Sunday newspaper share tips

By THIS IS MONEY
Updated: 10:45 EST, 1 May 2011

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We round up the weekend share tips, looking at Axis-Shield and GlaxoSmithKline

Who's buying what: The newspaper tips digested.

Dundee-based medical diagnostics firm Axis-Shield has for the past 11 years been working on a fully automated machine that can deliver test results quickly and efficiently and can be used by assistants in surgeries or hospitals.

The group has spent £70m developing this instrument, known as Afinion, which is designed to be easier to use and require less staff training than its current Nyco-Card system that tests for conditions such as diabetes or flu in front of patients.

Axis-Shield makes most of its Afinion sales in northern Europe and America and sells the NycoCard machines in emerging markets such as India and China.

The firm recently announced a 5.1% increase in revenues to £101.7m and declared its maiden dividend of 1p a share, despite a dip in underlying profits from £8.1m in 2009 to £7.1m in 2010. Analysts forecast profits to rise to around £9 million this year, increasing to at least £12m in 2012.

While developing Afinion has taken longer and cost more than Axis-Shield expected, sales are predicted to surge in the next five years. At 312p, the shares are a 'buy'.

>> Read the full Midas column - inclduing Midas update

Sunday Telegraph

Drugs giant GlaxoSmithKline reported first quarter figures that were better than expected, despite news of a 10% fall in revenues. Its turnover was hit as sales of pandemic flu vaccines and anti-virals were lower than last year, when the H1N1 virus was rife.

The group said revenues from the sale of pandemic-flu products slumped 98% to £14m in the quarter, while it was also impacted by the loss of sales from its controversial Avandia diabetes medicine, which the company has stopped promoting because of an increased risk of heart attacks.

But the group said profits were boosted by strong sales of new products and expansion into emerging markets, rising to £2.46bn from £1.93bn.

Investors were also cheered further by Glaxo's move to increase its first-quarter dividend by 7% to 16p a share.

The shares - at 1305.25p - are worth a look for investors searching for yield and have the potential for good upside as the company is set to return to growth.