Catapult Group International Ltd

Strong Earnings Growth in FY17: Catapult Group International Ltd (ASX: CAT) in FY17 had reported 249% growth in the statutory revenue due to a 52% growth in elite wearables revenue and pro-forma 10.4% increase in year on year (yoy) XOS revenue. The company in FY 17 had first time achieved a positive underlying EBITDA result, particularly on an earnings base which is increasingly of a recurring nature through the growing elite wearables and video subscription base. Moreover, there were transformational acquisitions with XOS, PLAYERTREK and AMS. Additionally, in FY 18, CAT seems to be well positioned to grow the elite client base, due to the elite wearables business that is on track to grow strongly, alongside continued expansion of the recurring revenue base through subscription sales. In addition, CAT on the back of the new brand identity will launch the full prosumer offering later this year and will round out the expanded product offering across the two key markets – elite and prosumer. On the other hand, Markus Ziemer has been appointed as Company Secretary and Anand Sundaraj has resigned as Company Secretary effective from October 03, 2017. Meanwhile, CAT stock has fallen 24.16% in three months, but has risen 10.07% in the past five days as on (October 13, 2017). Trading on volatility, the stock witnessed a rise of about 14% on October 13, 2017 while it slipped about 4% on October 16, 2017. We give a “Hold” recommendation on the stock at the current price of $ 1.52

 

FY17 Financial Performance (Source: Company Reports)

Medical Developments International Ltd

Selling of 4.35 million shares by the Chairman: Medical Developments International Ltd.’s (ASX: MVP) chairman Mr. David Williams, the biggest shareholder of MVP, has sold 4.35 million MVP shares to 9 global and local financial institutions in the United Kingdom, the United States of America, Hong Kong and Australia in an off-market transaction at $5.40 per share. This has been done to give space for two large European Institutional investors. On the other hand, Joint Royal Colleges Ambulance Liaison Committee (JRCALC) has recommended the use of Penthrox (non-opioid, non-additive inhaled analgesic manufactured by MVP) for adults with injuries causing moderate to severe pain. JRCALC has issued its new pain management clinical practice guidelines for UK ambulance services teams. Additional clinical and studies for use of Penthrox have been planned for FY 18 and beyond. Additionally, the company has planned to get approval to sell Penthrox in 37 countries throughout Europe and in number of countries outside EU. MVP expects to make first sales during the second half of FY 18 into many of these countries. MVP expects more material sales growth to start during FY 19. In addition, MVP needed to submit a “New Drug Application” to the Food and Drug Administration in the USA, and extend the “indications for use” for Penthrox. Trading at extremely high levels, we give an “Expensive” recommendation on the stock at the current price of $ 5.60

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