Investment Matters

Company profit reporting season: Paragon Care

Paragon Care released a strong result for the financial year ending 30-Jun-16, as expected.  

The result was slightly higher than the market update released by the company on 30-Jun-16.  These figures were based on a actuals to May-16, a forecast for Jun-16 and were unaudited.

Revenue increased 190%, net profit increased 257% and earnings per share increased 75% (lower % than profit increase due to additional shares on issue - capital raising to fund acquisitions).  The dividend also increased 75%, compared to FY-15.

Financial operating metrics were sound with cash flow increasing strongly to $7.8m (correcting a one-off blowout in H1), inventory and receivables under control, and gearing reduced to 20.8% (vs 29.0% at 30-Jun-15).

In addition to organic growth and margin expansion, the acquisitions of Western Biomedical, Designs for Vision and Meditron contributed to earnings (for 9 of the 12 months in FY-16.)

We expect continued earnings growth in FY-17, with the full year contribution of the Western Biomedical, Designs for Vision and Meditron acquisitions, continued organic growth, and potential future acquisitions.

Paragon 2