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Ian Pollard – United Carpets #UCG sees profit collapse
United Carpets Group UCG found the first half of the financial year very challenging There were no immediate signs of respite in the general environment and with continuing Brexit uncertainties, the second half was viewed with some caution. However, recent trading performance has shown some more encouraging signs which, if sustained, should result in a better second half and a reasonable outcome for the year. First half like for like sales fell by 1.8% but in the 11 weeks since then they have risen 0.1%. Profit before tax collapsed from £589,00 last year to £121,000 and earnings per share from 0.57p to 0.09p. The interim dividend has been maintained.
Real Good Food Group RGD admits that its expectations for the year are only modest and its first half performance has been in line with those expectations. The loss before tax for the 6 months to the 30th September rose from £3.4m. to £9.1m. but that included a goodwill impairment charge of £6.3m. EBITDA on an underlying adjusted basis from continuing operations, saw last years loss of £0.4m turned into a profit of £0.9, The sale of Haydens Bakery for £12m. enabled the bank loan to be repaid and cash put into the business. The group is now smaller and more focused, it says, the focus being on profit improvement and growth.
Advanced Medical Solutions Group AMS has received CE approval to market and launch its LiquiBandFix8® Open Hernia Mesh Fixation Device in Europe, following the existing LiquiBandFix8® laparoscopic device. AMS continues to make good progress and the Board expects results to be in line with current market expectations.
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Ian Pollard – Sports Direct Hit By UK High Street Woes
Sports Direct Intl SPD Mike Ashley claims a spectacular trading performance during the half year to the 29th October which is hardly justified by the reality of the situation, namely a fall of 1% in UK sports retail revenue or 1.2% on a like for like basis. So, he limits his claim to the trading performance in his flagship stores, of which they are going to open more. If his flagship stores are doing so well it makes the the rest of UK retail look even more gloomy. Gross margins in the UK fell by 80bps compared to a rise of 110bps for international retail. Group revenue for the half year rose by 4.7% which again only serves to illustrate how bad trading in UK high streets and shopping malls has become. Underlying profit before tax is, he claims, healthy with a rise of 22.9% although on a reported basis it fell by 67.3%. Underlying earnings per share were up by 32.9% as against a fall of 68.6% on a reported basis.
Ocado Group OCDO Sales growth was impacted during the quarter to the 3rd December, by a lack of capacity and especially a shortage of drivers. Average orders per week rose by 50% during the quarter, whilst the average order size remained stable.
PZ Cussons plc PZC Cautious consumers have created tough conditions and adversely affected performance in the half year to the 30th November with the result that profit for the half year is expected to be 10% lower than in the previous period, despite strong profitability in Asia, which has been offset by Africa and Europe. A robust and innovative pipeline has helped to underpin the first half and it is expected that the out turn for the full year, will be broadly in line .
Advanced Medical Solutions AMS updates on trading to the 31st December and confirms that it is continuing to deliver strong organic growth. Revenue and profit are,anticipated to be in line with current market expectations.
Bunzl BNZL Group revenue for the year to 31st December is expected to have risen by 15%, or 9-10% at constant exchange rates, as expected at the time of the October trading statement.
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Galliford Try Blames Caution On Impact Of Politicians !!
Galliford Try GFRD When the best that a company can find to say about its annual results is that they show a strong underlying performance, then you know that something went wrong. Otherwise it would be claiming a strong financial performance, and that is something which Galliford can not claim. Profit before tax for the year to 30th June fell by 57% and earnings per share by 55%, even though it had the benefit of robust market conditions. The financial performance for the year was impacted by legacy costs in Construction – so that’s alright then ? Can’t be laid at the door of management, that sort of thing, can it ? The shareholders are kept happy with a 17% rise in fully year dividends. To cover itself for the future it is even reduced to blaming the politicians and a board of directors can not sink much lower than that. It is cautious about the future it says, because of the impact of current political uncertainty. That does not seem to be a worry or even a concern for other house builders and in any event politicians and the uncertainty they create have been with us since the dawn of time.
Dunelm Group DULM went ex growth in the year to 1st July with a fall of 0.5% in like for like revenue and profit before tax down by 28.3%, as it tried to cope with a challenging and subdued Homeware and Furniture Market. EBITDA fell by 7.8% and earnings per share by 28% from 50.3p to 36.1p. The ordinary dividend is to be raised by 3.6%. Things improved with the start of the new financial year and sales growth in the first two months is described as being good. What exactly “good’ means in round figures is for some reason being kept a closely guarded secret.
Adv. Medical Solutions AMS continues to go from strength to strength as profit before tax for the six months to 30th June rose by 27% and the interim dividend is increased by 17%. Group revenues grew by 8% at constant currency rates with US revenue rising by 52% and sales of Liquiband strong in all its markets. the company is optimistic about future organic growth.
Surgical Innovations SUN produced strong growth in both revenue and profits in the half year to the 30th June. Revenue rose by 14.1% and last years first half loss of £0.6m was turned into a profit of £0.3m. both sets of figures being at the upper end of the board’s expectations. The acquisition of Elemental Healthcare on the 1st August is regarded as being transformational for the company.
Alliance Pharma APH is increasing its interim dividend by 10% following strong growth from its international brands and an 8% rise in revenue. The integration of Sinclair Pharma has now been completed and “bolt on” acquisitions are now being pursued.
