Spotlight On Health Wellness & Skincare Stocks: FUM & IDP

 Spotlight On Health Wellness & Skincare Stocks: FUM & IDP

Futura Medical PLC

Futura Medical Plc (FUM) is based in the United Kingdom and develops products for relieving pain and for consumer healthcare benefits. The Company focuses on Research & Development of medical devices and drugs along with their commercialisation. The science of absorption of medicine or drug through a sticky patch by application on the external body, typically skin is known as Transdermal delivery. The company has developed this technology which makes the skin to absorb active molecules known as DermaSys®.

Recent development

The company’s CEO James Barder gave an elevator pitch for the company. He said that the company has a pipeline of products for later stage related to sexual wellness. The MED2005 is a breakthrough in treating Erectile Dysfunction and is in the III phase of development. The company is targeting large market potential in excess of 1 billion dollars.  According to research, about 50 per cent of men with age between 40 -70 suffer from some form of ED, the occurrence and severity increase with age. This drug is a differentiated therapy considered to be very effective in treating ED. The drug has several advantages over other treatments such as fast action typically 5-7 minutes.

Financial Highlights for Financial Year 2018 (£)

(Source: Company’s filings, LSE)

The revenue of the company stood at zero for the year ending December 31, 2018, as against £362,727 in the previous year over the same period. The company has put all its resources including (financial and human) on developing its main asset (MED2005 for ED) which will lead to consistent revenue stream soon. The Research & Development expenditure surged by £1.9 million to £6.0 million in FY18 as against £4.1 million in FY17. This rise in expenses can be attributed to research (Phase 3) conducted on MED2005 along with other costs such as manufacturing stability and validation activities. This rise stood in line with the company’s expectations. R&D costs were not capitalised in FY18. There has been a slight increase in the General and administration expenses to £1.23 million in FY18 as against £1.12 million in FY17. The R&D activities are outsourced and associated central costs are kept in check. The company’s net loss for the period (FY18) stood at £5.89 million as against a net loss of £3.90 million in FY17. The basic loss per share for FY18 stood at 4.46 pence as against a loss of 3.23 pence in FY17. The company is expected to receive a tax credit (R&D) of £1.36 million for FY18. The company’s cash balance stood at £9.16 million in FY18 as against £8.36 million in FY17.

In November 2018, the company raised net funding of £5.48 million through Institutional placement, primary bid and the Open Offer; which further resulted in a cash inflow of £0.80 million.

Share price performance

Daily Chart as at July-03-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 03, 2019, at 12:04 PM GMT), shares of Futura Medical Plc were quoting at GBX 39.39 per share; up by 2.31 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £79.09 million.

In the last 52-weeks, shares of Futura Medical Plc have registered a high of GBX 40 (as on Jul 03, 2019) and a low of GBX 5.65 (as on Dec 11, 2018). At the current trading level, as quoted in the price chart, its shares were trading 1.03 per cent below the 52-week high price level and 597.16 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 1,100,907. Stock’s average traded volume for 5 days was 1,347,697.20; 30 days- 917,289.43and 90 days – 1,024,576.83. The average traded volume for 5 days was up by 46.92 per cent as compared to the 30 days average traded volume. The company’s stock beta was 3.47, reflecting much higher volatility as compared to the benchmark index.

The shares of the company (at the time of writing) were trading above the 30-days and 60-days SMA, which shows a positive trend in the stock price movement and could further move up from the current trading levels.

In the past 1 year, shares of Futura Medical Plc have delivered a positive price return of 16.45 per cent. Also, on a year-to-date basis, the stock was up by approximately 526.02 per cent and surged by 112.41per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 70.42, 76.60 and 81.02 respectively. Also, the stock’s 3-days RSI stood at 93.21. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 114.43, 91.25 and 92.17 respectively

InnovaDerma PLC

InnovaDerma PLC (IDP) develops a variety of treatments for hair care, skin-tanning and rejuvenation. Its product portfolio includes Hair Laser Starter Kit, Hair Treatment Pack, Bio-cleansing Shampoo, Conditioners, Scalp Therapy Treatment, Scalp Serums, Deep Cleansers for Scalp and Body, Hair Treatment Pack, Shampoos, Hair Follicle Boost Therapy, BioPlex Scalp Serum, Scalp and Body Exfoliating Spa, Instant Hair Building Fiber, Skin Primer& Shader.

Trading update for FY19

The company announced that the company has done well, and the results are in accordance with the board’s expectations. The revenue of the company stood at £13 million in FY2019, surged by 21 per cent as against £10.7 million in FY2018. The company expects the profit before tax to double from last year; it stood at £0.67 million in FY2018. The company optimised its inventory and supply chain management which resulted in improved gross margins significantly. The Gross margins increased by 500 bps Y-o-Y. This growth can be attributed to the business model which enables the company to reduce overheads as the model has scalability and agility. The company has cash balances of more than £1.7 million which makes it financially sound. The company is expected to announce results in September this year.

GrowLase, an FDA approved helmet which supports hair growth and reduces hair fall, will be launched soon by online mode, retail channels and TV Home Shopping networks.

Financial Highlights for H1 FY2019 (£)

(Source: Company’s filings, LSE)

The company’s revenue slightly declined by 7.48 per cent to £3.9 million for this period as against £4.2 million in H1 FY18. This decline can be attributed to change Facebook’s methodology of advertising which was reflected in DTC sales. The company’s loss before tax stood at £0.4 million for the period as against £0.03 million in H1 FY18. This increase was due to a rise in online marketing costs, social media and product development costs. The company’s gross margin surged to 58.3 per cent for this period as against 53.2 per cent in H1 FY18 due to improved retail sales. The group has zero external borrowings. The board has not declared Dividend as of now. The cash balance reported by the company stood at £0.7 million at the end of the reported period. The funds are being utilised on online marketing.

Share price performance

Daily Chart as at July-03-19, before the market close (Source: Thomson Reuters)

At the time of writing (before the market close, at 01:54 PM GMT), shares of the InnovaDerma PLC Limited were trading at GBX 100 and declined by 2.91 per cent against the previous closing price. As on Sep-07-2016, its shares got admitted to the Alternative Investment Market of the London Stock Exchange for trading.

Volume Summary

The 5-day average daily shares exchanged hands were stood at 183,585.00, which was around 201.50 per cent above the 30-day average daily volume exchanged hands at the London Stock Exchange. Today’s volume in the stock stood at 73,081 with 33 trades took place at the London Stock Exchange (before the market close).

52wk H/L range

In the past 52-weeks, shares of the InnovaDerma PLC have registered a high price of GBX 209.60 as on Sep 19, 2018, and a low price of GBX 70.00 as on Jan 17, 2019. At the current trading level, as quoted in the price chart, its shares were trading 52.29 per cent below the 52-week high price level and 42.85 per cent above the 52-week low price level.

Price Performance (%)

On a Y-o-Y basis, shares of the InnovaDerma PLC have delivered a negative price return of 9.25 per cent and performed like benchmark index over the same period. However, on a year-to-date basis, the stock has recorded a positive price return of approximately 24.85 per cent and was able to beat the index quite comfortably. For the past three months, the stock has generated 6.74 per cent positive returns.

Simple Moving Average (SMA)

The shares of the company (at the time of writing) were trading above the 30-days and 200-days SMA, which shows a positive trend in the stock price movement and could further move up from the current trading levels.

Relative Strength Index (RSI)

Share’s RSI for the 30-days, 14-days and 9-days stood at 57.55, 61.25and 61.36 respectively. Also, the stock’s 3-days RSI stood at 52.84. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 61.54, 41.71and 32.43 respectively.

Facebook Comments