ImpediMed (ASX:IPD) expects expenses to reduce in FY25 with cost-control initiatives

Highlights

• In Q1 FY25, total contract value for SOZO Core Business increased 40% QoQ to AUD 4.8 million.
• Fiona Bones acquired 920,000 IPD shares at AUD 0.053 and Christine Emmanuel-Donnelly acquired 295,000 shares at AUD 0.05395.
• In FY25, cash expenditure expected to decrease by 10% with cost-control initiatives.

ImpediMed Limited (ASX:IPD) is an ASX-listed medical software technology firm which utilises bioimpedance spectroscopy (BIS) for non-invasive measurement and monitoring of fluid status and tissue composition. The company has operations in Europe and the US. The company sells its CE-marked and FDA-cleared devices, including SOZO for lymphedema globally.

In the latest quarter ended 30 September 2024, the company reported 40% QoQ increase in the total contract value (TCV) for its SOZO Core Business, reaching AUD 4.8 million. The period saw a slight drop in unaudited revenue to AUD 2.7 million and net operating cash outflows stood at AUD 4.8 million.

During the quarter, the company appointed Dr. Parmjot Bains as CEO and MD and Mr. McGregor Grant as executive director and chief financial and operating officer on an ongoing basis.

Directors’ interest increasing in IPD

Through ASX updates the company informed that Fiona Bones had acquired 920,000 shares of IPD for AUD 0.053 per share and Christine Emmanuel-Donnelly had acquired 295,000 shares for AUD 0.05395 per share.

The top 10 shareholders of IPD have nearly 22.80% shareholding in the firm with Paradice Investment Management Pty. Ltd. and Australian Ethical Investment Ltd. having the highest stake in the firm with a shareholding of ~8.61% and ~5.70%, respectively.

Key metrics for FY24

In FY24, annual recurring revenue increased by 18% YoY to AUD 11 million and SOZO core business revenue jumped 14% YoY to AUD 9.7 million. Meanwhile, group revenue fell by 9% YoY because of cessation of the AstraZeneca clinical trial.

During FY24, operating loss before tax lowered to AUD 19.8 million from AUD 20.5 million in FY23.

Outlook

In FY25, the company expects cash expenditure to be 10% lower than FY24 with focus on cost controls. Furthermore, the opportunity pipeline for SOZO units is expected to continue to expand, indicating increased market interest and demand.

The company anticipates increased participation in conferences and earned media activity to boost awareness, support clinical adoption of SOZO units and generate leads. 

Share Performance of IPD

IPD shares closed 1.92% lower at AUD 0.051 per share on 27 November 2024. Over the past one year, IPD’s share price has recorded a drop of 60.77%, and in the last three months, the stock saw a decline of 5.56%.

52-week high of IPD is AUD 0.16, recorded on 10 January 2024 and 52-week low is AUD 0.042, recorded on 11 September 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 27 November 2024. The reference data in this report has been partly sourced from EODHD/Others.

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