(Adds details, quote)
By Justin George Varghese
March 2 British medical devices firm ConvaTec
reported an 8 percent increase in annual operating
profit for last year, helped by an increase in margins that was
ahead of target.
ConvaTec shares traded up 6.4 percent at 259p at 0930 GMT,
having earlier hit their highest level since the company floated
at a price of 225p in October. ConvaTec has joined the FTSE 100
index of leading shares following the flotation.
The company, which focuses on the management of chronic
conditions, reported adjusted operating profit of $472 million
for 2016, a jump from the previous year's profit of $437
ConvaTec reported higher gross margins of 60.9 percent on
the back of a "margin improvement plan" that delivered a boost
of about 130 basis points, beating its earlier target of 50
"ConvaTec is well positioned for the coming year, and ahead
of schedule on our Margin Improvement Plan and now expect to
achieve around half of the targeted 300bps improvement during
2017", the company said in a statement.
However, the post-tax loss rose to $203 million compared to
$93 million year ago, on the back of reorganisation costs and
charges related to its stock market listing in October last year
in which it raised nearly 1.5 billion pounds.
ConvaTec, which makes wound care and continence products,
reported revenue rose 4 percent to $1.69 billion on Thursday, in
line with the company's own forecast.
The company is geared to strong market growth fundamentals
and well insulated from US drug price risk, said analysts at
(Reporting By Justin George Varghese; Editing by Jane