Gyg Share Discussion Threads

[rivaldo] 23/1/2007 09:46

Another new high for this timeframe - aiming for over 420p and a new all-time high now?

[rivaldo] 22/1/2007 14:41

A second new large holder in a day! Lloyds have joined Morgan Stanley:



"The Company was informed on 22 January 2007 that Lloyds TSB Group Plc ('Lloyds
TSB') is interested in 4,437,484 shares in the Company, representing
approximately 3.02% of the Company's issued share capital.

The shares are held by subsidiaries of Lloyds TSB as follows:

Subsidiary Shares held
LTSB Private Banking 5,437
Scottish Widows Investment Partnership 4,432,047"

[rivaldo] 22/1/2007 11:06

Ta for that johnroger.

Good news this morning - Morgan Stanley have become a new major shareholder:



"The Company was informed on 19 January 2007 that Morgan Stanley Securities
Limited, as of 18 January 2007, now has a holding of 5,026,728 shares in the
Company, which represents approximately 3.42% of the issued share capital of the Company. Morgan Stanley Securities Limited's interest in 1,413,257 of these
shares is pursuant to Section 208(5) of the Companies Act 1985."

[johnroger] 20/1/2007 17:02

IC comment



19 January 2007

Gyrus beats the dollar


Gyrus has reported buoyant trading in its pre-close statement ahead of March's full-year results. The medical device specialist says sales rose 40 per cent to approximately £213m in 2006, boosted by a full-year contribution from ACMI, acquired in 2005. While in line with City expectations, it's a good performance given the effects of the weak dollar. Gyrus also says that its new 'cut and seal' surgical technology, launched in 2006, has been well received, with 400 units placed in the US market.



Gyrus looks in good shape and, at 405p, the shares rate good value.

[maddox] 19/1/2007 09:38

Yep, they have moved their share price target to 450p.

Most of the other brokers covering GYG have existing BUY recommendations but their targets are well past. Hopefully, we will see some pencil sharpening ahead of the full results. After all there is the general surgery market to factor into account.

Regards, Maddox

[rivaldo] 18/1/2007 11:07

Further broker support today:



"Investec is buyer of....Gyrus."

[maddox] 17/1/2007 09:49

Rivaldo,

That Times report is a typical 'glass half empty' assessment of a quality performance. So they not only wanted the size-doubling merger and integration to have been completed successfully, they also wanted a forecast beating sales performance and made more cost savings than targeted! Get real!

A more bullish view of their prospects is:

SMALLER COMPANIES UK: Gyrus to top expectations
By Lisa Urquhart, Financial Times
Published: Jan 17, 2006


Gyrus, a maker of medical devices used in keyhole surgery, has predicted that it will finish the year ahead of expectations.

The group, which doubled its size in July following the $500m (£283m) acquisition of ACMI, said earnings per share for the year would be at the upper-end of analysts' expectations, which currently range from 9.4p to 13.3p.

The impact of ACMI will also be felt on sales, which are expected to be 70 per cent higher at about £149m. Gyrus said yesterday that the newly enlarged business would give "significant improvements in profitability" over the next three years. Gyrus shares, which have risen by 64 per cent in the past 12 months, closed 11p higher at 385p. Lisa Urquhart

We should be seeing this reflected in the share price ahead of time....hopefully.

Regards, Maddox

[rivaldo] 17/1/2007 09:00

Ta JR, madmix, good info. This isn't my normal type of stock on a relatively high P/E at these levels, but I continue to see the attractions and can see either decent share price growth or a bid within the next 12 months.

From the Times today - hold is the advice:



"Gyrus

For followers of Gyrus, 2006 proved something of a disappointment. During what was its first full year of ownership of American Cytoscope Makers Inc, the biggest and most feted acquisition in its history, shares in the Cardiff maker of surgical equipment fell 1 per cent. That weakness can be explained by pedestrian first-half sales and dismay that post-merger cost savings did not materially beat forecasts. Also Gyrus draws 90 per cent of revenues from the United States, making it the healthcare stock most exposed to a faltering dollar.

