Just some bits I thought were of note:- Revenues increased...

Just some bits I thought were of note:

- Revenues increased +10.5% for the 6mths, given this only included approx 20 days of Medivet ($220k-ish), It looks like the OEM side of the business has been stronger. Could've easily seen MLA-OEM side trading profitably, excluding any of Medivet's financials/impairments relating to the acquisition. Promising that after so many years of under performance.

- Also the cost savings/labour reduction mentioned late 2013 will have only been implemented towards the latter part of that quarter and have minimal impact on that reporting period (shown by the 47k reduction in overheads so far for that HY through to Dec13).

- $35k was paid to acquire a 10% holding in Equine sports science institute, Kentucky based. only speculating, but wonder if Jeremy Delk is involved in this given his equinw background?

- Also I'm guessing the debt was fully paid down, as pitt mentioned looks like a small debt of 300k existed as at end of Dec, perhaps this has/will be settled up in the new year?

- One offs, 160k booked for the rent dispute (a further +30k in relocation/office fitout expenses), not only will this not be in the following 6mths, but both companies under one roof will deliver ongoing savings there too. A further 24k was spent on medivet acquisition & 106k in the capital raising costs.

Net One offs: -320k, (excl this and it would've flipped the HY into profit.)


- Revenue Breakdown by Region. It looks like most of the regions are now trading profitably, (with the exception of the UK +195k revenue, net loss of -174k.) would be interesting to see if this relates to a write down in the value of the stemcell cryo-bank they invested 500k into a year or two back? But positive that each region's revenue has picked up and profitability turned around.


- Large inventories as at Dec13 ($1.7m vs 985k mid-year). I believe this was attributed to Chinese New Year (slow down in manufacturing) so MLA stockpiled to ensure orders were met.

Fairly pleased with that overall. would've been nice to get more info on Medivet, I guess will have to wait for the full quarter through to end of March for that. Cost reductions, increasing OEM & Medivet integration. Plenty of reasons this should be looking pretty good for FY results.

IMO, DYOR etc..


Good Luck All.