Storage equipment manufacturer and storage services provider Vindon Healthcare says that the UK is still flat at best but the Irish and US storage operations are winning new customers.
Pharma company consolidation and unwillingness to invest means that demand for temperature controlled storage cabinets is weak although there are signs of improvement and chairman Liam Ferguson says that he is much more confident about prospects than he was one year ago.
Stability storage capacity is being trebled in Ireland and the new US storage facility has won five clients. Recurring income from storage is at a high of £4.2m.
Interim revenues rose from £2.64m to £3.13m but additional costs in Ireland and the US, plus investment in new products, meant that profit was flat at £416,000. Net debt was £1.69m at the end of June 2011. The former factory is in the books at £313,000 and this should yield at least this much when the deal to sell it is finalised following the gaining of planning permission.
House broker WH Ireland forecasts a full year profit improvement from £900,000 to £1.1m. It has edged up its revenue forecast from £6.55m to £6.75m but the profit forecast is unchanged. The dividend should remain at 0.165p a share.
At 9.75p a share, Vindon is valued at £8.66m.
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