Some notes from the AGM this year -
(1) The overhead structure currently in place during FY2016 were below levels in FY2009. Overheads as a percentage of sales have continued to come down
(2) Focus remains on increasing sales. With current structure they can add around 20-40% turnover with minimal additional overhead costs.
(3) Medivet remains a customer, albeit only in a small way. Before the acqusiion Clements were supplying equipment to them and this remains the case post disposal.
(4) Clements has gone through a thorough review over the last 12 months with product offer and distribution changes. They are confident of growth in Clements going forward.
(5) The Clements CeeVac is superior to its predecessor (CarriVac). The weight has dropped in half (due to a change in battery technology) and now can run on both 120V/240V.
(6) There are plans to do a complete overhaul of the company web sites next year. They will be modernised to become more dynamic, reflective of the current status of the business and improve the content.
(7) The overheads in the UK have been substantially reduced with selling Medivet. The UK business is now managed remotely and successfully from Australia. The UK has had good sales success over the past 18 month, is now profitable and hopes for incremental growth in that region going forward.
(8) The addition of a direct sales rep in Queensland a couple of years ago is making a difference; sales in that state have doubled in the last 12 months
(9) There are hopes that sales of the Tuta FirstFlow burette will commence in Queensland next (calendar) year.
MLA Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
