Ann: Chairman's Address to Shareholders, page-20

I like the recent financial history and returns on capital, but I'm not sure about MVF due to three concerns I have:
1. Having a discount arm allows VRT to pick up more complex cases via referrals. MVF does not have this. This could possibly be remedied by setting up a deal with PRY for referrals in MVF's case, and this would be preferable to having a "discount" arm IMO.
2. Through lack of research I don't understand the contracts in place with the Specialists, and further I also don't understand if there could be benefits to the Specialists (including Embryologists) in following a "poison the well" strategy, where they might hope to be able to buy out their local operation if MVF goes South. I guess we are still quite a way away from that scenario.
3. Is there any moat at all, as the tech is quite old? I studied IVF at uni 27 years ago. Will the discount centres creep into the premium end of things? (Embryology is a different matter IMO - but not sure what MVF or VRT have in that regard that is differentiating).

I'm also curious about whether MVF have any tech advantage that allows them to open 1 or 2 clinics in every country, and win a certain amount of profitable business due to their specific advantage, or whether they are merely following a me too strategy. I really can't see how the segment analysis can be a true representation of the situation over there, unless there is no oversight of those centres or tech transfer at all from HQ. I suspect the international strategy is a eventual big loser. Esp with old tech being "commoditised" here, OS will probably follow.