KCQ
The spending in research and development of Dechra Pharmaceuticals has doubled in the last 5 year, as of June 30 2013 the company spent £8.0m in research and development. Going through the company's financial statement I found that the company is in a good space right now. The group revenue and profit before taxation is up compared to the previous year. At the end of June 30 2013 the company made a profit of £18.3 m. The dividend per share is also up by 14.1% to 14.00p.
Questions:
The information I found on http://www.dechraplc.com/Default.aspx?ID=150 quite helpful for understanding what Dechra Pharmaceuticals PLC does and how its financial position is, though the large number of financial statement was a bit hard to keep up with and there were few heading I didn't understand. Overall I fell the company is in the right track and investing in it is a profitable decision.
The spending in research and development of Dechra Pharmaceuticals has doubled in the last 5 year, as of June 30 2013 the company spent £8.0m in research and development. Going through the company's financial statement I found that the company is in a good space right now. The group revenue and profit before taxation is up compared to the previous year. At the end of June 30 2013 the company made a profit of £18.3 m. The dividend per share is also up by 14.1% to 14.00p.
Questions:
- Even though the company is making a good profit and the revenue is up why is the share price fluctuating and not just increasing.
- Why is that the company didn't make high amount of cash but the company's revenue, dividend per share and earning per share grew in 2013.
- Dechra Pharmaceutical's product has been a leading position in the market. The veterinary market, whether companion animals or livestock, is still strong which gives the opportunity to expand the business to new countries.
- since its also a research and development based company there are few uncertainties like the failure of clinical trial and the company may not meet the regulatory requirements.
- the company's fluctuating exchange rate may also effect the profitability of the business.
The information I found on http://www.dechraplc.com/Default.aspx?ID=150 quite helpful for understanding what Dechra Pharmaceuticals PLC does and how its financial position is, though the large number of financial statement was a bit hard to keep up with and there were few heading I didn't understand. Overall I fell the company is in the right track and investing in it is a profitable decision.
No comments:
Post a Comment