Update on contract in Ireland

Medica Group PLC

26 May 2023

 

26 May 2023

Medica Group Plc

Update on contract in Ireland

Medica Group Plc (LSE: MGP, "Medica", the "Company" or the "Group"), an international provider of high-quality telemedicine services, announces that it has received notification from the National Screening Service (NSS) in Ireland that it has not been successful in the re-tender for a new diabetic retinopathy screening contract.

At this stage Medica is evaluating its response, however, it is expected that there will be a period before services will transition to a new provider and therefore the impact of the contract loss is expected not to have a material adverse impact on overall Group revenue and profitability this financial year. Furthermore, the final contingent consideration cash payment of €1.6 million that was agreed to be paid as part of the November 2020 acquisition of Global Diagnostics Ireland (now Medica Ireland) to the sellers will now not be payable.

Medica Ireland reported strong growth in its core radiology services business line in FY22 and is currently outperforming management's year-to-date revenue expectations across its scanning and reporting services, particularly in its fast-growing NightHawk services, and therefore remains well-positioned for growth in the remainder of FY23.

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]
Liberum (Joint Broker) Phil Walker Richard Lindley	[phone]
Numis (Joint Broker) Freddie Barnfield Duncan Monteith Euan Brown	[phone]

About Medica Group PLC

Medica (LSE:MGP) is an international provider of high-quality telemedicine services. It is the market leader in teleradiology in the UK and Ireland, working with more than 100 NHS Trusts and HSE hospitals in Ireland, in addition to private hospitals, insurance groups and diagnostic imaging companies. Its network of consultant radiologists, radiographers and specialist doctors interpret and report MRI, CT, ultrasound and X-ray images on behalf of healthcare providers, using Medica's bespoke, secure technology platform for fast and responsive delivery. The company's core services include NightHawk, an urgent, out-of-hours offering available to clients 24/7 with dedicated pathways for stroke and major trauma, and Elective, for routine reporting.

In Ireland, Medica carries out patient scanning, as well as reporting. Through its US business, RadMD, Medica provides global pharmaceutical and biotech companies, as well as contract research organisations with specialist imaging services for clinical trials.

For more information please visit: www.medicagroupplc.com 

 

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