International Medical Devices Share Discussion Threads

[pomp circumstance] 29/5/2008 09:50

Cyber, you have mail!

[ged5] 29/5/2008 09:35

Thanks! That was also stated in the results. Unless you've spoken to them I'm not so sure there still pursueing the same deal.

[pomp circumstance] 29/5/2008 09:31

Ged, the deal they were trying to do is still a possibility. It didnt fail due to anything to do with INT.

[pomp circumstance] 29/5/2008 09:29

cyberpost, still no email :(

[ged5] 29/5/2008 09:29

"Well worth another read and maybe James can get a link to incorporate into the header"



The result, results press release and broker report were all put on the website yesterday. It's good they updated the news part of the website promptly though there are still areas that need attention especially the part about Inogen.

Pomp you say the corporate activity is still alive. Are you inferring it's the same activity as before or have you spoken to the company?

I would now like to see some director buying. It would give the whole market some confidence in the company. There is absolutely no reason why they shouldn't since they've mentioned Surety sales, corporate activity and the possibility of FDA approval. If the company is as good as you say then get your hands in your pockets!!

[pomp circumstance] 29/5/2008 09:25

jotoha, maybe i do!!! ;) LOL!!

[cyberpost] 29/5/2008 09:21

yes sorry dell.... i realised afterwards. apologies.

[dell314] 29/5/2008 09:16

cyberpost - why not use the definition you've found and actually plug the numbers in before commenting?

I think you'll find that you end up with a working capital figure of very close to minus £2mln, as I stated yesterday morning and today....

FWIW, Net tangible assets is a completely different figure but also happens to be negative for INT(about minus £4.5mln, or circa minus 1.3p per share).

Hope that helps.

Rgds
dell

All IMHO, DYOR etc.


(edit: I see you've removed your comments, so I guess you've realised that my figures were correct.)

[jotoha1] 29/5/2008 09:03

Pomp , why dont you supply the information dell requires, you try to give the impression that you have an inside track on this..lol

[pomp circumstance] 29/5/2008 08:52

1. the company and the broker - ask them

2. try to find out what the corp activity they were planning and how it was to be funded, it will answer your questions!

[dell314] 29/5/2008 08:41

"There are no plans to raise funds via equity". - Says who?

"the company has very good bank support and is cash generative". _ Can't comment on the bank support but it doesn't seem very credible to suggest that the company will generate anywhere near enough cash to meet net current liabilities. Can they run with such a large current liability, or do they require additional financing?
Any reason why SCAP didn't mention cash, or working capital? Aren't they bright enough to notice the significant working capital deficit, or did they deliberately not comment on it?
I also find it very strange that SCAP focus on the NAV figure without mentioning that it just happens to include over £23mln of intangibles....
Tangible NAV is actually negative!

Rgds
dell

All IMHO, DYOR etc.

[pomp circumstance] 29/5/2008 08:17

There are no plans to raise funds via equity.

the company has very good bank support and is cash generative.

[dell314] 29/5/2008 08:12

Ged5 - thanks for yesterday's reply.

Anyway, we have a £2mln working capital deficit in latest results and then a piece of ramptastic spiel from SCAP that totally ignores this fact turns everyone into a bull???

Doesn't the sum of New broker + Ramptastic broker note + £2mln net liabilities ring any alarm bells - not to mention the fact that INT apparently didn't want to put out results without the broker note?

Doesn't this all sound like SCAP have been brought in to organise a fundraising?

Rgds
dell

All IMHO, DYOR etc.

[pomp circumstance] 29/5/2008 07:33

james, its not just one seller, the share register doesnt indicate that.
This isnt a share to T trade i think, its a decent , profit making company that is growing. it might take a while before we ralise the full benefits and in the mean time we have the opportunity to get in cheap/

[pomp circumstance] 29/5/2008 07:19

no wonder it possible to pick this stock up very cheap.

[martincoops] 29/5/2008 07:17

I see we have a 1,750,000 @ 1p trade from yesterday go through (well I assume it is from yesterday)

[pomp circumstance] 29/5/2008 05:51

Its a crying shame they werent able to procede with the corporate action.

I intimated I thought this was their plan with the move to Shore and the comment from a director somewhile ago that they were so interested in million pund bolt-ons.

From what i understand, the corporate action is not dead in the water. There is still a chance it might go thru at some point but their are a couple of issues that the other party need to resolve. From what i understand it would be immediately earnings enhancing and a good deal for both parties.

As for cash, while cash balance are low, the business is cash generative and they have very good support from their bankers and shore capital, who were very supportive of the proposed corporate action.

In the CEO we have a man of years of experience of building and integrating business and the chairman is very well connected.

I dont see too many risks with INT, organic growth is slower bit looking good, and if thy can pull of a deal or two to enhance the size of the company, it will start to get more notice.

I think Shore need to step up and bring in an extra institution or two who will mop up the overhang. Ive asked the question and it doesnt seem to be one party selling, but when the sales go thru they are often at below bid, so we are having the opportunity to buy into this exciting little company at rock bottom.

