Convatec (medical devices) runs in London with announcement of $300m buy back

(Il Sole 24 Ore Radiocor) - Convatec soared on the London Stock Exchange and closed the session up 6.9% after announcing a share buyback programme of up to $300 million. The provider of medical products and technologies specifically targeted at chronic conditions disclosed that the buy back aims 'to return excess capital to shareholders in line with the company's disciplined approach to capital allocation and previously stated policy'.

The programme follows the confirmation of full-year guidance at the half-year results, together with an update on cash requirements for the second half of the year, a statement said. The programme will start immediately and run until 31 December 2025, but may be extended. Convatec has entered into an agreement with Ubs London Branch to conduct the buy back. The group reported on 29 July that it had first-half revenues of USD 1.18 billion (+6%), operating profit of USD 179 million (+20%) and earnings per share of 5.1 cents (+33.6%). Convatec also confirmed its estimate of 5.5-7% revenue growth in 2025, an adjusted operating margin of 22-22.5% (21.3% in H1) and double-digit growth in adjusted EPS, with cash conversion of at least 80%. Convatec specialises in medical devices for the management of ostomies, skin lesions, continence and infusions.