Mid-states Share Discussion Threads

[callumross] 07/4/2008 08:35

Mid-States and Sunlight Service Group Announce Exclusive UK Hospital
Distribution Agreement for the AD


Mid-States PLC, (LSE:MST), ("Mid-States", the "Company" or the "Group"), a
leading environmental technology group and Sunlight Service Group, a Davis Group
company and the UK's leading provider of support services to the NHS, today
announce an exclusive distribution agreement for Mid-States' ground-breaking air
disinfection device, the AD covering all UK hospitals. The agreement also
includes provision for on-going maintenance of each device.

Under the terms of the 5-year agreement, Sunlight Service Group has placed a
significant initial order for 600 AD units from Mid-States. Given that, for
optimum performance, each bay in each hospital ward should have its own AD,
there is clearly a very significant market opportunity for the device. Estimated
demand from NHS hospitals in year one exceeds 4,000 units, and increases
substantially in subsequent years.

The AD is already being successfully used in a number of UK hospitals including
Sunderland Royal Infirmary. It has been proven to clear enclosed spaces of
airborne bacteria and viruses including MRSA, C. diff and E coli by producing
hydroxyl radicals indoors, safely reproducing the natural disinfection effect
that occurs in fresh air outdoors.


Mike Heath, Managing Director of Mid-States, commented :

"This first strategic distribution agreement is another important milestone for
Mid-States. Our AD has now repeatedly demonstrated its effectiveness in the
fight against superbugs and infections that impact our everyday lives and we now
have units successfully operating in NHS hospitals, offices and nursing homes.
We have spent a great deal of time finding the very best partner to distribute
this important device to hospitals, and we are confident that in Sunlight
Service Group we have found arguably the best distribution network in the UK
hospital market."

Richard O'Brien, Managing Director of Sunlight Clinical Solutions, said :

" We are delighted with this new strategic development for our business."

[utterly pointless] 02/4/2008 07:20

Have you spoken to their IR agency? Or is this just speculation... funnily enough more or less the same thing has been said (albeit considerably less elegantly) on another Board.

[callumross] 01/4/2008 18:36

I may have been a touch harsh in my comments yesterday, and I think the company is frustrated that it couldn't get a distribution deal announced with the interims, but these things take time. Also has to be the "right" deal. I guess it was just the AIM reporting rules that required them to publish interims by 31st March that meant that they couldn't delay further until such a deal was announced. Because of the advanced nature of the negotiations referred to in the interim statement it wouldn't surprise me to see an announcement in the first half of April, and if the first distribution deal announcement comes with a large advance order for the AD, we should see confidence restored in the business model and an accompanying recovery in the share price.

[utterly pointless] 31/3/2008 13:31

On 9 November 2007: "we are in advanced negotiations with a number of potential UK distribution partners and expect to announce more details when these negotiations are complete."

On 31 March 2007: "our selection of and negotiations with our first strategic distribution partners have been well advanced."

[callumross] 31/3/2008 11:02

I can understand everyone's disappointment. I have held these shares for a number of years and when the shell reversal was announced I discussed it in detail with the company. The AD was never going to be profitable instantly. It takes time to establish a new product in the market (hence I was always cynical of the broker hype at the product launch last June where they were, if I recollect, forecasting £3m profits in the first year). I think what has gone slightly wrong with the business model was that I remember the company telling me that the established automative business which came along with the AD technology, was going to be a cash cow in it's own right which would keep the money coming in while AD became established. Therefore, cash burn would not be too severe while the AD revenues built up. Of course, the reality is that the "established" automative business has been a cash drain in it's own right, both losing money at the operating level, and resulting in one off redundancy costs. Now we are in a situation where the company must now basically have run out of cash and is relying on a bank facility to fund ongoing product development. Therefore, imminent distribution deals are imperative in the coming months, hopefully with an upfront cash payment in order to ease cashflow worries until the revenues (hopefully) come in. I just hope this is not yet another company with a great story to tell but where the money dries up before the story unfolds.

[utterly pointless] 31/3/2008 10:21

Actually I'm not out. Barclays Stockbrokers told me they had sold my shareholding and then told me they hadn't. Has anyone else had that experience with Barclays (I've now had it twice).

[utterly pointless] 31/3/2008 09:58

What's particularly 'village' is the promise of jam tomorrow - as if everyone had forgotten what they said in the finals. Where is the explanation for the failure to do the distribution deal that, six months ago, they promised was imminent? Show us the jam! Actually I don't care, because I'm out. But it is breathtakingly incompetent.

[davidblack] 31/3/2008 09:53

Very poor presentation of this mornings results.

Great product probably now destend for a cheap trade buyer to take it out at 30-40p not the £5 it could be.

[utterly pointless] 31/3/2008 09:39

The results are abysmal. Frankly, if they can't sell the product in this market then either management or the product is a dog. In six months they have burnt lots of cash and achieved precisely nothing. Either way, I am getting out.

[callumross] 31/3/2008 08:08

well, I for one am a little disappointed with the results, particularly the rate of cash burn - down to £800k at 31st December - they started with £7m! Indeed, at the current rate of cash burn that £800k must be gone by now and they will be eating into their bank facilities. That announcements of "significant progress in the near future" better not wait too long!

[utterly pointless] 26/3/2008 13:32

apparently interims will be on monday...

[utterly pointless] 25/3/2008 07:46

Interims should be before end of this month - by my calculations - but if they had already signed a distribution deal they would, I assume, have had to announce it.

Must confess, I am quite close to selling (I hold 300,000). It's not so much that the deals have not been done - that happens - but the complete absence of communication from management is utterly inexcusable.

[callumross] 19/3/2008 10:06

don't know if the long overdue distribution deals are imminent but all I know is that you can't even buy any shares online today!

[callumross] 24/1/2008 20:20

New press release on the company's site - apparently a number of NHS hosspitals are using the MD device and the article includes quotes from the medical director of Sunderland Royal hospital who seems very impressed by the efficacy of the device to date

[ronmikeh] 14/12/2007 10:00

Prices climbing, could be an announcement shortly.

[callumross] 13/12/2007 16:17

distribution agreement announcements could be imminent

[ronmikeh] 28/11/2007 10:34

Thanks callumross for update on whats going on with the development.

[callumross] 28/11/2007 10:11

Inov8 Science was present at Medica 2007, the annual trade fair for medical equipment and support services. It is the largest inter-disciplinary medical professional development forum in Germany.

The AD generated much interest from potential Customers and Distributors, many of whom had consciously sought us out. These included organisations from the Middle East, Turkey, Poland, Italy, Portugal/Spain, Australasia and Asia/Pacific, most of which are in the distribution of infection control equipment and services to the hospital environment.

[utterly pointless] 20/11/2007 16:33

Everyone's gone rather quiet. Rather like the share register. No trades to speak of - and muted reaction to the finals - which I thought were rather encouraging... any other thoughts?

[utterly pointless] 06/11/2007 19:10

Looks like someone's acquired a 3% plus stake... Good news, I guess. Anyone know what EMSO is?

[fragg] 06/11/2007 18:25

Didn't work for me, direct link here.



HTH

[callumross] 05/11/2007 22:27

video report on the bbc re mid states revolutionary product from last Friday

[ronmikeh] 28/10/2007 13:34

Lets hope the shares will react accordingly.