I personally picked up another 300k yday at 1.25p, i expect them to be worth at leats 4p by the end of the year and more if the corporate action can be concluded.

[run rabbit] 28/5/2008 23:51

Hopefully that note will have been digested this evening and may attract some buyers come the morning.

[tornadodown] 28/5/2008 22:13

Well worth another read and maybe James can get a link to incorporate into the header

International Medical Devices+ (INT.L) – Interim results – NR*, 1.2p


Yr-end Sales Mkt Cap/ Adj PBT RptdPBT EPS PER FCF Yield EV/EBITDA
Aug (£m) Sales (x) (£m) (£m) (p) (x) (%) (x)

2007A 11.2 0.3 0.5 0.5 0.17 6.9 -14.1% 7.1
2008F 12.5 0.3 0.6 (0.7) 0.23 5.3 12.7% 6.1
2009F 14.5 0.3 1.5 1.5 0.33 3.6 27.1% 3.0
2010F 15.8 0.2 2.0 1.5 0.43 2.8 38.1% 1.8

Source: IMD, Shore Capital Stockbrokers

IMD has reported a solid set of interim results, above our expectations at the revenue, operating profit, adjusted PBT and EPS levels. The period saw further restructuring costs and an aborted acquisition which revealed an exceptional cost of c£1.3m – the outlook remains robust in the defensive healthcare sector (we expect growth of between 7% and 11% in the medical equipment and onsumables markets). We expect the current half through to August 2008 to show a clean period of profitable trading and this pulls through an upgrade to our expectations (for the current year and thereafter). The long-term outlook remains positive for organic growth, building upon the acquisitions made to date. IMD's strategy remains to build operations by buying businesses and to grow these by consolidation of these into the group sales and distribution infrastructure.

The company reported H1 2007 revenues of c£5.1m; we had pencilled in IMD generating sales of c£5.8m for H1 2008. The out-turn of c£6.2m is thus pleasing – the company had the full benefit of recent acquisitions, though restructuring was still being completed with businesses being relocated and
management systems implemented. Holding our revenue forecast for the full year to August at current levels indicates a comfortable revenue target (in light of management's robust comments on the outlook) for the current half of £6.3m. At the adjusted PBT level, we were expecting a H1 figure of around £160k with operations still building from consolidation of the acquisitions into the group. Tight operational cost control and synergies beginning to emerge revealed adjusted PBT for the period of c£300k – this is an encouraging number to us given the prospects for positive operational gearing from emerging economies of scale. Our EPS expectation was 0.04p compared to the result of 0.09p.

An exceptional charge pushed IMD into a loss position for the period at the reported level. This consisted of a mix of restructuring costs relating to management efficiencies, relocation costs and an aborted acquisition cost. IMD is now operating from just two sites: in Selby, Yorkshire and in Gloucester. We believe that the Selby operations in particular offer the prospect for additional scale economies. The opportunity to build the business with further acquisitions remains.

IMD is now operating through three divisions in Acute Care (focused upon hospital equipment and consumables), Devices (needles and specialist treatment equipment) and in Aged Care (covering specialist products for the wider market). Aged Care has seen some frustrating operational issues that
have held back sales and operating margins – in particular concerned with the product range. These appear well on the way to being resolved with additional product supply agreements being targeted. Sales of safety needles (Surety) have now commenced with the first orders being received from the NHS. Management is now looking at the prospects for international sales of safety needles, in particular applying for FDA approval in the USA with a third party local distributor based in Canada.

Holding our revenue forecast steady for the full year (holding out for the prospect of a further upgrade), our profit expectation increases with the restructuring benefits coming through; we therefore lower our cost base expectations. The benefits of the restructuring costs incurred in H1 appear be self-funding over the next 12 months. Our FY2008 adjusted PBT forecast rises from £0.5m to £0.6m and for FY2009 from £0.7m to £1.5m – with an additional c£1.0m of revenue now expected for the next financial year. Our FY2008 EPS expectation rises from 0.20p to 0.23p, but for FY2009F this rises from 0.22p to 0.33p.

IMD has seen considerable management change in the period with a new executive team taking over group operations under the experienced Bill McGrath. We believe that this change heralds the emergence of revenue and profit momentum for the company. IMD's operations are growing and profitable and we now expect the company to begin to generate free cash flows. The valuation is inexpensive on a FY2009F PER of c3.6x (EV/EBITDA 3.0x) and a free cash flow yield of over 27%. We also note that the company trades well below its prospective NAV per share of c6.1p.

[pomp circumstance] 28/5/2008 19:38

cyber, didnt get it try again! they are zeros not o's

[jotoha1] 28/5/2008 16:41

Looks to me like Thomas and his gang have negotiated themselves a nice golden goodbye, that man has a habit of sucking you dry !!!Hope for holders that it now works out for you, will be tracking this slug for a bit longer!