There's an article in the Herald Sun this morning, it doesn't appear to be in the online version but here is the complete article cut, pasted and attached, literally.

Martin

Thanks Martin,

Not sure what to make of that.Latest Half sounds odd.Could cause a fair number of guessing comp entries to be changed.

c.c.c

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Well if that article is correct its a very poor result in my opinion.Little wonder CST has been sold down.Hard to believe that Tony would allow such an untimely press release.

Guess we will see.


c.c.c

Hi Charge,

The way the article is worded does make it appear that the newspaper had been given information prior to the market being informed but they weren't. Those figures of 26% revenue growth and 28% profit before tax are from the Dec half year report so lets hope no one sold shares because of awkward wording by the author.

What the actual results will be is difficult to estimate, there are reasons to believe that profit could be $10m to $12m (up say 25% to 50%), reasons such as restocking in Japan and good growth elsewhere. However, CDC recommendations were only published at the end of the financial year and so would have had little impact on sales and there is the possibility that potential customers could have been holding off purchasing QFT until CDC publication,and if FX had an adverse impact then profit for the year could be as little as $7m. I believe CST will also be paying more tax but on the plus side this could translate to a higher dividend increase than we have had before as the company appears to want to pay only FF dividends and paying more tax allows a greater FF dividend increase.

My guess is profit will be $8m to $10m but the most important point for me is what the company expects over the coming 6 to 12 months, I doubt we'll get a forecast but we may get news of how sales worldwide are progressing. The results should be out early this coming week followed by at least three presentations so there will be much to ponder.

I liked surfer dude 'rad' Radfords comment about paying shareholders to buy the company, it's yet another reason why I am happy to hold long term.

Martin

HIGHLIGHTS
Revenue: Up by 17% to $41.110 million
Profit from operations: Up by 26% to $10.223 million
Cash position: Up by 15% to $22.576 million
Earnings per share: 8.6₵ per share
Dividend payable: 3.5₵ per share

Hi Martin,
Iam happy with that result, the markets not that excited by the looks though.Now for the next 6 months result which hopefully might finally get the share price moving.

cheers comrades charge!

Hi charge,

I'm happy with it too.

There was good growth in the US +49% and overall (US, EU and Japan) a 35% increase when measured in local currency (I note that the report says it's a 38% increase, I presume this is a typo). For the current year (2011) even if the dollar stays strong we will see the growth reflected in AUS$ dollar terms as relative to 2010 the exchange rate will be roughly the same (assuming it stays around 90cents) and of course if the A$ falls against other currencies then we will see FX gains added to revenue growth.

...and a 3.5 cent dividend.

Martin

Regarding my last post...

Average sales in local currencies did increase 38% not 35% as I stated "38% is correct taking the segment weighting into account"

Martin

Cellestis profits up, tips more growth August 23, 2010 - 6:29PM
.AAP

Tuberculosis (TB) testing products developer Cellestis Ltd has posted a small rise in full year net profit and says it expects strong growth in the current financial year.

The company's net profit for the 12 months to June 30 was $8.25 million, up 0.3 per cent, while revenue totalled $41.1 million, up 17 per cent.

Cellestis, which develops and markets the TB testing product QuantiFERON-TB (QFT), said underlying growth was very strong with revenues increasing across all of its major markets, which are the US, Europe, Australia and Japan.

"We have increased our marketing and sales activities this year, which has had a direct impact on revenue growth and shows that our business model ... continues to be successful," chief executive Tony Radford said.

Its business model is to supply product directly in the major markets of Europe and the US, and through local distribution partners in other markets.

"The strength of the Australian dollar has impacted the actual revenue achieved as almost all of the group's revenue is generated in US dollars, euro and Japanese yen," the company said.

"However, excluding the effect of a one-off foreign exchange gain of $1.411 million in 2009, our profit from operations before tax increased by 26 per cent and is an indication of the underlying strength of the company.

"Furthermore, we expect continued strong growth in the year ahead."

Mr Radford said TB claimed one life every 17 seconds worldwide.

"Increasingly authorities across the world recognise than QFT is the most accurate and practical method for testing TB infection," he said.

Cellestis declared a final dividend of 3.5 cents per security, fully franked, bringing the full year dividend to five cents per security, fully franked.

Shares in the company were down five cents, or 1.83 per cent, at $2.68.







http://news.smh.com.au/breaking-news-bu ... 13ic8.html

"total company growth expressed as local currency sales increased 34% on average, not 38% as previously reported."

Martin,
Good CST result but I am less impressed about the 3.5c divi.
My guess is 3.5c divi will disappoint too many long-termers who are already weary of the delay in being rewarded for years of supporting CST, and weary of the lost opportunity cost.
I tried to guess in advance what divi CST would provide to cement continued support of it's long term holder base if the result was OK.
I did that because there is a lack of broad based investor support for CST so to maintain sp strength it is important to maintain the long termers support and I felt sure CST mgmnt understand this.
I guessed if the result was OK (and it certainly is) and considering they already have a strong war chest, CST would provide a 2.5~3c divi (growth v the previous final divi but without creating painful hurdles to meet at future divi ocassions) but would add to that a 'special' divi to bring the total to something like 5c. I felt about 5c was the minimum divi to send a strong signal from CST to the supporter base. I doubt many will think 3.5c sends that message.
Why am I concerned about that?.
Because if long-termers exit through weariness there is no broad CST investor support to offset them. If that happens the capacity for rapid SP decline exists and without broad based support recovery could be painfully slow.
I hope I am wrong but I fear the sp is set to struggle.

I continue to hold but a little more anxiously than in the past. The pink cadillac with leopard skin seats seems to be getting further away, not closer!.
cheers
Ian