14th Sep 2020 14:47
Medica Group PLC - teleradiology services provider based in Hastings, East Sussex - For the first half of 2020, posts pretax profit of GBP1.3 million, down 72% year-on-year from GBP4.7 million. This is as revenue falls 23% to GBP17.0 million from GBP22.0 million, administrative expenses rise to GBP6.5 million from GBP5.6 million, and exceptional items total GBP98,000, up from GBP30,000.
Says decline in revenue is a result of the Covid-19 pandemic, with Elective surgery revenue falling 42% to GBP6.6 million due to the suspension of elective procedures by the NHS during the outbreak. Revenue from out-of-hours reporting service NightHawk falls 0.8% to GBP10.2 million.
Gross profit margin reduced to 47.1% from 47.6%, reflecting changes to the revenue mix compared to a year prior as well as some negative impacts of contract renewals and updated framework pricing.
Highlights an improvement toward the end of June, noting that Elective reporting activity initially fell to around 5% of pre-Covid-19 levels but recovers to around 10% at the end of the first half. NightHawk reporting activity fell to around 60% of pre-Covid-19 levels before recovering to around 95%.
Maintains interim dividend payout at 0.85 pence.
"We have used the time from a reduction in workload wisely, taking steps to improve our service performance and focusing on delivery of our strategic initiatives. As a result, I am confident we are emerging from this pandemic stronger as a team and well-positioned to help our clients as they deal with a large backlog of elective procedures. We are also encouraged by the increase in reporting activity over the last three months and expect to see a continued improvement in revenues in the second half of the year," says Chief Executive Stuart Quin.
As at June end, Medica Group has cash of GBP20.0 million.
Current stock price: 130.00p
Year-to-date change: down 20%
By Ife Taiwo; [email protected]
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