I was listening to the AGM today and there were a few take outs for me both good and not so.
CEO was great - finger on the pulse, knowledgeable.
Chairman needs to work on his message and tone. I didn’t feel or see vision - needs t
1) reporting - there is no desire to report to market quarterly. This is disappointing as NZ reporting is 6 monthly and 2 months after the fact. For a growth business like this I find it unacceptable.
2) forecast numbers - the company will not provide guidance as the feel that Until these new deals (KP and impact from LCD) any information would be premature. I feel that understanding what increase in testing the company predicts is critical to value the business. I wonder if the late sell of was in response to this reluctance.
3) there are more deals in the wings - presentations stressed that large hospitals will likely fill KP lead, also PEB want to convert 100% of NZ DHBs
4) covid will be stopping increased sales team engaging personally. Which means we are burning cash with inefficient conversion. I did not see a pivot or plan as to how the sales team operate in this space.
5) there was Interesting info on the KP deal. They are signed up for all products, however are only using monitor product. It was noted that KP have 2% of all bladder cancer patients needing monitoring. These people need testing every 3 months. (800,000 x 0.02 = 16000 x 4 = 64,000 test pa. If the charge is the same as the agreed CMS rate then this means revenue of $48M USD per year) this for me is the first glimpse of actual potential size of the deal.
Price at posting:
73.0¢ Sentiment: Buy Disclosure: Held
