TIDMMVH
RNS Number : 1312O
Medic Vision Limited
02 March 2009
MEDIC VISION LIMITED
ABN 67 099 084 143
APPENDIX 4D
HALF-YEAR REPORT
PERIOD ENDED 31 DECEMBER 2008
Results for announcement to the market
+--------------------------------------------------------+-------------+-----------+-----+--------------+
| Results | |
+--------------------------------------------------------+----------------------------------------------+
| | | | | A$ |
| Total revenues | down | 53% | to | 417,932 |
+--------------------------------------------------------+-------------+-----------+-----+--------------+
| Net loss for the period attributable to members | down | 48% | to | 1,724,303 |
+--------------------------------------------------------+-------------+-----------+-----+--------------+
| | |
+--------------------------------------------------------+-------------+-----------+-----+--------------+
+----------------------------------------------+--------+---------------------+---------------------+
| Dividends | Amount per security | Franked amount per |
| | | security |
+-------------------------------------------------------+---------------------+---------------------+
| Final dividend - no dividend is proposed | N/A | N/A |
+-------------------------------------------------------+---------------------+---------------------+
| Previous corresponding period - no dividend declared | N/A | N/A |
+-------------------------------------------------------+---------------------+---------------------+
| | |
+----------------------------------------------+----------------------------------------------------+
| Record date for determining entitlements to the | N/A |
| dividend, | |
| (in the case of a trust, distribution) | |
+-------------------------------------------------------+-------------------------------------------+
| | |
+----------------------------------------------+--------+---------------------+---------------------+
+----------------------------+----------------------------+-------------------+------------------------+
| NTA backing | | Current period | Previous corresponding |
| | | | period |
+----------------------------+----------------------------+-------------------+------------------------+
| | | |
| Net tangible asset backing per ordinary security | 0.30 cents | 5.55 cents |
+----------------------------+----------------------------+-------------------+------------------------+
MEDIC VISION LIMITED
AND ITS CONTROLLED ENTITIES
ABN 67 099 084 143
Half-Year Financial Report
31 December 2008
TABLE OF CONTENTS
+-------------------------------------------------------------------------+----+
| CORPORATE INFORMATION | 4 |
+-------------------------------------------------------------------------+----+
| DIRECTORS' REPORT | 5 |
+-------------------------------------------------------------------------+----+
| AUDITORS INDEPENDENCE DECLARATION | 8 |
+-------------------------------------------------------------------------+----+
| INCOME STATEMENT | 9 |
+-------------------------------------------------------------------------+----+
| BALANCE SHEET | 10 |
+-------------------------------------------------------------------------+----+
| CASH FLOW STATEMENT | 11 |
+-------------------------------------------------------------------------+----+
| STATEMENT OF CHANGES IN EQUITY | 12 |
+-------------------------------------------------------------------------+----+
| Notes to the Financial Statements for the half-year ended 31 December | 13 |
| 2008 | |
+-------------------------------------------------------------------------+----+
| DIRECTORS' DECLARATION | 18 |
+-------------------------------------------------------------------------+----+
| INDEPENDENT REVIEW REPORT | 19 |
+-------------------------------------------------------------------------+----+
CORPORATE INFORMATION
This half-year report covers the consolidated entity comprising Medic Vision
Limited and its subsidiaries (the Group). The Group's functional and
presentation currency is AUD ($).
A description of the Group's operations and of its principal activities is
included in the review of operations and activities in the Directors' Report on
page 5. The Directors' Report is unaudited and does not form part of the
financial report.
+---------------------------------------+---------------------------------------+
| DIRECTORS | COMPANY SECRETARY |
| Mr Patrick Cregan (Chairman) (retired | Mr Adam Legg (Chief Financial |
| 10 September '08) | Officer) (retired 12 November '08) |
| Mr Ratnarajah Navaratnam (Chairman) | Mr Mark Licciardo (appointed 12 |
| (appointed 10 September '08) | November '08) |
| Mr Frank Cannavo (Executive Director) | |
| Mr Ross Horley (Managing Director) | |
| | |
+---------------------------------------+---------------------------------------+
| REGISTERED OFFICE | PRINCIPAL PLACE OF BUSINESS |
| Suite 1 | Suite 1 |
| 261 Wattletree Road | 261 Wattletree Road |
| Melbourne VIC 3144 | Melbourne VIC 3144 |
| Telephone: +61 3 8508 8288 | Telephone: +61 3 8508 8288 |
| Facsimile: +61 3 9576 3055 | Facsimile: +61 3 9576 3055 |
| | |
+---------------------------------------+---------------------------------------+
| AUDITORS | SHARE REGISTER |
| PKF | Computershare |
| Level 14, 140 Williams Street | 452 Johnston Street |
| Melbourne VIC 3000 | Abbotsford VIC 3067 |
| Telephone: +61 3 9603 1700 | Telephone: +61 3 9415 5000 |
| Facsimile: +61 3 9602 3870 | Facsimile: +61 3 9473 2500 |
| | |
+---------------------------------------+---------------------------------------+
| STOCK EXCHANGE LISTING | SOLICTORS |
| The Company is listed on the | GSM Lawyers |
| Australian Stock Exchange Limited and | 228 Smith Street |
| AIM | Collingwood VIC 33066 |
| Home Exchange - Melbourne, Australia | Telephone: +61 3 9419 2077 |
| ASX Code - MVH | Facsimile: +61 3 9419 3175 |
| AIM Code - MVH | |
| | |
+---------------------------------------+---------------------------------------+
BANKERS
National Australia Bank
Ground Level, 330 Collins Street
Melbourne 3000
Telephone: +61 3 8696 5452
DIRECTORS' REPORT
The directors present their report for the half-year ended 31 December 2008.
