International Medical Devices Share Discussion Threads

[pomp circumstance] 27/6/2008 16:48

Yes to distribute the needles

[james t kirk] 27/6/2008 15:10

Ged, yes I did take a loss, but wasnt prepared to hang on and I didnt see any quick turn round. Pretty heavy in CRA now, although down today has amazing potential. STP made me all my money and more that I lost here, but was fortunate to take profits there near the top of the rise..

[ucnut] 27/6/2008 14:32

Worse lies than the Government. Maybe the FSA should investigate.

Conclusion
IMD has made very positive progress during the last six months. Major changes to the
operations of the business have been successfully
completed, to ensure the business foundations are in place to take the Group forward on a
stronger, more efficient, and integrated footing.
Revenues for the second half of 2008 have commenced in line with expectations. I am confident
of the future and I look forward to reporting
the second half results reflecting the introduction of these developments.

[8trader] 27/6/2008 14:09

Bsn got suspended today, not a good market.

[ged5] 27/6/2008 14:09

Nobody's in the office, chairman out of the country. Looks ominous!

Somebody's going to pick up a nice little company on the cheap. In another financial climate the bankers/financiers might have come up with a workable package but I'm not holding my breath.

Well done James you must have taken a loss but at least you preserved some capital.

[james t kirk] 27/6/2008 13:45

Blimey, glad a bailed after results, cash was so low, this became a possibility. Previous management totally to blaim, dont touch a Chris Thomas run company!

[ged5] 27/6/2008 13:33

Well that was the other scenario. oh well!

[cyberpost] 27/6/2008 13:23

well its bust... kudos to dell for higlighting the working capital problem. what a shambles of a management.

[ged5] 27/6/2008 09:32

Market cap 2.92M
Turnover up 22% to 6.18M for the half year.
Gross profit up 27.6% to 2.478M for the half year
Operating profit up 21% to .5M
Forecast yearly profit of .6M after a 1.273m exceptional charge

Well that's enough bullishness, it might induce even more stupid selling and perhaps a reduction in the share price.

Have a good summer all. See you in October when perhaps the market will have come to its senses.

[5huu] 23/6/2008 15:12

PC, e-mail sent

[5huu] 23/6/2008 14:30

Thanks PC, Did you find out what the reason was for the RTO collapse? I agree AIM shares are volatile in the best of markets, but unlike lots of the small caps INT is profitable (exc exceptionals) and cash generative, but as you say -On published figures & house broker comments. I've left a message for Mike Acheson (FD)to call me back, when (if) he does I'll have a chat with him and post a summary. 5huu

[pomp circumstance] 23/6/2008 14:13

from what i understood a rights issue wasnt on the cards.
But nothing that wasnt public domain was said.
From another source I understood the takeover was a RTO and was to be funded by a mixture of equity and debt at a considerably higher price than the current share price However it fell thru due to problems out of the hands of the company even tho both parties were keen to progress the transaction!

But this is AIM and the share price is dropping at a disturning rate so who knows what is truth and what is hype.

On published figures they look to be undervalued and oversold!

[5huu] 23/6/2008 13:51

PC, your comments relating to Managements movements indicate you may have had some recent contact? What's your take on the fall. Are we looking at a possible rights issue? What about the aborted takeover, do you know if that was to be funded by shares? That may well explain something. I'm sitting on a 750k of these with an average of 1.35p. Hence I'm looking for some news!

[pomp circumstance] 23/6/2008 13:09

You have to wonder what is going on. The directors sit in very expensive offices in london, although i hear they are moving soon. The ceo is in oz. Not sure its on IMD business tho. The chairman is on holiday.
Even a token 20ks worth of shares bought would be a positive sign.

[5huu] 23/6/2008 12:41

This recent fall below 1p is a little worrying. I've trawled for news to support the fall, but I cannot find anything. The fundamentals in the last results look good, so is it time to be topping up??

This could just be a stock overhang which the MM's are trying to clear, but the lack of Director buying and the lack if interest from the large institutions make this a bit of a mystery. Particularly against the positive signals the company gave out at last results and the positive broker note.

On the face of it, it looks oversold. Any thoughts anyone?

[pomp circumstance] 23/6/2008 06:47

Im looking for some director buying here and Ive told them this.

[knowing] 22/6/2008 22:58

Reminder

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 consumables
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.

[ljsquash] 20/6/2008 12:06

I agree but any company that reads but does not answer e. mails has a communication problem. (2 in the past fortnight)
I am here for the long term but only because I am way down and there is no point selling.

[ged5] 20/6/2008 11:32

Buys are outnumbering the sells in the past week but still have some catching up to do. Since the results there has been a sell off. Hopefully we're nearing the bottom.

I think we need to remind ourselves of the very positive broker report produced by Robin Speakman:-

"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 consumables 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....

...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."

It's also worth noting that the share price was originally marked up on the day of results before the cash position freaked investors out and caused them to sell. Maybe they've all gone now and slowly buyers will return.

I feel happier with the company at the moment. I was fearful of the company going bust and it may still do so. However if it survives and I believe there is every indication that it will do so(and expand when the opportunity arises) then we have a company that should give very handsome returns. All imo

[knowing] 19/6/2008 22:02

This needs some news. It is so oversold.

[genie] 16/6/2008 15:38

Yes ladyfarmer, one of them is mine.