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
Companies: Elekta (EKTA-B:STO)Elekta AB Class B (EKTA.B:OME)
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: Elekta AB Class B
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-
Benefiting from the super-rich valuations offered by Siemens Healthineers for the proposed acquisition of Varian Medical, Elekta, a direct competitor, surged c.15% yesterday. With the No.1 player in the oligopolistic radiation therapy market now grabbed, there is a possibility that the No.2 player, Elekta, might also be grasped by an industry bigwig. In our view, Royal Philips, which has been a strategic partner for Elekta, might be interested in the family-owned business in the mid-term.
While Q4 sales and order intake growth were affected due to limited access to hospitals, the speed-up of installations in April meant that FY19/20 targets were over-achieved. Positive sales development in the US and the resilience of the services business, thanks to digitalisation, also played a part. Although order growth could be under pressure in H1 20/21 – as hospitals trim their capex – Elekta’s healthy order backlog should ensure steady revenue in FY20/21. The big order from GenesisCare an
Sales missed expectations in Q3 due to the delay in installations of linacs in the US. Order intake was also weak with the US being the main drag. However, the new regional manager’s aggressiveness could put the US back on track. Also, given the robust sales funnel of Unity, the 75 units order target could be achieved three months early. While margin expansion also remains on track, driven by an improving product mix and the cost-cutting programme, Coronavirus is a near-term threat.
Elekta, a market leader in radiotherapy, is set to outgrow the industry in the mid-term – driven by potential pick-up in demand for its new linac (Unity) and expected orders from China. Moreover, with robust margin expansion potential – led by an increasing proportion of Unity and software/service revenue and targeted cost-savings – earnings should grow healthily. Throw on top a sturdy balance sheet and a consistently-increasing dividend flow, Elekta is attractive at current levels. We initiate
The cancer burden is growing globally. Each year >18 million people are diagnosed, nearly 10 million die and the estimated economic cost exceeds $1 trillion. From early diagnosis to late-stage disease, cancer care often involves inappropriate or unnecessary interventions that drive costs but provide limited clinical benefit. Coupled with an increased understanding of cancer biology and rapid technological advances, this has been driving momentum for precision medicine, leading to patient and soc
Companies: VSC ABT ABBV AFMD A GOOGL AMGN AZN BCART BMY EKTAB EXAS GSK ILMN IPH ISRG IBAB JNJ MDXH MDG1 MDT MRK MYGN NSTG NOVN OCX PFE RAYB ROG SAN SGEN TMO TNG VAR VCYT VNRX XNCR ECX IMM
Research Tree provides access to ongoing research coverage, media content and regulatory news on Elekta AB Unsponsored ADR Class B.
We currently have 0 research reports from 0
Cambridge Cognition has announced strong interims which are consistent with our recently upgraded forecasts. Revenue increased 50% YoY, which outstripped growth in admin expenses leading the group to swing to a net profit. Demand for the company's software & services to support clinical trials continues to be strong, with a contracted order book of £15.2m at the end of H1 21 (+36% HOH; +105% YoY). Contract prepayments aided strong cash generation which led net cash to increase +37% versus FY20 Y
Companies: Cambridge Cognition Holdings Plc
After the exceptional trading conditions in China last year comes the hangover. A further softening in pork prices highlighted at the July trading statement has led to conditions in China continuing to ease in Q2. Revenues YTD in that market are now significantly below management expectations and down YoY. Whilst some recovery is expected in H2, there looks to be much to do to make up the shortfall. More encouragingly, trading in the group’s other markets remains in line with expectations. We re
Companies: ECO Animal Health Group plc
Momentum is building in Circassia, with the recovery from the pandemic gaining traction and actions taken by management to focus the business having a material impact on the bottom line. Having already upgraded in July, we are upgrading forecasts again today to reflect the further progress on reducing fixed costs. We now expect the group to trade close to EBITDA breakeven this year and for significantly improved profitability and cash generation from next year onwards.
