Latham (James) (LON:LTHM) – BUY*: FY16 Pre-Close Statement
Market Cap: £133m; Current Price: 678p; Target Price: 800p
Positive trading update
Revenue for the full year to March 2016 is expected to be broadly in line with our forecasts (£187m) and profit before tax (PBT) is likely to be higher than our forecasts (£11m) for FY16, which indicates the operating margin improvement experienced during H116 has continued in to H216.
NORTHLAND CAPITAL PARTNERS VIEW: Positive FY16 update from James Latham today to back up a solid H116 performance. On the back of a good H116 performance to September 2015 we marginally increased our forecasts at the time of the interim results in November 2015 where we forecast revenue of £187m, EBITDA of £13m and PBT of £11m. FY16 revenue is expected to be broadly in line with our forecasts while PBT is set to be ahead, demonstrating operating margin improvements in the business that should be well received by the market. Preliminary results to March 2016 are due on the 23rd June 2016. We maintain our BUY rating and 800p price target.
IXICO Plc (LON:IXI): New contract
Market Cap: £10.3m; Current Price: 39p
New NHS emergency and out-of-hours services development contract
IXICO announced that it has been awarded a development contract by SBRI Healthcare (the Small Business Research Initiative for Healthcare).
The contract is for the further development and integration of MyBrainBook—IXICO’s digital platform designed to support people with dementia—with NHS urgent and emergency care service providers in London.
The initiative is designed to provide urgent and emergency care services including 111 and GP out-of-hours services with real-time access to a combination of clinical, social care and care planning information, including escalation planning information, directly from MyBrainBook users to help support personalised care pathways in dementia.
The six month project will be led by IXICO in partnership with Healthy London Partnership.
NORTHLAND CAPITAL PARTNERS VIEW: This contract permits IXICO to provide greater personalised care for people with dementia who use its MyBrainBook platform, allowing patients to be treated in a more tailored and effective way. The contract also allows IXICO to work in closer partnership with the NHS, which could lead to further NHS contracts.