Belluscura plc's (LON:BELL) Shift From Loss To Profit

Belluscura plc (LON:BELL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Belluscura plc develops and commercialize oxygen related medical device products. The company’s loss has recently broadened since it announced a US$5.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.3m, moving it further away from breakeven. As path to profitability is the topic on Belluscura's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Belluscura

Expectations from some of the British Medical Equipment analysts is that Belluscura is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$3.0m in 2024. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 84% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Belluscura's upcoming projects, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Belluscura which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Belluscura, take a look at Belluscura's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Historical Track Record: What has Belluscura's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Belluscura's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.