Simavita Limited
ASX : SVA
TSX VENTURE : SV

Simavita Limited

August 20, 2015 13:41 ET

Simavita Limited: Release of 2015 Financial Results

Highlights:

- Sales revenue up by 122% to $0.8 million, as compared to FY 2014

- Net loss after tax down by more than $1.0 million, or 10%, on prior year

- Strong balance sheet with cash reserves in excess of $9.0 million and no interest-bearing debt

- Market fundamentals continue to strengthen around Simavita's Smart Incontinence Management (SIM™) digital healthcare platform

SYDNEY, AUSTRALIA--(Marketwired - Aug. 20, 2015) - Simavita Limited (ASX:SVA)(TSX VENTURE:SV) ("Simavita" or the "Company"), a global leader in the digital healthcare sector, is pleased to release its audited financial results for the year ended June 30, 2015.

Key points from the financial results include:

  • The Company reported a net loss after tax for the year ended June 30, 2015 of $9.5 million representing a decrease of $1.0 million, or 10%, over the loss for the previous year. This decrease in the current year loss is principally attributable to:

    • An increase in revenues from the sale of Simavita's Smart Incontinence Management (SIM™) platform up by 122% to $0.8 million in comparison with the result for FY 2014;

    • The absence of $2.0 million in expenses associated with the acquisition of Simavita Holdings Limited in FY 2014;

    • The absence of finance costs ($0.3 million) that were incurred during FY 2014, prior to the repayment of the related interest-bearing liabilities during that year; and

    • A reduction in the share-based payments expense ($0.6 million) incurred due to a reduction in the number of unlisted stock options that were granted during FY 2015.

  • These reductions were offset by increases in sales, marketing and distribution expenses ($2.0 million), research and development expenses ($0.4 million) and an increase in the income tax benefit ($0.3 million) relating to the Company's estimated claim under the Australian Government's R&D Tax Incentive Scheme.

"The 2015 financial year has been an important one for Simavita during which we have laid the foundations for the Company's future growth. A number of headline activities were conducted during the year, including the successful conclusion of a well-subscribed capital raise to institutional and sophisticated investors, signing several new distribution agreements in Australia, North America and Europe, and establishing teams in overseas markets to support both our distribution and direct sales strategies", commented Simavita CEO, Philippa Lewis.

"Market acceptance of SIM™ is improving through the work conducted in FY 2015, and we expect that with the completion of key activities such as the interoperability project with MatrixCare; successfully closing large SIM™ pilot studies, and the establishment of a direct sales force in North America, momentum building around the product will deliver further growth during FY 2016", Mrs. Lewis added.

For further information, see our website (www.simavita.com).

About Simavita

Simavita is a digital healthcare company that has developed an innovative software platform. The first application for the platform is a world first solution for the management of urinary incontinence, with a focus on the elderly. This platform technology is an instrumented incontinence assessment application that provides evidence-based incontinence management care plans to the residential aged care market.

About SIM™

SIM™ is a wireless sensor technology that delivers evidence-based instrument incontinence data on individuals. SIM™ provides user friendly tools and software to assess the incontinence condition and to help plan better outcomes. SIM™ is used to detect, record and report incontinence events during a compulsory or recommended assessment period in residential aged care facilities to develop an evidence-based incontinence care plan.

Conducting assessments is mandatory in many countries and the incontinence assessment creates an influential element of care of each individual. For more information on Simavita or SIM™, please visit www.simavita.com.

The TSX Venture Exchange ("TSX-V") has in no way passed upon the merits of the transactions set out herein and has neither approved nor disapproved the contents of this press release. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this Release.

Except for historical information, this announcement may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, the anticipated date of on the ASX, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

Forward-Looking Information

This document may contain "forward-looking information" within the meaning of Canadian securities laws ("forward-looking information"). This forward-looking information is given as of the date of this document.

Forward-looking information relates to future events or future performance and reflects Simavita management's expectations or beliefs regarding future events. Assumptions upon which such forward-looking information is based include that Simavita will be able to successfully execute on its business plans. Many of these assumptions are based on factors and events that are not within the control of Simavita and there is no assurance they will prove to be correct.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "potential", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or information that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Simavita to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to actual results of current business activities; changes in business plans and strategy as plans continue to be refined; other risks of the medical devices and technology industry; delays in obtaining governmental approvals or financing or in the completion of development activities; as well as those factors detailed from time to time in Simavita's interim and annual financial statements and management's discussion and analysis of those statements. Although Simavita has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Simavita provides no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information

  • Simavita Limited
    Philippa Lewis
    Chief Executive Officer
    +61 2 8405 6381

    Simavita Limited
    Thomas Howitt
    Chief Financial Officer
    + 61 418 351 127

    Media and Investor Relations
    Jane Lowe
    +61 411 117 774
    jane.lowe@irdepartment.com.au