PHG 0.00% 46.5¢ pulse health limited

phg in profit inaugurally

  1. 115 Posts.
    The half year report, while it shows a loss due to the one-off cost of expansion, it also reveals that PHG is currently operating profitably. That mean profitably for the first time in its history. That fact can be discerned from the directors' decision to book the Deferred Income Tax Asset of $155,872 and the absense of any qualification on that point in the audit report.

    That figure of $155,872 is the difference between EBIT $638,132 (loss) and Net Loss After Tax $482,260 and represents the future tax benefit of carried forward losses. Deferred Income Tax Assets can only be booked if there is virtual certainty that there will be future profits earned against which to deduct carried forward losses for tax purposes. That requires that there are profits currently being earned. On that basis the full year 2007/08 report should show a healthy profit.

    The CEO Peter Mangles was appointed in August 2006. Since then the net assets of the company have grown from $0.2 million (30/6/06) to $1.2 million (30/6/07) and $10.9 million (31/12/07). Net assets per share have gone from $0.005 (30/6/07) to $0.082 (31/12/07). Revenues in that time went from $10,202 for the half year to 31/12/06 to $3,285,892 for the corresponding half year to 31/12/07 and the company is now trading profitably. I am looking forward to this stock being one of the best performers in the market in 2008.
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