This morning regenerative medicine business Admedus Ltd (ASX: AHZ) reported its results for the year ending June 30, 2017. Below is a summary of the results with comparisons to the prior corresponding year.
- Net loss of $12.7m, decrease of 50%
- Revenues of $22.3m, up 58%
- Net operating cash outflow of $12.5m, compared to $21.9m in prior year
- Operating expenses reduced by $8.4m or 25%
- Conducted a capital raising of $17.1m
- Cash on hand of $11.3m
After a strategic review named "Code Red" the company has delivered improved financials on an FY 2016 that delivered cash outflows as high as $21.9 million. The group also highlighted the 30% growth in sales across its Adapt portfolio of regenerative medicine products focused on cardiac repair.
The company also has a profitable general medical equipment business named Infusion, while it is also investing heavily in a business that conducts clinical trials on treatments for a wide variety of common human conditions.
Admedus also forecast that it expects to "approach financial break even in the last quarter of calendar 2018 with the expectation of being profitable for the full calendar year 2019." The stock is down 30% over the past year and the company will need to deliver a dramatic turnaround to deliver on management's forecasts. Given its track record of consuming shareholder capital and delivering losses this is a stock I have repeatedly suggested investors avoid. And not for nothing either.
