Its X-ray business will continue to suffer this year from a price war in the US.
A slimmed down pharmaceutical business is showing better returns following a sharp cut in the research and development budget. The real driver to growth, however, will be its life sciences business, which specialises in developing ways to speed up the development of new drugs.The shares slipped 59p to 2271p yesterday on US trading and currency fears. But the group will have to start producing strong organic growth to justify its rating. Underlying earnings per share, perhaps the best way to measure the growth in the business, jumped 41 per cent to 90.1p. The share price has reflected this great performance, rising strongly since last Autumn.
The new group has only just started to reap the benefit of cost savings, which should rise to pounds 70m by the turn of the century. NYCOMED Amersham has had a hectic year, completing not one but two mergers to create a real force in the worldwide healthcare market Both deals have been a real success for shareholders. This could be Ottakar’s using Barnes & Noble’s expertise in developing larger stores.Mr Heneage admitted that there was nothing to stop Barnes & Noble buying a stake in the business after its float.Mr Heneage was speaking as Ottakar’s published its pathfinder prospectus, which showed pre-tax profits last year rose 77 per cent to pounds 2m Sales grew 63 per cent to pounds 38m.. James Heneage, the managing director, said: “There was no approach for the business, nor will there be.
We will remain independent and we will float.”
It is thought that they centred on a possible joint venture in certain aspects of the business. The company is coming tothe market next month via a placing with institutions that will raise pounds 18m and value the 47-strong chain at pounds 30m. Studies suggest they have tilted borrowing towards long-term loans.Private capital flows to developing countries reached a new record last year of $256bn (pounds 155bn). The rich OECD members cut their aid budgets from $59bn in 1996 to $55bn in 1997 or 0.25 per cent of GDP.. OTTAKAR’S, the book retailer, yesterday confirmed it had held “informal discussions” with its American rival Barnes & Noble “about mutual areas of interest” but said it remained fully committed to its stock market flotation.