Smiths News — Sub 3x P/E and a 15% dividend yield

Smiths News (LSE: SNWS)

Last close As at 17/04/2024

GBP0.50

0.50 (1.01%)

Market capitalisation

GBP124m

More on this equity

Research: Industrials

Smiths News — Sub 3x P/E and a 15% dividend yield

Smith News’ FY22 trading update highlighted slightly better trading than we expected as the market normalised and publishers raised cover prices. Furthermore, management was able to control costs within budget. The new financial year has started well with increased One-shot sales, which are likely to increase with the upcoming FIFA World Cup and the forthcoming coronation. We have raised our FY22 and FY23 estimates modestly, which drives our increased valuation from 92p to 94p. Smiths News is trading on a P/E of less than 3x and offers an exciting dividend yield of nearly 15%.

Andy Murphy

Written by

Andy Murphy

Director, Financials & Industrials

Industrials

Smiths News

Sub 3x P/E and a c 15% dividend yield

Trading update

Industrial support services

26 September 2022

Price

29p

Market cap

£72m

Net debt (£m) at 28 February 2022

£38.8

Shares in issue

247.7m

Free float

100%

Code

SNWS

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(5.8)

(15.2)

(24.2)

Rel (local)

0.6

(14.7)

(19.6)

52-week high/low

40.4p

27.5p

Business description

Smiths News is the UK’s largest newspaper and magazine distributor with a c 55% market share covering 24,000 retailers in England and Wales. It has a range of long-term exclusive distribution contracts with major publishers, supplying a mix of supermarkets and independent retailers.

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Next events

Prelims

November 2022

Analyst

Andy Murphy

+44 (0)20 3077 5700

Smiths News is a research client of Edison Investment Research Limited

Smith News’ FY22 trading update highlighted slightly better trading than we expected as the market normalised and publishers raised cover prices. Furthermore, management was able to control costs within budget. The new financial year has started well with increased One-shot sales, which are likely to increase with the upcoming FIFA World Cup and the forthcoming coronation. We have raised our FY22 and FY23 estimates modestly, which drives our increased valuation from 92p to 94p. Smiths News is trading on a P/E of less than 3x and offers an exciting dividend yield of nearly 15%.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

08/20

1,164.5

28.2

10.4

0.0

2.8

N/A

08/21

1,109.6

31.9

11.3

1.5

2.6

5.4

08/22e

1,077.2

31.3

11.1

4.2

2.6

14.5

08/23e

1,044.9

31.5

10.6

4.2

2.7

14.5

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Trading returns to normalised trends

In H222, revenue for the group benefited from price increases as publishers raised cover prices to offset their own cost increases, which had a modest benefit for Smiths. News and magazine volumes returned to ‘normal’ trends in H2 after a volatile period. Smiths also continued to benefit from higher one-shot revenue and secondary income streams such as waste-paper income and rentals. Furthermore, the company was able to manage its own cost base well, which has resulted in revised FY22 guidance that the company expects to deliver a EBITDA of ‘not less than £40m’. Cash generation was strong, which resulted in a net debt/EBITDA (ex IFRS 16) ratio of not more than 0.5x at year-end.

McColl’s administrators confirm previous guidance

Following the administration of McColl’s Retail Group in May, the administrators have confirmed that unsecured creditors can expect to receive a distribution of between 20% and 40% of outstanding balances. Smiths will provide a bad debt at the low end of the range of £4.4m to be taken as an exceptional. This is a worst-case scenario and is in line with previous guidance.

Valuation: Raised estimates lift to 94p

Given solid trading in H2, the board will recommend a FY22 dividend of ‘not less than 2.7p’, which will take the total distribution up to the maximum £10m allowed under its current banking arrangements. We are forecasting a FY22 dividend of 4.2p versus the current share price of 29p, which implies a yield of nearly 15%. The current financial year has started well and has been given an unexpected boost by One-shot volumes relating to the death and funeral of the Queen. Later this year there is the FIFA World Cup and in June 2023 it is expected that the coronation of King Charles III will take place, which are both likely to drive One-shot volumes. On raised forecasts we lift our valuation from 92p to 94p.

FY22 and FY23 estimates raised

The trading update points to a FY22 EBITDA (reported, pre-IFRS) of ‘not less than £40m’. As such we have lifted revenue slightly, which drives our FY22 EBITDA from £39.6m to £40.5m, with a similar increase feeding FY23. Full year 2022 results are expected to be released in November.

