Q: I would be interested in your critical opinion of the latest financials release on TOI?In particular any shortcomings in the business model that concern you?
5i Research Answer:
Sales grew by 30% (8% was organic growth), and net income increased to €21.1M from €20.4M in the prior year. Cash from operations declined by 1% although free cash flows available to shareholders grew from €61.4M in the prior year to €101.1M. The company expanded its balance sheet, used its free cash flows for acquisitions, the repayment of debt, and added €60.5M to its cash position. As usual, there is very little commentary and no conference call. We are comfortable with these results, and we feel the market should be as well.