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Allied Healthcare Group Delivers Strong Revenue Growth For FY13

Allied Healthcare Group (ASX: AHZ) has delivered a strong performance across the group during financial year 2013, with revenue climbing 15% to $7.4 million.

The loss for the full year across the consolidated group was $2.4M, down from $10M the previous year.

During the year, the company raised $4.6 million through a placement and shareholder purchase plan.

There were strong activities and progress across the group's divisions as the company continues to grow into an integrated healthcare company, including growing revenues and positive outcomes for the research and development programs.

This is highlighted by the recent marketing approval in Europe for the company's lead regenerative tissue product CardioCel® for the repair and treatment of heart defects. The company anticipates increased revenue through its sales division of CardioCel® in the coming financial year.

Analysis

Even with the share price of AHZ quadrupling since the start of 2013, Proactive Investors forecasts that the company's stock will get another boost on the back of the strong financial performance during FY13.

Proactive Investors identified the potential of AHZ close to a year ago, and in November 2012 published: "The current share price of $0.025 appears to significantly undervalue the company given growth from CardioCel® and any breakthrough from Coridon with its vaccines."

In April 2013 we said: Proactive Investors believes Allied's current market cap. of $31 million against a share price of A$0.03 undervalues the company based on meeting milestones over the next 12 months.