Think I've said this before in another report, but a lot of this is a good surprise. It's almost as if more things are happening in the background than what they announce, which is to their detriment if they just communicated better.
Overall the main things I can see, they secured long-term contracts with NHS trusts. This repeat business and contract extensions are indicative or customer satisfaction and product doing what it should do (very important). They have a strong cash position (no debt), obviously the cost savings from operation efficiencies should help profit margins and overall financial health. I would say $132m over next 5 years is pretty good for stability, can't understate that importance. Pretty modest revenue growth which probably indicates challenges with new contracts.
Everything is cautiously optimistic. Reliable revenue streams from multi year contracts and solid cash base. But to be honest, for shareholder value they'll need to make sure the cash flow problem and revenue growth is addressed properly. So how they execute their strategies will be vital. People should see many more positives from this report than negatives, but it is a long term approach.
ALC Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
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