- Allegra Orthopaedics (AMT) is anticipating an increase in revenue for the 2020 financial year of 20 to 25 per cent compared to last year’s results
- Despite warning of a potential downturn brought on by COVID-19, the meditech company is now reporting strong performance
- The company has attributed this to growth in its LINK orthopaedic implant range and the introduction of new face shield products
- However, net profit is only expected to marginally improve due to an increase in operating costs
- Allegra Orthopaedics is currently trading grey after gaining over nine per cent yesterday and closing with shares worth 12 cents each
Allegra Orthopaedics (AMT) is anticipating an increase in revenue for the 2020 financial year of 20 to 25 per cent compared to last year’s results.
Based in New South Wales, the company develops and manufactures a range of prosthetic implants and medical devices. Its LINK range of products includes a variety of complex lower limb, hip and knee replacements, as well as oncology solutions, and adds to an existing suite of specialty devices covering feet and ankles to upper limbs.
In an announcement dated March 26, 2020, Allegra flagged the Federal Government’s cancellation of elective surgery due to COVID-19 as a factor that would materially and negatively impact its sales.
Many of its products are designed for such surgeries, and while the company forecast “a direct and negative impact on Allegra’s financial performance for FY2020”, it said it was too early to quantify the effects of the decision.
However, the suspension of surgeries was short-lived and ultimately dealt only a limited impact on the company’s sales revenue.
In today’s announcement, Allegra cited strong growth in its LINK product range, and the introduction of new face shield products, as having managed to turn around any significant downturn.
That said, net profit is only expected to marginally improve compared to last financial year’s results due to an increase in net operating costs. This largely pertains to the company’s Innovation division, which is continuing with its efforts to commercialise a cervical spinal cage implant.
Jenny Swain, CEO of Allegra Orthopaedics, said the company was able to rapidly adjust its operations following the onset of the pandemic.
“We are particularly pleased with the strong revenue growth of our orthopaedics products this year despite the recent challenging business conditions caused by the COVID-19 pandemic," Jenny said.
“Our current orthopaedic products have enabled us to respond quickly to the COVID-19 pandemic and we will continue to monitor and respond accordingly to any further impact caused by this pandemic,” she added.
Allegra Orthopaedics is currently trading grey after gaining 9.09 per cent yesterday. Shares in the company are worth 12 cents each.