News blog

Akers Biosciences Inc

• BY: Andrew Hore |
• POSTED: 20/02/2013 |

House broker Daniel Stewart has brought out its first research on Akers Diagnostics Inc for one year. 

A year ago Daniel Stewart thought Akers would make a loss of $600,000 on revenues of $2.5m in 2012. Things have not gone to plan even with the alcohol breathalyser kits deal in France and the estimated loss has been increased to $1.9m on revenues of $1.6m. There should be $690,000 in the bank at the end of 2012.

Daniel Stewart has published 2013 forecasts for the first time and it expects Akers to break even on revenues of $3.5m. Gross margins are expected to increase from 52% to 58% and admin expenses are forecast to fall by more than one-quarter.

Akers has made a good start to the year from the revenues in France and it will be interesting to see whether it can achieve break even and maintain its cash position. 

At 1.2p a share, Akers is valued at £2.39m. Longer-term forecasts suggest that Akers could generate free cash flow in the three years to 2016 not far short of its current market value, excluding cash at the end of 2012.

Akers still has to prove itself but the potential in France and strong sales of the PIFA Heparin/PF4 test mean the year has started strongly. 

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFFebruary2013_41.pdf