Why the Painchek (ASX:PCK) share price is edging higher today

The PainChek (ASX: PCK) share price rose today against the market as the company announced its half-year report. We take a closer look.

| More on:
Starpharma share price A doctor or medical expert in COVID-19 protection flexes his muscle, indicating growth or strong share price movement in ASX medical, biotech and health companies

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The PainChek Ltd (ASX: PCK) share price was among the few ASX shares that stayed in the green today, closing up 2.56% at 8 cents.

The share price increase came off the back of the company half-year report announced to the market yesterday. Let's take a look.

Why did the Painchek share price rise today?

Shares in the small-cap rose as revenue jumped 40% to $2.08 million for the half-year ending 30 December 2020.

However, this does not fully represent how the company performed in the period. Looking deeper into the results, we can see that revenue from continuing operations fell 30% to $127,000. The majority of the group's revenue was made up of research and development (R&D) and government grants.

As such, the company reported a net loss from operations for the half-year of $1.35 million.

PainChek continued to deliver sales growth in Australian residential aged care (RAC). Sales growth in the period resulted in total global licenses covering 71,318 beds, a 123% growth year on year (YoY). Furthermore, domestic sales reflected more than 30% of the Australian RAC.

Moreover, the company now has 884 aged care clients, growing 133% on the previous corresponding period. Forward-looking revenue equates to more than $3 million in annualised recurring revenue.

Looking ahead

PainChek aims to further develop its platform for use in new and larger healthcare market segments. The company said this was core to its business growth over the next 12 months.

In addition, the company has a number of products pending regulatory clearance. PainChek's business strategy includes the release of an app for assessing pain in young children.

Having recently completed the app development and clinical validation work, the company is projecting Australian (TGA) and European (CE) mark regulatory clearances in the second quarter of the calendar year 2021.

Promisingly, its children's app serves a potentially larger market than the adult app with a large hospital market and home care market opportunity.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

golden egg in a nest representing a SMSF investment
Retirement

3 stocks I'd buy and hold inside a self-managed superannuation fund

These shares are some of my best picks for an SMSF investor.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Alumina, Kogan, Mayne Pharma, and Suncorp shares are racing higher

These ASX shares are having a strong session on Monday.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Nanosonics, NIB, Santos, and TPG shares are falling today

These ASX shares are starting the week in the red.

Read more »

Two laughing male executives wearing dark suits chat across a timber lunch room table while one of them holds up his phone to show information.
Share Market News

Aussie Broadband share price rises on 1 million customer-strong merger

Aussie Broadband wants to link up with Superloop.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Alumina shares leap 8% on Alcoa takeover bid

ASX 200 investors are sending the Alumina share price soaring following confirmation of Alcoa’s takeover intentions.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Opinions

Where I'd invest $10,000 right now in ASX 200 shares

I would invest in these stocks in a heartbeat.

Read more »

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Growth Shares

I'd buy these great ASX growth shares in March

Growth stocks could achieve strong returns.

Read more »