Essentially the presentation made by Cellestis at Shaw Stockbrokers was to give a background briefing on the half yearly report for the financial year 2010 and many thanks to the senior executives at Shaw for hosting the presentation and to Cellestis executives Dr Tony Radford and Mr Brian Manuel for making the presentation.
The report, which can be found here, dealt primarily with the finances of the company and can be better explained by the following pictures;
Here their largest market, USA, continues to present solid and consistent growth when sales are expressed in $US.
When looking at sector revenues expressed at a fixed rate of currency Japan has obviously underperformed. This situation has been ongoing and in part can be explained by the rate of Government reimbursement (Hoken) not providing sufficient incentive to users. This has recently been increased, by ~28%, which will have an impact on sales.
Clearly the large swings in foreign exchange over the period have also made an impact on income. What is important to remember is that to a large extent costs are also made in that foreign currency thereby providing a natural hedge. The dilemma then is to determine the best time to repatriate income to Australia.
There was also discussion on current and future directions and developments, most of which were of a subtle and technical nature requiring some background knowledge.
In discussion outside the presentation it became apparent that the business may have developed beyond the point where it can easily understood by some investors. For those focussed on bottom line financials and profit/earning ratios the recent report may not be sufficient reason to maintain their investment and perhaps this factor explains the recent share price sell down that has disappointed some. For others the development in intellectual property is compelling.
Personally I find these southern sojourns invaluable. Each presentation is unique in that it covers new territory and over time has helped to build up a more comprehensive profile.
