Not sure what contracts we are referring to here but my understanding is that the company is either referring to period contracts where you win the right to supply say government healthcare networks and these are usually for three years or more, or OEM contracts for the supply of particular products again for a period of time. The idea that these are lumpy escapes me. I didn't know that there were OEM products in Medivet - where was there reference to that.
Vinn, I am no accountant but I would suggest that given that MLA owns 60.5% of the US vet business then, as a controlled entity, all of its revenue should be in the MLA accounts, but only 39.5% of the profits. Surely, this is the part of the business that would have been attractive to the Board.
I am in for the long haul on this one. Big turn around last half, probably some real momentum behind these numbers. Lets hope that the current management team and the new chairman (whoever that is) can continue the upswing and communicate with us long suffering shareholders a bit more.
MLA Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
