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(MDW.L) Mediwatch PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 02-03-10 | RNS |
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RNS Number : 9634H Mediwatch PLC 02 March 2010 Mediwatch plc ("Company") Annual Report & Accounts The 2009 Report & Accounts have been posted to shareholders and an on-line version can be found on the Company's website www.mediwatch.com. The Annual General Meeting will be held at 1.00 p.m. on Friday 23 April 2010 at Swift House, Cosford Lane, Swift Valley Industrial Estate, Rugby, CV21 1QN. Enquiries: Philip Harrison Company Secretary Mediwatch plc Tel: +44 (0) 1788 547888 Fairfax I.S. PLC Nominated Adviser / Broker Ewan Leggat / Laura Littley Tel: +44 (0)20 7598 4368 Ticker: AIM : MDW This information is provided by RNS The company news service from the London Stock Exchange END
ACSLLFEEVDIFIII More |
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| 01-02-10 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 4017G
Mediwatch PLC
01 February 2010
Mediwatch Plc
Profits up 5% on the back of continued Group investment programme
Mediwatch Plc (AIM: MDW, 'Mediwatch' or 'the Group'), the innovative urological diagnostic company, announces its full year results for the year ending 31 October 2009.
Financial highlights
* Record revenues, increasing by 11% to £10.4m (2008: £9.3m)
* Profit from continuing operations for the year, increased by 5% to £425,000 (2008: £403,000)
* Cash flow from operations was £866,000 (2008: £658,000)
* Raised £332,000 in November 2009 to finance four major opportunities
Operational highlights
* Profit achieved on the back of significant investment in the US sales and marketing organisation during the first half
* Successful launch of the PSAwatchTM system into Asia, Mexico, UK and other European countries
* Increase in sales following successful launch of the Portascan+ bladder scanner system
* Worldwide joint sales and marketing agreement for PSAwatchTM with Inverness Medical Innovations
* Continued investment in strong R&D programme across all product categories
Omer Karim, Mediwatch Chairman said:
"Our increase in sales and profits over the last 12 months, in the light of the current economic environment is testament to the quality of products and the unique technology we have developed.
With continued strengthening of our distribution channels and the addition of complimentary products and services, we continue to build on our 'one-stop-shop' strategy in the urology diagnostics market.
The Group is well placed for 2010 with its range of new products and services to capitalise on the international opportunities and challenges of worldwide reduction in healthcare spending"
Enquiries:
Mediwatch +44 (0)1788 547 888
Philip Stimpson, Chief Executive
Fairfax I.S. PLC +44 (0)20 7598 5368
Ewan Leggat / Laura Littley
College Hill +44 (0)20 7457 2020
Adrian Duffield / Rozi Morris
Overview
Mediwatch had a successful year, particularly in light of the world economic environment. The Group posted record revenues along with an increase in profits. PSAwatch has been launched in several markets and a worldwide joint distribution agreement has been reached. In the US, the Group invested in sales and marketing in the first half of the year and the positive results of this investment were realised in the second half of the year.
In March 2009, a five year joint sales and marketing agreement was signed with Inverness Medical Innovations to market the PSAwatch system around the world. With their expertise in the point of care market, particularly in GP's offices the Group hopes to obtain greater market share during 2010.
Looking forward, Mediwatch plans to make investments in the UK based sales and marketing organisation to extend our worldwide reach. Additionally, the Group is looking to develop additional complimentary products enhancing the "one-stop-shop" strategy it brings to the market. The internal R&D team continues to make improvements to the existing lines and bring more outsourced processes in-house.
Post year-end, a successful fundraising exercise was completed to fund working capital and to finance feasibility studies for new opportunities which Mediwatch has identified as part of its growth plans.
Financial Review
Revenue was in line with market expectations and up by 11% at £10.4m (2008: £9.3m). This was mainly attributable to a strong contribution from the US operation and a very good performance from the UK.
Gross margins were 41% (2008: 44% as restated) mainly due to price pressure at the time of the economic downturn. In the second half of the year margins began to improve due to outsourced processes being brought in-house and efficiencies being engineered into the products.
The Group continued to invest in its sales and marketing infrastructure which saw overheads increase to £3.9m (2008: £3.4m as restated) during the year.
