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Medical technology & services

ConvaTec keeps dividend as it expects full-year revenue growth

Revenue is expected to rise by 2-3.5% in the year to December

ConvaTec Group PLC (LON:CTEC) kept its interim dividend as it expect to report full-year growth despite coronavirus disruption.

The FTSE 250-listed medical products manufacturer declared a distribution of US$1.717 cents, in line with 2019.

READ: ConvaTec higher as it maintains 2020 outlook and dividend but warns of increased risk from coronavirus

Revenue is expected to rise by 2-3.5% in the year to December, though elective surgeries and lower non-surgical volumes are forecast to remain under pressure in the second half.

Instead, continence and critical care are estimated to achieve “good growth” although high demand related to the pandemic is to dwindle down.

The second half is also to see more transformation investment as well as a return to higher operating expense levels.

In the six months to June 30, revenue added 2% to US$908mln while profit before tax jumped 24% to US$81mln, reflecting the prior year rebate provision, temporary cost reductions due to COVID-19 and net productivity gains.

Shares advanced 2% to 206.49p early on Thursday.

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