H1 v H213 Sep 2017 16:35
Just dug this out from January this year. The 25% drop on H1 was due to analysts believing the company would not make its full year revenue of £6.6M and EPS of 4.9p well the company beat them both and we have dropped by a third, seriously disappointing. I know people will say it will bounce back but the point is we have beaten all expectations and shouldnt be in this position. There will be constant updates from the company, new contracts, trading statements, why would you sell with so much positivity in the the results.
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For the first half of Innovaderma’s financial year, management believes revenue was £3m on a constant currency basis, which indicates that the group may miss City forecasts for the year. The City is currently expecting full-year revenue of £6.6m, so Innovaderma’s second-half performance will have to pick up significantly to hit this target.
What’s more, the trading update from the company today revealed that the group will book some exceptional one-off costs during its first half, which will weigh on profitability. Costs associated with listing the business on the Main Market of the London Stock Exchange, launching products in the US and moving production to the UK, will all hit full-year profits.
Still, the company has some wiggle room as analysts are expecting 48% year-on-year earnings per share growth. If sales for the full year come in marginally below expectations and one-off costs dent profits, on an adjusted basis, the group is still set to report healthy earnings growth. Analysts are currently expecting earnings per share of 4.9p for the year ending 31 June 2017.
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