DIRECTORS
The names of the company's directors in office during the half-year and until
the date of this report are as below. Directors were in office for this entire
period unless otherwise stated.
Name
+---------------------------------+--------------------------------------------+
| Mr Patrick Cregan | Chairman (retired 10 September 2008) |
+---------------------------------+--------------------------------------------+
| Mr Ratnarajah Navaratnam | Chairman (appointed 10 September 2008) |
+---------------------------------+--------------------------------------------+
| Mr Frank Cannavo | Executive Director |
+---------------------------------+--------------------------------------------+
| Mr Ross Horley | Managing Director |
+---------------------------------+--------------------------------------------+
REVIEW OF OPERATIONS
The loss after income tax of the consolidated entity for the half-year ended 31
December 2008 was $1,724,303 (2007: $3,322,735 loss) attributable to members of
the parent.
Although actual revenues are down when compared to the same time last year, it
should be noted that cash inflows during the period were considerable
($906,924), a significant portion being from sales for which the revenue was
recognised in the previous period.
It is expected that the numerous sales in progress at this time will show as
revenues in the latter six months of the financial year, a result of the long
sales turnaround cycle for simulator sales.
Evidence of steps introduced to reduce overheads can be seen in a significant
reduction in expenditure in a number of categories. Further policies are being
implemented over the next six months to continue this trend.
Operational Update
The last six months of operations have been focused on deploying the Company's
strategic focus and developing the infrastructure to ensure a rapid roll out of
the operation and management of skills training centres creating a global
network of Medic Vision Training Centres.
Over the course of the past six months the Company has secured a number of
highly regarded western training courses with the assurance of the institution
stamp for accreditation of participants who attend courses at Medic Vision
Skills Training Centres. This is a significant milestone and represents
considerable value and credibility in developing countries.
Operations can be summarised as follows:
India
In India, the Company has signed a binding heads of terms agreement, with Apollo
Hospital Enterprise Ltd, to establish a joint venture company (the "JV") to
develop and deploy training centres throughout India and other parts of the
world. Significant work has taken place on the Chennai site with the building
works well underway, due for completion in mid 2009. The Board is pleased with
the progress to date and is confident that management will be successful in
establishing, during the course of 2009, the generation of continuous revenue
through the running of medical and surgical training courses in India.
China
As reported last year, the Ministry of Health of the People's Republic of China
(the "PRC") announced a plan, estimated by the PRC's State Council to have a
cost of 850 million yuan (US$123 million), to reform the health care system and
provide a national level of healthcare to all of its 1.3 billion citizens by
2011, meaning that in excess of 1.2 million doctors will need to be trained to a
national level of competency similar to other western countries.
Medic Vision is strategically well placed to play a key role in training these
doctors as part of this reform program. Medic Vision will deploy training
courses to western standards in the PRC to align itself to the opportunity
presented by these reforms, which the Board expects to commence in Q2 2009,
initially at the Macau University of Science and Technology.
UK
Activity in the UK has seen the completion of Torbay Skills Centre - CITEC (The
Centre of Innovation and Training in Elective Care), which will officially open
later this year. Further progress has been made with the marketing of Medic
Vision as a total service provider in the management of skills centres in the UK
with a strong number of prospective clients in negotiation for the Company to
manage their centres. The Board expects to make further announcements regarding
developments in the UK in the coming months.
Simulators
In addition to the planned rollout of training courses, significant simulator
sales were made in Australia to the Royal Australasian College of Surgeons for
an assessment study on the use of simulators for basic surgical skills training
and a further sale to the University of Armidale. A number of simulator sales
were made in the UK, including the first Temporal Bone Simulator sale in the
northern hemisphere and the first Ultrasound simulator installed in Ireland. The
Board is confident despite the long sales cycle for simulators that the second
half of the financial year will reap greater success in this area of the
business.
Product Development
The past six months has seen continuous testing and upgrading to the existing
software & hardware platforms for both Mediseus Epidural and Mediseus Surgical
Drilling Simulator. Work is also in progress to broaden the scope of use for
each of the simulators, which includes varying patient conditions, increasing
levels of intensity and leveraging the software to target different medical and
surgical specialties.
There is a number of grant funded University development projects that are
underway in which Medic Vision is involved, and, for most part, has the
commercialisation rights. These projects remain active with significant input
from Medic Vision, and we look forward to reporting on the estimated timeframe
for prototyping over the six months and on market feedback.
Red Paragon
In January 2009, Medic Vision announced the acquisition of a controlling
interest (87.5 per cent.) of Red Paragon Pty Ltd ("Red Paragon") (the
"Acquisition") an Australian incorporated private company specializing in the
manufacture of low cost, lightweight, building panels for construction of
modular buildings (see note 6 for more information). The Board views the
acquisition as a strategic development for Medic Vision, as Red Paragon brings
an essential building product skill set that is well suited for the planned
large volume rapid roll out of skills training centres in India, the PRC and
other parts of the world.