So yesterday's disclosure that profits will meet forecasts came as a relief. Although currency moves mean sales are 5 per cent lower than expected, Gyrus's ability to hit earnings estimates indicates that margins are improving ahead of plan and sales picked up in the fourth quarter. New products have made good progress, which augurs well for its push into the US general surgery market which, at $2 billion, is three times larger than any niche it serves. That move will also increase its attractions as a bid target. Significant risks remain, not least Gyrus's transfer of production to Mexico. The planned move of Brian Steer, the company's architect since 1993, to non executive by the end of this year could also unsettle. At 406¼p, the shares trade at 20 times 2007 forecasts and pay no dividend. But their discount to its US peers, and scope for upgrades, are reason enough to hold on."

[johnroger] 16/1/2007 14:53

ADVFN news feed

On the upside, Gyrus Group improved 2-1/4 pence at 405-3/4 after Investec Securities raised the stock to 'buy' from 'hold', following a reassuring pre-close trading update from the key hole surgery specialist this morning, which prompted the broker to upgrade its profit forecasts.

The bank upped its forecast for 2006 earnings per share by 3 pct to 16.5 pence, and by 5 pct to 20.7 pence for 2007. Its 12-month price target on the stock was lifted to 450 pence from 390.

[maddox] 16/1/2007 10:40

The later afx press release carries the following analyst comments:

'Analysts at Investec Securities, which upgraded its recommendation on the stock to 'buy' from 'hold' this morning and lifted profit forecasts, described initial sales as "impressive".

"Given that new products are the key to driving revenue growth, this also bodes well for 2007 revenues, in our view."

Gyrus generates around 85 pct of its sales in the US, and as a consequence is feeling the effect of a weaker-than-expected dollar. Annual sales of 213 mln stg would be lower than most broker's forecasts, dented by the exchange rate.

Still, analysts last year were mostly upgrading profit forecasts for 2006 and beyond, on hopes for the new products and efforts to improve profitability. On top of the savings generated by the integration of ACMI, Gyrus is moving manufacturing to Mexico, where costs are lower.

Analysts at Morgan Stanley, which rates the stock overweight, said this morning they expect 2007 to be a good year for the company.

"While Gyrus will face an FX headwind in 2007, better-than-expected profitability and the general surgery effort should drive EPS growth in 2007," they wrote this morning.

At 9.00 am shares in the FTSE 250-listed company were trading 2.25 pence higher at 408.5.

The stock has already advanced 8 pct this year, and Investec reckons it will continue to climb, as investors focus on future profit growth.

The broker also noted that bid speculation could arise, as Gyrus makes more inroads into the general surgery market and consolidates its position on the radar screen of some of the larger US players.'

Regards, Maddox

[maddox] 16/1/2007 10:02

Rivaldo,

I'm very impressed with these figures - GYG have delivered across the board. Underlying organic growth of 7% is an excellent performance in the midst of merger integration. As they have hit their eps numbers it must mean that the cost savings have been achieved as well, mitigating the Dollar effect.

The future prospects look even better with their successful entry into the General Surgery market. It is interesting that 40% of the revenue has come from the G400 generators sales so far. We should be able to look to that proportion shifting towards sales of disposables as these new customers start to increase their usage and make re-orders.

Regards, Maddox

[rivaldo] 16/1/2007 08:19

Trading statement out - looks excellent to me though I'm a GNG novice. Nicely in line with expectations, ACMI is integrating well, new products storming away sales-wise - and that all despite the fall in the dollar, which makes the performance all the more creditable.

Here's the RNS:


"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 2007.

The Group's reported revenues for the year to 31st December 2006 are anticipated to be approximately £213 million representing growth of over 40% on the previous year (2005: £150million). Proforma underlying revenue growth (assuming a full comparative contribution from American Cystoscope Makers Inc ('ACMI'), on a constant exchange rate basis and excluding discontinued business lines) is expected to be approximately 7%, an improvement on the 6% growth shown in the first half of the financial year. This was driven by a strong sales performance in the last quarter of the year.