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Cello Is a Bowed String Instrument And Not A Fiddle
Alliance Pharma APH has more than doubled revenue and pre tax profits in the 6 months to the 30th June and is increasing the interim dividend by by 10%. Revenue rose by 104% including sales of ex Sinclair products whilst profit before tax rose by 113% and basic earnings per share by 25%. The share price has been showing some signs of strength since the end of June with a rise from 42p to 51p, approaching its previous all time high of 60p.
Advanced Medical Solutions AMS claims to be in robust health, with strong financial growth for the half year to 30th June. LiquiBand continues to perform strongly in the US, producing a rise in revenue of 83% and further gains in market share.The interim dividend is being increased by 20% after a rise in revenue of 20% and a 13% rise in profit before tax. revenue has been helped by currency fluctuations. The share price as grown almost without interruption from 55p at the start of 2013, to its present 227p.
Dunelm DNLM Put in a strong performance for the year to 27th June and continuing a record of ever increasing sales and profits over the last 10 years. The final dividend is to be increased by 19.1% bringing full year dividends to 25.1p, a rise of 16.7%, in addition to which there has been a special distribution of 31.5p per share.Profit before tax rose by 6.2%, basic earnings per share by 7.4% and revenues by 7.1%.
Galliford Try GFRD produced another set of record results for the year to 30th June, but being a housebuilder, that is expected. Profit before tax rose by 18% and the full year dividend payments are up by 21%. Linden Homes saw completions rise from 2769 to 3078 which I make out to be a rise of 11% but revenue was up by only 8%. Housebuilders do not give discounts, not yet at least but did the odd incentive become necessary during the course of the year?
Cello CLL is increasing its interim dividend by 19% following a statutory loss of £0.8m and a statutory basic loss of 1.8p per share, for the 6 months to 30th June. Last year it made a first half profit of £1.9m so this year has seen quite a turn round. Obviously the board must have put its thinking cap on as to how to justify the dividend hike and to do so it came up with a new formula. As from now dividends will be equal to 40% of headline earnings per share, that being one of the few statistics showing a positive outcome, even if at 3.54p they were lower than last years 3.61p. Nice for the shareholders, anyway. And to make sure that no one is confused with the half year results, the company makes it clear that “Headline operating margin is defined as headline operating profit as a percentage of segmental gross profit“. Can’t get fairer than that, can it?
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Persimmon – Clouds On The Horizon ?
Persimmon PSN has been having a rough time during the past few months. In April its shares fell 6% on worries about slowing sales and then between 24th and 27th June its share price fell off a cliff after the referendum results with a two day decline of about a third, leaving it at £14 compared to a previous high of £22.
Persimmon claims that trading has been strong during during the half year to 30th June with the average selling price rising by 6% and group revenue up by 12% but the real picture painted by todays trading update is of some clouds appearing on the horizon. In May and June the private sales rate was ahead by a meagre 1%.whereas first quarter UK mortgage approvals were up by 18%. Forward sales as at 30th June were only level with last years figure. Planners are blamed for continued delays in the start of construction on new development sites.
Advanced Medical Solutions AMS does not have a lot to say in its update for the 6 months to 30th June except that that it is and will continue to be a major beneficiary of the fall in the pound, with 60% of its sales being in $US or Euros. The result will be an expected rise in revenue but profitability remaining in line.
Young & Cos Brewery YNGA has had a good start to the year, despite the weather. Revenue in the first 13 weeks have risen by 6.5% or 4.1% on a like for like basis.
Hayward Tyler Group HAYT claims to have transformed itself into a forward thinking, profitable market leader, ready for its next stage of growth. For the year to 31st Marc h revenue including acquisitions rose by 27%m trading profit before tax by 18% and trading earnings per share by 36%. The dividend is to be increased by 5%.
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Advanced Medical Solutions – Strong Year of Growth
Preliminary results for Paysafe (PAYS) for the year to 31st December are slightly ahead of expectations and the CEO and President is bubbling over with excitement and self praise. he is “incredibly pleased” with what was a tremendous year and is very excited about prospects for the future. Revenue rose by 68%, adjusted EBITDA by 77% and profit after tax by 60%. Statutory profit after tax however collapsed by 87% following acquisition costs and net debt surged nearly twenty fold from £22.9m.to £431.3m. although this figure is said to be not meaningful. The positive momentum which so excites the President has continued into 2016.
Advanced Medical Solutions (AMS) continues to make up for all those years of waiting whilst its new products were developed and eventually licenced. The final dividend for 2015 is to be increased by 14% after a rise of 9% in revenue, 12% in profit before tax and 10% in diluted earnings per share. Net cash increased by 98% to £34.2m. AMS made good sales progress on all business fronts, with a strong year of growth, especially in the US where market share is being increased by the success of Liquiband tissue adhesives.
Finsbury Foods (FIF) is increasing its interim dividend by 12% to 0.93p for the 26 weeks to 26th December after a strong first half performance saw like for like profit before tax rise by 22% and like for like revenue by 7.4%. Total revenue, including revenue from acquisitions was up by 84%. FIF expects to flourish in what it sees as the new era of increasing consumer confidence.
Surgical Innovations (SUN) produced significantly improved results for 2015 and with its new board and management in place, both manufacturing and operational costs were reduced and the inventory was slashed by nearly 60%. Margins also improved and revenue for the year rose by 36%. An EBITDA loss from 2014 of 0.05m was turned into a positive 0.24m in 2015 and net debt fell by 30% to £2.26m. The improvement in performance has continued into 2016.
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