Now that the disaster of the Medivet investment is behind the company it appears that they have a clear direction and are focused on growing the business in a sustainable way.
The Tuta decision to secure the distribution rights to IV House seems to be consistent with a number of things that they have been saying over the past 12 months - adding products that address issues relating to IV therapy and in particular products that focus on infection prevention. I think that this fits very well with Dual Cap and is a good niche for the company to pursue.
The decision to invest in sales people is probably a good one but I would have thought that there may have been more growth over the same period the previous year. I would be interested to find out more information about the impact of being on the QLD supply contract - it is my understanding that these are not guaranteed purchases but simply authorises hospitals in that state to but from the company. I didn't quite understand why the company would look to move into laryngeal masks but a friend informed me that the same staff that use lots of the Tuta products are the ones that use these masks so I guess that it would be the same call point. I found this youtube video that explains its use and it looks pretty good - Youtube - Air-Q
A google search shows that ARDO have been at a number of shows since they announced that they were launched in Australia. The fact that hospitals are trialling the pumps might mean that good sales are not far away.
We don't see as many announcements from MLA these days but we do see better results and it looks like they now know what they are doing. I wonder when we will see a move on delivering "accretive acquisitions".
IMO, DYOR etc
MLA Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