Exhibit 1: Revised estimates

2021

2022

2023

Old

New

% chg

Old

New

% chg

Revenue

1,109.6

1,076.3

1,077.2

0.1%

1,044.0

1,044.9

0.1%

YoY % change

-

-3.0%

-2.9%

-

-3.0%

-3.0%

-

EBITDA - Edison basis

44.9

41.9

42.8

2.1%

40.7

41.6

2.2%

YoY % change

-

-6.7%

-4.7%

-

-2.9%

-2.8%

-

EBITDA - Reported pre IFRS 16

 

42.6

39.6

40.5

2.3%

38.4

39.3

2.3%

YoY % change

 

-

-7.0%

-4.9%

-

-3.0%

-3.0%

-

Normalised operating profit

40.6

37.4

38.3

2.4%

36.1

37.0

2.5%

YoY % change

-

-7.9%

-5.7%

-

-3.5%

-3.4%

-

PBT (Reported, post-exceptionals)

30.6

24.7

25.7

4.1%

28.5

29.5

3.5%

YoY % change

-

-19.3%

-16.0%

-

15.4%

14.7%

-

EPS - Diluted, normalised

10.8

10.2

10.6

3.5%

9.8

10.1

2.8%

YoY % change

-

-5.8%

-2.5%

-

-3.9%

-4.6%

-

DPS

1.5

4.2

4.2

0.0%

4.2

4.2

0.0%

YoY % change

-

180.0%

180.0%

-

0.0%

0.0%

-

Net debt (pre IFRS 16)

-53.2

-21.4

-20.6

-3.5%

-6.7

-5.1

-23.2%

YoY % change

-

-59.8%

-61.2%

-

-68.7%

-75.1%

-

Source: Smiths News and Edison Investment Research


Exhibit 2: Financial summary

£'m

2019

2020

2021

2022e

2023e

2024e

31-August

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

1,303.5

1,164.5

1,109.6

1,077.2

1,044.9

1,013.5

Cost of Sales

(1,217.5)

(1,091.4)

(1,036.2)

(1,004.7)

(974.5)

(945.3)

Gross Profit

86.0

73.1

73.4

72.5

70.4

68.3

EBITDA

 

 

60.1

40.4

44.9

42.8

41.6

40.4

Normalised operating profit

 

 

44.0

35.4

40.6

38.3

37.0

35.8

Amortisation of acquired intangibles

(0.1)

(0.2)

0.0

0.0

0.0

0.0

Exceptionals

(7.2)

(7.8)

(1.9)

(2.5)

(1.0)

(1.0)

Share-based payments

(0.4)

(0.3)

(1.0)

(1.0)

(1.0)

(1.0)

Impairment

0.0

(6.0)

(1.6)

0.0

0.0

0.0

Other

0.0

0.0

(0.3)

(4.5)

0.0

0.0

Reported operating profit

36.3

21.1

35.8

30.3

35.0

33.8

Net Interest

(6.0)

(7.2)

(8.7)

(7.0)

(5.5)

(5.1)

Profit Before Tax (norm)

 

 

38.0

28.2

31.9

31.3

31.5

30.7

Profit Before Tax (reported)

 

 

30.3

14.8

30.6

25.7

29.5

28.7

Reported tax

(8.4)

(2.8)

(4.3)

(5.1)

(6.5)

(7.2)

Profit After Tax (norm)

29.6

25.4

27.6

26.2

25.0

23.5

Profit After Tax (reported)

21.9

12.0

26.3

20.6

23.0

21.5

Discontinued operations

(53.4)

(18.7)

(0.1)

(0.1)

0.0

0.0

Net income (normalised)

29.6

25.4

27.6

26.2

25.0

23.5

Net income (reported)

(31.5)

(6.7)

26.2

20.5

23.0

21.5

Basic average number of shares outstanding (m)

246

245

244

237

237

237

EPS - basic normalised (p)

 

 

12.01

10.39

11.33

11.06

10.55

9.94

EPS - diluted normalised (p)

 

 

11.98

10.28

10.83

10.56

10.07

9.48

EPS - basic reported (p)

 

 

(12.78)

(2.74)

10.76

8.66

9.71

9.09

Dividend (p)

1.00

0.00

1.50

4.20

4.20

4.20

Revenue growth (%)

#DIV/0!

