* 140 percent debt/equity ratio acceptable vs 30 percent at
present
* Seeks acquisitions in respiratory, drip businesses
(Adds detail, COO comments)
By Vanessa Walters and Baptiste Cordier
PARIS, Nov 19 (Reuters) - Bastide Le Confort Medical is
eyeing acquisitions and a 50 percent improvement in its
operating margin in the next 5 years, Chief Operating Officer
Vincent Bastide told Reuters in an interview.
The home medical care specialist is seeking takeover targets
to boost its respiratory assistance and intravenous drip
businesses and raise their contribution to sales to 40 percent
by the end of 2010 from 30 percent, he said.
"There is potential at the heart of respiration for 25
percent growth per year (in the French market)," said Bastide,
the son of Chairman and Chief Executive Guy Bastide, the
pharmacist who founded the group in 1977.
The company is the second-biggest provider of home
healthcare behind Air Liquide, with turnover of 94.8 million
euros ($119.7 million) in 2007/2008.
Bastide's financial partners would accept an increase in its
gearing level to some 120-140 percent from 30 percent currently
to help fund acquisitions, Bastide said.
Growth would be "controlled" and focused on the French
market as the country's health system was more favourable than
elsewhere in Europe, he said.
"The French market is built around a list of refundable
products and services (and) the free choice of the patient to
select a provider." Bastide said.
Bastide confirmed the group's plans to grow its branches by
up to six per year, eventually doubling to 150, and to achieve
double-digit sales growth in the current year.
Bastide was also aiming for an operating margin of 15
percent by 2013, up from 10.4 percent in the year ended June 30,
the COO said.
The group has benefited from recent legislative reform in
France allowing partnerships with EHPADs, or residential centres
for treatment of the elderly. Other recent reforms have included
lowered taxes on respirator equipment.
The company's share price is down around 43 percent so far
this year, but Bastide said the group was little exposed to the
economic slowdown.
An exit from the stock exchange was not being considered but
was also not ruled out if the share price fall continued and the
market capitalisation dropped below its funds. The company
currently has a market value of 90 million euros.
Bastide added that the dividend, which increased by 50
percent for 2007/08 to 0.15 euros per share, would probably not
rise in the near future as the group focused on investments.
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(Editing by James Regan and Elaine Hardcastle)
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