Capital Markets Day

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.£100m 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	[phone]
FTI Consulting Victoria Foster Mitchell Sam Purewal	[phone]

Investec Bank plc (Joint Broker) Sara Hale Daniel Adams Virginia Bull	[phone]
Liberum (Joint Broker) Bidhi Bhoma Richard Lindley Euan Brown	[phone]

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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