Paragon Care Ltd ("PGC") - Healthcare upside!!

[percy]

Thanks Mark100.
I did forget there is a difference between SPPs and "top ups".

[percy]

Oh well, if there is a market crash and the share price plummets, we will all be sending the MD a big thank you for not taking our money

Market crash means more people with health issues.
More health issues means the better PGC will do.!
lol.

[percy]

Not if they all just jump out of windows

Have you in all your gloom considered going long on IVC.?

[Zoolanda]

PGC have a bit of history with misplacing stock in a CR. That is what sent the share price from 45c to 22c last time. Lets hope they leant their lesson.

[DarkHorse]

Upbeat addresses at ASM today – continues to show good growth – both organic and from EPS accretive acquisitions, and recent buys trading positively since acquisition. With a low fwd PE, solid balance sheet, great management track record, sector tailwinds and plenty of scope for years of further growth in fragmented industry, there’s a lot to like

[percy]

Upbeat addresses at ASM today – continues to show good growth – both organic and from EPS accretive acquisitions, and recent buys trading positively since acquisition. With a low fwd PE, solid balance sheet, great management track record, sector tailwinds and plenty of scope for years of further growth in fragmented industry, there’s a lot to like

A good summary.
PGC used to sell mainly "equipment",such a hospital beds,however the acquisitions into "consumables",has greatly improved stock turns and cashflow.
Now that the turnover is over $100mil, I think we will see PGC use their cashflow/balance sheet strength to do more earnings per share accretive acquisitions.[consumables]
They are gaining momentum,so the next few years should be fun.

[percy]

A cracker interim result today.
Revenue......... up 185%
Profit after tax..up 215%
eps..................up 87%
In my previous post I mentioned PGC's move to more "consumables".They expect FY16 to be 50% "equipment",50% "consumables" and FY17 "comsumables" will amount to 70%.Great for cashflow.Although "comsumables" attract a smaller gross margin PGC's margins remain very healthy.
The acquisitions have placed PGC in a strong position for continued growth.The business just keeps getting better.

[DarkHorse]

A cracker interim result today.
Revenue......... up 185%
Profit after tax..up 215%
eps..................up 87%
In my previous post I mentioned PGC's move to more "consumables".They expect FY16 to be 50% "equipment",50% "consumables" and FY17 "comsumables" will amount to 70%.Great for cashflow.Although "comsumables" attract a smaller gross margin PGC's margins remain very healthy.
The acquisitions have placed PGC in a strong position for continued growth.The business just keeps getting better.

Indeed they keep delivering. EPS last three halves: 1.27c, 1.93c, 2.38c; they're fairly coy about FY results - how do you think the numbers will pan out Percy? (or anyone who can hazard a guess)

[percy]

Indeed they keep delivering. EPS last three halves: 1.27c, 1.93c, 2.38c; they're fairly coy about FY results - how do you think the numbers will pan out Percy? (or anyone who can hazard a guess)

Not sure.But will be well up on the 2.38c of this half.
With positive commentary, and new acquisition earnings coming through,the eps is certainly growing rapidly.
I think their projections of "consumables" growing to 70% of revenue points to very high growth rate continuing."Equipment" sales will always remain lumpy,but very profitable.
Cashflow in the next half should be excellent,which should give them the capacity to do further modest "bolt on" acquisitions.

[percy]

Another very positive update out today.
Stronger control of debtors and stock has resulted in much stronger cashflow.
Outlook excellent.