Medical Developments International (ASX: MVP) expects significant non-cash asset write-downs of approximately AU$31 million in its FY24 full-year financial statements, with an after-tax earnings impact of around AU$26 million. These write-downs include capitalized US market entry development costs, redundant fixed assets, and deferred tax assets. The decision to pause investment in US expansion plans led to the impairment charge, but the CEO, Brent MacGregor, emphasized the ongoing value of completed work for future endeavors. Despite uncertainties surrounding tax losses, they remain usable against future profits for the Group.
In the FY24 financial year, the Group will not recognize deferred tax assets or tax benefits related to losses. The upcoming FY24 full-year results, set to be disclosed on August 26, 2024, are expected to show a significant improvement in underlying EBIT from FY23, primarily attributed to increased average Penthrox prices and reduced costs, excluding impairment charges.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
