For the period to 30 June 2022, the Medica Group Plcboard has decided to declare an interim dividend of 0.93 pence per share which will be paid on 04 November 2022 to shareholders on the register as at 07 October 2022. This represents an increase of 4.5% over the prior year interim dividend of 0.89 pence per share.
The Board has considered the performance of the business and the cash requirements to support the growth strategy and will continue to review their dividend policy in line with their intention that it remains progressive.
Other financial highlights include:
Total revenue of £36.0m compared to £26.4m in H1 2020, representing growth of 36% including the positive impact of Medica Ireland and RadMD.
o UK NightHawk and acute revenue increased by 14% from £14.3m to £16.2m compared to H1 2021 as a result of a combination of underlying market growth, successful contract renewals with existing clients and new contract wins.
o UK Elective revenue increased 61% YoY from £6.2m to £9.9m, reflecting strong demand for services in response to the backlog of patients requiring scanning.
o Ireland revenue increased 24% from £4.5m to £5.6m due to a combination of an increase in the number of scan and reporting contracts in ultrasound and plain film, as well as underlying organic growth in existing contracts coupled with a record increase in the number of new out-of-hours teleradiology hospital clients.
o US/clinical trials (RadMD) contributed revenue of £4.3m for the full six-month period, an increase of 16% compared to H2 2021 as strong growth in the contracted orderbook converted to revenue.
Group gross profit margin reduced from 51.1% to 48.6% but remained above pre-pandemic levels (H1 2020: 47.1%). This reflected the expected reduction in gross margin in the UK to 48.1% as competition in the market impacted repricing and new contracts, but also the impact of the mix from Ireland and the US.
Underlying operating profit increased by £1.9m to £6.2m (H1 2021: £4.3m).
Underlying basic EPS also increased by 40.4% from 2.82 pence to 3.96 pence per share. Basic EPS increased from 1.47 pence to 2.86 pence per share.
The business remained ungeared at the period end with net cash of £0.9m (2021 net debt of £0.04m) after taking account of strong operating cashflow, continued good working capital management and the payment of deferred consideration for RadMD and Medica Ireland.