9th Sep 2019 11:27
(Alliance News) - Medica Group PLC on Monday raised its interim dividend following a strong performance in the first half of 2019, driven by increased demand from clients.
For the six months to the end of June, the teleradiology services provider reported a pretax profit of GBP4.7 million, up 6.8%. This was on revenue that grew by 18% to GBP22.0 million.
Medica said the strong performance was driven by volume growth across all services lines, with the NightHawk emergency service benefiting from increased activity from existing clients. Revenue from the NightHawk segment rose by 12% to GBP10.4 million.
Medica's Cross Sectional division also benefited from higher client activity, amid an increasing number of scans and a capacity shortage. Cross Sectional's revenue grew by 29% to GBP9.0 million.
Medica declared a dividend of 0.85 pence per share, up 13% from 0.75p the prior year.
Looking ahead, revenue is expected to beat management expectations, while profit will be in-line with expectations, as the increase in activity continues to grow in the second half of the year.
"Medica has consistently delivered year-on-year double-digit revenue growth and these results show that the company's high-quality clinical service remains important to its clients. Medica is investing in infrastructure and technology to support future growth and continues to provide an attractive environment for reporters looking to broaden their career," said Chair Roy Davis.
"For the full year 2019, the board anticipates revenues will be slightly ahead of its expectations with profit remaining in-line with its expectations as the company continues to invest in optimising the business for future growth," Davis added.
Shares in Medica Group were up 0.7% at 132.42 pence on Monday.
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