At the start of August, this £183m-capitalised developer of innovative sexual health products announced that its lead product, a novel topical gel for erectile dysfunction called Eroxon, will be on sale to the US public through its distribution agreement with Haleon.
Tomorrow morning, Tuesday 10th September, the company will announce its Interim Results to end-June.
The accompanying statement could well give the market fresh guidance on when it will burst into profitability.
Analyst estimates will then come ‘under review’ upon the results.
However, I expect to see the £6.9m loss of 2023 being replaced by a 70% reduction to just £2.1m down for the year.
For next year we can expect a swing into profits, to the tune of some £2.6m, based upon anticipated sales of £18.0m (£10.0m).
For the 2026 year, sales may rise another third to £24.0m, taking profits up to £4.1m.
It is well worth noting that brokers Panmure Liberum have an NPV-based Price Objective on the group’s shares of 131p, compared to the current market price of 37.50p.
Now ready to rise again.
(Profile 14.03.19 @ 15p did not set a Target Price)
(Profile 22.12.21 @ 34.5p set a Target Price of 50p*)
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