MVF has provided a 1QFY15 update at its AGM today - softer cycle numbers in July and Aug (which we knew about), stiff price competition in south Australia, which according to management has now passed, and increased competition from low cost operator in Sydney are the main reasons. This has resulted in revenue lower by A$3.5m and EBITDA by A$2.6m for the quarter.
FY15 guidance has been re-confirmed with the help of a lower tax rate, which implies a downgrade at the operating profit line.
MVF is now trading on FY15 PEx ratio of 12.6x (before any adjustment to forecasts). The share price weakness is overdone - the fundamentals of the IVF remain solid and we expect subsequent months to return to normal growth levels.
MVF Price at posting:
$1.41 Sentiment: Hold Disclosure: Held
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