Sirtex Medical Limited (ASX: SRX) released news this morning of a trading update which sent the share price up by 12.91%.
The company announced that unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of FY18 is expected to be around $34 million, which is growth of 16% compared to the six months to 31 December 2016.
Sirtex said that dose sales of SIR-Spheres Y-90 resin microspheres were flat for the half versus the prior corresponding period.
Sirtex CEO, Mr Andrew McLean said “As a result of recent management initiatives, we anticipate higher sales in the second half, with ongoing targeted reductions in operating expenditure to drive business efficiencies and productivity gains, resulting in forecast full-year EBITDA in the range of $75 million to $85 million.”
“This compares to an underlying EBITDA of $61.5 million reported in the 2017 financial year. Cash flow generation is expected to remain strong given our high levels of EBITDA conversion to cash flow coupled with lower investing cash flow, resulting from the completion of our major clinical studies”.
The Sirtex share price has grown by 13% over the past year.
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