Ann: Appendix 4C - quarterly-MLA.AX, page-2

Very pleasing result IMO. Whilst the cash generated was a bit lower than where I’d thought they come in at (when excluding the $135k payment), The potential is there and they’re growing a nice post Medivet business. Given the slightly chunky nature of a number of contracts (– especially in the Clements space for their centrifuges and pumps) this could easily be more based on timing of deals. As the business matures the revenue should smooth out further.

“During the quarter MLA witnessed encouraging sales growth, in particular with the TUTA range of products into the Australian healthcare system, This has been an ongoing focus for the Company, as growth in sales of its own products will make the business less reliant on OEM contracts and further boost gross margins.”

^ This comment is very encouraging, and whilst cash generated excluding the Medivet payment was $136k, there is potential to increase margins further.

- Solid QoQ growth, increasing of 6% on previous Q, and an annualised increase of 8% on the Human Healthcare business (excl Medivet).

Overall Cash in bank increasing nicely ( to $879k, pretty decent considering the MCAP of $6.2m!) working towards a FY profit, and if annualized at the current rate would result in an after tax profit of 500k which would have the company trading around a PE of 12. This is pretty decent overall, when considering the cash burn of Medivet and costs of disposal incurred in the 1^st Quarter.


Most importantly:

“The Company anticipates that the business will continue to be cash flow positive in future quarters.”


All IMO, DYOR etc…