Ann: Sale of Custom Pack Business for $14.4m, page-10

thanks afterlife. I've been looking for some info on the profitability of the lines of business in healthcare. The best discussion I've found to date was in the Capital H report from earlier this year. They said:

"The custom procedure pack business comprises ~$11m of ITL Healthcare's revenue but minimal profit and is probably the lowest quality yet most intensive business for ITL. Procedure packs are, in simple terms, kits containing all the consumables used in an operating procedure, with the major customers being the large Australian hospital operators". These packs are customised for the client but that is not necessarily able to be reflected in a premium selling price and since the market is dominated by multinationals margins have come under pressure since the GFC.

The remaining ~$8m of revenue generated by ITL Healthcare is form invasive blood pressure monitoring devices and IV starter kits, which are a much higher quality line of business. Classified as Class 3 medical devices these products have a greater level of IP which is reflected in higher margins and profitability.The manufacturing of these products has been transferred to ITL's Malaysian plant, while the vast majority of the custom procedure packs continue to be made in the Chelsea Heights facility"