Is the next 6 months going to see this company transform into a major player. I think so.

RNS Number:2840Z
International Medical Devices PLC
06 March 2006


. International Medical Devices gears up for NHS debut


International Medical Devices (IMD or "the Company") is delighted to announce
that initial production runs of its ClipOnTM "safe" needle device have begun for
delivery into the NHS and also South Africa.

Production is taking place at the Eastland Medical Systems plant in Portland,
Australia, following IMD's acquisition of the patents over a range of safe
devices from Eastland Technology Australia (ETA).

The NHS Purchasing and Supply Agency currently buys 136 million needles per
year, of which 50 per cent are 21 gauge needles. The total UK market is
estimated at approximately 200 million per year. IMD will initially target this
21 gauge market, i.e. 70 million needles. IMD, with its associate company EMS,
also intends to address the growing need for safe needles in sub-Saharan Africa
where HIV is causing such devastation. To this end it is working with the Nelson
Mandela Foundation. The World Health Organisation estimates that at least five
per cent of HIV has been contracted through the use of unsterile needles. IMD's
safe needles can be used once only and once retracted are fully secure.

Trials begin in five NHS Trust hospitals of IMD's ClipOnTM safe needle device
later this month and the needle buyer for the NHS Purchasing and Supply Agency
(PASA) has agreed to support the fast-track launch of the Company's products
into the Service for launch in April.

The Company's assessment of the UK, European, South African and Australian
markets indicates initial potential demand for the ClipOnTM safe retractable
needle is in the order of 300 million units annually. Volumes in excess of 100
million units are anticipated to substantially reduce production costs and open
up further markets.

Last month IMD reported that it has enjoyed an outstanding six months following
the acquisition of the medical distributor Meddis Ltd in September 2005, with
Meddis sales for last November up by 29 per cent over the same month in 2004 and
January sales up 46 per cent on 2005.

Chris Thomas, Chief Executive of IMD said: "We are now entering a period of
great activity and growth exactly in line with our stated strategy. We believe
we can make a very real and valuable contribution to the safety of healthcare
staff in the NHS with the introduction of our cost effective, safe needles. The
overall savings to the Service by eliminating days lost through needlestick
injuries - up to 100,000 each year - should be in the region of #10 million
annually".

My head is fine thanks Coop, we have a very high standard of beer here - never have a hangover! ;-) I think you are right, South Africa is mentioned a few times here and there, I would imagine also that EMS would encourage INT to distribute wherever they can. 10p a needle - that's a lot of millions of 10ps!
kim

Overhang still in place, can still buy under midprice even after 3million buys today....

Another 400,000 odd in buys again and you can still buy under mid but at least the price ticked up on. Volume still looking good as well

Just incase anybody wanted to check their website out it is at

http://imd-plc.com

and if you go to their profile you can download their prospectus.

Nice to see Eastland expanding into Africa and dual listing. Things must be going :))

IMD next for the news?

http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=EMS

Well I am still holding onto these last bit of news is that they brought all available clip on needles from Aus (5 mil in total)

I wonder why

Time to get into these
MMs selling them under mid, but then they dont know whats coming ;)

Ok pommy what do you know??

Well this may help

Well things could be hotting up soon

http://www.rmcapital.com.au/pdfs/EMS_RMR_7_12_2006.pdf

Mentions about acquisitions in Holland, France, Spain and the US. There is alot of other positives in the report with regards to ClipOn sales.

http://www.rmcapital.com.au/pdfs/EMS_RMR_7_12_2006.pdf

Well looks as if this could be the year for INT


Well I have been doing a little more thinking about todays RNS and if you stick it with the release from Eastlands then the you might see why they have sold them

In the Eastland release they state that the reason for selling is to 'Quickly implement the planned South African manufacturing operation bringing forward the mass production of the ClipOn needle'

Now as far as I am aware INT are the only company near to launching this product especially now that they have the CE mark for it. In the RNS informing us of the CE marking they said this

To receive the CE marking on our ClipOn safe needle is a
significant step forward. ClipOn can become one of the principal products in
driving the Company's organic growth to help reach our goal of becoming one of
the major medical distributors in the UK and Europe. We have already received
orders from the NHS for ClipOn.

Orders already received!!! They have already brought the entire production for the year from Eastlands Australian manufacturer of 5 million needles but that will not last long, with around 100million needles a year required just for the UK

I think Eastlands have had to sell to raise the funds to meet the new contracts from the NHS.