The Board believes that the Red Paragon product is highly suited to this project
because of its affordability and capacity to be environmentally friendly,
recyclable and rapidly assembled structurally high quality, whilst only
requiring limited relatively unskilled labour.
Lead Auditor's Independence Declaration under Section 307C of the Corporations
Act 2001
The lead auditor's independence declaration is set out on page 8 and forms part
of the director's report for the half-year ended 31 December 2008.
Dated at Melbourne this 2 day of March 2009
Signed in accordance with a resolution of the directors:
Ratnarajah Navaratnam
Chairman
AUDITORS INDEPENDENCE DECLARATION
As auditor for the review of the financial report of Medic Vision Limited for
the half year ended 31 December 2008, 1 declare that to the best of my knowledge
and belief, there have been: .
(a). no contraventions of the auditor independence requirements of
the Corporations Act 2001 in relation to the review;
and
(b). no contraventions of any applicable code of professional
conduct in relation to the review.
This declaration is in respect of Medic Vision Limited and the entities it
controlled during the half year ended 31 December 2008.
R A Dean
Partner
PKF
2 March 2009
Melbourne
INCOME STATEMENT
For the Half-Year Ended 31 December 2008
+----------------------------------------+--------+-------------+-------------+
| | | CONSOLIDATED |
+----------------------------------------+--------+---------------------------+
| | | Dec | Dec 2007 |
| | | 2008 | |
+----------------------------------------+--------+-------------+-------------+
| | Notes | $ | $ |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
| Sale of goods | | 383,430 | 681,616 |
+----------------------------------------+--------+-------------+-------------+
| Rendering of services | | 24,502 | 162,485 |
+----------------------------------------+--------+-------------+-------------+
| Other revenue | 3(i) | 10,000 | 52,154 |
+----------------------------------------+--------+-------------+-------------+
| Revenue | | 417,932 | 896,255 |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
| Cost of goods sold | | (231,297) | (482,423) |
+----------------------------------------+--------+-------------+-------------+
| Cost of services rendered | | (5,800) | (105,595) |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
| Other income | 3(ii) | 767 | 1,127,844 |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
| Employee expenses | | (618,057) | (749,288) |
+----------------------------------------+--------+-------------+-------------+
| Depreciation, amortisation and | | (94,980) | (2,648,354) |
| impairment | | | |
+----------------------------------------+--------+-------------+-------------+
| Consulting fees | | (47,391) | (34,361) |
+----------------------------------------+--------+-------------+-------------+
| Legal & other professional fees | | (137,951) | (116,776) |
+----------------------------------------+--------+-------------+-------------+
| Regulatory and listing costs | | (67,342) | (40,631) |
+----------------------------------------+--------+-------------+-------------+
| Marketing and Promotion Expense | | (29,588) | (140,177) |
+----------------------------------------+--------+-------------+-------------+
| Research and Development expense | | (171,696) | (237,478) |
+----------------------------------------+--------+-------------+-------------+
| Occupancy expenses | | (110,629) | (64,812) |
+----------------------------------------+--------+-------------+-------------+
| Foreign exchange loss | | (83,954) | (198,672) |
+----------------------------------------+--------+-------------+-------------+
| Loss on Sale of Available for Sale | | (241,156) | - |
| Financial Assets | | | |
+----------------------------------------+--------+-------------+-------------+
| Other expenses |3(iii) | (303,161) | (719,717) |
+----------------------------------------+--------+-------------+-------------+
| Finance costs | | - | (3,550) |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
| Loss before income tax | | (1,724,303) | (3,517,735) |
+----------------------------------------+--------+-------------+-------------+
| Income tax benefit | | - | 195,000 |
+----------------------------------------+--------+-------------+-------------+
| (Losses) attributable to Members of | | (1,724,303) | (3,322,735) |
| the parent | | | |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
| Earnings per share for loss attributable to | | |
| the ordinary equity holders of the Company, | | |
| from overall operations: | | |
+-------------------------------------------------+-------------+-------------+
| Basic (losses) per share | | (1.88)c | (3.56)c |
+----------------------------------------+--------+-------------+-------------+
| Diluted (losses) per share | | (1.88)c | (3.56)c |
+----------------------------------------+--------+-------------+-------------+
| | | | |
+----------------------------------------+--------+-------------+-------------+
The above income statement should be read in conjunction with the accompanying
notes.
