Gyg Share Discussion Threads

[artful dodger] 17/3/2005 15:47

very quiet on this board

just bought my first tranche of gyg

late to the party,but that's not a problem if it lasts all night!

[maddox] 17/3/2005 10:14

Pachiaammos,

Yes, but once they've looked at the EBITDA line growth they look at the metrics - eps and p/e to see if its good value. To be frank GYG has looked expensive on these measures due to the GAAP reporting.

I predict that we will hear about a maiden divy at the interims. There is no point in them overloading the good news.

[pachiaammos] 16/3/2005 22:28

Yes, Maddox, but it makes no difference to the pre-goodwill pre-exceptionals line which is the most watched.

Anyone - why is there no dividend? With all that good cash flow, what is holding them back?

[maddox] 16/3/2005 14:26

Gre, Bainsey,

We knew about the healthy growth in turnover, despite the dollar head wind, from the trading update in January. However, the growth in bottom line profitability by 57% to £5.5m is excellent news together with the 88% reduction in debt. The cash is starting to roll in and a maiden divy cannot be too far away.

The IFRS reporting changes I discussed in an earlier thread are worked through right at the bottom of a very messy set of accounts. However, as predicted, the removal of the requirement to write off the goodwill on acquisitions is going to have a major favourable effect on Gyrus' bottom line. Re-stating the 2004 figures under IFRS PBT rises to £9.987m from £4.697m and basic eps to 10.2p from 5.0p.

The 2004 reported p/e will fall from 49 to 24 - which will look far better value.

[bainsey] 16/3/2005 11:17

LONDON (AFX) - Gyrus Group PLC expects to achieve its targeted high-teens
underlying revenue growth, bolstered by planned product launches over the next
12 to 18 months and a positive outlook for 2005, which the company said has seen
a continuation of the strong trading recorded 2004.
Gyrus also said it will continue to pursue both organic growth and
acquisitions, as the maker of medical devices used to reduce trauma and
complications in surgery reported profits in 2004 more than doubled.
In the year ended Dec 31, pretax profit surged to 4.7 mln stg from 2.1 mln
in 2003. Sales climbed 11 pct to 86.9 mln stg, or 22 pct on a constant exchange
basis.
Gyrus added that strong cash generation allowed it to slash net debt to 1.8
mln stg, from 15.5 mln stg at the same time last year.
"Our three divisions all made substantial progress and we are well set to
benefit from some important new product launches in 2005," chairman Brian Steer
said in a statement.
Separately, the group announced the acquisition of Urology Solutions Pty
Ltd, the the exclusive distributor of its surgical products in Australia and New
Zealand, for between 1.88-2.78 mln aud in cash. The final price depends on
performance over the next two years.
Urology Solutions reported sales of 2.7 mln aud for the year ended June 30,
and had net assets of around 0.4 mln aud.
"This is the latest in a series of acquisitions that give Gyrus greater
control of its international distribution and sales structure. By acquiring
Urology Solutions we are better able to meet the needs of our surgeon customers
in the region," Steer said.
[e-mail]

[gre] 16/3/2005 08:19

Excellent results ahead of forecasts despite the continuing dollar weakness.It's pleasing to see such a strong cash flow and a marked reduction in debt. With several new products in the pipeline the prospects are looking good for 2005 and beyond.

[zapa] 24/2/2005 15:37

Deutsche sold a few,boo-hoo.LOL

[optimum] 16/2/2005 13:58

L & G investment looks like positive interest from the city.

Dollar has come off its max, this should help GYG results.

Sales are increasing in unit terms.

Also the cosmetic surgery offshoot (Gyrus founder M. Goble and startup Rhytec.com) sounds like an interesting diversification.

Looks like it is going well.

[wynmck] 08/2/2005 15:06

results soon,16th March .....might see a nice run-up,

[maddox] 08/2/2005 12:49

Hi guys,

Didn't notice that you were on a new thread.

