Trinity share price falls as results fail to impress

Shares in Trinity Biotech lost ground after the Nasdaq-listed medical group declared only a marginal rise in profits after a 23 per cent rise in sales brought its turnover last year to more than $98 million (€81.66 million). Arthur Beesley, Senior Business Correspondent, reports

The stock closed 4.35 per cent weaker on the Nasdaq at $8.80 per American Depository Receipt (ADR) on the back of annual results from the diagnostics company which showed that its pretax profit rose by $288,000 to $5.95 million in a year in which its revenues rose by $18.55 million to $98.56 million.

Earnings per ordinary share fell to 9 cent in 2005 from 10.4 cent a year earlier, meaning that earnings per ADR fell to 36 cent from 41.5 cent.

The company said a $4.8 million rise in selling, general and administrative costs to $33.6 million was mainly due to two acquisitions in the US and an exceptional charge of $240,000 arising from the conversion of its accounting to the IFRS system from Irish generally accepted accounting principles.

Trinity Biotech said its directors acquired 4.5 million ordinary shares in the company last year, or 1.12 million ADRs, through the purchase of 1.95 million ordinary shares on the open market and the exercise of options on 2.55 million ordinary shares.

"The directors believe these transactions reflect the confidence and belief that senior executives and the board of the company have in the future of Trinity Biotech," said chief executive Ronan O'Caoimh.

"2005 has been another strong year. The ongoing growth in our revenues combined with strong cost control has increased our operating margin before share option expenses from 7 per cent in quarter one to 10 per cent in quarter four."

Mr O'Caoimh said that the acquisition of New Jersey company Research Diagnostics last March and the acquisition of Primus Corporation of Kansas City in July were funded from the company's own resources and from bank debt.

The cash flow statement published by the company shows that it took out $1.8 million in short-term debt last year and $7.2 million in long-term debt. The statement said it spent $13.13 million to acquire subsidiaries and businesses.

"We have experienced strong sequential growth in all of our product areas and geographical locations during the year," said chief financial officer Rory Nealon.