The integration of ACMI continued during the year in line with management's
expectations. The Group's new North American customer service and distribution
centre is up and running in Minnesota and the Racine, Wisconsin plant closure is nearing completion. Additionally, the transfer of part of the Group's production to the new Mexican plant has now commenced.

Subject to completion of the audit it is anticipated that Earnings per Share for the year to 31st December 2006 will be in line with market expectations.

A large number of new products have been introduced to market in 2006; the most
significant being the PlasmaCision range in support of the Group's entry into
the large general surgery market. Total revenues from this range in 2006 were
approximately $7.6m ($4.6m disposable instruments and $3.0m G400 Generators)
compared with $2.8m ($1.9m disposable instruments and $0.9m G400 Generators) in
the first half of the year. Market feedback on this novel simultaneous 'cut and
seal' technology has been very positive and the Surgical Division has installed
approximately 400 G400 generators into the US market, which comprises both
gynaecologists and general surgeons. The post market optimisation of the
PlasmaSeal instrument for open surgical procedures and improvements to the
PlasmaTrissector for laparoscopic procedures have progressed well. The
combination of the level of generator installations and the improvements to the
Group's two leading general surgery instruments represents a good platform for
2007.

Brian Steer, Executive Chairman of Gyrus said:

'In the crucial first full year of the combined Gyrus ACMI business we have
successfully made savings in the combined US organisation at the same time as
introducing a significant number of new products to market. Despite the
substantial fall in the value of the US dollar, our principal operating
currency, we have made good progress in the year and we look to continue the
Group's strong performance in 2007.'"

[alexliddy] 15/1/2007 18:46

John no problem, gone long myself first thing this am lets hope he gets his target. Good luck all

[wad collector] 15/1/2007 13:01

Le Mass, I think they are going up too!

[johnroger] 13/1/2007 19:11

Thanks alex, sounds good.

[alexliddy] 13/1/2007 18:52

Just to let you guys know The Naked Trader bought some of these on the 12th target price 480p

[maddox] 12/1/2007 12:19

rivaldo,

The final results headline figures cannot fail to look good as they will be against the previous year when Gyrus was half the size it is now. However, I get the impression that on a like-for-like basis these results should look good despite the distraction of the merger integration.

Acquisitions in the US have been a banana skin for UK plc on many occasions. Gyrus have an excellent record of keeping the wheels spinning and the sales force focussed at the same time as doubling in size through US acquisitions. They did it successfully before and it looks like they have done it again. These guys are real quality.

Regards, Maddox

[rivaldo] 12/1/2007 10:39

Hello again JR! Ta. Been lurking here for ages ever since I ISA'd in at around 280p, but topped up in late 2006 so felt committed enough to start posting.

From today's FT - that pot just keeps getting stirred:



"Gyrus, the medical devices group, rose 3.7 per cent to 402½p on rumours it could be a takeover target for a US rival. There was also talk that next week's trading update could be impressive."

[johnroger] 11/1/2007 12:22

rivaldo
Wellcome to the thread, pleased to have your comments.

[fellowes2] 11/1/2007 12:10

A close above £4.00 would be very positive. I expect a trading update very shortly.

[le mass du pap] 11/1/2007 11:09

Wad
Maybe technical analysis does work after all? I refer you to my post of last week:-

Le Mass Du Pap - 3 Jan'07 - 12:47 - 93 of 103

;-)

[wad collector] 11/1/2007 10:56

About time.Not bad for a zero yield company.

[rivaldo] 11/1/2007 10:43

Yep. Sliced through 400p easily and past an old chart peak. And the dollar has strengthend to the low $1.90's, though still obviously higher than last year.

The director buying in November, so close to the year end, was a good sign too. Looking forward to the trading update.

[maddox] 11/1/2007 10:15

Rivaldo,

We are due a trading update any day now (14/1/2006) so we might be seeing some attention in the run up to what should be a good set of results. The Interims were very good on all aspects; so hopefully and I cannot see why not, these full year results should be pretty sparkling.

Regards, Maddox

[rivaldo] 11/1/2007 09:26

Ta Maddox. Certainly looks encouraging at present - maybe an assault on previous 420p highs to come soon.