At tomorrow's AGM I'd expect that it will be possible to confirm...

At tomorrow's AGM I'd expect that it will be possible to confirm whether that GBP34.5m per annum NHS bucket is all for Boost (and Max), or whether there are other providers who have also been successful in tendering to supply devices for the mild to moderate hearing loss category.

Hopefully someone here will be attending the AGM to ask those questions.

The answer will determine the real value of this NHS contract to NUH in terms of the impact on MC and SP. If all of the GBP34.5m (AUD$60m) is for NUH then depending on the gross margin that level of annual revenue equates to a SP of anywhere between 27 cents (15% margin) and 63 cents (35% margin), without even considering sales growth of NUH products through existing retail channels. This is using a P/E ratio of 25, which is in the middle of industry averages for listed health stocks (30) and tech (20).

Even if NUH only gets half of the GBP34.5m, then that would value us at anywhere between 15 cents and 34 cents, depending on gross margin.