DMS released FY17 sales. Revenues reached €27.1m (-9% on a comparable basis), of which €26.5m for DMS Imaging (-10%), €0.5m for DMS Biotech (+18%) and €0 for DMS Wellness.

The turnover is clearly disappointing, coming after a 4% decline in H1 17 and 5% over 9 months. Of course, as we have previously mentioned, the level of revenue is hard to estimate on a single quarter, due to the very nature of the Imaging activity, where the signing of a single contract can change the picture overnight, as was the case last year with a €1.9m order in bone densitometry for a Southern European country which contributed to a high comparison basis.

The segment thus reported sales down 33%. In this segment, the first sales linked to the agreement with Fujifilm should occur in FY18 after the salesforce is trained.

Similarly, the group has decided to slow sales in a North African country due the level of risk associated, which has contributed to the decline of sales in radiology, leading to a 3% decrease in the segment’s sales despite the agreement with Carestream Health partly compensating for this decline.

On the positive side, DMS Imaging has signed a contract in Egypt worth US$1.9 (€1.5m) which should boost FY18 sales.

The new segments show a better sales pattern, with DMS Biotech sales up 18% (from a low basis though), with 11 contracts signed in FY17 and an expected significant take-off of sales in FY18, particularly in Europe. Lastly, DMS Wellness should book its first sales in FY18 after the registration process is completed for its cellulite and lymphatic drainage solutions (Celliss).

This said, altogether, the overall performance for FY17 is rather weak at the top-line level and it is highly unlikely that the group reaches our current forecast in terms of profits for FY17, again partly because quarterly sales can be very volatile.