ITL Health Group (“ITL”), a manufacturer and seller of medical technology to the global blood market and consumer pathology test provider, is pleased to announce results for the half year ended 31 December 2017.
Highlights (vs same period 2016)
- Profit after tax of $8.75m (Dec 2016: $2.12m);
- Earnings (basic) per share of 9.2 cents (Dec 2016: 2.2 cents);
- Revenue of $13.1 m (Dec 2016: $17.5m);
- Profit before tax of $10.0m (Dec 2016: $2.1m)’
- EBITDA was $10.6m (Dec 2016: $2.7m);
- Net cash $0.4m (Dec 2016: $5.0m);
During the half ITL sold its Australia Customer Pack business which has resulted in a profit after tax post sale of $8.6m. Cash receipts from the same was $14.7m. ITL achieved a very competitive price for the business and the timing worked very well for ITL.
After the sale the Company has net cash of $0.4m (cash of $4.7m and debt of $4.3m) compared to a net debt position of $5m at December 2016.
Through the period funds from the sale have been invested in new products, sales and marketing and the Company has bought back 12.2m shares reducing shares on issue by 13% and repaid debt.
The increased investment has positioned the Company to continue to generate substantial returns to shareholders as it focuses on higher margin and patented products across the global blood markets.
Highlights from Continuing Operations—vs corresponding period 2016
- Revenue of $10.2m (Dec 2016: $11.3m);
- Loss after Tax $0.2m (Dec 2016: Profit of $2.1m);
- Net Cast $0.4m (Dec 2016: Net Debt $5.0m);
- Revenue $10.1m vs $11.3m
- EBITDA of $1.9m vs $3.2m
During the half ITL BioMedical was adversely affected by one client selling down stock following a buildup in the previous 6 months.
In the six months under review ITL BioMedical launched two new products, the Segment Sampler and the Transfer Cap Set. BioMedical was also pleased to announce the launch of ITL Clinical, a new brand to serve the hospital and clinical markets, and simultaneously launched the brand’s flagship product, ITL Essentials™.
Expenditure on marketing increased and the Company is investing in new manufacturing technologies to improve quality and automate processes. ITL BioMedical has a roadmap of new products that it will be releasing over the next 12 months.
- Grant Received for $2.6m, with $0.35m received to date
- Loss of $0.9m up from $0.3m
- Launch of 3 tests
MyHealthTest achieved major milestones in the period by launching two new tests, thyroid and cholesterol, and a prostate test was launched just after the period. Alongside its diabetes test MHT has a portfolio of 4 tests that give economy of scale and reduces risk. Sales and marketing will be the focus for 2018.
With a substantially improved balance sheet, ITL is in a strong position to continue investing into its blood related technologies that will grow the Company’s presence in the blood markets around the globe. MHT continues to reach major milestones and marketing its portfolio of tests is underway.
About ITL Health Group
ITL Health Group (ASX:ITD) is an innovative global medical technology company, supplier and strategic partner that provides products and solutions to healthcare markets and empowers individual health management. ITL maintains two divisions including ITL BioMedical and MyHealthTest.
ITL BioMedical sets standards for essential healthcare products through innovation and by leveraging market intelligence to optimise end-user safety and efficiency. The division hold an IP portfolio of over 50 patents. BioMedical is a growing provider of specialty ancillary products for the blood culture testing market estimated to be worth US$3.3b in 2016 and growing to US$4.8b by 2021, according to MarketsandMarkets.
MyHealthTest (MHT) is a highly innovative consumer-based pathology testing service. MHT allows individuals to conveniently order the test service online or from pharmacies, collect samples at home, and return them via mail for laboratory analysis.
MHT’s pathology testing service is quality controlled to ensure accuracy and reliability, while its online portal offers guaranteed confidentiality and the transfer of results to healthcare practitioners or others. MyHealthTest meets the increased global demand for pathology testing services and sets the industry standard for preventative and convenient direct-to-consumer healthcare services.