Trinity Biotech profile

CLINICAL healthcare company Trinity Biotech reports first quarter results on Wednesday. The Bray-based company saw pre-tax profits rise to $8 million (€6.25m) last year, up from $5.7min 2002.

Revenues went up 26% to $65.7 million, driven by a combination of organic growth and acquisitions during the year. The company continued its acquisition programme in 2004 and signed two deals earlier this month, spending a total of $20m. Its acquisition of Fitzgerald Industries will allow it to source raw material more efficiently and cut input costs, while the decision to buy Adaltis, an American distribution company, will beef up Trinity’s presence in the infectious disease sector.

Trinity Biotech is a developer of tests for infectious and sexually transmitted diseases. It makes over 500 diagnostic products used in patient care and clinical laboratory tests and generates sales in 80 countries. It has manufacturing facilities in Bray as well as the American states of New York and California. The company is quoted on New York’s Nasdaq and the Irish Stock Exchange.

Founded: 1992.

Headquarters: Bray, Co Wicklow.

Senior executives: chairman and chief executive Ronan Ó Caoimh; chief financial officer Rory Nealon.

2003 dividend: Trinity Biotech does not pay a dividend.

Major shareholders: Courier Capital 2.1%, Standard Life 1.3%, Bank of Ireland Asset Mgt 1%.

Share price history: 12-month high €4.60. 12-month low €2.93.

Current price: €3.20.

Market capitalisation: €150m.

What the company will report?

The company flagged its ambitions to keep making acquisitions earlier this year, but observers will look for evidence that Trinity’s recent buys fit in with the overall strategy and make sound financial sense. Investors will remain cautious after the company was forced to write off a significant investment in HiberGen, an American subsidiary, last year. Analysts will expect strong results after Trinity strengthened its sales force in America. They will take special interest in the success of the company’s test for HIV, which has a key advantage over competitors in that it delivers results in just 10 minutes, and which obtained approval from the American authorities before Christmas. Investors will hope for increased revenues and tight control of selling and administrative costs. But pressure on margins may yet become a problem.

Buy, sell, add or hold?

Goodbody stockbrokers rate the share as an add.