Good luck to all holders. As del boy says, this time next year....well I live in hope :-)

International Medical Devices+ (INT.L) Interim results NR*, 1.2p


Yr-end Sales Mkt Cap/ Adj PBT RptdPBT EPS PER FCF Yield EV/EBITDA
Aug (m) Sales (x) (m) (m) (p) (x) (%) (x)

2007A 11.2 0.3 0.5 0.5 0.17 6.9 -14.1% 7.1
2008F 12.5 0.3 0.6 (0.7) 0.23 5.3 12.7% 6.1
2009F 14.5 0.3 1.5 1.5 0.33 3.6 27.1% 3.0
2010F 15.8 0.2 2.0 1.5 0.43 2.8 38.1% 1.8

Source: IMD, Shore Capital Stockbrokers

IMD has reported a solid set of interim results, above our expectations at the revenue, operating profit, adjusted PBT and EPS levels. The period saw further restructuring costs and an aborted acquisition which revealed an exceptional cost of c1.3m the outlook remains robust in the defensive healthcare sector (we expect growth of between 7% and 11% in the medical equipment and onsumables markets). We expect the current half through to August 2008 to show a clean period of profitable trading and this pulls through an upgrade to our expectations (for the current year and thereafter). The long-term outlook remains positive for organic growth, building upon the acquisitions made to date. IMDs strategy remains to build operations by buying businesses and to grow these by consolidation of these into the group sales and distribution infrastructure.

The company reported H1 2007 revenues of c5.1m; we had pencilled in IMD generating sales of c5.8m for H1 2008. The out-turn of c6.2m is thus pleasing the company had the full benefit of recent acquisitions, though restructuring was still being completed with businesses being relocated and
management systems implemented. Holding our revenue forecast for the full year to August at current levels indicates a comfortable revenue target (in light of managements robust comments on the outlook) for the current half of 6.3m. At the adjusted PBT level, we were expecting a H1 figure of around 160k with operations still building from consolidation of the acquisitions into the group. Tight operational cost control and synergies beginning to emerge revealed adjusted PBT for the period of c300k this is an encouraging number to us given the prospects for positive operational gearing from emerging economies of scale. Our EPS expectation was 0.04p compared to the result of 0.09p.

An exceptional charge pushed IMD into a loss position for the period at the reported level. This consisted of a mix of restructuring costs relating to management efficiencies, relocation costs and an aborted acquisition cost. IMD is now operating from just two sites: in Selby, Yorkshire and in Gloucester. We believe that the Selby operations in particular offer the prospect for additional scale economies. The opportunity to build the business with further acquisitions remains.

IMD is now operating through three divisions in Acute Care (focused upon hospital equipment and consumables), Devices (needles and specialist treatment equipment) and in Aged Care (covering specialist products for the wider market). Aged Care has seen some frustrating operational issues that
have held back sales and operating margins in particular concerned with the product range. These appear well on the way to being resolved with additional product supply agreements being targeted. Sales of safety needles (Surety) have now commenced with the first orders being received from the NHS. Management is now looking at the prospects for international sales of safety needles, in particular applying for FDA approval in the USA with a third party local distributor based in Canada.

Holding our revenue forecast steady for the full year (holding out for the prospect of a further upgrade), our profit expectation increases with the restructuring benefits coming through; we therefore lower our cost base expectations. The benefits of the restructuring costs incurred in H1 appear be self-funding over the next 12 months. Our FY2008 adjusted PBT forecast rises from 0.5m to 0.6m and for FY2009 from 0.7m to 1.5m with an additional c1.0m of revenue now expected for the next financial year. Our FY2008 EPS expectation rises from 0.20p to 0.23p, but for FY2009F this rises from 0.22p to 0.33p.

IMD has seen considerable management change in the period with a new executive team taking over group operations under the experienced Bill McGrath. We believe that this change heralds the emergence of revenue and profit momentum for the company. IMDs operations are growing and profitable and we now expect the company to begin to generate free cash flows. The valuation is inexpensive on a FY2009F PER of c3.6x (EV/EBITDA 3.0x) and a free cash flow yield of over 27%. We also note that the company trades well below its prospective NAV per share of c6.1p.

Well bargain prices. Presently 1.08 to buy