BALANCE SHEET
As at 31 December 2008
+----------------------------+---------------------+----------+--------------+--------------+
| | | CONSOLIDATED |
+--------------------------------------------------+----------+-----------------------------+
| | | Dec 2008 | June 2008 |
+----------------------------+--------------------------------+--------------+--------------+
| | Notes | $ | $ |
+----------------------------+--------------------------------+--------------+--------------+
| ASSETS | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Current Assets | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Cash and cash equivalents | 4 | 344,666 | 466,091 |
+----------------------------+--------------------------------+--------------+--------------+
| Trade and other | | 54,222 | 569,659 |
| receivables | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Inventories | | 383,786 | 223,490 |
+----------------------------+--------------------------------+--------------+--------------+
| Available-for-sale | 5 | - | 980,420 |
| financial assets | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Other current assets | | 36,396 | 40,783 |
+----------------------------+--------------------------------+--------------+--------------+
| Total current assets | | 819,070 | 2,280,443 |
+----------------------------+--------------------------------+--------------+--------------+
| | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Non-current Assets | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Property, plant and | | 407,578 | 486,463 |
| equipment | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Total non-current assets | | 407,578 | 486,463 |
+----------------------------+--------------------------------+--------------+--------------+
| | | | |
+----------------------------+--------------------------------+--------------+--------------+
| TOTAL ASSETS | | 1,226,648 | 2,766,906 |
+----------------------------+--------------------------------+--------------+--------------+
| | | | |
+----------------------------+--------------------------------+--------------+--------------+
| LIABILITIES | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Current liabilities | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Trade and other payables | | 898,134 | 640,175 |
+----------------------------+--------------------------------+--------------+--------------+
| Provisions | | 46,994 | 66,273 |
+----------------------------+--------------------------------+--------------+--------------+
| Total current liabilities | | 945,128 | 706,448 |
+----------------------------+--------------------------------+--------------+--------------+
| | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Non-current liabilities | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Provisions | | 2,203 | 1,564 |
+----------------------------+--------------------------------+--------------+--------------+
| Total non-current | | 2,203 | 1,564 |
| liabilities | | | |
+----------------------------+--------------------------------+--------------+--------------+
| TOTAL LIABILITIES | | 947,331 | 708,012 |
+----------------------------+--------------------------------+--------------+--------------+
| NET ASSETS | | 279,317 | 2,058,894 |
+----------------------------+--------------------------------+--------------+--------------+
| | | | |
+----------------------------+--------------------------------+--------------+--------------+
| EQUITY | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Equity attributable to | | | |
| equity holders of the | | | |
| parent | | | |
+----------------------------+--------------------------------+--------------+--------------+
| Contributed equity | | 21,840,421 | 21,756,920 |
+----------------------------+--------------------------------+--------------+--------------+
| Accumulated losses | | (21,536,459) | (19,812,156) |
+----------------------------+--------------------------------+--------------+--------------+
| Reserves | | (24,645) | 114,130 |
+----------------------------+--------------------------------+--------------+--------------+
| TOTAL EQUITY | | 279,317 | 2,058,894 |
+----------------------------+---------------------+----------+--------------+--------------+
The above balance sheet should be read in conjunction with the accompanying
notes.
CASH FLOW STATEMENT
For the Half-Year Ended 31 December 2008
+--------------------------------------+-------+-------------+-------------+
| | | CONSOLIDATED |
+--------------------------------------+-------+---------------------------+
| | | Dec 2008 | Dec 2007 |
+--------------------------------------+-------+-------------+-------------+
| |Notes | $ | $ |
+--------------------------------------+-------+-------------+-------------+
| Cash flows from operating activities | | | |
+--------------------------------------+-------+-------------+-------------+
| Receipts from customers | | 906,924 | 1,192,885 |
+--------------------------------------+-------+-------------+-------------+
| Payments to suppliers and employees | | (1,788,427) | (3,121,023) |
+--------------------------------------+-------+-------------+-------------+
| Interest received | | 10,000 | 52,154 |
+--------------------------------------+-------+-------------+-------------+
| Grant income | | 18,371 | - |
+--------------------------------------+-------+-------------+-------------+
| Other receipts | | 219 | - |
+--------------------------------------+-------+-------------+-------------+
| Net cash flows (used in) operating | | (852,913) | (1,875,984) |
| activities | | | |
+--------------------------------------+-------+-------------+-------------+
| | | | |
+--------------------------------------+-------+-------------+-------------+
| Cash flows from investing activities | | | |
+--------------------------------------+-------+-------------+-------------+
| Payments for acquisition of: | | | |
+--------------------------------------+-------+-------------+-------------+
| Plant and equipment | | (10,245) | (663) |
+--------------------------------------+-------+-------------+-------------+
| Proceeds from disposal of: | | | |
+--------------------------------------+-------+-------------+-------------+
| Proceeds from disposal - available | | 658,233 | 1,622,130 |
| for sale | | | |
| financial assets | | | |
+--------------------------------------+-------+-------------+-------------+
| Net cash provided by investing | | 647,988 | 1,621,467 |
| activities | | | |
+--------------------------------------+-------+-------------+-------------+
| | | | |
+--------------------------------------+-------+-------------+-------------+
| Cash flows from financing activities | | | |
+--------------------------------------+-------+-------------+-------------+
| Proceeds from issue of share | | 100,000 | - |
+--------------------------------------+-------+-------------+-------------+
| Capital raising costs | | (16,500) | - |
+--------------------------------------+-------+-------------+-------------+
| Net cash flows provided by financing | | 83,500 | - |
| activities | | | |
+--------------------------------------+-------+-------------+-------------+
| | | | |
+--------------------------------------+-------+-------------+-------------+
| Net (decrease) in cash held | | (121,425) | (254,517) |
+--------------------------------------+-------+-------------+-------------+
| Cash at beginning of period | | 466,091 | 2,334,280 |
+--------------------------------------+-------+-------------+-------------+
| Cash at end of period | 4 | 344,666 | 2,079,763 |
+--------------------------------------+-------+-------------+-------------+
The above cash flow statement should be read in conjunction with the
accompanying notes.
