MEDICAL AUSTRALIA LIMITED HIGHLIGHTS
The on-going Human Healthcare business performing well with quarterly revenue of $2.79million, an increase of 5.6% over Q3 FY2015
The full company result represents 20% decrease on previous corresponding period (Q3 FY2015 $3.7 million) and a 25.7% decrease on previous quarter (Q2 FY2016 $3.96 million) following exit from Animal Health operations
Sydney, 13th April 2016: Medical Australia Limited ("MLA", the "Company") is pleased to update shareholders on its financial performance and activities for the quarter ended 31 March 2016.
Quarterly Financial Update
Gross margins remain satisfactory with the recent strengthening of the Australian dollar and this, along with the Company's prudent use of foreign exchange hedging contracts, will reduce downward pressure on margins.
The Company continues to improve its inventory management through enhanced S&OP and the on-going support of our manufacturing partners under the guidance of a recently appointed Inventory Manager. Inventories relating to continuing business have decreased by more than 11% since the same period last year on higher sales
Net cash generated by the business for the quarter was $259,000, and is within expectations following the Company's exit from the animal health market. The Company expects the business to be cash positive in future quarters.
Market Activities
The on-going business recorded revenue for the quarter of $2.79 million which is a 5.6% increase over the corresponding period in FY2015. Whilst revenue is down 15.2% on the immediate past quarter, the March quarter is traditionally the quietest for hospital operations and thus demand for the Company's products.
On a year to date basis the business continues to perform strongly with a 7.2% increase over the prior year.
ABN: 30 096 048 912
Unit 4B, 128-130 Frances St, Lidcombe, NSW, 2141, Australia
PO BOX 445, Lidombe, NSW, 2141
T +612 9466 5300 F +612 9922 7165
www.medaust.com
Sales of the Clements range of portable and fixed suction equipment were lower than the previous quarter. This can be partly explained by the contract nature of the sales channel where the performance in any one period can be heavily impacted by the timing of contract orders. Sales were further impacted by the delayed launch of the replacement product for the well regarded but dated CarriVac portable suction device. The new product is now expected to be released to the market in May of this year.
Outlook
The Company is currently evaluating a number of exciting new product and distribution opportunities to be added to the Human Health business.
MLA looks forward to updating shareholders on its operations and business initiatives, along with any material developments for the Company over the coming months.
- ENDS -
For more information contact:
Darryl Ellis
Chief Executive Officer Medical Australia
Ph: +61 2 9466 5300
Media please contact: Adam Jarvis, Six Degrees Investor Relations: +61 424 297 736
ABOUT MEDICAL AUSTRALIA LIMITED
Medical Australia Limited (ASX: MLA) is a human healthcare company engaged in the manufacture, distribution and sale of a broad range of medical devices used by healthcare facilities and critical care services in global markets. The Company is a leader in Intravenous (IV) Medication Delivery Systems, Surgical Irrigation, Suction and Oxygen Therapy, Safety Sharps Collection and Reuse Prevention and specialised Diagnostic and Laboratory Equipment.
ABN: 30 096 048 912
Unit 4B, 128-130 Frances St, Lidcombe, NSW, 2141, Australia
PO BOX 445, Lidombe, NSW, 2141
T +612 9466 5300 F +612 9922 7165
www.medaust.com
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.
182.00 Rule 4.7B
Name of entity |
Medical Australia Limited |
ABN | Quarter ended ("current quarter") |
30 096 048 912 | 31st March 2016 |
Cash flows related to operating activities | Current quarter $A'000 | Year to date (9 months) $A'000 | |
1.1 | Receipts from customers | 3,120 | 10,859 |
1.2 | Payments for (a) staff costs
| (623) - - (4) (1,314) (842) | (2,836) - - (30) (4,308) (3,754) |
1.3 | Dividends received | - | - |
1.4 | Interest and other items of a similar nature received | - | - |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes refund (R&D tax refund) | - | 26 |
1.7 | Other (provide details if material) | - | - |
Net operating cash flows | 337 | (43) | |
+ See chapter 19 for defined terms.
Appendix 4C Page 1
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
Current quarter $A'000 | Year to date (9 months) $A'000 | ||
1.8 | Net operating cash flows (carried forward) | 337 | (43) |
Cash flows related to investing activities | - - - - (78) | - - - - (353) | |
1.9 | Payment for acquisition of:
| ||
1.10 | Proceeds from disposal of:
| - - - - - | 39 - - - - |
1.11 | Loans to other entities | - | - |
1.12 | Loans repaid by other entities | - | - |
1.13 | Other (cash balance for acquired business) | - | - |
Net investing cash flows | (78) | (314) | |
1.14 | Total operating and investing cash flows | 259 | (357) |
Cash flows related to financing activities | - | - | |
1.15 | Proceeds from issues of shares, options, etc. | ||
1.16 | Proceeds from sale of forfeited shares | - | - |
1.17 | Proceeds from borrowings | - | - |
1.18 | Repayment of borrowings | - | - |
1.19 | Dividends paid | - | - |
1.20 | Other (provide details if material) | - | - |
Net financing cash flows | - | - | |
Net increase / (decrease) in cash held | 259 | (357) | |
1.21 | Cash at beginning of quarter/year to date | 352 | 982 |
1.22 | Exchange rate adjustments | (3) | (17) |
1.23 | Cash at end of quarter | 608 | 608 |
+ See chapter 19 for defined terms.
Appendix 4C Page 2
Medical Australia Limited issued this content on 13 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 April 2016 01:11:31 UTC
Original Document: http://www.medaust.com/IRM/PDF/1491/Appendix4CandCommentary