Other operating income of £130,000 (2008: £17,000) was due to a substantial increase in the R&D tax credit to which the Group was eligible for the year. As expected, finance costs were reduced to £46,000 (2008:£138,000).
The Group reported pre-tax profits of £425,000 (2008: 408,000) and has accumulated UK tax losses amounting to £3,840,000.
Basic and diluted earnings per share were 0.3p (2008: 0.3p),
Cash flow from operations contributed £866,000 (2008: £658,000). The increase for the current year is mainly attributable to a net reduction in working capital.
Investing activities required £772,000 (2008: £657,000). This increase was due to an increase in capitalised development projects during the year.
Operational Review
Strategic overview
The Mediwatch "one-stop-shop" strategy is being accepted in the marketplace and is drawing the attention of other larger diagnostic companies with whom the Group has joint venture opportunities. In the coming year the Group will explore these opportunities and create these alliances where they bring greater value to our customers. Specifically, the following opportunities are currently being pursued:
To work with an international corporation on a joint venture, sharing technology and pursuing a common marketing campaign;
A project with a different international medical company, assessing the potential of using its technology with Mediwatch's bioassays;
A marketing opportunity with a biomedical company to promote its point-of-care system alongside the Mediwatch PSA system for assessment of urological problems; and
Licensing a bladder cancer marker from a different bioscience company and to conduct a research project using that marker with the Mediwatch BioScan reader system.
Mediwatch continues to expand its interest in the urology diagnostics sector and is looking to add new products in the urodynamics and biomedical sides. Both of these new product categories should provide positive growth opportunities which should contribute to the second half of 2010.
Sales and Marketing
In order to increase market share in the largest market in the world, the US market, a programme has been implemented to increase the sales and service coverage through a network of highly skilled nurses and through an extended sales force.
This team will continue to be evaluated and extended throughout 2010 so that it is capable of taking on a larger product range which the Group plans to bring to the market during this period. As a result of the success of this programme, the Group is in the process of evaluating its sales and marketing efforts outside the US to become more in line with the US structure.
The Group will continue to exhibit at major urological meetings in the US and Europe and around the world through its dealer network as a way of increasing its brand awareness as a "one-stop-shop" for urology diagnostics.
Urodynamics
This year saw a greater penetration of the Group's newly designed and engineered urodynamic systems. This will be followed by the launch of new technology with lower manufacturing costs and simpler application bringing greater value to customers and aiding the Group to obtain a larger share of the market. A new biofeedback device for the urogynaecology market will also be introduced, which will work in tandem with the new range of ultrasound systems.
Ultrasound
After the successful launch of the two bladder scanner systems, two more are now due for launch. These will be digitally controlled, giving better accuracy and measurements. Mediwatch is also negotiating with a large multinational company to license their technology which will provide a comprehensive device for carrying out biopsies, also incorporating disposable supplies.
Services
A new mobile diagnostics service will be operated through skilled nurses, which will create opportunities to present a cost efficient diagnostic service to physicians, with no major capital outlay. This service will incorporate new diagnostic procedures which should launch in the first half of 2010 and will run in parallel to the change in US government expenditure in regards to reimbursement and presenting a wider medical facility to all individuals. Initial efforts will be concentrated in Florida with the potential to be rolled out to the other 49 states through our nurse network.
Research and Development
The Group has maintained its focus on improving its existing portfolio as well as developing new products, with R&D expenditure increasing to £663,000 (2008: £451,000).
The key uroflowmetry range has been reengineered and relaunched to reduce manufacturing costs while modernising and improving the features of the product range. Continued investment in the key software for urodynamics (Sensic) continues to add new features and benefits (wireless communication and video capabilities) to the product offering.
Work has commenced on a project to develop a common platform supporting future urodynamic and ultrasound products with reduced costs and increased capabilities.
A new range of urodynamic disposables have been designed and launched for the specific needs of the UK, Middle East and Australian markets.
Excellent progress is being made on the FDA submission for the PSAwatch. Mediwatch has engaged the services of a specialist group to expedite this process.
