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Annual Results

Consort Medical hikes divi as revenues rise

16 June 2016 08:00

Consort Medical's revenue increased by by £92.1m to £276.9m in the year to the end of April with Bespak delivering continued growth of 10.8% to £117.2m.

In its first full year in Consort, Aesica revenue grew 102.1% to £159.7m which included organic growth of £1.4m (1.8%) and acquisition growth of £80.1m (101.4%) at constant exchange rates.

EBIT before special items increased by 47.6% to £37.0m (FY2015: £25.1m). This included 20.4% growth from Bespak to £25.2m (FY2015: £20.9m), which continues to deliver strong operating leverage from higher revenues.

Bespak EBIT margin increased by 170bps to 21.5%. Aesica EBIT increased 185.0% to £11.8m, with EBIT margin growing 210bps to 7.4% reflecting strong organic growth from volume and improved operating performance of £2.7m (64.9%), and acquisition growth of £5.0m (121.5%) at constant exchange rates.

Adjusted basic EPS was 20.5% higher than FY2015 at 57.6p, as a result of the strong operating leverage, and margin expansion. Final proposed dividend of 12.56p is up 7.5%.

Consort Medical also issued a progress update on Bespak's DEV610 development programme, for a proprietary dry powder inhaler (DPI). Consort Medical's partner Mylan, a global pharmaceutical company, announced in February that its abbreviated new drug application (ANDA) for fluticasone propionate 100, 250, 500 mcg and salmeterol 50 mcg inhalation powder had been accepted for filing by the US Food and Drug Administration (FDA). The FDA provided Mylan a potential GDUFA (Generic Drug User Fee Act) date of 28 March 2017. This product is the generic version of Advair, which is indicated for the treatment of asthma and the maintenance treatment of airflow obstruction and reducing exacerbations in patients with chronic obstructive pulmonary disease (COPD). However, the device is expected to provide a platform for launch of additional products in the Mylan pipeline.

For Bespak this is a significant opportunity, which required the construction of a 5,500 square metre dedicated building and clean room at the King's Lynn site to accommodate the necessary manufacturing capacity to produce the expected volumes. Revenues from the contract will be dependent on sales following regulatory approval and launch of any products utilizing the device.

The contract further leverages Bespak's operational and regulatory expertise in the production of high volume, premium-quality drug delivery devices, and represents a further execution of its strategy for organic growth.

Consort Medical chief executive Jon Glenn said: "Consort Medical's Bespak business is a global market leader in respiratory drug delivery devices. This contract with Mylan further leverages its operational and regulatory expertise in the production of high volume, premium-quality drug delivery devices, and represents a further example of execution of Consort's strategy for diversified organic growth."

At 8:00am: (LON:CSRT) Consort Medical PLC share price was -2.5p at 950p

Story provided by StockMarketWire.com

Related Company: CSRT

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