Someone commented earlier in this thread that he thought the company outlook statement that came with MVH’s June Quarterly could be viewed 'as a big 'nudge wink' to long-term shareholders'.
Knowing the work Horley and his team have been putting in over the past six months, I tend to agree with that view.
So...for the benefit of those who may not have read it at the time, here is a reprise of those 'end of quarter achievements' for quiet weekend contemplation:
END OF QUARTER ACHIEVEMENTS
Melbourne, July 31, 2008 – The Board of Medic Vision Ltd (Medic Vision or Company) is pleased to update the changes in the market and our achievements over the last quarter.
Although the last quarter has been disappointing in relation to our share price we have made significant ground in expanding the business especially in relation to the deployment and operation of medical and surgical skills training centres in key markets around the world. We have also made further sales of simulators and services in the UK, China and Australia including our surgical drilling and epidural simulators. Our development costs will now reduce as we are focussing on enhancing software models based around the hardware that we have produced.
The evolution of Medic Vision into a total service provider in the field of medical and surgical skills training has been an exciting journey albeit very challenging and at times frustrating not just for management but shareholders as well. [It is the faith that the shareholders have in the company which underpins the strong foundation we are building on. As referenced in each of these reports the management highly values the substantial support provided by shareholders and in return is very committed to delivering value back to those shareholders, many of whom have been with the company for a number of years.
MARKET DEVELOPMENTS
The market that we operate in is changing to the benefit of the company which we identified would happen. This change is referenced in a number of key areas as follows:
The Ministry of Health in China announced in January 2008 a plan to reform the health system and provide a national level of health care for all of the 1.3 billion citizens by the year 2020. This means that all Doctors in China will need to be trained to a national level in competency similar to other countries. The approximate number of Doctors in China is 1,200,000. Medic Vision has been operating successfully in China for 5 years and has specifically positioned ourselves with key government and professional medical accreditation organisations to provide skills training across the country. We have already been involved in the development of many skills training centres in China and fitting them out with training simulators. We are very confident that we will play an increasingly important role in providing training solutions for the Ministry of Health to meet its expectations within its timelines.
As a measure of our relationships with key organizations, Ross Horley was invited as a key note speaker by the Chinese Medical Doctors Association for the national educational forum in Nanjing in July 2008. Ross was one of only 2 non Chinese speakers at the formal session of the forum speaking directly after Ministry of Health officials and specifically on postgraduate education, the challenges ahead. The other non Chinese speaker was Professor William Burke from Ohio University.
Last year the UK Government committed itself to introducing a system of relicensing the UK's 150,000 doctors to test their basic competence. The change has been dubbed the biggest shake-up in doctor regulation in 150 years. The mechanism for testing is to be piloted over the next 18 months from June 2008. Medic Vision is already involved in the development of skills training centres in the UK including the Royal College of Surgeons of England and have also deployed a number of simulators to NHS Hospitals around the country. It has been Medic Vision’s objective to strategically positioning itself to take full advantage of this change in policy and this is evidence with the work we have done to date. It will be an exiting year for Medic Vision in the UK but importantly working with landmark policy which is already being viewed as a reference in other countries.
Medic Vision has been invited to be involved in the development, fitting out and management of medical and surgical skills centres in Kuwait, Libya, Dubai, Malaysia, Singapore, India and further centres in Australia. These projects are either under assessment by the relevant health authorities or institutions or are current projects in the case of Singapore. The world health services market is changing significantly with a substantial focus on training and education to provide a greater and much more efficient and effective level of health care.
FINANCIAL
Since last quarter our cash expenditure has reduced significantly and our revenue increased. Net operating cash flow has reduced from $1,136,000 for the quarter ended 31 March 2008 to $664,000 for the quarter ended 30 June 2008. The company is further reducing costs in research and development and administration.
As at 30 June 2008 the Company had approximately $300,000 in debtors, $100,000 work in progress referenced specifically to simulators just delivered into China but not yet invoiced and saleable assets (in the form of quoted securities of currently valued at approximately $425,000). The Directors continue to manage the resources and costs of the Company carefully and will examine its options for future funding, including appropriate timings and structures to take full advantage of the growing business opportunities which may include capital raising through sale of equity.
Shareholders will be kept up to date in due course.
OUTLOOK
We would certainly like the market to move quicker, have much greater revenue now and significantly exceed shareholder and market expectation. However we know that given the significant changes that are now happening in the health market especially in China, India, the UK and other areas and our hard work in positioning ourselves globally we will be able to not just meet but far exceed the above agenda. We look forward to announcing achieving key milestones and advising shareholders of our success in this turning market and to reward people for their perseverance.
We look forward to our continued growth and a significant improvement in our share price to the benefit of our loyal shareholders.
On behalf of the Board Ross Horley Managing Director Medic Vision Limited
MVH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
