• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

ITD - ITL Health Group

Discussion in 'Stocks I-P' started by ekman, Dec 29, 2006.

sentifi.com

Aussie Stock Forum Sentifi Top themes and market attention on:

  1. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    hahaha guess what my wish come true, founder release some share to a fund manager :)
    ASX announcement just release then

    now to bring on some good people to juice up this business and we all set
     
  2. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    must be your xmas present ROE!
     
  3. JTLP

    JTLP

    Posts:
    1,350
    Likes Received:
    48
    Joined:
    Nov 27, 2007
    ROE did you average down during this period?
     
  4. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    Yes I did I enter in 20s some years ago and still holding, as a long term investor I average down and up depending how I see the business fairing.
     
  5. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    Alright time to show its magic, debt down profit double

    ITL Limited (“ITL”), an innovative diversified healthcare company, is pleased to announce excellent results for the half year ended 31 December 2016 compared with the previous corresponding period. Highlights
    ● Profit after tax of $2.12m (Dec 2015: $1.04m; up 104%);
    ● Earnings per share of 2.2 cents (Dec 2015: 1.2 cents; up 83%);
    ● Revenue of $17.5m (Dec 2015: $15.7m; up 11%);
    ● Profit before tax of $2.12m (Dec 2015: $1.01m; up 110%);
    ● EBITDA was $2.7m (Dec 2015: $1.6m; up 69%);
    ● Net Debt $5.0m (Jun 2016: $5.5m; down 9%);
     
    Faramir likes this.
  6. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    Looks great Roe, I havent had time to look through the details but I have continued to have confidence in ITL management to turn the ship around and its good to see the results paying off. I spent a while in the red with ITL, nicely in profit these days!
     
    Faramir likes this.
  7. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    This is all you need to know :)
    Margin improvement and growing revenue a mother of all combo
     
    Faramir likes this.
  8. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    Mr Market appears to agree!
     
    Faramir likes this.
  9. Ves

    Ves Beyond Good and Evil

    Posts:
    2,467
    Likes Received:
    51
    Joined:
    Apr 18, 2011
    Had a brief look at the report.

    I'm not an owner, but I would be keeping a close eye on the accounting treatment of the R & D and depreciable assets.

    It's only minor at this stage, but intangible assets and depreciable assets have both increased, but there's only a slight increased in D & A.

    Cash flow and accounting earnings will always be different here.

    Earnings also look a bit cyclical to me.
     
  10. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    To be fair, you probably have to look a bit deeper than that to understand the story and see where ITL have been going the last few years. As I said I havent had time to go through the report in detail, but this payoff for management is not unexpected.
     
  11. Ves

    Ves Beyond Good and Evil

    Posts:
    2,467
    Likes Received:
    51
    Joined:
    Apr 18, 2011
    Well, it's a company that develops and designs medical products. As far as I know they are nearing 100 patents now.

    My comment reflects the fact that these patents and the underlying products or devices that they cover have life-cycles. The nature of the industry is that there is always something better coming along so the earnings streams of a product are unpredictable. There's a constant need for R & D and earnings will fluctuate as the underlying products grow, stall, decline (etc.) throughout their own product life cycles. That's just the nature of medical innovation companies IMO.

    I'm not saying it's a bad thing - it doesn't have to be - it just makes it harder to value the company. It also increases the Key Person risk because you need good management at all times.

    Also refer above comments re D & A. There's an argument that they should all be expensed due to the future uncertainty that is inherent in medical product innovation.
     
    Faramir likes this.
  12. JTLP

    JTLP

    Posts:
    1,350
    Likes Received:
    48
    Joined:
    Nov 27, 2007
    Feel like I missed the boat on this one. Was looking around when I first posted but it's jumped a bit since then. On to the next!
     
    Faramir likes this.
  13. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    Very much appreciate your expanding on your initial comments - this sort of feedback and discussion is one of the things that makes ASF stand out from the rest.

    I agree that a higher margin of safety comes into play for the reasons you postulate -and probably sensible to keep a close watch on these sort of businesses to ensure there isnt material change that gets overlooked in the longer term.

    Interesting point on the R&D & D&A.
     
    Faramir likes this.
  14. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    I don't think so, I think the business has been dormant for a while with sourcing and building new products and infrastructure but now it start to pay off, I can see many years of growth ahead

    The market didn't appreciate when it building and moving new plants in Malaysia for future capacity, now it starts to pay the dividend.
     
    Faramir likes this.
  15. ROE

    ROE

    Posts:
    2,966
    Likes Received:
    15
    Joined:
    Jan 5, 2007
    Faramir likes this.
  16. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
  17. System

    System Administrator

    Posts:
    2,829
    Likes Received:
    39
    Joined:
    Jun 27, 2010
    On December 7th, 2017, ITL Limited changed its name to ITL Health Group Limited.
     
  18. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    SP dropped quite a bit on the release of the HY report, its not easy to work out what is going on because of the effects of the sale of it Australia Customer Pack division and the soft half for the continuing operations. Net cash position has improved and 13% of shares have been bought back.

    I am considering adding to my current position at these prices, but I just have to find a bit more confidence in what the continuing business is going to perform like.
     
  19. galumay

    galumay learner

    Posts:
    2,043
    Likes Received:
    605
    Joined:
    Sep 17, 2011
    Read the report in more detail and this is a disaster unfolding. No one predicted such a massive fall in profit. Basically having divested the Australia Customer Pack division, the remaining business is no longer profitable. This was not the outcome I or others expected, I had calculated a fall in EPS of around 30% with the divestment and expected the profit from the sale to be used to payoff the remaining debt and leave a strong cash position. I went from considering averaging down yesterday to changing my mind last night and selling out this morning. I basically broke even plus the dividends.

    I will continue to watch in case they can make a profitable business from the remains, but I expect the SP to drift down into the 20c range in the mean time.
     
  20. Faramir

    Faramir Very New Investor

    Posts:
    347
    Likes Received:
    77
    Joined:
    Mar 24, 2014
    ITD wants to delist. It was 15 cents before opening. I do not hold. I never had the intention to hold. Does anyone think they have valid reasons to delist? They will still operate as normal. Liquidity of their shares is very low to them and it is way under valued. Well, that’s they said in their announcement. I don’t know ITD well enough to make a serious comment. Sorry.
     
Loading...

Share This Page