Companies: Circassia Group PLC
Companies: SourceBio International Plc
Interim results to 30 June 2021 were in line with the trading update issued on 3 August, which resulted in upgrades to our forecasts and target price. On the back of a 50% (£1.5m) rise in revenues to £4.5m, adjusted EBITDA increased £0.5m to £0.2m, illustrating the operational leverage of 80% gross margin software & services. Period-end cash increased 38% (+£1.2m) in the period to£ 4.2m. Cambridge Cognition is well positioned to be a long-term beneficiary of the trend of running virtual decentra
Warpaint’s interim results for the six months ended 30th June demonstrate a highly encouraging rebound in sales and profitability as the markets have reopened post various degrees of Coronavirus lockdown. Strong strategic progress has been made, with the relationship with Tesco expanded and an 84-store trial with the UK’s leading cosmetics retailer Boots confirmed; this is very good news to us. Whilst ahead of our expectations for H1, we leave FY21 forecasts unchanged reflecting the very well do
Companies: Warpaint London 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
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
EKF has delivered another strong set of results, with the step change in the scale of the business firmly consolidated. H1 revenues increased 46.5% driven by an ongoing recovery in the core business and strong demand from a number of public and private sector customers for sample collection devices. The outlook remains positive and progress is being made against the new strategy set out earlier in the year. We upgrade our FY21 revenue forecasts by 7% and EBITDA by 13% noting this still implies a
Companies: EKF Diagnostics Holdings plc
Interims show a sharp recovery in revenues (+63% YoY) and a continued improvement into H2, albeit with the caveat that visibility remains limited in the short term. The building blocks are in place for a strong growth story, but this remains dependent on elective surgery volumes normalising over a consistent period. At the moment, the recovery is somewhat stop-start in nature, hence we cautiously reinstate FY21 estimates, but leave outer years withdrawn for now.
Companies: Surgical Innovations Group plc
Deltex has reported 2021 interim results which reflect the challenges of the current healthcare environment with COVID cases causing disruption to the Company's core elective surgery market. That said, the Company has demonstrated it is able to keep costs low to match the current low activity, in anticipation of improving activity in 2022.
Companies: Deltex Medical Group plc
No joiners today.
Plutus Powergen has left AIM.
What’s cooking in the IPO kitchen?
Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European
Companies: ALS APP BOD DXRX EDR EOG KOO RBBS TRP UOG
Synairgen reported FY 2020 results that showed an adjusted net loss of £13.7m, with year-end cash of £75.0m, some £27m higher than our expectations. The delta can largely be accounted for by delays in starting enrolment into the Phase III trial as well as the treatment of prepayments for drug substance and nebulisers: the latter reflected in working capital rather than expensed through the income statement. Near-term focus remains on the outcome of the Phase III study (SG018), and with the enrol
Companies: Synairgen plc
Fusion showed solid FY21 revenue growth of 7% to £4.2m (vs £3.9m), particularly as client projects were delayed by the COVID-19 pandemic. Operating loss rose marginally from £1.1m to £1.2m (reported net profit in FY21 was distorted by a £1.7m non-cash, accounting charge). This reflects strong R&D investment in the new OptiMAL service; this is due to gain commercial revenues in FY23. Fusion should then experience narrowing losses on the trajectory to profitability. After a £3m gross capital raise
Companies: Fusion Antibodies Plc
Medical device companies are gradually seeing a rebound in their business after the focus of healthcare is slowly shifting from Covid-19 back to normalcy. Stryker Corporation is one of the top-most high-tech names within this domain that has performed exceptionally well on the financial front on account of the recovery in surgical volumes in the U.S. and abroad. It is worth highlighting that Stryker’s product portfolio has grown exceptionally well over the years, both organically as well as thro
Companies: Stryker Corporation (SYK:NYSE)Stryker Corporation (SYK:NYS)
Doctor Care Anywhere (DOC) has delivered on another IPO commitment, entering the Australian telehealth market with its acquisition of GP2U Telehealth for A$11m. The COVID-19 pandemic has created permanent structural changes in Australian healthcare, which has accelerated the adoption of telehealth, particularly for its large rural population where access to quality healthcare has historically been limited. This acquisition gives DOC a foothold in the market, where management’s experience could a
Companies: Doctor Care Anywhere Group PLC Shs Chess Depository Interests Repr 1 sh