CMP compumedics limited

Interim report - 27.Feb

  1. 370 Posts.
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    According to Morning star, compendiums will release its interim result on Tues, 27.Feb.
    Given the recent volatility in its the share price and low trading volume, it is likely that only a few traders or automatic computers are actually trading the stock.
    Due to the decline in revenue and profit in 2017, this year would be critical one to see if CMP can grow its business.
    In short, CMP is expecting about $41m in revenue and $6m in EBITDA in 2018, compared to 34.4m/2.8m in 2017 and 37.5m/5m in 2016. However, the 2018 figure probably includes MEG sales worth 3-4m AUD to be delivered in the second half of 2018. We would have to wait until then.

    For the interim, CMP should probably deliver 18-19m in revenue to meet the guidance. Would be interesting to see the management credibility, after missing both interim and final guidance, last year.
    On the upside, medium term game changer would be more MEG sales and progress on eHealth Somfit, a move into consumer healthcare products.

    On side notes, I actually believe strategically, it's better for CMP to spin off its DWL business or license its DWL technology, since it has not got the resource to develop and grow the division. Any spin-off would probably be welcomed by the market, as well as benefitting the core division (sleep and neuro).
    Last edited by eight: 08/02/18
 
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