BLT - Blis Technologies

[artemis]

So funding to reduce rheumatic fever has been halved in the Budget with focus now being on Auckland, probably South Auckland. as Maori and Pasifika are disproportionately affected. So the government has realised that 'if we always do what we've always done ...'. Maybe time to spend the millions of dollars on BLIS, as was done in Whakatane schools with excellent results.

[emearg]

So funding to reduce rheumatic fever has been halved in the Budget with focus now being on Auckland, probably South Auckland. as Maori and Pasifika are disproportionately affected. So the government has realised that 'if we always do what we've always done ...'. Maybe time to spend the millions of dollars on BLIS, as was done in Whakatane schools with excellent results.

Where did you read it has been halved? I can't find that via The Google.

[artemis]

Where did you read it has been halved? I can't find that via The Google.

Funding for rheumatic fever prevention halved in Budget despite failure to cut hospitalisations

http://www.nzherald.co.nz/nz/news/ar...ectid=11864132

[emearg]

Thank you.

[simla]

Blis annual report 2017 now out. https://www.nzx.com/files/attachments/259053.pdf

There was more detail than in the past. I am grateful for that and somewhat relieved. Still very little information on end-user activity in actual markets. For instance, the US was barely mentioned (although they seem to going for GRAS on M18 now).

Significant bits that I saw:

• "early trial activity in China as one of our prospective customers prepares for launch activity in FY2018. (p4)
• "The Company recorded positive net cash flow from operating activities of $244k (p4)
• "In FY2017, we focused on establishing the fundamentals for sustainable growth. Considerable effort has been applied to internal processes to support growth and building capability for the future. (p5)
• "Dermatology (future focus) (p5)
  
• Recognise the potential of "BLIS®-containing functional food solutions" (p5)
• Recognise the potential of "BLIS®-containing pet applications and animal health solutions" (p5)
• "BLIS EliteProTM (high dose BLIS K12® targeted at athletes) launched, and ongoing collaboration with elite sports organisations (p6) (Missed that one Emearg?)
  
• "New [NZ] distributor relationships with Pacific Health targeting health practitioners and Henry Schein NZ for the professional dental channel (p6)
• "Early-stage evaluation of new food formats for one probiotic strain (p6)
• "Solid foundations for the future have been established and we have our cost base clearly defined for future sustainable profitable growth. With prudent investment, we believe there is a good balance between existing business support and pipeline development to realise the potential of our IP. (p7)
• "In the medium term, we expect meaningful sales from China, and from expanded market approvals in Australia and new
  customer relationships globally. (p7)
• "The Company is investing in the evaluation of new candidate strains in its pipeline. One strain (BLIS Q24 TM for skin applications) has progressed to the point of formulation trials. (p7)
• "Further advances through an early-stage clinical trial of a new strain (BLIS Q24TM) targeting skin applications (p6)
• "We expect that the new probiotic strain targeting skin applications will launch in the 2019 financial year. (p7)
• Website development cost $114k (p31)
• No new issue mentioned, working capital of 2.2m considered sufficient. (amended: p4 possible issue for more growth. Thanks, underworld.)
• No estimate provided for this year's revenue or profit.

The announcment, https://www.nzx.com/companies/BLT/announcements/301839

"During this financial year, the company will continue to invest in growth initiatives, delivering increased turnover and a profit.
"It is important to note that management and the board have undertaken a review of within market demand internationally. This review is providing us with confidence that there remains strong evidence of continued growth.

[simla]

Somewhat more confident than last year, and the extra detail allows us to be somewhat more confident as well. Almost impossible to judge what to expect over what time scale though.

[simla]

An update on the figures I put up recently adding the 2017 report. I added a few rows. Sourced from the last few annual reports available here https://blis.co.nz/investor-centre/a...ncial-reports/

(000s)	2013	2014	2015	2016	2017
Revenue	1161	1322	2631	5661	6547
Loss	-1856	-1541	-1373	-816	-24
Net cash flow (ex finance)	-1110	-1324	-1516	-919	-71
Total Op'ing Expenses	2959	2863	4004	6477	6571
- Cost of goods sold	527	585	935	1762	*1688	* New name but seems to be the same figures
= Other expenses	2432	2278	3069	4715	4883
Capital expenses	467	348	421	408	315	From cash flow report
Employee Benefits	697	878	1203	1671	2024
Shareholder equity	3490	* 6176	4803	3987	4017	* Included share issue
Working capital	909	* 3753	2519	1927	2253	* Included share issue

I have checked the figures carefully, but check them yourself if relying on them. As usual, just my viewpoint, feel free to dispute it.

[Leftfield]

Thanks Simla.....I haven't had too much time to analyse the results so appreciate your homework. I agree things are beginning to look more positive. Nice to see the new managers making 'progress' and some interesting new product and market extensions. How all this impacts on next FY18 financials is going to be v interesting.

Disc; I've lowered my BLT exposure 25%, but retain 75% (happily well in the green zone.)

[simla]

The biggest change for me was a sense that the company was getting on top of more of the detail. Last year's report left me with somewhat doubt that the company was really on top of everything (whether that was a fair reading or not we'll never know.) This report still didn't ooze confidence, but a continuation of this trend might be more reassuring next year? It is still all very difficult to read.

Only slight mention of costs and profit, that might have been a bold assertion that expenditure wasn't going to stop any time soon, but on the other hand might also have been a concession that balance with actual profit was also required. It was all such a very slight discussion (for a topic that surely leaps off the page from the last results) that it was impossible to be sure what was meant. Or as I read it anyway.

More reassuring than last year, but still difficult to know what to make of it.

[simla]

Share price slipping presently. I suppose people did notice "in China as one of our prospective customers prepares for launch activity in FY2018. " This IS FY2018. Still, China is always hard to predict.