M7T released their 2nd quarter 2020 update

Key highlights were;

The second quarter of positive free cash flow putting them on target to be cash flow positive over the 12 months ending 28 February 2020.

2 customer signings and 7 contract expansion.

The company after $23.3 million in cash reserves and no debt.

Annual recurring revenue October 2019 was $8.5 million with further upside as a result of 38% of current contracts being in installation stage rather than live contract.

Consensus data has the company forecast to increase revenues in 2020 from $9.3 million to $14 million and a further increased to $18.1 million in 2021.

Conclusion

Company has a large addressable global market that is growing strongly. It has significant competitive advantages and its customers represent large respected health organisations.

M7 provides access to the Med Tech Thematic.

With cash at bank and no debt and being cash flow positive with a large addressable global market appears an attractive proposition.

Continuing contract wins appear the main ongoing catalyst.

Institutions hold approximately 28% of the company