STATEMENT OF CHANGES IN EQUITY
For the Half-Year Ended 31 December 2008
+--------------------+-------------+--------------+-----------+-----------+-------------+
| CONSOLIDATED |Contributed | Accumulated | Foreign |Available | Total |
| | Equity | Losses | Currency | for Sale | Equity |
| | | | Reserves |Financial | $ |
| | | | | Assets | |
| | | | | Reserve | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| As at 1 July 2008 | 21,756,921 | (19,812,157) | (130,975) | 245,105 | 2,058,894 |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Sale of shares | | | | | (245,105) |
| held for sale | - | - | - | (245,105) | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Capital raising | 100,000 | - | - | - | 100,000 |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Capital raising | (16,500) | - | - | - | (16,500) |
| costs | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Foreign currency | - | - | 106,330 | - | 106,330 |
| translation | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Loss for the | - | (1,724,302) | - | - | (1,724,302) |
| period | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| As at 31 Dec 2008 | 21,840,421 | (21,536,459) | (24,645) | - | 279,317 |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| As at 1 July 2007 | 21,823,473 | (14,328,379) | (75,579) | 700,000 | 8,119,515 |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Sale of shares | | | | | (245,000) |
| held for sale | - | - | - | (245,000) | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Revaluation asset | - | - | - | 455,000 | 455,000 |
| held for sale net | | | | | |
| of income tax | | | | | |
| provision | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Foreign currency | | | | | 200,328 |
| translation | - | - | 200,328 | - | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| Loss for the | - | (3,322,735) | - | - | (3,322,735) |
| period | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| As at 31 Dec 2007 | 21,823,473 | (17,651,114) | 124,749 | 910,000 | 5,207,108 |
+--------------------+-------------+--------------+-----------+-----------+-------------+
| | | | | | |
+--------------------+-------------+--------------+-----------+-----------+-------------+
Notes to the Financial Statements for the half-year ended 31 December 2008
1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT
The half-year financial report does not include all notes of the type normally
included within the annual financial report and therefore cannot be expected to
provide a full an understanding of the financial performance, financial position
and financing and investing activities of the consolidated entity as the full
financial report.
The half-year financial report should be read in conjunction with the annual
Financial Report of Medic Vision Limited as at 30 June 2008.
It is also recommended that the half-year financial report be considered
together with any public announcements made by Medic Vision Limited and its
controlled entities during the half-year ended 31 December 2008 in accordance
with the continuous disclosure obligations arising under the Corporations Act
2001.
(a) Basis of accounting
The half-year consolidated financial report is a general-purpose financial
report, which has been prepared in accordance with requirements of the
Corporations Act 2001, applicable Accounting Standards including AASB 134
"Interim Financial Reporting" and other mandatory professional reporting
requirements.
The half-year financial report has been prepared on a historical cost basis,
except for financial assets classified as held for trading or
available-for-sale, which are measured at fair value.
For the purpose of preparing the half-year financial report, the half-year has
been treated as a discrete reporting period.
(b) Going Concern
For the period ended 31 December 2008, the consolidated entity incurred a loss
of $1,724,303 and had an excess of current liabilities over current assets
amounting to $126,058.
The consolidated entity's ongoing need to raise capital in the current
environment to enable it to continue to 'roll-out' its business plan gives rise
to a material uncertainty which may cast significant doubt about the ability of
the consolidated entity to continue as a going concern.
The directors have carefully considered the consolidated entity's current
position and these uncertainties and believe that the consolidated entity will
continue to operate as a going concern. In arriving at this position, the
directors believe that over the ensuing 12 months, that an additional $1,000,000
of capital will be required to enable business plan to be enacted and the
'skills training centres' to commence roll-out. The Directors have signed a
mandate with a private equity partner to raise $1,000,000. Of this, $500,000 of
the funds has been advised as raised by the private equity partner. The
consolidated entity is in negotiation in regards to the remaining funding.
An additional $100,000 has been received by the consolidated entity during the
period from a related party capital contribution.
In addition to the capital raising, the Directors have planned the following:
* Continuing reductions of the overheads of the Company;
The company has already reduced staff (by 35%) and operational costs in the
reduction of non core staff/consultants and the rationalisation of product
development expenditure. This is in line with the company's direction to manage
skills training centres therefore the focus is to maintain our simulator
products but not to develop new products unless fully funded by external
parties, grants etc. For example Medic Vision is currently participating in a EU
grant funded project. The company's costs are covered by the grant.
* Increased operating revenue from roll - out of medical training centres;
The company is in the process of planning deployment of training courses in
India , China and the UK. The deployment will commence towards mid year . The
process of delivering medical and surgical education in key regions such as
India, China and the UK will transform the company from a consultancy, equipment
supplier to a full service delivery company with ongoing revenue from charging
each training participant.
* Reduction of simulator manufacturing costs;
The company has scaled down its product development activities to the extent
that all new simulator projects shall be fully funded either by external parties
or grants. Continuous upgrading and enhancement of the companies existing
Mediseus temporal bone drilling simulator and epidural simulator will continue
albeit with a skeletal staff.
* Securing additional equity and or funding.
The company is in discussion with a number of funding entities in regard to
furthering the company business. Funding entities from UK, Luxembourg and the US
have advised that they are willing to provide capital to the company. The board
will advise the success of these negotiations in the near future.
* Increasing Sales
The company is also pursuing distributorships for its simulation products around
the world to increase sales revenue. Further agencies are being sought in Asia
Pacific, Europe (east and west), Africa, USA and South America.