Mediwatch Biomedical
During 2009, one of the Group's lead scientists has been investigating new cancer markers and technology to compliment that which Mediwatch has already developed. In January 2010, the Group plans to start a small trial on a prostate cancer marker which will complement our PSA test. The results of this will be known in the second half of 2010. A new marker for bladder cancer is also being obtained to place on our existing technology base. Work on this begins in the first quarter of 2010.
The Group is also currently developing a new biotech diagnostic technology with a large European company. If successful, a feasibility study will start on some new and existing urology markers. The outcome of this opportunity will be known in the second quarter of 2010.
An Australian professor of oncology, who is an expert in cancer cell development, has been engaged as a consultant to assist in diagnosing unique urology markers. This research will commence in the beginning of 2010.
Outlook
Mediwatch has had a successful 12 months, increasing sales and profits in the light of an economic downturn, which reinforces the quality of products and the benefits of the technology the Group has developed.
The economic and political climate in the US and the overseas territories will be a challenge for all medical companies as governments seek to reduce healthcare costs. Mediwatch is well placed to capitalise on these challenges by redesigning more efficient technology for its "one-stop-shop" strategy and by bringing manufacturing processes in-house to reduce costs.
Prostate cancer awareness is now gathering pace internationally with pressure being placed on government bodies to augment national screening programmes. As this happens, Mediwatch is again well placed to take advantage with its diagnostic systems.
During 2010, Mediwatch will be adding complimentary products to its existing range allowing it to leverage its growing sales and marketing channels. The Group is also looking to develop joint ventures and strategic partnerships with market leaders to bring increased value to its customers worldwide.
The board expects that 2010 will be another exciting phase in Mediwatch's growth and success.
FINANCIAL STATEMENTS
Consolidated Income Statement for the year ended 31 October 2009
31 October 31 October
2009 2008
(as restated)
£'000
£'000
Continuing operations
Revenue 10,389 9,327
Cost of sales (6,134) (5,269)
Gross profit 4,255 4,058
Other administrative expenses (3,914) (3,418)
Other operating income 130 17
Exceptional items - aborted transaction costs - (111)
Profit/(Loss) from operating activities 471 546
Net finance expense (46) (138)
Profit/(Loss) before taxation 425 408
Tax - (5)
Profit/(loss) from continuing operations 425 403
Basic and diluted profit/(loss) per ordinary 0.3p 0.3p
share
EBITDA (before exceptional items) 670 795
Consolidated Balance Sheet at 31 October 2009
31 October 31 October
2009 2008
£'000 £'000
Non current assets
Property. Plant and Equipment 527 563
Goodwill 2,256 2,256
Intangible assets 1,223 622
Total Non Current assets 4,006 3,441
Current assets
Inventories 1,643 1,595
Trade and other receivables 1,615 1,641
Cash and cash equivalents 345 296
Total current assets 3,603 3,532
Total assets 7,609 6,973
Current liabilities
Trade and other payables (1,725) (1,466)
Finance leases - (14)
Bank borrowings (670) (703)
Total current liabilities (2,395) (2,183)
Non current liabilities
Bank borrowings - (23)
Finance leases - (2)
Total non current liabilities - (25)
Total liabilities (2,395) (2,208)
Net assets 5,214 4,765
Capital and reserves
Called up share capital 3,770 3,770
Share premium account 5,813 5,813
Other reserves 7,000 7,000
Share based payment reserve 6 1
Profit and loss account (11,375) (11,819)
Equity attributable to Equity Holders of the Parent 5,214 4,765
Consolidated Statement of Changes in Equity for the year ended 31 October 2009
Called up share Share premium Other Retained Total Equity
capital account Reserves and share Earnings
based payment
reserve
£'000 £'000 £'000 £'000 £'000
Balance 1 November 2007 3,735 5,629 7,027 (12,364) 4,027
Issue of shares (net of issue 35 184 - - 219
costs)
Profit for the year - - - 403 403
Foreign currency translation - - - 142 142
difference
Share based payments; services - - (26) - (26)
provided
Total recognised income and - - (26) 545 519
expense for 2008
Balance 31 October 2008 3,770 5,813 7,001 (11,819) 4,765
Issue of shares (net of issue - - - - -
costs)
Profit for the year - - - 425 425
Foreign currency translation - - - 19 19
difference
Share based payments; services - - 5 - 5
provided
Total recognised income and - - 5 444 449
expense for 2009
Balance 31 October 2009 3,770 5,813 7,006 (11,375) 5,214
Consolidated Cash Flow Statement for the period ended 31 October 2009
31 October 31 October
2009 2008
£'000 £'000
Cashflow from operating activities 912 802
Interest paid (46) (144)
Net cash from operating activities 866 658
Cashflow from investing activities
