Consort Medical (LON:CSRT)’s FY16 results reflected the first full year of consolidation of Aesica. Revenues of £277m evidenced the scalability of its full-service contract development and manufacturing operations, as well as the impact of ongoing operational efficiencies, with improved operating margins at both Bespak (+170bp) and Aesica (+210bp).
Consort is making good progress with building scale and is well placed to capitalise on the strong growth in outsourcing development and manufacturing in the sector.
Aesica integration on track
Consort has delivered on its key strategic goals following the Aesica acquisition, including securing a first drug/device development and manufacturing collaboration with Precision Ocular.
Aesica restructuring is largely complete and EBIT margin improved to 7.4% in 2016 (targeting low double digits in the next one to two years), reflecting active cost management and the curtailment of negative/low-margin work. Consort’s positioning as a single-source supplier for medical device contract development and manufacturing is a key differentiating factor for customer engagement.
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