The Directors current cash flow forecasts indicate that the consolidated entity
will be cash flow positive towards the end of 2009. The inflow of funds from the
current capital raising provides sufficient funding to continue normal business
activities and the realisation of assets and the settlement of liabilities in
the ordinary course of business.
Based on the above matters, the directors are satisfied that the 'going concern'
basis of preparation is appropriate. The financial report has therefore been
prepared on a going concern basis, which assumes continuity of normal business
activities and the realisation of assets and the settlement of liabilities in
the ordinary course of business.
Should the directors not achieve the matters set out above, there is significant
uncertainty whether the Company or the Consolidated entity will be able to
continue as a going concern. The financial report does not include any
adjustments relating to the recoverability or classification of recorded asset
amounts, or to the amounts or classification of liabilities, which might be
necessary should the Company or Consolidated Entity not able to continue as a
going concern.
(c) Statement of compliance
The half-year consolidated financial statements have been prepared using the
same accounting policies as used in the annual financial statements for the year
ended 30 June 2008 and the financial report complies with AASB 134 "Interim
Financial Reporting". New and amended Australian Accounting Standards and
Interpretations, which were mandatory for adoption from 1 July 2008, had no
impact on this half-year financial report.
(d) Basis of consolidation
The half-year consolidated financial statements comprise the financial
statements of Medic Vision Limited and its subsidiaries ('the Group'). The
financial statements of subsidiaries are prepared for the same reporting period
as the parent, using consistent accounting policies.
All intercompany balances and transactions, including unrealised profits arising
from intra-group transactions, have been eliminated in full. Unrealised losses
are eliminated unless costs cannot be recovered.
Subsidiaries are consolidated from the date on which control is transferred to
the Group and cease to be consolidated from the date on which control is
transferred out of the Group. Where there is a loss of control of a subsidiary,
the consolidated financial statements include the results for the part of the
reporting period during which Medic Vision Limited has control.
2. SEGMENT INFORMATION
The Medic Vision Group comprises of the following business segments:
* Simulators - Global supply and development of medical and surgical training
tools.
* Skills Centres - Design, implementation & systems integration of healthcare
skills training and education facilities globally
Business Segments
The following table presents the revenue and profit information regarding
business segments for the half-year periods ended 31 December 2008 and 31
December 2007.
+----------------------------------+-------------+-----------+-------------+--------------+
| Business Segments | Simulators | Skills | | Consolidated |
| | | Centres | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| | $ | $ | $ | $ |
+----------------------------------+-------------+-----------+-------------+--------------+
| Half-year ended 31 Dec 08 | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Revenue | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Sales to external customers | 383,430 | 24,502 | | 407,932 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Other revenues from external | - | - | | - |
| customers | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Total segment revenue | - | - | | - |
+----------------------------------+-------------+-----------+-------------+--------------+
| Other income realised gains | | | 548 | 548 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Interest revenue | | | 10,000 | 10,000 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Unrealised foreign exchange gain | - | - | | - |
+----------------------------------+-------------+-----------+-------------+--------------+
| Total consolidated income | | | | 418,480 |
+----------------------------------+-------------+-----------+-------------+--------------+
| | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Result | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Segment results | (741,984) | (138,869) | | (880,853) |
+----------------------------------+-------------+-----------+-------------+--------------+
| Unallocated Costs | | - | (843,669) | (843,669) |
+----------------------------------+-------------+-----------+-------------+--------------+
| (Loss) before tax & finance | | | (1,724,522) | (1,724,522) |
| costs | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Finance Costs | | - | 219 | 219 |
+----------------------------------+-------------+-----------+-------------+--------------+
| (Loss) before income tax and | | | (1,724,303) | (1,724,303) |
| minority interest | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Income tax benefit | - | - | - | - |
+----------------------------------+-------------+-----------+-------------+--------------+
| Net (Loss) for the period | | | | (1,724,303) |
+----------------------------------+-------------+-----------+-------------+--------------+
| | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Business Segments | Simulators | Skills | | Consolidated |
| | | Centres | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| | $ | $ | $ | $ |
+----------------------------------+-------------+-----------+-------------+--------------+
| Half-year ended 31 Dec 07 | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Revenue | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Sales to external customers | 681,616 | 162,485 | | 844,101 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Other revenues from external | - | - | | - |
| customers | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Total segment revenue | - | - | | - |
+----------------------------------+-------------+-----------+-------------+--------------+
| Other income realised gains | | | 1,127,844 | 1,127,844 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Interest revenue | | | 52,154 | 52,154 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Unrealised foreign exchange gain | 3,909 | - | | 3,909 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Total consolidated income | | | | 2,028,008 |
+----------------------------------+-------------+-----------+-------------+--------------+
| | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Result | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Segment results | (1,304,554) | (246,327) | | (1,550,881) |
+----------------------------------+-------------+-----------+-------------+--------------+
| Unallocated Costs | | - | (3,143,303) | (3,143,303) |
+----------------------------------+-------------+-----------+-------------+--------------+
| (Loss) before tax & finance | | | (3,514,185) | (3,514,185) |
| costs | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Finance Costs | | - | (3,549) | (3,549) |
+----------------------------------+-------------+-----------+-------------+--------------+
