Loss-Making Belluscura plc (LON:BELL) Expected To Breakeven In The Medium-Term

We feel now is a pretty good time to analyse Belluscura plc's (LON:BELL) business as it appears the company may be on the cusp of a considerable accomplishment. Belluscura plc develops and commercialize oxygen related medical device products. With the latest financial year loss of US$8.2m and a trailing-twelve-month loss of US$10m, the UK£28m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Belluscura's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Belluscura

Belluscura is bordering on breakeven, according to the 2 British Medical Equipment analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$6.6m in 2025. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 93%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Belluscura's growth isn’t the focus of this broad overview, but, bear in mind that generally 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 0.4% 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 too many aspects of Belluscura to cover in one brief article, but the key fundamentals for the company can all be found in one place – Belluscura's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

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.