This turnaround will take some time, but the trend is in the...

This turnaround will take some time, but the trend is in the right direction. The main takeaways I have from the AGM:

• European Penthrox sales are driving the improvements: I am expecting around +$9m for France and +$2m for UK in revenue based on their responses. This is based on increasing marketing and sales team from 1 to 14 (9 in France, 4 elsewhere, 1 manager). Other areas include Nordic sales etc, but that's off a very low base. International sales therefore could improve from $11m in FY21 to $22m in FY22.
• Aus/NZ Penthrox sales are returning back to normal levels from pre-Covid. So that's +$4m in revenue.
• Expecting to announce new Canadian distribution partner in November/December.
• Medical devices are returning back to normal levels if not more. They noted that US sales are expecting to be four times the FY21 results. So this would be around +$5m in revenue.
• My guesstime at this point would be $35m in revenue, well up on the $25m in FY21 which included $8m of one-off revenue.

The other things to note is that Brent is optimistic on the US-FDA process. They are expecting to submit in late November / early December, and then FDA has 30 days to respond. They are hopeful for straight up approval on the proposed clinical trial, but are aware there could be some further questions. While timing is not clear, again the direction is good.

If you are hoping for Flow to be some sort of catalyst for MVP, I don't think you will be happy with the response from Brent that it's unlikely at this point they see any revenue in the future... but they remain hopeful.

GLTAH.