Nanosonics Limited (ASX:NAN), a leading infection prevention company that specialises in ultrasound probe disinfection, has announced an on-market share buyback of up to $20 million during this fiscal year. The buyback forms part of the company’s broader capital management strategy, reflecting confidence in its financial position and future growth prospects. Nanosonics develops and commercialises innovative infection control solutions, including the trophon device, a high-level disinfection system for ultrasound probes.
According to chief executive Michael Kavanagh, Nanosonics’ business model is underpinned by capital revenue from trophon device sales and increasing recurring revenue from consumables and services. Kavanagh highlighted the company’s strategic investments in its next growth phase, including the development and launch of trophon3 and trophon2 Plus, as well as the development and FDA De Novo approval of the CORIS system. These initiatives demonstrate Nanosonics’ commitment to innovation and expanding its product portfolio.
The company maintains it has no debt and a history of predictable cash flows. The board believes Nanosonics possesses ample cash reserves to fund its strategic initiatives. These include the continued expansion of the trophon business, the controlled market release and broader commercialisation of CORIS, and the pursuit of selective potential bolt-on acquisitions to further strengthen its market position and technological capabilities.
Nanosonics reiterated its commitment to a balanced capital management approach. This approach involves maintaining a robust balance sheet while simultaneously investing in growth opportunities and returning capital to shareholders in a manner that aligns with the company’s future potential and strategic objectives. The share buyback program underscores Nanosonics’ dedication to creating long-term value for its shareholders.
