Forum Archive Index - January 2002
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Re: [sharechat] IBA HEALTH
Hi again Keith,
I think that you and me are the only 2 on sharechat that are interested.
I think that you may underestimate the importance of that latest
announcement. IBA has been under a bit of a cloud in my books since last
year when it announced that it will need to raise new capital, the latest
announcement seems to abolish this need, including alleviating IBA from the
cash-flow problems associated with the NHS. Here are some exerts
'Under the terms of the alliance, IBA w ill in the future generate revenue
and cash from license fees, maintenance and support as and when software
and services are delivered. This is a departure from the current financial
model under which IBA receives deferred payments over many years because of
the UK style private financing initiative (PFI) contracts with the National
Health Service (NHS).'
About the new strategic alliance with the InHealth Group
'...IHM will pay a further $180,000 whenever it converts these options into
shares. This represents a total payment of $5.4 million (equivalent to 30c
for each IBA share). '
Interesting that that IBA touched the 30c mark
"When we complete the transaction IBA will have a very strong balance sheet
with over $30 million in free cash reserves - and our accounts or this
financial year will also show a greatly improved result. Moving forward,
the changes to our mode of operation in the UK will have the twin benefits
of both substantially reducing our operating costs whilst at the same time
removing from us the commitments to finance long term PFI contracts in the
UK. IBA will continue to invest in product development to meet the growing
demand for our solutions which we anticipate will be enhanced as a result
of our alliance with InHealth Group. This move will also free us up and
allow us to look at other international markets for our products."
$30 m in cash reserves - this will be approx. 15 cps in cash. Then there
are the reduced operating costs and an expression of looking to expand
Still, I've noted several Aussie Tech shares peaking like IBA recently,
they then tend to slide back a bit (sometimes by as much as 25-30%).
Hopefully this won't happen with IBA.
By the way I sold my IBA last year when they announced the financing
problem, I still hold a small parcel of Tag shares though.
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