Simavita Limited

Simavita Limited

August 31, 2016 19:13 ET

Simavita Reports Full Year Financial Results


- Cash and cash equivalents at June 30, 2016 of $ 6.1m

- Total revenue from the sale of SIM™ of $793,181 for the 12 months to June 2016. Importantly, Q4 sales increased 65% over the same period last year to $264,176.

- Cost reduction program initiated in May 2016 has resulted in approximately 40% reduction in cash spent in Q4 2016.

- Consolidated loss after income tax was $11.4m, an increase of 21%, from prior year.

- Additional equity of $9.1m before associated costs, raised during the 2016 financial year.

- Mr Michael Spooner and Dr Gary W. Pace appointed 27 April 2016 as non-executive Chairman and non-executive Director respectively.

- Group's strategy to materially reduce overhead costs whilst focusing on building sales and product offerings.

SYDNEY, AUSTRALIA--(Marketwired - Aug. 31, 2016) - Simavita Limited ("Simavita" or the "Group") (ASX:SVA) today released its audited financial statements for the full year ended June 30, 2016 and the Management Discussion and Analysis.

Key points from the financing results include:

  • Revenues generated by the Group from the sale of its Smart Incontinence Management (SIM™) solution during the year ended June 30, 2016 were $793,181, an increase of $14,607 or 2%, as compared to the previous year. Revenue for the previous year included a significant one off order from the company's US distributor, Medline, for $207,639.
  • A net comprehensive loss after tax for the year ended June 30, 2016 of $11.4 million, representing an increase of $1.99 million, or 21%, over the loss for the previous year. This loss included an increase of $1.9m in sales, marketing and distribution costs mostly resulting from the expansion of the Group's US and European sales and marketing teams.
  • Total cash reserves of the Simavita Group as at June 30, 2016 were approximately $6.1 million.
  • During the year the Group broadened its target markets to include rehabilitation facilities, home care and disability care providers in addition to long term care facilities.
  • Facilities under contract in Australia and North America continue to grow with 60 residential aged care facilities in Australia and 88 skilled nursing and assisted living facilities in North America contracted to use the SIM™ solution.
  • Expansion in Europe is continuing with a 2 year customer contract signed in Denmark and a distributor appointed for the Netherlands and Sweden.
  • A focussed cost reduction program has delivered approximately a 40% reduction in costs during the fourth quarter of 2016.

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About Simavita

Simavita is a company established to deliver innovative continence solutions for our customers, developed in ethical collaboration with healthcare professionals.

Simavita's patented and leading assessment tool is designed to dramatically improve the quality of life for those suffering from incontinence. For operators, hospitals and rehabilitation centres, this enables care providers and other institutions to significantly lower their material costs and reduce the time required to manage incontinence in patients.

Operating in Australia, Europe and North America, conducting assessments is mandatory in these countries and the incontinence assessment creates an influential element of care of each individual.

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

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