ADMEDUS LTD ADMEDUS LIMITED ABN 35 088 221 078
31st of January 2017
ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGEREGISTERED OFFICE:
26 Harris Road Malaga Western Australia 6090
Corporate Enquiries: T +61 (0)8 6240 6100
F +61 (0)8 9266 0199
E info.au@admedus.com
www.admedus.com
Company Announcements Office Australian Stock Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000
Dear Sir/Madam,
Re: Appendix 4C - Quarterly ReportPlease refer to the attached 'Appendix 4C' for details of financial results for the first quarter to 31 December 2016 for the Admedus Group.
Highlights- Company results reflecting outcomes of Code Red
- Sales revenue for H1 of $12.1M up 85% on the prior corresponding period (PCP) and on track to meet annual forecast
- Sales for quarter of $6.1M up 73% PCP
- VascuCel® and CardioCel® Neo enter the US market
- Manufacturing and product margins improved during the half
- Cash balance of $14.35M
The second quarter saw the positive impacts from the Company's Code Red restructure continue to build.
Admedus launched two new products into the US market, VascuCel® and CardioCel® Neo, late in the second quarter. These products are expected to have a material impact on ADAPT® revenues in the US over the coming 12 months and beyond. Admedus intends to provide an update on the progress of sales for these products during 2017 following launch into the US market.
Another highlight of the quarter was the continued strong performance of the infusion business that benefitted from the ongoing roll-out of infusion products under the contract with the new Royal Adelaide Hospital. The capital expenditure component of the contract has proceeded as expected, however consumables offtake is expected to be behind approx. 2-3 months due to delays in the opening of the hospital which is now expected in May/June 2017.
Financial overviewThe second quarter was another strong revenue quarter for the Company with sales of
$6.1M taking first half revenues to $12.1M, up 85% PCP, placing the Company on track
for its full year revenue forecast of $21M. In the first half, The ADAPT® business grew strongly to approximate $3.5M, up 50% PCP, with infusion revenues coming in at $8.6M, up 100% PCP, driven in part by the new Royal Adelaide Hospital contract, as noted above.
During the period production margins also improved and the Company anticipates these to further improve through the second half of the year. As noted previously, the Company has needed to invest in working capital to support both the general growth in the business and more specifically the Adelaide contract. However, this is expected to partially unwind during the second half of 2017.
Accordingly, the overall cash position at the end of the quarter was $14.35M. This has been impacted by the $2M payment relating to the settlement of Federal Court proceedings as announced on 9 September 2016. In addition, the Company is yet to receive the full R&D tax rebates anticipated for this year, with approximately a further $2.5M expected to be received early in the fourth quarter.
Forecasts for Financial Year 2017The Company anticipates to continue its growth into the second half of the year, with sales teams now selling multiple products into the cardiovascular market. Code Red has had a very positive influence across the Company, positioning 2017 as a strong growth and expansion year for Admedus as it continues to drive sales, expand its approved product range and targets profitability.
Further details on the Company's financial progress will be provided with its half year report (released in late February) and associated webcast with the Company's Chairman & Interim CEO and CFO.
Yours sincerely
Mark Ziirsen
Chief Financial Officer Appendix 4C+Rule 4.7B
Quarterly report for entities subject to Listing Rule 4.7BIntroduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16
Name of entity | ||
Admedus Limited | ||
ABN | Quarter ended ("current quarter") | |
31 December, 2016 | ||
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 | |
1. | Cash flows from operating activities | 4,169 | 9,027 |
1.1 | Receipts from customers | ||
1.2 | Payments for | (294) | (792) |
(a) research and development | |||
(b) product manufacturing and operating costs | (3,540) | (7,882) | |
(c) advertising and marketing | (251) | (437) | |
(d) leased assets | 0 | 0 | |
(e) staff costs | (3,627) | (7,726) | |
(f) administration and corporate costs | (1,435) | (2,891) | |
1.3 | Dividends received (see note 3) | 0 | 0 |
1.4 | Interest received | 47 | 92 |
1.5 | Interest and other costs of finance paid | (13) | (29) |
1.6 | Income taxes paid | 0 | 0 |
1.7 | Government grants and tax incentives | 8 | 1,316 |
1.8 | Other (provide details if material) | (159) | (574) |
1.9 | Net cash from / (used in) operating activities | (5,095) | (9,896) |
| (92) 0 (40) | (155) (2,000) (61) |
(132) | (2,216) |
| 0 0 | 18,307 (1,135) |
0 | 17,172 |
Admedus Ltd. published this content on 31 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 February 2017 03:54:04 UTC.
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