Shiloh shows promise

Re the tonsillectomy kits issue and it's profit implication (or more importantly the effect on EPS) I did some quick and dirty calculations on the effect on the future earning.

If the impact is a 10% drop in the forcast rolling EPS (12 month forcast) this would take the current broker estimate down from 25p to 22.5p. This would mean a potentially fair growth of 67% (to 423) instead of 85% growth (to 468).

I am assuming 10% because of the turnover value quoted by Cat which is under 10% of the total Shiloh turnover. Although if the margins are a lot higher relative to their other services then the impact will be greater.

If the calculations are fairly realistic then £4 should still be achievable.


Greatbear.