11th May 2021 10:55
(Alliance News) - Medica Group PLC on Tuesday said it will pay a final dividend for 2020 despite a sharp profit decline amid the coronavirus pandemic.
The Hastings, England-based teleradiology services provider said revenue in 2020 fell by 21% to GBP36.8 million. Pretax profit dropped to GBP2.1 million from GBP9.6 million year-on-year.
By division, Elective revenue of GBP12 million, down by 49% from the year before, representing a material impact on volumes as a result of re-prioritisation away from elective procedures in the NHS.
NightHawk revenue was GBP23.0 million, representing an increase of 4% year-on-year amid a strong performance and a quick recovery from the impact of Covid-19. GDI contributed GBP1.3 million in revenue following its acquisition in November 2020.
"During the start of 2021, we have experienced a strong NightHawk performance and an increasing improvement in Elective activity, which we expect to continue as the government's accelerated immunisation programme reduces pressure on the NHS/HSE and allows a resumption of elective backlog procedures," said Chief Executive Stuart Quin.
Medica declared an interim dividend for 2020 of 0.85 pence per share and is now proposing a final dividend for 2020 of 1.70p per share which will, if approved, result in total dividends for 2020 of 2.55p per share, up 13% on 2018, the last year when a final dividend was declared.
In a separate statement, the company said Steve Whittern has notified of his intention to stand down as senior independent non-executive director & chair of the Audit Committee ahead of the annual general meeting on June 16 and therefore will not be seeking re-election.
The company said it has already made good progress in the search for a replacement and will update the market in due course.
Medica shares were trading 2.3% lower in London on Tuesday at 158.81 pence each.
By Evelina Grecenko; [email protected]
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