Last close As at 05/08/2026
GBP18.88
▲ 108.00 (6.07%)
Market capitalisation
GBP572m
Research: Industrials
aap Implantate’s preliminary FY17 results show an encouraging 20% y-o-y growth in trauma revenues, with the strongest performance coming from the North American distribution business. Management has guided to continued revenue growth and reducing EBITDA losses in FY18. Delivery on key partnerships and the commercialisation of the silver-coating technology are the main stepping points to eventual profitability. The near-term goal for aap is to start the human clinical trial for the silver-coating technology with the aim of reaching CE and FDA approval.
Written by
aap Implantate |
Preliminary FY17 sales in line with guidance
|
Healthcare equipment & services |
QuickView
21 February 2018 |
Share price graph
Share details
Business description
Bull
Bear
Analysts
aap Implantate is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||
aap Implantate’s preliminary FY17 results show an encouraging 20% y-o-y growth in trauma revenues, with the strongest performance coming from the North American distribution business. Management has guided to continued revenue growth and reducing EBITDA losses in FY18. Delivery on key partnerships and the commercialisation of the silver-coating technology are the main stepping points to eventual profitability. The near-term goal for aap is to start the human clinical trial for the silver-coating technology with the aim of reaching CE and FDA approval.
20% growth in trauma sales encouraging
aap Implantate’s preliminary unaudited sales figures for FY17 show full-year revenues of €10.9m (+4%), including prior disposals and within management guidance (€10-13m). Trauma now accounts for 98% of FY17 revenues, up 20% y-o-y and up 11% from Q317 to Q417. This growth is encouraging and validates aap’s strategic transformation into a pure-play trauma business. Key revenue drivers included the North America distribution (+70%) and the International (+26%) businesses. Full audited results are due to be published on 29 March 2018.
Out-pacing global trauma market growth in FY18
Management guidance is for FY18 revenues of €13-15m, up 20-40% y-o-y and reducing the EBITDA loss to between €5m and €3.4m. Management points this out to be a higher growth rate than the global trauma market. Key to this will be continued significant growth in North America, both via new partnerships with global orthopaedic companies and distribution deals. Investors are still awaiting details on the human clinical study for the silver-coating technology which should pave the way to eventual planning approval. The study is expected to start in FY18 and will inevitably result in higher costs during the period. Q118 revenues are guided to between €1.8m and €3.0m and for an EBITDA loss of between €1.9m and €1.4m.
Looking forward to silver-coating technology
Now that aap Implantate is a pure-play trauma company, investor attention is likely to focus on revenue growth as well as its plans and progress with silver-coating technology. The coating helps to prevent expensive post-implantation infections and revisions. The company highlights the start of the human clinical trial as a key focus for FY18.
|
Consensus estimates
Source: FY16 numbers as reported by company (representing continued operations only), FY17e revenue as reported by the company (preliminary revenue figure), other figures from Bloomberg. Note: Bloomberg consensus figures based on single analyst estimates. |
|
Disclaimer
|
|
Disclaimer
|
Investors in European-listed private equity (LPE) have been presented with two sources of uncertainty recently: disclosures in the new key information documents (KIDs) required under MiFID II and increased market volatility. In the 12 months to 9 February 2018, however, the LPX Europe Total Price Return Index (LPX) of major UK and European LPE companies returned 16% compared to 8% for the MSCI Europe index. Over the same period, the LPX total NAV return was even higher at 18%. Over 10 years the LPX returned 119% compared to 93% for MSCI Europe. Thus, LPE has continued to deliver impressive net-of-fee returns for investors.