Demant’s management targets aggressive mid-to-long-term growth. Besides a recovery in Hearing Healthcare, to also benefit via the Oticon More launch, the growth prospects in Communications seem promising. Strong FY21 guidance was reinforced. As a result, our estimates should reset higher. However, considering that competition is head-on with Sonova’s Paradise and there could be some near-term business/margin challenges (as already guided for Communications), our cautious stance should be maintai
Companies: Demant A/S (DEMANT:CPH)Demant A/S (DEMANT:CSE)
Despite the deceleration in communications, Demant reported a sales beat in H1, benefiting from the hearing aids market recovery, the robust traction for new products and reform-related tailwinds in France. Strong sales growth combined with cost savings led to significant margin expansion. Anticipating the release in pent-up demand, the FY21 outlook has been upgraded with hearing healthcare to lead the pack. However, communications is likely to shrink in H2 and continued investments into R&D and
Year-to-date, Demant’s organic revenue has grown faster than management’s expectations with strong demand for Oticon More and Philips HearLink leading to market share gains in Hearing Aids. Also, Hearing Care benefited from a continued market recovery and strong growth in Europe. Given the ongoing trend of vaccination, particularly in the US, management anticipates pent-up demand in H2 and thus full-year sales and profitability targets have been upgraded. Share buy-back amount has also been rais
Driven by the strong recovery in hearing healthcare market and robust demand for its communications solutions, Demant returned to growth in H2 20, though sales were below the normal level. Interestingly, strict cost management bolstered profitability as well. Assuming the hearing market normalises in H1 21, management has set ambitious but risky targets for FY21 – pent-up demand for hearing solutions and the recently-launched Oticon More should be the key growth contributors. The DKK2bn share bu
Companies: Demant A/S
Demant has launched a new product – Oticon More comes with an industry-first in-built Deep Neural Network (deep/ machine learning) which improves audiology performance. This is a multi-brand launch, allowing Demant to target a wider patient base and ensuring strong sales momentum into 2021. Nonetheless, given the stiff competition within the hearing aids industry, the new product is priced only marginally higher than the previous device as management’s focus is on market share gain.
Supported by pent-up demand, Demant’s revenue has continued its positive trend towards normalisation since mid-August and H2 revenue guidance has thus been narrowed – on easier comps, the wholesale business is expected to remain flat while retail is likely to grow in mid-single-digits. The structural cost-cutting initiatives are also delivering results and thus an EBIT outlook has been introduced. With rival Sonova and GN out with their latest product offerings, we await a similar announcement f
Demant’s H1 revenue declined 27% organically, though a recovery was visible towards the end of H1 on the back of pent-up demand. Management has guided for +5-15% revenue growth for H2 and the operating profit, which slipped into the red in H1 due to operational de-leverage, should also be back in the black. However, the reinforcement of lockdown restrictions, particularly in the US, and new lead generations continue to be the key risks.
Benefiting from the gradual re-opening of economies, conditions within the hearing healthcare market have improved and Demant is now operating at a 50-60% sales run rate (vs. 30% in May). Many European countries have seen a progression and the activity level has increased amongst independents. However, as Demant resumes commercial activities and ramps up operations, opex is approaching normalisation faster than revenue – the run rate now at 75-85% (vs. 60% in May) – and thus EBIT is expected to
Until mid-March, Demant reported double-digit organic growth driven by a robust product portfolio. However, COVID-19 led to the closure of hearing clinics across key markets, which severely impacted sales and profits. Currently, Demant is operating at a c.30% revenue run rate. Nonetheless, the fundamentals of the hearing aids industry are still intact and we should see a gradual recovery, which could spill-over into 2021. Until then, the headsets business, which is benefiting from the working-fr
An IT incident in September brought business to a standstill (for few days) and as a consequence, Demant’s FY19 financial performance was affected adversely – operating margin slipped to new lows. While the majority of the businesses have returned to normalcy, following the resolution of the IT issues, management still anticipates a minor spill-over effect in FY20. However, as Demant expands its product portfolio by introducing new rechargeable mid-priced products across brands, momentum should
Research Tree provides access to ongoing research coverage, media content and regulatory news on Demant A/S Unsponsored ADR.
We currently have 0 research reports from 0
Full-year results were in line with the trading update of 21 July, with revenues of £31m (-2%), reflecting the impact of COVID-19 on out-patient procedure rates, resulting in 14% and 24% declines in adjusted EBITDA and pre-tax profit, respectively. Lower than expected procedure growth rates and the decision to discontinue non-core (non-chlorine dioxide products) reduces forecast revenues by c.£3m to £33m in FY 2022. However, higher gross profit and tight control of costs (+6%) results in an unch
Companies: Tristel Plc
No Joiners Today.
