I also don't mind the risk/return equation here also, while accepting related party transactions are a very bad look. The 30 percent growth in cash receipts against the year prior is pretty good, and feedback from the industry appears to be the software is credible. The roll out of consumer personal health portals in NZ may be driving this cashflow growth as the New Zealand government wanted mass adoption by consumers over the next year or two (probably unrealistic). The health insurance focused US cost containment business ConSova was the surprise in this years result, so maybe its still doing well in 2015. Touch wood the ($380K) negative free cashflow (operating + investing cashflow) seen in the first half is accompanied by a build in working capital, and the company is able to report, an underlying profit of some sort.
I found the following update from Sep 2014 on the NZ portals with MedTech getting special commentary
While the portal functionality is as outlined by the three vendors’ offerings, Medtech’s
ManageMyHealth clearly enjoys the greatest adoption and awareness in the
marketplace to date and through its first mover advantage has secured a key role in
many of the more innovative projects. Medtech should be recognized for their early
investment in and commitment to this important area of development.