(-10.7)

(-4.7)

(-2.9)

(-3.0)

(-3.0)

Gross Margin (%)

6.6

6.3

6.6

6.7

6.7

6.7

EBITDA Margin (%)

4.6

3.5

4.0

4.0

4.0

4.0

Normalised Operating Margin

3.4

3.0

3.7

3.6

3.5

3.5

BALANCE SHEET

Fixed Assets

 

 

31.5

66.5

47.1

34.4

25.2

(5.8)

Intangible Assets

10.1

4.0

2.3

(1.5)

(5.5)

(9.5)

Tangible Assets

10.9

9.4

9.4

(3.4)

(2.2)

(1.0)

Investments & other

10.5

53.1

35.4

39.3

32.9

4.7

Current Assets

 

 

181.2

165.9

139.1

135.5

132.0

128.7

Stocks

16.2

14.1

13.2

12.9

12.5

12.2

Debtors

124.2

101.2

106.6

103.4

100.3

97.3

Cash & cash equivalents

24.0

50.6

19.3

19.2

19.2

19.2

Other

16.8

0.0

0.0

0.0

0.0

0.0

Current Liabilities

 

 

(229.7)

(283.9)

(167.5)

(129.9)

(110.4)

(83.0)

Creditors

(173.7)

(139.5)

(136.5)

(131.4)

(127.5)

(106.4)

Tax and social security

0.0

(1.7)

(0.3)

(0.3)

(0.3)

(0.3)

Short term borrowings

(46.1)

(130.1)

(21.2)

11.4

26.9

23.7

Other

(9.9)

(12.6)

(9.5)

(9.5)

(9.5)

0.0

Long Term Liabilities

 

 

(57.3)

(30.1)

(76.4)

(70.4)

(64.4)

(55.4)

Long term borrowings

(49.3)

0.0

(50.1)

(50.1)

(50.1)

(50.1)

Other long term liabilities

(8.0)

(30.1)

(26.3)

(20.3)

(14.3)

(5.3)

Net Assets

 

 

(74.3)

(81.6)

(57.7)

(30.3)

(17.6)

(15.6)

Shareholders' equity

 

 

(74.3)

(81.6)

(57.7)

(30.3)

(17.6)

(15.6)

CASH FLOW

Op Cash Flow before WC and tax

60.1

40.4

44.9

42.8

41.6

40.4

Working capital

(3.9)

(5.3)

(1.8)

(1.6)

(0.5)

(17.7)

Exceptional & other

(7.7)

(13.4)

(1.3)

(5.6)

(2.0)

(2.0)

Tax

(2.6)

0.0

(6.3)

(5.1)

(6.5)

(7.2)

Other

(22.9)

1.7

5.9

14.0

7.0

7.0

Net operating cash flow

 

 

23.0

23.4

41.4

44.5

39.7

20.6

Capex

(8.1)

5.3

(2.4)

(4.2)

(4.2)

(4.2)

Acquisitions/disposals

0.0

(10.2)

6.5

14.0

0.0

0.0

Net interest

(5.1)

(8.0)

(9.4)

(4.8)

(3.3)

(2.9)

Equity financing

0.0

(0.7)

(2.6)

(2.5)

(0.8)

(0.8)

Dividends

0.1

(2.2)

(1.0)

(5.7)

(9.9)

(9.9)

Other

(2.8)

(15.6)

(5.9)

(8.7)

(6.0)

(6.0)

Net Cash Flow

7.1

(8.0)

26.6

32.6

15.5

(3.2)

Opening net debt/(cash)

 

 

79.3

72.1

79.7

53.2

20.6

5.1

FX

0.1

(0.1)

(0.2)

0.0

0.0

0.0

Other non-cash movements

0.0

0.5

0.1

0.0

0.0

0.0

Closing net debt/(cash)

 

 

72.1

79.7

53.2

20.6

5.1

8.3

Source: Company accounts, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by Smiths News and prepared and issued by Edison, in consideration of a fee payable by Smiths News. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Smiths News and prepared and issued by Edison, in consideration of a fee payable by Smiths News. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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Research: Healthcare

Basilea Pharmaceutica — Oncology asset sales continue

Basilea Pharmaceutica continues its positive wave of Q322 activity with the successful asset purchase and sub-licence agreement of its tyrosine kinase/polo-like kinase 1 (TTK/PLK1) inhibitor, BAL0891, to SillaJen (a privately held South Korean biotech). The deal will see Basilea receive up to US$14m (CHF13.5m) in upfront and near-term milestones, with potential future milestone payments of up to c US$320m (c CHF310m). The company is also entitled to tiered royalties on net sales, which will range from single- to double-digit percentages. We see this latest development as a positive indicator of management delivering on its intention to separate the oncology business by end-FY22. We have updated our financials to align with company guidance and value Basilea at CHF903.5m or CHF76.3/share.

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