No Leavers Today.
What’s cooking in the IPO kitchen?
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
Recruitment resumed the Phase 2a trial of the lead programme hRPC in retinitis pigmentosa (RP) with the treatment of the first UK-patient in Oxford. The protocol gives greater infection control after the safety issue (a possible infection) in June. Five patients were treated up to mid-October and the remaining four could be treated by December 2021. By late March 2022, ReNeuron expects to give an interim update. The full data set should be available around mid-2022. This will enable regulatory d
Companies: ReNeuron Group plc
Companies: WAND SDX SEMP BMK LVCG MOS ACC
IXICO has announced that one of its clients has put an indefinite halt on a clinical trial for which the company was providing its artificial intelligence medical image analysis. The halt is the result of unexpected preclinical data. IXICO had expected the contract to deliver £0.8m of revenues in FY22E and it represented £3.3m of the £18.8m order book as of the close September 2021. While this news is disappointing, clearly the trial halt has no reflection on the capability of IXICO's technology
Companies: IXICO Plc
No Joiners Today
No Leavers Today
What’s cooking in the IPO kitchen?
Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
H1 EBITDA declined by 45% YoY, albeit this was slightly better than we had anticipated after the pre-close update in August. The beat was cost related (efficiencies/savings). There was a significant gross margin drag though and, while transitory in nature and diminishing in H2, this means further savings need to be realised to hit full year forecasts. This is our view and we retain a good level of confidence in next year’s forecasts. Having de-rated, valuation looks very undemanding now on just
Companies: Venture Life Group Plc
IXICO has provided an upgraded trading statement for FY21E following its previous update in August 2021. Revenues are now expected to be £9.2m (vs £8.7m previously), broadly in line with FY20A, which we see as a strong result given the pandemic and Huntington's Disease (HD) trials de-scope. EBITDA is expected to be materially ahead of FY20A's £1.3m, supported by strong Q4/21 trading, cost control and positive one-offs. The company has ended FY21 with a strong order book (£18.8m) and cash positio
CareTech is a specialist social care and educational services provider. This morning, the group has announced an update for the year to 30 September pointing to the fact that results will be in line with market expectations. The net debt position of £259m illustrates a further reduction since the end of H1 (31 March £263.1m) and implying a reduction to 2.7x adjusted EBITDA. During the year, seven new developments have opened, with a further eight properties purchased in H2. The group's freehold
Companies: CareTech Holdings PLC
SkinBioTherapeutics has announced it will launch its lead commercial product, AxisBiotix-Ps on World Psoriasis Day, 29 October 2021. To support the launch, the company has begun to receive, and store finished product in the Netherlands (close to its manufacturing partner) ahead of initial launches in the UK and US. Clearly the launch of its first product is a significant step for SkinBioTherapeutics, marking the transition from development company to commercial operation. We are encouraged by th
Companies: SkinBioTherapeutics Plc
Synairgen reported interim results to 30 June in which the adjusted net loss was £32.8m with period-end cash of £46.2m. Substantial pre-commercial progress and manufacturing activities have made in the half, although slower country approvals for trial sites will result in Phase III data readout slipping into Q1 2022. With increasing evidence of the need for a broad-spectrum antiviral delivered to the lungs and recognition that vaccines don’t provide complete protection against hospitalisations d
Companies: Synairgen plc
*A corporate client of Hybridan LLP
No joiners today.
Conduity Capital has left AIM.
What’s cooking in the IPO kitchen?
Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segm
Companies: SEN SEMP DNORD DNORD FAB MAST SAR CZA MRL
No Joiners Today.
Cambria Autos has left the AIM following a takeover.
What’s cooking in the IPO kitchen?
Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive and susta
Companies: VRS ORPH SNG MRL EBQ AVG
The positive market research results for Eroxon®, released this morning, provides further support for the company’s ongoing partnering efforts. We continue to believe that MED2002 is a differentiated product with significant potential in both prescription and OTC markets, and look forward to further PK data followed by Phase III start in H1 2018.
Companies: Futura Medical plc
Hikma’s H1 20 top-line acceleration was driven by COVID-19-related demand in Injectables and Generics and the economic recovery in Algeria propelled growth in the Branded segment. Combined with a favourable product-mix, the operating margin was up 1.5ppt. In the near term, new launches across segments should provide some respite against the ongoing pricing pressure. Given the company’s thin R&D pipeline and a robust balance sheet, M&A (probably in the biosimilars space) seems on the cards.
Companies: Hikma Pharmaceuticals Plc