Purchases of property, plant and equipment (139) (212)
Proceeds from disposal of property, plant and 30 -
equipment
Purchase of intangible fixed assets (663) (451)
Interest received - 6
Net cash (outflow) from investing activities (772) (657)
Financing
Proceeds from issue of shares - 98
Costs of share issue - (2)
Repayment of bank loans (65) (60)
Finance lease repayments (16) (16)
Net cash from financing activities (81) 20
Net increase in cash and cash equivalents 13 21
Cash and cash equivalents at 1 November (345) (335)
Effects of foreign exchange rate changes 28 (31)
Cash and cash equivalents at 31 October (304) (345)
Comprising of:
Cash and cash equivalents per the balance sheet 345 296
Less:
Bank overdraft (649) (641)
Cash and cash equivalents for cash flow statement (304) (345)
purposes
There is no material difference between the fair value and the book value of cash and equivalents.
Notes to the financial statements
1. Basis of preparation of preliminary financial information
The abridged financial information set out herein has been extracted from financial statements approved by the directors on 25th January 2010, and which will be delivered to the Registrar of Companies following the Company's annual general meeting. The auditors have reported on these accounts and their report was unqualified and did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under the Companies Act 2006, section 498 (2) or (3).
This financial information does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and has been prepared on the basis of the accounting policies set out in the financial statements for the year ended 31 October 2009. The Annual Report and Financial Statements will be posted to shareholders shortly and thereafter will be available from the Company's registered office, and from the Company's website www.mediwatch.com.
2. Adoption of new and revised International Financial Reporting Standards ("IFRS")
In the current year, the Group has adopted all of the new and revised standards and interpretations issued by the International Accounting Standards Board (the IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB that are relevant to its operations and effective for accounting periods beginning on 1 November 2007. The adoption of the following IFRSs has not impacted the audited financial statements:
IFRIC 10 - Interim Financial Reporting and Impairment
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective:
IFRS 7 - Classifying of Assets and Liabilities
IFRS 8 - Operating Segments
IAS 1 - Presentation of Financial Statements
IAS 23 - Borrowing Costs
IAS 27 - Consolidated and Separate Financial Statements
IFRIC 11- Group and Treasury Share Transactions
IFRIC 12 - Service Concession Arrangements
These standards and interpretations are not expected to have any significant impact on the Group's Financial Statements, in their periods of initial application, except for the additional disclosures on operating segments when the relevant standard comes into effect for periods commencing on or after 1 January 2009.
3. Basis of Accounting
The Financial Statements, upon which this financial information is based, have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS).
The financial information has been prepared on a going concern basis in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") at 31 October 2009 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 31 October 2009. The Group has not availed itself of early adoption options in such standards and interpretations.
The Financial Statements have been prepared under the historical cost basis. The principal accounting policies adopted are set out below:
Restatement of comparative figures
During the year, the directors have reassessed the services and activities provided across the Group. As a result, £213,000 of costs directly attributable to revenue have been reclassified as cost of sales rather than administrative expenses which more accurately reflects the functionality of the business activities concerned. There is no effect on profit or net assets.
4. Critical accounting judgements and key sources of estimation uncertainty
In application of the Group's accounting policies above, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities. These estimates and assumptions are based on historical experience and other factors considered relevant. Actual results may differ from estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised if the revision affects only that period or in the period of the revision and future payments if the revision affects both current and future periods.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. There was no impairment of goodwill during the year.
Valuation of intangibles
Intangibles are initially valued at their cost and then evaluated periodically for impairment. For purposes of valuation an intangible assets is considered impaired if its carrying value is less than the expected net cash flow from the asset.
