Probiotic (PBP)Summary of decision:Tune in later.Wait until the...

Probiotic (PBP)

Summary of decision:Tune in later.Wait until the next half year report or perhaps full year report.Mainly to check to see if the earnings per share growth is sustained.

Description of Business (from Reuters website)

Probiotec Limited is engaged in the development, manufacture and sale of pharmaceuticals, consumer health and nutraceutical products in Australian and international markets. The Company's segments include Branded Pharmaceuticals, involving the sale of branded pharmaceutical products throughout Australia and also to selected South East Asian countries; Contract manufacture, involving thecontract manufacturing of pharmaceutical, food and animal nutrition products on behalf of domestic and international pharmaceutical and food companies; Obesity and weight management, involving the manufacture and sale of a range of products across a number of channels, including fast moving consumer goods, pharmacy, health food stores and online; Europe, involving the manufacture and sale of products within Europe, and Specialty products, involving the sale of human and animal nutrition products, incorporating the sale of ingredients and additives for use in the pharmaceutical and food industries.

Ratios etc.Mainly from commsec and the most recent annual report.

Market capitalisation:$129 Million

Understandable business?Yes.

PE:16.43

PEG: Not provided on Commsec. Some EPS growth forecasts on Reuters

ROE:12.3

Net gearing:52.4

Is cash higher than short term interest bearing borrowings?yes

Has the company been actively reducing debt? No

Is the operating margin improving?Yes

Does the company have a means of increasing the earnings per share?Yes.Acquisition and some organic growth?

Does the annual report contain full length photographs of the board of directors?No.The 2020 annual report is mainly text with a few photographs.

Cash flow screens

Are the receipts from customers higher than revenue? Yes

Are receipts from customers higher than payments to suppliers? Yes

Are cashflows from operations positive?Yes.

Are cashflows from operations higher than Net profit after tax?Yes

Other issues(from 2020 annual report)

During the year, the Group divested its Celebrity Slim brand, completed the wind down ofthe Group’s UK and Ireland operations and closed its satellite warehouse facility. As such, these operations are considered discontinued operations asat the balance date. Please see the 2019 financial report for details of discontinued operations in the comparative period.