Hi allI did attend the AGM:herewith my impression:1. Management...

Hi all

I did attend the AGM:

herewith my impression:

1. Management - I was impressed with the Chair ,the CEO and the other executive director. The one non executive director I did not have time to see or talk to him much so cannot comment.

2. This hiccup and appalling second half of last year is IMO not just an aberration but more directly relates to the centralised decision-making that exists within the medical industry. This business has many tenders and projects but some of the product lines are pretty expensive solutions. I think it will always have a few quarters or half years where the orders slow only to reappear in the next period. I think it is cyclical but can be more predictable within that cycle. This company plays in the Capex and not the consumable arena.

3. No-one will admit it but I think it did take them longer than expected to integrate the businesses they had acquired.

4. some good points - directors taking a pay cut was a good decision and well received. - Quick reaction to slow sales. - consolidation of 3 of 4 businesses executed. - new website creating common look.

5. Difficult questions - The few shareholders left from Citrofresh are probably a bit nervous as their experience has not been a good one. So I think that their experience will keep a few trickling through for a while yet. Not sure if Firsova is correct and its an overhang of a few shareholders or like MHM at the moment just a daily trickle. management said to me they are focused on managing the business and the sp will take acre of itself. All fair saying it but I look at mhm each day - either because I sold too much and it spikes up or to see if I was correct in selling.

6. Biggest questions for me and not really resolved - It has more debt than its present market cap. bad thing or market has it wrong.

7. Management were at pains to point out that they will have a very good first half but it wont be replicated in the second half. that I gained the impression was why they put out a guidance. I must say I hate guidances after you have disappointed - just a personal thing - you get caught in having to put out trading updates as the goalposts move around. I think they are very aware that the market could be impressed with first half , double it and then here comes the second disappointment.

8. Then the next question I worry about is the pressure there was around the room for - "when will or can we expect a dividend?" My reading of this company is that it should be paying dividends until the debt ratios are sorted. Why pay me what will be an un-franked dividend and even with DRP or even worse an underwritten DRP do for your investment here. I do not see it helping - DRP's at low share prices make the stock struggle to grow EPS at a rate that will change the game rapidly IMO. I think that the expectations of shareholders were kicked in the you know what last year and that they still are looking for dividends a year out from now. I dont buy that they have these two loans from a private investor and a couple of million from a bank.A dividend when this business needs more capital to grow - personally I think it is the wrong route given that last year was a shock. had they banked a $1million last year and reduced debt than maybe but it did not happen and they cannot use their share to grow. Acquisitions are very expensive if your share is half price.Even Firsova who I have great respect for is thinking about it. the impact of last year on this business isnt just a one off IMO it is deeply imprinted in the minds of both management and shareholders and both are trying to just ignore its impact. personally I think they should not be paying dividends until they are paying taxes and thus have franking credits to go with the dividends.

9. Then my next question - nothing in the business mix ensures that the overheads are paid each year and then the capital projects are on top of that. So no annuity or consumable business to underpin the company. Big negative for me - you just have to look at cyclicals to know how tough it can get on valuations when the market just isn't there.

10. The really big positive and I am afraid it does have to be measured against MHM - You wont have the same shocks and gaps between reality and what is put out there - These guys IMO will be battling in the trenches each day and they will not give up. They deserve to be supported and yes whilst I have huge concerns about whether I will make far more money by choosing something that has an easier pathway to making more money I like this one because these guys are what business is all about. they are so focused and regret last year to a man/woman. straight and honourable people.

I did give you my emails so if you want to ask more I think it should be private emails this is not a forum for feelings or maybes without some degree of substance to back it up.