| (Loss) before income tax and | | | (3,517,735) | (3,517,734) |
| minority interest | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
| Income tax benefit | - | - | 195,000 | 195,000 |
+----------------------------------+-------------+-----------+-------------+--------------+
| Net (Loss) for the period | | | | (3,322,735) |
+----------------------------------+-------------+-----------+-------------+--------------+
| | | | | |
+----------------------------------+-------------+-----------+-------------+--------------+
3. REVENUE AND EXPENSES
(i) Other revenue
+--------------------------+------------+-----------+
| | Dec 2008 | Dec 2007 |
+--------------------------+------------+-----------+
| | $ | $ |
+--------------------------+------------+-----------+
| Other revenue | | |
+--------------------------+------------+-----------+
| Interest revenue | 10,000 | 52,154 |
+--------------------------+------------+-----------+
| Total other revenue | 10,000 | 52,154 |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
(ii) Other income
+--------------------------+------------+-----------+
| | Dec 2008 | Dec 2007 |
+--------------------------+------------+-----------+
| | $ | $ |
+--------------------------+------------+-----------+
| Other income | | |
+--------------------------+------------+-----------+
| Gain on Sale of | - | 1,105,281 |
| Available for Sale | | |
| Financial Assets | | |
+--------------------------+------------+-----------+
| Other income | 767 | 22,563 |
+--------------------------+------------+-----------+
| Total other income | 767 | 1,127,844 |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
(iii) Other expenses
+--------------------------+------------+-----------+
| | Dec 2008 | Dec 2007 |
+--------------------------+------------+-----------+
| | $ | $ |
+--------------------------+------------+-----------+
| Other expenses | | |
+--------------------------+------------+-----------+
| Travel expenses | 234,144 | 315,285 |
+--------------------------+------------+-----------+
| Directors fees | 119,614 | 193,285 |
+--------------------------+------------+-----------+
| Other expenses | (50,597) | 211,147 |
+--------------------------+------------+-----------+
| Total other expenses | 303,161 | 719,717 |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
Seasonality of Operations
Revenues and profits are not affected by seasonality.
The Company does not typically experience seasonality in relation to demand for
its products. Subject to revenue growth attributable to new customers, revenues
tend to average out on a productive day basis throughout the year, with a
similar number of productive days in both halves of the year.
4. CASH AND CASH EQUIVALENTS
For the purpose of the half-year cash flow statement, cash and cash equivalents
are comprised of the following:
+--------------------------+------------+-----------+
| | Dec 2008 | June 2008 |
+--------------------------+------------+-----------+
| | $ | $ |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
| Cash at bank and in hand | 344,666 | 466,091 |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
5. AVAILABLE FOR SALE FINANCIAL ASSETS
+--------------------------+------------+-----------+
| | Dec 2008 | June 2008 |
+--------------------------+------------+-----------+
| | $ | $ |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
| Shares in KarmelSonix | - | 980,420 |
| Limited | | |
+--------------------------+------------+-----------+
| | | |
+--------------------------+------------+-----------+
During the period the Company sold its remaining 9,804,196 KarmelSonix Limited
shares. The sale of the shares returned net of costs $491,441 in cash and a loss
on sale of $241,156.
6. BUSINESS COMBINATION
Acquisition of Red Paragon Pty Ltd
On 8 January 2009 Medic Vision Ltd acquired a controlling interest of 87.5% of
the voting shares of Red Paragon Pty Ltd, an Australian based and incorporated
private company that manufactures low cost, lightweight, building panels (walls,
floors, ceilings and roof panels) for the construction of modular buildings.
The total cost of the combination was $788,918 and comprised an issue of equity
instruments. The Company issued 13,687,500 ordinary shares in exchange for the
interest in Red Paragon. The published price of the Company's shares on 8
January 2009 was determined to be an unreliable indicator of the fair value of
the shares issued. This conclusion was reached with reference to limited trade
activity in the Company's shares. The fair value of the proportional interest in
identifiable assets acquired was determined to be a more accurate measurement.
The fair value of the shares issued was thus calculated to be $0.06.
The fair value of the identifiable assets and liabilities of Red Paragon Pty Ltd
at the date of acquisition were:
+----------------------------+-------------+-----------+
| | |
+----------------------------+-------------------------+
| | Recognised | Carrying |
| | on | Value |
| | acquisition | |
+----------------------------+-------------+-----------+
| | $ | $ |
+----------------------------+-------------+-----------+
| Cash | 708,154 | 708,154 |
+----------------------------+-------------+-----------+
| Inventories | 14,487 | 14,487 |
+----------------------------+-------------+-----------+
| Prepayments | 12,680 | 12,680 |
+----------------------------+-------------+-----------+
| Receivables | 17,824 | 17,824 |
+----------------------------+-------------+-----------+
| Plant & Equipment | 188,566 | 188,566 |
+----------------------------+-------------+-----------+
| | 941,711 | 941,711 |
+----------------------------+-------------+-----------+
| | | |
+----------------------------+-------------+-----------+
| Trade Payables | 16,174 | 16,174 |
+----------------------------+-------------+-----------+
| Other Payables | 23,916 | 23,916 |
+----------------------------+-------------+-----------+
| | 40,090 | 40,090 |
+----------------------------+-------------+-----------+
| | | |
+----------------------------+-------------+-----------+
| Fair value of identifiable | 901,621 | |
| net assets | | |
+----------------------------+-------------+-----------+
| Less minority interests | 112,703 | |
+----------------------------+-------------+-----------+
| Net assets acquired | 788,918 | |
+----------------------------+-------------+-----------+
| | | |
+----------------------------+-------------+-----------+
| Cost of the combination: | | |
+----------------------------+-------------+-----------+
| Shares issued | 788,918 | |
+----------------------------+-------------+-----------+
| Total cost of the | 788,918 | |
| combination | | |
+----------------------------+-------------+-----------+
| | | |
+----------------------------+-------------+-----------+
| The cash outflow on | | |
| acquisition is as follows: | | |
+----------------------------+-------------+-----------+
| Net cash acquired with the | 619,635 | |
| subsidiary | | |
+----------------------------+-------------+-----------+
| Net consolidated cash | 619,635 | |
| inflow | | |
+----------------------------+-------------+-----------+
| | | |
+----------------------------+-------------+-----------+
7. DIVIDENDS PAID AND PROPOSED
No dividends are paid or proposed for the half-year ended 31 December 2008.
