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Health and Pharma Morning Bulletin

month=03  year=2010

11 March 2010

Health and Pharmaceuticals Morning Bulletin
Results

Nestor Healthcare Group PLC  - 2009 Preliminary Results

 

·      Nestor continued to make good progress in 2009, evident in revenue and margin growth in Social Care, and contract wins in Primary Care.

 

·      Social Care delivered excellent results with profits up 21% to £10.3m (2008: £8.5m) on revenue 2.4% up at £107.0m (2008: £104.5m). Margins improved to 9.6% (2008: 8.1%) driven by organic growth from the second quarter onwards and continued improvements in quality and efficiency.

 

·      As forecast, Primary Care produced lower profits of £2.5m (2008: £4.3m) on revenues of £45.0m (2008: £49.3m) as PCTs took two out-of-hours contracts back in-house in early 2009 and before five contracts won under the government's Equitable Access to Primary Care (EAPC) programme had begun to make a significant contribution. The profit benefit of these GP led health centres, open seven days a week, 8am until 8pm, will largely arise from 2010 onwards. Early results in terms of patient volumes and service feedback are excellent. Tender activity continues at a high level across a wide range of opportunities for the independent sector, including the Dental Access Programme where Nestor has won its first contract.

 

·      Cash flow from operations was strong at £8.9m (2008: £10.9m). Closing net borrowings were reduced to £13.8m (year-end 2008: £19.0m).

 

·      The group successfully negotiated new four-year banking facilities with Barclays and HSBC.

 

·      Final dividend of 1.65p per share (2008: 1.50p), bringing the total for the year to 2.15p, up 43%.

 

Trading Statements / Contract Wins / Acquisitions:

 

AGM & EGM:
 
Share Dealing:
 
Miscellaneous:

AstraZeneca PLC  - Torrent Supply and Manufacturing Agreement

Proximagen Neuroscience Plc  - Proximagen announces positive efficacy results

 
Newspaper Investment Highlights:

 

Times – Need To Know

Advanced Medical Solutions: The AIM-listed woundcare specialist reported a 39 per cent rise in full-year adjusted pre-tax profits to £4.1 million, compared with £2.9 million a year ago, and said that it planned to pay a maiden dividend this year.

 

Sanofi-Aventis: The French pharmaceuticals group and Merck, its US rival, announced that they would join forces to create the world's biggest animal health company.

The combined business would hold 29 per cent of the market with sales of about $5.3 billion ($£3.5 billion), making it the leader in the sector ahead of Pfizer, the American drugs group.