04.02.05 :+3, (242.5) an article in the Express reports: the shares rose 4.5p to 239.5p on talk of strong trading.

Up again today to 247p, I wonder who is talking and who is buying? Any views?

[maddox] 05/2/2005 09:32

04.02.05 :+3, (242.5) an article in the Express reports: the shares rose 4.5p to 239.5p on talk of strong trading.

Moving onto new thread.............

[johnroger] 04/2/2005 13:53

Bainsey
Could you add the ADVFN charts please, it's just a matter of ticking the boxes.

[optimum] 04/2/2005 13:33

This is one of my personal shares to grow in 2005 - this HTL and more speculatively CKSN.
As the dollar falls watch GYG increase

[tedg41] 03/2/2005 08:39

Has been steadily rising and now near a chart breakout.
Why is there so little interest in this share? (on this site).

[bainsey] 16/1/2005 17:11

Gyrus Group PLC, the medical devices company, said it expects
pretax profit before goodwill for the year to Dec 31 2004 to be slightly ahead
of the consensus market forecast.
The company said revenues grew around 22 pct on a constant currency basis in
2004. On translation, reported revenues are expected to be in line with market
expectations at approximately 87 mln stg, a rise of 11 pct on the 78.1 mln
reported for 2003.
Gyrus said trading highlights in the year included strong growth in surgical
division revenues worldwide based upon the group's proprietary products for
gynaecology and urology and strong growth in Partnered Technologies revenues
across the board.
It said the success of the Surgical and Partnered Technologies Divisions has
continued to offset lower US growth in the ENT Division. Revenues in the ENT
Division strengthened in the final quarter and it is well set for a number of
significant new product launches in 2005.
The board concluded that it looks forward to continuing its strong
performance in 2005.

[maddox] 14/1/2005 20:19

....and some positive Analyst comment:
14.01.05 :+13, (235) the market warmed to the medical devices group's upbeat trading statement, which reported slightly stronger than expected trading for the year. Sebastien Jantet, analyst at Investec, reiterated his 'hold' recommendation and said he expects to slightly raise pretax estimates for the year to 9.7m, after what looks like a particularly strong fourth quarter. In a statement this morning, Gyrus said it expects pretax profit before goodwill for the year to Dec 31 2004 to be slightly ahead of the consensus market forecast, which is 9.4m. "The strong underlying revenue performance confirms our view that Gyrus is a fundamentally attractive investment," Jantet wrote in a note to clients. "However its high US dollar exposure and the continued weak US dollar are denting EPS growth," he warned. Gyrus said trading highlights in the year included strong growth in surgical division revenues worldwide based upon the group's proprietary products for gynaecology and urology and strong growth in Partnered Technologies revenues across the board. It said the success of the Surgical and Partnered Technologies Divisions has continued to offset lower US growth in the ENT Division. Revenues in the ENT Division strengthened in the final quarter and it is well set for a number of significant new product launches in 2005.

[maddox] 14/1/2005 13:14

Shares up 13p to 235p as I post based on the Pre-close Trading Update following:

RNS Number:3694H
Gyrus Group PLC
14 January 2005
Gyrus Group PLC
Pre-Close Period Statement

Reading, UK - Gyrus Group (GYG.L) a leading supplier of medical devices which
reduce trauma and complications in surgery, today provides a pre-close period
update ahead of its preliminary results announcement on 16th March 2005.

In the year to 31st December 2004 the Group continued to achieve strong sales
growth despite the ongoing weakness of the US dollar (currently, over 80% of
group sales are denominated in US dollars). On a constant currency basis the
Group achieved revenue growth of approximately 22%. On translation, the Group's
reported revenues for the year are expected to be in line with market
expectations at approximately #87 million representing 11% growth on the
previous year (2003: #78.1 million).

