Interventional healthcare specialist BTG PLC (LSE:BTG) has said it expects revenues for its year just ended to be at or above the upper end of the guidance range of £535mln to £565mln.
In a pre-close season trading season update ahead of the publication of results for the year ended 31 March 2017 on 16 May, the FTSE 250-listed firm highlighted strong growth in its Interventional Oncology business, primarily due to the continued expansion of radiation therapy treatment, TheraSphere in the US and EU.
It said this has been supplemented by revenues from cryotheraphy solutions firm Galil Medical, which is delivering in line with expectations following its acquisition in June 2016.
BGC also highlighted continued high growth in revenues for its EKOS interventional vascular business resulting from an increase in the number of US hospitals using the products and strong growth in pulmonary embolism treatments.
However, it said revenue from PneumRx, its early stage interventional oulmonology business, was lower than in the prior year, primarily as a result of a reduction in procedures in Germany, the largest market.
Although, the group added, resumption in growth is anticipated when the new criteria to enable physicians to identify patients who are most likely to respond to treatment become established.
Louise Makin, BTG’s CEO, said: "Our business has performed well this year. We have made significant progress in executing our strategy to become a leading provider of Interventional Medicine therapies.”
She added: “There is good momentum across our business and we start the new financial year with confidence."
In a note to clients on BTG, Investec Securities analyst Andrew Whitney, said: “The underlying business appears to be performing well, with management commentary talking to good momentum and confidence. Progress within the Interventional Medicine business is being supported by ‘good’ performances from Spec Pharma and Licencing.”
Investec reiterated a ‘buy’ stance and 720p price target on BTG shares.
Meanwhile, Numis Securities repeated a ‘buy’ rating and 900p target price on the stock.
In a note, Numis analysts said: “We expect a significant increase in profits in FY18, without the adverse hedging impact.”
By late morning trading, BTG shares had drifted off the top of the FTSE 250 leader board, but was still up almost 3.5%, or 20.5p to 610.5p.
-- Adds broker comment, updates share price --