13 March 2018 – final results

The medical products group has announced its results for 2017 which have revealed a 44% rise in turnover to £8.75m (2016: £6.09m) with adjusted pre-tax profits rising substantially to £1.1m (2016: £0.3m).  Earnings per share on the same basis rose to 0.19p (2016: 0.15p) with the lower rate of growth due to a reduction in the tax credit received.  No dividend was declared.  Net debt at the end of the year was £0.73m (2016: net cash £0.72m).  During the year the group completed the transformational acquisition of Elemental Healthcare for £9.4m and the integration of this is now complete.  The current financial year has started well with revenues well ahead of the corresponding period last year helped by the acquisition of Elemental – although there have been some constraints on sales to the NHS in the core business these now appear to be returning to normal.  There are significant growth opportunities for the group going forward with acquisitions likely to be used to supplement organic growth and we continue to rate the shares as a BUY.