Where the FY2014 results surprised on the upside with MLA making...

Where the FY2014 results surprised on the upside with MLA making its inaugural profit these results surprise on the downside with the company making a loss for FY2015.

Some notes -
(1) Human health, which made a profit of $900K in the first half only made a profit of $400K in the second half. Factors towards this downturn seem to be the stronger USD, increasing sales staff by three and lower sales in the second half ($6M H1 and $5.5M H2)
(2) Medivet recorded full year sales of $3.35M. In terms of direct comparisons, revenue increased from $1.64M in H2 FY2014 to $1.79M in H2 FY2015 - growth of 9%. When we factor in a weaker AUD in FY2015 it appears there has been next to no revenue growth for H2 FY2015. They are also still a long way off the reported revenue of $4.8M Medivet ostensibly did during CY2012 (Nexia report).
(3) The loss for Medivet was around $1.5M. With the American region reporting a loss of $700K this implies the Australian region of Medivet made a loss in the vicinity of $800K.
(4) MLA appears to have spent $600K cash stocking up on inventory. This is based on reported inventory levels of $2.1M at 30/6/2014, $2.0M at 31/12/2014 and $2.7M at 30/6/2015
(5) Over the course of the year the company has spent $600K cash on reducing liabilities, which reduce from $2.7M to $2.1M.
(6) MLA being confident of realising the carrying value of Medivet indicates they’ll get at least $1.8M

Key questions for the future include -
(1) Will we see the profitability of human health in the next half bounce back towards the stellar first half result of $900K
(2) Can the company become not only very profitable, but also cashflow positive
(3) Will and when the company recruit a new director to replace Jeremy Delk on the board. Given the stated direction to concentrate on human health they could do worse than to recruit a new director with strong background in that area.
(4) The all important price the company realises for Medivet and human health acquisitions that follow after that.

The next (December) quarter is shaping up to be a defining one which will hopefully add value for MLA shareholders.