Sharechat Logo

TruScreen says $166m opportunity awaits

Tuesday 27th August 2019

Text too small?

TruScreen says it has a $166 million sales opportunity and China will continue to drive sales at the cervical cancer test maker. 

Whether that growth will need more funding, following a $1.1 million capital raising in July, is unclear. It may have been discussed with shareholders today but media were turned away from the annual meeting in Auckland. 

TruScreen’s presentation notes describe this year's capital raising as a success despite it not reaching its $2 million goal.  

The firm's accounts were tagged earlier this year, with auditors noting uncertainty around the company's ability to continue as a going concern if things don’t go to plan.

As at March 31, the company had about $1.7 million of cash, having spent $2.7 million on operations that year. All things being equal, the funds raised would be enough to meet Truscreen's operating needs for the current financial year. 

Shareholders injected $3.1 million of new equity into the company in the March year and $1.4 million the year before that. 

Comment was sought from chief executive Martin Dillon.

In a July notice to the NZX, he said the latest share issue would provide working capital to “meet growing demand from countries where we have established distributorships. 

“The funds also enable TruScreen to develop new markets for its product, with a focus on partnering with global non-government organisations.”

Sales were up by 132 percent in the March year from about $800,000 to $1.86 million. Its net loss shrank to $3.3 million from $4.2 million. 

In presentation slides for today's meeting, the company identifies its addressable market as being worth $166 million. That's if it manages to achieve 8 percent market share in China, 6 percent share in Mexico and Russia, and smaller figures in Africa, India, the Middle East and Latin America. 

TruScreen obtained product registrations in Saudi Arabia and Israel this year. 

China is the world’s biggest cervical cancer market, with a screening age population of 400 million, and provides 52 percent of TruScreen's sales. 

The presentation slides indicate it could improve gross profit per device by bringing high-tech processes in-house. 

TruScreen also said it would list on the Australian stock exchange, invest in skilful people and investigate more cost-reduction strategies. 

The firm's shares recently traded at 11 cents, having fallen 48 this year. The company will report first-half results in September.

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Booster tests waters with NZX listing of private property trust
Liquidation can be sought on small debts, appeal court finds
House price inflation rekindles but low sales volumes suggest caution
Liquidators estimate $16m shortfall from Stanley-Tallwood collapse
Manufacturing contraction extends into August
House price inflation rekindles but low sales volumes suggest caution
13th September 2019 Morning Report
Tamarind halts Tui drilling; OMV assesses options
NZ weaker as ECB package, inflation data lifts greenback
MARKET CLOSE: Z Energy, Synlait crash on earnings downgrades

IRG See IRG research reports