The 1H 2018 Result Nuts and Bolts

Overall a disappointing result but overly punished.
Long term growth path remains in tact.
The HealthCare market is a minefield of increasing costs and govts are cost cutting wherever they can.
NAN is responding with a suite of Revenue Recognition Models.

Morgans..................

1H result fall short of expectations

NAN posted a 1HFY18 result of A$2.2m which included a tax expense of A$1.5m.

The EBITDA was A$3.8m which was behind our forecast of A$5.5m.

Sales were down 4% to A$30.0m reflecting a reduction in consumable and accessories to GE Health.

Operating expenses were A$19.3m (pcp: A$20.9m).

Operating cash flow was up 3% to A$3.9m and cash reserves were a healthy A$65.5m.


On a regional basis we noted the following:

1) US – the Trophon installed base increased by 1,700 units to 14,100;

2) Europe – in Germany a luminary hospital installed 22 units under the managed equipment service (MES) model;

3) UK – 40 units were placed at Kings College Hospital in London and 20 units placed in the Fife Hospital in Scotland; and

4) Japan – pre-marketing programs are progressing and a pivotal clinical study is due to start in 2HFY18 and the data will support the generation of local Japanese guidelines.