Telemedicine specialist Medica Group PLC (LSE:MGP) said its revenues and earnings for 2022 will hit forecasts as it gave a guardedly optimistic assessment of the prospects for the coming year.
Overall, the company said is well-positioned for continued growth in 2023, adding that it will focus on new areas of organic growth such as remote digital pathology reporting. It will also look to expand the reach of its international network of radiologists.
Turning to the year just gone, Medica booked revenue of £77mln - representing a year-on-year increase of 24%.
Gross margins remained "resilient" at 48%. Given the strong performance of the business since the summer, underlying operating profit for 2022 is expected to be in line with market expectations, investors were told.
Medica’s chief executive Dr Stuart Quin said: "We are pleased to report a strong performance for the year, with revenues and profits in line with expectations.
“Our UK business has seen growth in acute services driven by contract renewals, net new contract wins, and the extension of service agreements, while our Irish and US operations have exceeded expectations.
“We continue to invest in our technology platforms, which are key to our growth strategy and underpins our ability to deliver high-quality telemedicine services."
In the UK, revenue increased by 15% to £54mln in 2022 as the business experienced significant growth in acute services driven by contract renewals, net new contract wins and the extension of service agreements.
This included a £33.3mln contribution from Medica's NightHawk services, which provide remote radiology reporting, representing an increase of 12% over the same period last year.
In Ireland, Medica performed strongly throughout 2022, with revenue increasing by 30% to £12.6mln, exceeding management's expectations.
In the US, RadMD, the company's business there, reported a strong second half, delivering £10.4mln in its first full year post-acquisition.
The company exited the year with £500,000 of cash on the balance sheet,