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Euphoria quickly dissipated.
Back to sleep....zzzzz
Nutlemont - Those figures do suggest that profits going forward can turn into losses...
Unless there is a very good explantion for the considerable losses in 2018 and 2019 - after two proitable years before then.
2016 (£145220) and 2017 (£234237)reported profit and 18 and 19 reported losses.( -£177181) and (-£365471)
2020 is reported on Co House site as a profit (£64064)
If my calculation is correct that is a loss of £99k for the period.
Even then at 20% return this is a good business, would be keen to see why the previous years loss, they have brought with reserve cash so no additional debt taken by the company
sorry I think I was the source of the £1.6m .To get to that number all I did was double the 6 month profit of £0.8m.Apologies for any confusion.
LP12345 - correction to your message: £4m revenue, £0.8m profit, I.e. Not £1.6m profit!
But even at £0.8m the margin looks good enough, just less spectacular.
Looks to me that the price is based on a single half year good profit.
Based on a single years projected figures the return looks good.I doubt they have based the price on a single years projected figures however.Or at least I hope not!
There was a substantial loss last year! Without a historic profit pattern visible (going back a few years), we cannot assume that H2 this year will mirror H1.
Indeed, £22m does look overpaid, IMHO.
Based on a £4m revenue and 1.6 million profit this would give 40% return, if the expenses are then also managed to maintain this level of profitability going forward well I would view this as excellent return. How many companies actually make a 40% profit based on their revenue, the answer is not many at all
I was wondering at the valuation.£22m seems a lot to pay for £4m revenue and possibly £1.6m annual profit. Can anyone help shed light on this please?
I am not convinced that the acquisition announced today will be profit ennacing, theres was a loss last year,
what has been the pattern over the prevuious years?
Appears to be this lot:
LA FINANCIERE DE L'ECHIQUIER
With 3.2%
imho
good buy at this price.
appears that someone is building a stake
Unless the next figures are good and upbeat, the share price il likely to loiter around the 210p mark, IMHO.
AMS is a long time favourite of mine, but for the time being a I have greater hopes for APH where the share price is facourable low at the moment, IMHO.
Lacklustre performance so far for this company - I'm not convinced it's all down to Covid. Recent acquisitions don't seem to have brought much life to the SP. When life returns to anything like normal in the US, this company badly needs some activity there to shake things up.
US LiquiBand®
We are pleased to report that end market sales data for LiquiBand® show that it has started to recover some momentum which resulted in strong sales volumes for the first quarter of 2020 and market share gains. This strong performance predated the significant reduction in demand seen since the start of the second quarter as a result of the COVID-19 pandemic but did evidence that the sales initiatives implemented in late 2019 and earlier this year have been successful. In addition to this, the launch of LiquiBand® Rapid™ went ahead with one of the Group’s main US partners, albeit at a lower level than originally planned due to COVID-19 restrictions. This partner is now well positioned to compete in the US market when hospitals reopen for elective surgery.
The LiquiBand® XL critical pilot study has been completed with three different formulations successfully meeting our objective of 14-day wear time. However, some of the variants demonstrated extended set time. The lead formulation, which we believe maximises our potential for long term commercial success on all product features, is an accelerated formulation of LiquiBand® that will require additional stability and biocompatibility data along with a repeat of the clinical study as part of the FDA filing. The additional work required on this lead formulation means that we now expect to file for 510K approval in the first quarter of 2021. We expect the financial impact of this delayed approval to be offset by the stronger than anticipated LiquiBand® market share improvement and short term commercial agreements with US hospitals to encourage additional LiquiBand® adoption in the run up to the LiquiBand® XL approval. Once approved, LiquiBand® XL will allow entry into the market for care of larger wounds and unlock further growth potential in the LiquiBand® business with all partners.
Chris Meredith, Chief Executive Officer of AMS, commented: “Our strong balance sheet enables us to weather the disruption of COVID-19 whilst continuing to invest in R&D and regulatory projects, in order to be in the best position to return to strong growth when the Group’s end markets recover to a more normal basis.
Given the strong demand for LiquiBand® in the first quarter, the launch of LiquiBand® Rapid™ and the development plan now in place for LiquiBand® XL that will allow entry into the larger wounds market, we remain confident in the growth potential for the LiquiBand® portfolio.”
The Group expects to release a trading update covering the first six months of the financial year in early July 2020.
– End –
The Group confirms it is in robust financial condition to weather the continued global disruption caused by the pandemic and retains its strong cash balances broadly in line with its position at 31 December 2019 (£65 million and no debt) with an undrawn unsecured £80 million credit facility, which is committed until December 2023.
As announced at the start of April, the Group was experiencing a slowdown in demand for its products caused by the cancellation or postponement of elective surgeries, dental procedures and a reduction in the volume of accident & emergency treatments. There has also been a slow-down in hospital treatment of chronic wounds and some supply disruption due to the global lockdowns. As a result, the Group has been experiencing reductions to its revenues at the upper end of the 3% to 5% of annual sales per month estimate announced by the Board in April.
Although we are anticipating a gradual return to more normalised levels of hospital activity for both our surgical and woundcare businesses, the Group expects the effects of COVID-19 will continue to have an impact in the second half of 2020, albeit at a lower level, as volumes will take time to recover to pre-COVID-19 levels.
As previously stated, the Group continues to manage its operating costs, working capital and capital expenditure to ensure that it remains in the strongest possible financial and operational position to return to strong growth when the Group’s end markets recover. Reflecting the ongoing financial strength of the Group and the Board’s belief in the long-term prospects of AMS, the Board reconfirms its intention to recommend the payment of the proposed final dividend for 2019.
I see that all ‘anghardy1976’s posts have been deleted.
First time I’ve ever seen that on a chat board.
Shame, as they were some of the most informative posts.
Perhaps TOO informative?
Your handle more appropriate for FUM erectile dysfunction company
anghardy1976,
Friday rarely seems to be an ‘up’ day for stocks ‘just in case’ some bad news is released over the weekend. so will probably finish down.
Volumes traded are usually small, so 10k here or there seems to have a disproportionate impact. Little buying suggests institutions are ‘onside’ with the co’s explanation and expectations, but nothing more. Steady ‘O’ trade sells suggests some traders agree with your analysis and are trying to push a weak sp down further.
Personally, I think the co. Could do with a US takeover as the management are struggling.
Look's a pretty solid update to me. Could be a hell of a lot worse. I think we'll see the SP get back comfortably over £3 soon but won't be testing the highs without new news.
Time for a bid?
Sounds like they need help!
Does anyone have figures for the revised consensus forecasts?