TIDMMGP
RNS Number : 9031K
Medica Group PLC
07 September 2021
7 September 2021
Medica Group Plc
Capital Markets Day
Medica Group Plc (LSE: MGP, "Medica" or the "Company"), the UK
and Ireland market leader in the provision of teleradiology
services and a US expert in imaging services for clinical trials,
will hold a Capital Markets Day for institutional investors and
analysts at 12pm BST today. A summary of the presentation will be
available following the end of the meeting at
www.medicagroupplc.com/investors/ .
The presentation will provide further insight into Medica's
growth strategy to:
-- invest in our people and systems to build an engaged and motivated team;
-- be the company of choice for specialist doctors and
clinicians wanting to expand their expertise in telemedicine;
-- be the trusted, go-to partner for healthcare providers with a
reputation for reliability and transparency to enhance patient
outcomes; and
-- deliver profitable, diversified growth underpinned by our commitment to ESG with a focus on market-leading clinical governance.
The Executive team will cover a range of strategic topics such
as investment in our FutureTech platform (including Augmented
Intelligence), our urgent NightHawk reporting service and our
approach to building reporter capacity in core and international
markets. Our Irish and US Managing Directors will also provide an
update on their respective markets, while Chief Executive, Stuart
Quin, will update investors on progress against Medica's strategy
and the company's continued focus on growth and diversification
into new areas of telemedicine and geographies.
With the implementation of this strategy, the company has set
ambitious growth targets. Richard Jones, Chief Financial Officer,
will reiterate Medica's short- to medium-term growth targets and
will include some additional financial metrics including:
-- Group Growth Rate and Revenue Target - Consistent with
previous guidance from early 2020 but reflecting the updated nature
and composition of the Group, the Company is targeting organic
growth in its core UK business at 12-14% and its recently acquired
US and Irish companies by over 15% in the short to medium term with
an overall target of c.GBP100m revenues in 3-5 years.
-- Target Margins - Consistent with previous guidance the
Company is targeting Gross Margins of over 45% and underlying
operating profit margins of over 20% in the short to medium
term.
-- Target Return on Capital Employed (ROCE) - In line with
guidance at the time of the acquisitions of Global Diagnostics
Ireland and RadMD, ROCE will continue to be a key metric for the
company when considering non-organic growth opportunities and the
Company will target ROCE of at least 15% within a reasonable period
for such opportunities whilst looking to maintain group ROCE above
20% overall.
-- Target Cash Conversion - Medica continues to closely manage
working capital and this, together with the inherently cash
generative nature of its business model means that the Company will
continue to target Underlying Operating Profit to Cash conversion
of at least 80%.
No other new material information will be disclosed. The company
will provide a further update when announcing its financial results
for the six months ended 30 June 2021 on 27 September 2021.
Dr. Stuart Quin, Chief Executive Officer of Medica,
commented:
"Medica's management team has worked hard to develop and begin
executing upon a strategy that we believe will allow us to
significantly scale and diversify the business. With market-leading
teleradiology expertise, we have a strong platform upon which we
can grow organically, whilst simultaneously looking for
value-generating acquisitions. We are pleased with the progress we
have made against this strategy so far and remain excited by the
potential for Medica to grow in the future."
For further information, please contact:
Medica Group Plc:
Stuart Quin, Chief Executive
Officer
Richard Jones, Chief Financial
Officer +44 (0)33 33 111 222
FTI Consulting
Victoria Foster Mitchell
Sam Purewal +44 (0)20 3727 1000
Investec Bank plc (Joint Broker)
Sara Hale
Daniel Adams
Virginia Bull +44 (0)20 7597 5970
Liberum (Joint Broker)
Bidhi Bhoma
Richard Lindley
Euan Brown +44 (0)20 3100 2000
About Medica Group PLC
Medica is the market leader in the UK and Ireland for the
provision of teleradiology services, providing outsourced
interpretation and reporting of MRI (magnetic resonance imaging),
CT (computerised tomography), ultrasound and plain film (x-ray)
images. Medica also offers diabetic retinopathy screening in
Ireland.
Medica contracts with the largest pool of consultant
radiologists in the UK and Ireland, performing remote access
teleradiology across its customer base of more than 100 NHS Trusts
in the UK, the Irish HSE, private hospital and insurance groups, as
well as diagnostic imaging companies. This enables the Company to
offer a fast, responsive service. In addition, Medica operates in
Australia and New Zealand through MedX, a 50:50 Joint Venture with
Integral Diagnostics Limited Pty.
The Company currently offers two primary services to hospital
radiology departments:
-- NightHawk - urgent reporting service
-- Elective - includes routine cross-sectional reporting on MRI
and CT scans, and routine plain film reporting on x-ray images.
These services are underpinned by Medica's bespoke, secure IT
platform that provides market-leading linkage between a hospital's
Radiology Information System (RIS) and consultant radiologists who
contract with the Company. Direct RIS access ensures that where the
wider patient medical history is available, it can be reviewed by
the consultant as part of every report.
Through its subsidiary, RadMD, in the United States, Medica also
provides pharmaceutical and biotech clients and contract research
organisations (CROs) with high quality, complex imaging services
for international clinical trials. RadMD has gained vast experience
in the space, having contributed to over 500 international clinical
trials, in all phases of clinical research from proof of concept to
phase III and with expertise in oncology, as well as a wider range
of therapeutic areas including medical devices, neurology and
cardiovascular.
For more information please visit: www.medicagroupplc.com
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