Trading highlights in the period included:

* Strong growth in Surgical Division revenues worldwide based upon the
Group's proprietary products for gynaecology and urology; and

* Strong growth in Partnered Technologies revenues across the board

As was the case at the half year, the success of the Surgical and Partnered
Technologies Divisions has continued to offset lower US growth in the ENT
Division. Revenues in the ENT Division strengthened in the final quarter and it
is well set for a number of significant new product launches in 2005.

The early benefits of the Group's three-year operational improvement plan have
partially offset the currency impact on costs and profit before tax and
amortisation of goodwill ("PBTA") is expected to be slightly ahead of the
consensus market forecast.

Brian Steer, Executive Chairman of Gyrus said:

"The Group's businesses have performed very well in the face of another year of
significant depreciation in our main operating currency. With this momentum and
the new products set for launch this year, we look forward to continuing our
strong performance in 2005."

[maddox] 09/12/2004 11:35

Gre,

Thanks for confirming this with Gyrus. One might like to believe that the analysts and pundits look through the published figures to reveal the true underlying situation. However, I tend to believe that most people don't actually bother to go too far beyond the top-line figures.

If you take for example the IC coverage of the last half year results - the write-up is positive but the figures below don't reflect it. They show p/e ratio at 178, a pre-tax profit of 231k and eps -0.5p that on the face of it look awful - certainly not a growth story or good value! Most readers will look at those numbers and pass on to the next review.

Take out the goodwill and the figures are pre-tax profit £3.65m eps 4.4p and a p/e 25 - more like what you would expect to see. Anyone looking at the new figures will find they are in-line with the narrative and may just decide to buy a few.

Regards, Maddox

[gre] 08/12/2004 14:05

Good point Maddox.

The company has confirmed to me this morning that they will indeed be required to present IAS accounts for the first time at the interims in 2005 (the six months to 30 June 2005). However they will be voluntarily presenting to investors the financial statements for the 2004 results under both UK GAAP and IAS in March next year.

Goodwill will therefore no longer be amortised through the profit and loss account from the end of this year. Instead they will have to conduct an impairment review once per year and make any impairment provision which may be considered necessary. I agree with you that this should improve the perception of the company by private investors although institutional investors no doubt already concentrate on EBITA rather than the statutory figures.

[zapa] 07/12/2004 16:48

Celsis International are in the same boat.

I shall just wait it out.

[maddox] 07/12/2004 16:47

Guys,

One factor that deflates Gyrus's reported profits is the requirement to write-off the Goodwill acquired with the US businesses it has taken over. However, the new IFRS accounting regulations will do away with this putting £6.6m p.a. back on the bottomline and making the eps figures far more attractive from 2004 onwards.

Whilst this may be regarded as purely a presentational change - it will make a considerable difference to the perception of Gyrus as a growth stock. I would argue that this is a fairer depiction of the business and will go someway to mitigate the dollar effect.

I think it would be wise if Gyrus re-state its results in accordance with IFRS at the earliest opportunity.

Regards, Maddox

[maddox] 07/12/2004 16:46

Gre, Bainsey,

I tend towards the dollar effect influencing sentiment. One aspect that is worthy of note is that as well as the revenue being mostly dollar denominated so are the costs. Thus the margins should be maintained and it is a profit translation only.

Regards, Maddox

[gre] 07/12/2004 11:04

About 70% of turnover is the US so I guess that the recent price fall is due to the continuing decline of the dollar. However this company has shown that it can still increase profits despite the US currency weakness. Underlying profit before tax and goodwill amortisation was up 23% in the first half despite weakness of US Dollar.

At the time of these results the Chairman said:

'To have achieved such strong revenue and profit growth despite the weakness of
the dollar is a major achievement and evidence of the strength of our business
model. We are continuing to benefit from the changes implemented last year and
remain confident in our ability to achieve our 'high teens' revenue growth and
profitability targets in the medium term.'

I have no reason to doubt his view at this stage. The charts indicate that the share is way oversold at the moment.

[bainsey] 07/12/2004 08:34

any reason for price decline?