Healthcare Enterprise Share Discussion Threads

[carpetright] 22/7/2009 14:30

Robin Gilbert (Numis Securities) Buy note - 17.Nov.05

Healthcare Enterprise (20p) Buy Target price 40p

The company brought forward its interims, coming out with an operating loss of £2.1m (including provisions) for the six months to August, and the departure of two directors, the Chairman and the Finance Director from the executive board. This was because of unexpected problems at the Healthcare distribution business at Warrington, partly relating to the integration of the Crest Medical business, and management at this level has also been removed.

There are several issues at the Warrington site which are now being dealt with, and which should be relatively straightforward to put right. Inventory levels (of £3.1m) have not been controlled sufficiently, nor have debtors (of £6.1m), and both need to be brought down by perhaps £2m together. The merger brought together two computer systems, which have been poorly integrated, though this is being put right. Also numbers employed have not been controlled sufficiently, though changes have also been implemented here. Net debt amounted to £3.2m at end August, and has come down a bit since then. With the group's bankers being supportive, and the issues already responding to treatment, we expect this debt level to come down rapidly in coming months.

The board has been top-heavy, and not functioned at all well in terms of controlling the business, and outlining the prospects. Further changes need to be made here, with the group needing to find new executive directors, as well as management for the subsidiaries. Considerable demands have been put on very few people, trying to develop an exciting product range on a global basis. Here prospects are still very promising, despite regulatory delays and the lengthy and unpredictable time in trying to close deals. Its surface cleaner, Ebiox is still being considered by major multi-nationals for significant roles, including the cleaning of surgical instruments, pharmaceutical clean rooms, dental water-lines etc. Likewise, Optiscope, its disposable endoscope, is likely to attract substantial interest in coming months.

Now at this very compressed valuation, the distribution business should be capable of sales of £20-25m in the medium term, and profits of £3-4m. At a market capitalisation of £30m, little value is being given for the new products. For the year, a breakeven position appears feasible, with profits of perhaps £10m (4.4p) for 2006/7 (£3m from distribution and £7m from Ebiox).

On a shareprice of 20p, the shares are on a multiple of 4.5 times this figure. On a nominal target price of 40p (9 times eps), reflecting the considerable uncertainties, the shares are a Buy.

10p to go then for 40p, clever man!

[carpetright] 22/7/2009 14:27

48.75p to go

[substp] 22/7/2009 14:25

Aye Opto ..... another sad day.....:-(

[optomistic] 22/7/2009 14:24

HCEG must qualify for one of the worst managed companies on AIM...and there have been some poorly run ones. The management must be a complete set of incompetent nincompoops and to be an incompetent nincompoop certainly is an achievement!
This will be a few coppers/share in days, if it lasts that long.

[substp] 22/7/2009 14:23

rheiner I hope you haven't ...........:-(

[substp] 22/7/2009 14:21

Well that's not working so let's short it ? ......... again ........ :-))

[substp] 22/7/2009 14:18

The debtors were going to have to write this debt off anyway so is this the last stand at the HCEG corral to try to claw something back ?

[substp] 22/7/2009 13:20

The debtors(The Gang) profits (on paper) are slowly deteriorating ......

[willib2] 22/7/2009 11:50

Rheiner
Well done, the choice is now yours then. Mmmmmm
Why do people take such risks when there is a whole host of better opportunities available.?????
It would really have to motor to get to 1.40p and that is only doubling.
It has also lost 8p today.

[rheiner] 22/7/2009 10:39

I made money on GNE.

[willib2] 22/7/2009 10:15

Rheiner.
Remember GNE, once burnt twice shy.
Similar management mentality.

[optomistic] 22/7/2009 09:15

And what are they likely to be rheiner?

[rheiner] 22/7/2009 09:13

With far few shares in issue after consolidating at 1 for 250, HCEG could motor on any favourable indications.

[willib2] 21/7/2009 22:25

substp.
Poor rob100 actually paid MWalters to achieve what you were doing for nothing.
Makes me wonder who was to really blame for the Reverends demise.
Maybe he was using one ort tuther as a back up. Eh

[willib2] 21/7/2009 22:24

rob100.
Assuming that as your loss is stated in dollars, you are from over the pond.
You should talk to Sandy1888 (Also from over the pond) and listen to his thoughts on the AIM market.

[rob100] 21/7/2009 18:46

i,ve either got 40 shares in this,or i,ve got 4 shares ????? thanks MWALTERS.COM.
lost a packet on FEI but i can,t blame him for that. currently down $15,000.
ever the optomist.
good luck all.

look out for GAS, SKR.

[substp] 21/7/2009 15:22

WARNING !!! HCEG could be hazardous to your health........

[substp] 21/7/2009 15:08

There goes the rest of the world then Willib.......

Come into my web said the spider ....... HCEG eats its little shareholders ....

[willib2] 21/7/2009 15:06

How about Brazil boyo, good eh.
If only Ebiox could have beem marketed in the same way and do remember the company that bought the product and thought it was the best thing to come on the market in 25years then sold themselves to a multi $billion INC corporation.
All them states, what went wrong

[willib2] 21/7/2009 15:06

They look and sound like the HCEG board. Mmmmm small wonder.

[substp] 21/7/2009 14:58

Bernanke soon ........

[willib2] 21/7/2009 14:52

But I look forward to his posts, one of lifes little treats.
heh heh

[substp] 21/7/2009 14:50

Ahhhh the man who understands the deciphering ..... :-))

[willib2] 21/7/2009 14:46

Typo56.
It isnt the first time.
Sometimes you have to decipher his ferreting.
Best described by another poster on another thread.

"Let subs post as much as he wants - he will anyway.
The answer is to ignore his posts if you dont want to read them - frankly I have far better things to do with my life than spend time following his links.
If only links means pence - we'd all be very wealthy"!