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Medic Vision Limited, I
state that:
In the opinion of the directors:
(a). the financial statements and notes of the consolidated entity are in
accordance with the Corporations Act 2001, including:
(i). give a true and fair view of the financial position as at 31 December
2008 and the performance for the half-year ended on that date of the
consolidated entity; and
(ii). comply with Accounting Standard AASB 134 "Interim Financial Reporting"
and the Corporations Regulations 2001; and
(b). there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
Dated at Melbourne this 2 day of March 2009
On behalf of the Board
Ratnarajah Navaratnam
Director
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF MEDIC VISION LIMITED
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Medic Vision
Limited, which comprises the consolidated balance sheet as at 31 December 2008,
and the consolidated income statement, consolidated statement of changes in
equity and consolidated cash flow statement for the half-year ended on that
date, a statement of accounting policies, other selected explanatory notes and
the directors' declaration of the consolidated entity comprising the company and
the entities it controlled at 31 December 2008 or from time to time during the
half year ended on that date.
Directors' Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation and fair
presentation of the half-year financial report in accordance with Australian
Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Act 2001. This responsibility includes establishing and
maintaining internal controls relevant to the preparation and fair presentation
of the half-year financial report that is free from material misstatement,
whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report
based on our review. We conducted our review in accordance with Auditing
Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report
Performed by the Independent Auditor of the Entity, in order to state whether,
on the basis of the procedures described, we have become aware of any matter
that makes us believe that the financial report is not in accordance with the
Corporations Act 2001 including: giving a true and fair view of the company's
financial position as at 31 December 2008 and its performance for the half-year
ended on that date; and complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001. As the auditor of
Medic Vision Limited, ASRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of
the Corporations Act 2001.
Basis for Adverse Auditor's Conclusion
The Directors have prepared the financial report on the going concern basis as
described in Note 1(b) "Going Concern" and state in the Director's declaration
that in their opinion there are reasonable grounds to believe that the company
will be able to pay its debt as and when they fall due.
Sufficient evidence to support the Directors assertions that the Company will be
able to continue as a going concern and pay its debts as and when they fall due
has not been provided.
As referred to in Note 1(b) "Going Concern" to the financial statements, for the
period ended 31 December 2008, the consolidated entity incurred a loss of
$1,724,303 and at that date had an excess of current liabilities over current
assets amounting to $126,058.
The Company is reliant upon raising additional capital to fund its current
operations and to fund the initial roll-out of its `skills training centres'.
The directors have signed a mandate with a private equity partner to raise
$1,000,000. At the date of this report no funding has been received under this
mandate. The entity has been unable to secure alternate financing.
The financial report has been prepared on a going concern basis which presumes
that the consolidated entity will be able to realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in
the financial report.
The financial report does not included any adjustments relating to the
recoverability and the classification of asset carrying amounts or the amount of
liabilities that might result should the company be unable to continue and meet
its debts as and when they fall due.
Adverse Auditor's Conclusion
For the reasons set out in the Basis for Adverse Auditor's Conclusion paragraph
above, we conclude that the financial report of Medic Vision Limited is not in
accordance with the Corporations Act 2001, and does not:
(a). give a true and fair view of the consolidated entity's financial position
as at 31 December 2008 and of its performance for the half-year ended on that
date; and
(b). comply with Accounting Standard AASB 134 Interim Financial Reporting and
the Corporations Regulations 2001.
+----------------------------------------------------+----------------------------------------------------+
| PKF | R A Dean |
+----------------------------------------------------+----------------------------------------------------+
| | Partner |
+----------------------------------------------------+----------------------------------------------------+
| 2 March | |
| Melbourne | |
| | |
+----------------------------------------------------+----------------------------------------------------+
For further information contact:
+--------------------------------------------+------------------------------------------------------+
| Ross Horley | Tel: +61 3 8508 8288 |
| Managing Director | Mob: +61 400 209 899 |
| Medic Vision | |
| | |
+--------------------------------------------+------------------------------------------------------+
| Stuart Faulkner / Victoria Milne-Taylor | Tel: +44 20 7409 3494 |
| Strand Partners Limited | |
| | |
+--------------------------------------------+------------------------------------------------------+
| Ruari McGirr | Tel: +44 20 7628 5582 |
| St Helen's Capital Plc | |
| | |
+--------------------------------------------+------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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