Investment summary

Bespak revenue growth (strong valve and Diskus volumes) offset expected weaker King performance leading to a 5% increase in H112 revenue to £68.8m. Consort Medical remains strongly cash generative at the operating level and is targeting double-digit profit growth in the medium term. It intends to achieve this via organic growth (new products, diversification and moving up the value chain) in its existing cash-generative business, and through exploiting selective M&A/investment opportunities. Its record interim results showed evidence of delivery on its growth strategy, supported by a strong market position (particularly at Bespak), operational investment and pipeline expansion/progress. This strategy should ensure that Consort remains an attractive and defensive growth opportunity for investors.

Last updated on 09/12/2011

Industry outlook

Consort designs, develops and manufactures high-margin disposable medical devices through its Bespak (drug delivery technologies) and King Systems (airway management) divisions. These have leading positions in strong defensive, but relatively fragmented, markets.

Last updated on 09/12/2011