercial product, AxisBiotix-Ps on World Psoriasis Day, 29 October 2021. To support the launch, the company has begun to receive, and store finished product in the Netherlands (close to its manufacturing partner) ahead of initial launches in the UK and US. Clearly the launch of its first product is a significant step for SkinBioTherapeutics, marking the transition from development company to commercial operation. We are encouraged by th
Companies: SkinBioTherapeutics Plc
Synairgen reported interim results to 30 June in which the adjusted net loss was £32.8m with period-end cash of £46.2m. Substantial pre-commercial progress and manufacturing activities have made in the half, although slower country approvals for trial sites will result in Phase III data readout slipping into Q1 2022. With increasing evidence of the need for a broad-spectrum antiviral delivered to the lungs and recognition that vaccines don’t provide complete protection against hospitalisations d
Companies: Synairgen plc
ANGLE reported an adjusted net loss of £7.2m (+58% vs. -£3.2m), with establishment revenues increasing 26% to £0.3m and costs rising 48% to £8.9m, reflecting the costs of opening its pharma services business and clinical laboratories in the US and UK. Net cash at 30 June was £21.0m, with a further £18.9m (net) placing proceeds after period-end. Evidence of momentum building within pharma services, backed by confirmation of three contract wins and multiple ongoing discussions (some of which are w
Companies: ANGLE plc
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Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segm
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The current situation in the CDMO arena looks a bit like an arms race and Lonza seems to have firm plans to be part of it. The recently updated mid-term guidance is the explanation to do so, in our view. Management is strongly dedicated to staying with the extraordinary high EBITDA margin for the coming years.
Lonza’s hybrid investors day was well attended in Zurich, in which we participated.
Companies: Lonza Group (LONN:VTX)Lonza Group AG (LONN:SWX)
The positive market research results for Eroxon®, released this morning, provides further support for the company’s ongoing partnering efforts. We continue to believe that MED2002 is a differentiated product with significant potential in both prescription and OTC markets, and look forward to further PK data followed by Phase III start in H1 2018.
Companies: Futura Medical plc
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions yesterday announced it has entered into a partnership with Tabula Rasa HealthCare® (TRHC) (NASDAQ: TRHC), a healthcare technology Company advancing the field of medication safety. Through this initiative, Physiomics' personalised docetaxel model will be integrated into TRHC's market-leading precision dosing solution, DoseMeRx®. Both parties expect positiv
Companies: Physiomics Plc
Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this spring. Target valuation £20m raising c. £8m “to finalise the development and launch
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