Medica Group latest interim results underscored strong underlying profit growth while remaining cash positive despite high outflows relating to deferred considerations and capital expenditure.
The teleradiology provider to the NHS’s top line came right on expectations, with revenues of £36mln representing year-on-year (YoY) growth of 26%.
Underlying profits increased 46% to £6.2mln, all the while adding a percentage point to operating margins, which came to over 17%.
The London-listed group’s UK Elective segment provided the highest growth rate, increasing 61% to £9.9mlm.
Ireland revenues also shot up from £4.5m to £5.6m due to an uptick in new scan and reporting contracts, and strong organic growth in existing contracts.
The company had net cash of £900,000 and maintained an ungeared position at the end of the period.
Following the strong results, Medica Group announced a 4.5% bump on interim dividends to 93p due to be paid on November 4 with an October 7 deadline.
Chairman Roy Davis said: " The company has continued to execute against its strategy and delivered double-digit growth, in line with expectations, for the first half of 2022.
“The company will continue to pursue its organic growth strategy to further diversify its remote reporting services, and to expand the scale and breadth of its services via potential acquisitions.”