Share-based payments
Share options are valued by management utilising the intrinsic method of valuation.
5. Income taxes
31 October 31 October
2009 2008
£'000 £'000
Current taxes - 5
Total income taxes - 5
Tax charge on continuing operations - 5
Current:
Current tax for the year - 5
Total current tax charge - 5
Deferred tax charge - -
Total income taxes on continuing operations - 5
There were no discontinued operations during the year ended 31 October 2009 (2008: none). The Group has losses to carry forward against future taxable profits amounting to approximately £3,840,000 (2008: £ 3,960,000).
Tax rate reconciliation
Year ended 31 Year ended 31 October
October 2008
2009 £'000
£'000
% %
Profit/(loss) for the year 425 408
before taxation
Corporation tax charge thereon 119 28% 115 28%
at 28% (2008: 28%)
Adjusted for the effects of:
- Impairment of intangibles - - 6 1%
- Amortisation of intangibles 17 4% 4 1%
- Other expenditure that is 6 1% 37 9%
not tax deductible
- Movement in Accelerated 5 1% (6) (1)%
Capital Allowances
- Research and development tax (135) (32)% (137) (34)%
claim
- Movement in disallowable 14 3% (23) (6)%
provisions
- Utilisation of losses (191) (45)%
- Net losses carried forward 165 40% 4 1%
- Under provision in prior - - 5 1%
year
Tax expense and effective tax - 0% 5 1%
rate for the year
6. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings/(loss)
Year ended 31 Year ended 31
October October
2009 2008
£'000 £'000
Earnings/(loss) for the 425 403
purposes of basic earnings per
share being net profit
attributable to equity holders
of the parent
Effect of dilutive potential - -
ordinary shares
Earnings/(loss) for the 425 403
purposes of diluted earnings
per share
Number of shares
Year ended 31 Year ended 31
October October
2009 2008
No.'000 No.'000
Weighted average number of 133,671 130,805
ordinary shares for the
purposes of basic earnings per
share
Effect of dilutive potential 1,195 1,220
ordinary shares:
Share options
Weighted average number of 134,866 132,025
ordinary shares for the
purposes of diluted earnings
per share
7. Dividend
The Directors do not recommend the payment of a dividend (2008: £nil).
8. Notice of annual general meeting
Notice is hereby given that the Annual General Meeting of Mediwatch Plc (the "Company") will be held at Swift House, Cosford Lane, Swift Valley Industrial Estate, Rugby, CV21 1QN on 23rd April 2010 at 1.00pm
This information is provided by RNS
The company news service from the London Stock Exchange
END
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| Date/Time | Subject | Author | ||
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| 28-02-10 | ||||
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I don't think so LoSA, if anything they are developing better technology as they go along! Their urodynamic equipment was given the highest star rating in a recent survey, none of their competitors achieved as high a rating.
Their Scanners are being tweaked all the time and recent developments will mean a much better base to the equipment which will mean cheaper manufacture. They also have some very fancy equipment in development. MDW isn't standing still, the software upgrades, wireless integration and report generation capabilities are at the forefront of this industry, there will always be competition, but MDW are well placed to stay ahead of the rest and will continue to upgrade their products. |
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| 26-02-10 | ||||
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So, apart from a few stalwarts MDW is pretty much unloved then.
Thank goodness I have a few performers in my portfolio otherwise I'd be at the soup kitchen(s). I'd like to pose a simple question. Are MDW losing out to other technology and as a result likely to wither on the vine? LoSA in a frozen Central Florida.
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| 26-02-10 | ||||
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LoSA,
When was the last buy? a week ago, two weeks ago? the price rose up 33% as the MMs were chasing stock, now they are dropping the price on every small sell, dripping down the price. With no buyers they can do this, what I'd like to see is a few chunky buys take all the stock they have gathered over the past fortnight at these low prices, the MMs would soon need to mark up the price again (you can buy at 7.09p, how many shares have they accumulated at under this price?). If we don't get that and the small sells trickle in they will play with the price as is their wont |
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| 25-02-10 | ||||
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Only you can ever know what may be best for you.
Some shares defy gravity for ages, making no sense of valuation. Others stay anchored to the sea-bad for longer than would seem reasonable. |
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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