Ellex Medical Lasers Ltd (ASX:ELX) has been awarded a grant of $2.5 million from the Australian federal government’s “Next Generation Manufacturing Investment Programme”.
The grant will facilitate the investment in advanced equipment and systems needed to expand Ellex’s manufacturing capacity.
Ellex manufactures lasers and other medical devices for the diagnosis and treatment of eye disease.
The award of this grant corresponds with Ellex’s manufacturing site relocation from the Adelaide CBD to Mawson Lakes, 15 kilometres north, and corresponding production capacity expansion.
The grant is payable by the government to Ellex over a period of up to 3 years.
Ellex’s revenue for the year ended 30 June 2016 is expected to be about $72.9 million, a $10.1 million (16%) increase compared to the prior corresponding period.
Significantly, estimated profit before tax for FY2016 is $4.2 million, a 61% increase from $2.6 million in FY2015.
Ellex’s share price has increased by more than 45% since the start of 2016, last trading at $1.09.
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