Radiology services provider Medica (MGP) only joined the London Stock Exchange at the end of last month, so these first annual results represent a company whose future now looks markedly different.
First, the company's final debt figure is no longer accurate. Having raised £121m via its share offering, management has repaid more than half that sum, leaving net debt at around £10m or 158 per cent of total equity. The company also refinanced the remaining debt, including a new maturity date of March 2022. What's more, Medica is extremely cash generative, with operating cash flow (excluding tax and one-off IPO costs) up 30 per cent to £8.5m last year. That should go some way to generating a more comfortable gearing ratio in the near term.
The company earns most of its income via teleradiology services provided to NHS Trusts via contracts or framework agreements. This is done via three different service lines: the out-of-hours Nighthawk service, routine cross sectional scans and routine plain film scans.
House broker Investec won't publish forecasts until 40 days after admission, and there are no other brokers covering Medica at present.
MEDICA (MGP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 197p | MARKET VALUE: | £219m | |
| TOUCH: | 195-199p | 12-MONTH HIGH: | 221p | LOW: 170p |
| DIVIDEND YIELD: | nil | PE RATIO: | 59 | |
| NET ASSET VALUE: | 5.7p* | NET DEBT: | £22m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013**† | 9.5 | -0.6 | na | na |
| 2014** | 17.9 | 0.8 | na | na |
| 2015 | 22.2 | 2.1 | 1.7 | nil |
| 2016 | 28.5 | 4.3 | 3.3 | nil |
| % change | +28 | +106 | +96 | - |
Ex-div:na Payment:na *Includes intangible assets of £25.4m, or 22.8p a share **Pre-IPO figures †Eighth-month period | ||||
