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
Companies: Koninklijke Philips N.V.
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.
Q2 was a mixed quarter wherein comparable sales were a tad below estimates while profitability met expectations. A slowdown in the PH segment, particularly in China, was the main reason behind the sales miss. However, we view this as a one-off and, given the seasonality of the business, we expect an acceleration in H2 18. Also, given a strong order book in D&T, we believe that the company would be able to meet its sales and profitability targets for FY18.
With comparable sales growth of 5.1%, order intake growth of 10% and margin expansion of 130bp, Royal Philips started FY18 on a promising note. Robust growth in the D&T segment led to the outperformance, despite deceleration in the PH and CC&HI segments. Given a strong order book, we expect the comparable sales growth to reach the middle of the guidance range of 4-6% in FY18. The target price resets higher by c.4%.
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VLG has acquired BBI Healthcare (BBIH) for up to £36m which fully deploys proceeds from the Nov’20 placing. BBIH is of high strategic value; it is growing, highly profitable and a leader in Women’s Health & Energy/Diabetes Management with 3 brands (2 market leaders). It is well invested, has manufacturing capacity, and made a 28% EBITDA margin in FY20. The price equates to c12x EBITDA before synergies, which will be significant and immediate. We upgrade FY21 EPS by 12.5% (part year) and FY22 by
Companies: Venture Life Group Plc
Venture Life Group has announced the acquisition of BBI Healthcare, a leading Women's Health and Energy Management/Diabetes company. Venture Life will pay up to £36.0m for the business, which generated revenues of £10.2m and adjusted EBITDA of £2.6m in FY20A. We believe the acquisition will fit well within Venture Life, significantly expanding the group's own brand revenues and providing a number of revenue growth and operational leverage opportunities. The acquisition has been financed by exist
In an encouraging sign of building US momentum, Yourgene has announced it has signed a multi-year licence and supply agreement with a major US precision medicine company to enable it to offer a new reproductive health screening service from its own laboratories. The agreement encompasses a non-exclusive licence to Yourgene’s proprietary bioinformatics Flex analysis software and a supply agreement for sample preparation reagents and instrumentation. Notably, this includes the Ranger sample enrich
Companies: Yourgene Health Plc
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
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A comprehensive FY’21 (May Y/E) trading statement touts a strong FY’21 outturn in line with our expectations that shows 8x topline growth, building strength in the ImmunoINSIGHTS service business and sets the tone for future upgrades. We leave estimates unchanged, but believe forecasts are prudently pitched with risk to the upside. Notably Investors should take confidence in that management believes that, eight days into the new financial year and a strong start to FY’22, it has visibility on up
Companies: Oncimmune Holdings Plc
This morning Oncimmune issued a Trading Update for FY2021, ending 31st May, highlighting strong revenue growth, successful fundraising and investment, plus a number of new key ImmunoSIGHTS contracts signed in Q4. Growth in demand for blood-based lung cancer test EarlyCDT® was also noted, both in the UK (NHS) and US. Positive FY2022 guidance highlighted an ongoing increase in IMMUNOSIGHTS contracts, and potential investment in a new US laboratory and accompanying business development team. We mai
AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN RECI STX SPO SCE TRX VTA
MED3000 is a breakthrough therapy for erectile dysfunction (ED). It works much faster than existing therapies, has a better side-effect profile and can be sold over the counter. However, the market has been sceptical on management’s ability to secure a major European out-licensing deal and to complete a small US study due to its cash constrained position. Following the completion of £12m fundraise Futura is funded through to at least the end of 2024 which includes several major catalysts over th
Companies: Futura Medical plc
Trading has strengthened significantly since restrictions eased in April, especially in the UK. UK brand sales are now up 64% YTD (+18% vs 2019). Further distribution gains are being made, including in the USA and online sales have tripled, albeit off a small base. Net cash has increased to £6.6m (Dec’20, £4.9m). Risk appears to lie to the upside vs prudent forecasts. The re-rating looks well supported to us, and we look forward to the H1 update in July
Companies: Warpaint London PLC
Full year results for the year ended 31 December 2020 reflect a period of change for the company as it sets the stage for the commercialisation of its next-generation DNA synthesis and delivery technology. 4basebio UK Societas was spun out of 4basebio AG (now 2Invest AG) on 8 December 2020, and was admitted to AIM on 17 February 2021. 4basebio generated revenues of £0.46m (2019: £0.20m, +129%), with a pre-tax loss of £0.72m (2019: £0.53m, +35%), with year-end cash of £15.0m (versus our £14.6m es
Companies: 4basebio UK Societas
Data presented at the ASCO further supports the use of eftilagimod alpha ("efti") in PD-1 / PD-L1 immune checkpoint inhibitor ("ICI") combinations. These include data in 1st line NSCLC (non-small cell lung cancer) and 2nd line HNSCC (head and neck cancer). The new Phase 2 TACTI-002 interim results show that 7 patients have now seen complete responses to the efti-pembrolizumab ("pembro") combo (2 in 1st line NSCLC and 5 in 2nd line HNSCC). Treatment was well tolerated in the total 127 patients. W
Companies: Immutep Ltd
Warpaint has issued a highly positive AGM trading update (covering the financial YTD). Trading is said to have been “encouraging”, with UK brand sales some 18% ahead of pre-covid levels, with good progress in international markets and online sales reported at 3x a year ago. We leave forecasts unchanged at this stage of the year, with 2021F at EPS of 5.3p, although we see growing scope for upgrades if the current momentum can be sustained into H2 2021, and if significant additional Covid disrupti
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
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Creo Medical has published its final results for the 12 months to Dec-20. In line with recent trading statements, the company generated revenues of £9.4m through the year and closed the year with cash of £45.1m. Operating loss was £23.5m (Cenkos est. £25.4m) reflecting increased R&D and commercial activities. Despite COVID-19 impacting the adoption of Creo's products, the company had a strong year, completing two acquisitions and achieving additional regulatory clearances. We note that Creo ende
Companies: Creo Medical Group Plc
NetScientific, the life sciences and sustainability technology investment and commercialisation group, announced intraday on Thursday 10 June 2021 that it had raised gross proceeds of approximately £7.7m in an oversubscribed fundraising at a price of 130p, a 10.3% discount to the previous day close of 145p. A total of 5,958,123 placing shares will be admitted to trading on 29 June 2021, subject to placing agreements and shareholder approvals. The placing significantly strengthens the balance sh
Companies: NetScientific plc