4th Sep 2014 08:09
LONDON (Alliance News) - Consort Medical PLC Thursday said it is trading in line with expectations in the year to date and said it was confident on its outlook for the full year.
The medical devices company said it expects sustained organic growth initiatives to continue to convert into revenue and operating leverage over time and is expecting further development programme wins in the future. Consort said it continues to look at potential other avenues for growth consistent with this strategy.
The group said its consolidated financial position is strong at present, with net cash standing at GBP33.6 million at August 31, reflecting the receipt of USD10 million in May in deferred consideration from the sale of King Systems after the launch of the King Vision low-cost surgical blade. King Systems was sold to Ambu A/S in February 2013.
Consort also cut its guidance on its expected effective tax rate percentage (ETR) as a result of the April 2013 implementation of the Patent Box regime in the UK. Patent Box is a tax incentive launched in the UK designed to encourage companies to make profits on their patents by reducing the amount of tax paid in the UK on this intellectual property.
Consort said it expected ETR for the financial year to April 30, 2015 has been cut to 16% from the 20.6% paid for the full year 2014.
"Consort is continuing to deliver across its diversified portfolio," said Consort Chief Executive Jonathan Glenn.
"We welcome the establishment of the UK Government's Patent Box regime, which provides a material uplift in financial returns from our existing IP portfolio, as well as a favourable investment environment for our ongoing Innovation activities," Glenn added.
Consort shares were up 2.5% to 938 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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