Trading Statement

One Health Group PLC

28 October 2024

 

28 October 2024

One Health Group PLC

('One Health' or the 'Group')

Trading Update

Revenue and EBITDA for H1 25 to 30 September 2024 significantly ahead of the same period last year and ahead of expectations

One Health (AQSE: OHGR), an independent provider of free, high quality NHS care for patients referred through 'Patient Choice' for treatment in orthopaedics, spine, general surgery and gynaecology, is pleased to provide the following trading update for the six months to 30 September 2024 ("H1 25").

Highlights

·    H1 25 revenue grew to £13.4 million (H1 24: £11.1 million), an increase of more than 20%, and ahead of expectations.

·    Revenue growth driven by 29% increase in new patient numbers; new NHS surgeons joining the Group; and increased surgical capacity.

·    The financial year has historically been second half weighted and so FY 25 is also anticipated to be ahead of current market expectations.

·    Additionally, the Group expects revenue for the year to be positively impacted by the settlement of the NHS Junior Doctors pay dispute through an associated increase in the NHS tariff.

·    The uplift in the NHS tariff, increase in patient numbers and surgical capacity and other small margin improvement initiatives is expected to result in a positive EBITDA margin improvement for FY 25 with full year underlying EBITDA expected to exceed previous year end expectations of £1.9 million underlying EBITDA (FY 24 underlying EBITDA: of £1.6 million)].

·    Strong cash conversion with cash reserves at the half year end of £4.9 million (H1 24: £3.6 million), supporting our progressive dividend policy.

·    Clear strategy to drive continued growth including a strong pipeline of new surgeons, additional surgical capacity in existing hospitals and new hospitals.

·    In addition, good progress with plans for One Health surgical hubs and, following positive feedback on a pre-application consultation, full planning will be submitted next month for a new surgical hub, with operational delivery anticipated within c. 1 year of construction commencing.

·    The Company continues to evaluate the optimal way to deliver these growth opportunities, with a listing on AIM under active consideration.

Adam Binns, Chief Executive Officer, said:

"One Health Group has had another period of strong growth resulting in performance significantly ahead of last year against all key metrics. Activity has been bolstered with increasing numbers of NHS patients choosing One Health through 'Patient Choice' and growing numbers of NHS surgeons providing their services to us."

"The recent change in Government has had a positive effect on the business with an increased use of independent sector support cited as one of the key actions to reduce NHS waiting lists. Our business model provides high quality surgical care, local to the patient, free at the point of delivery, and is becoming more widely recognised for helping to reduce the pressure of waiting lists on the NHS, supported by a greater level of awareness of 'Patient Choice' amongst the general public. We continue to look forward to the future with confidence."

Trading for the first half resulted in a significant increase in revenue and profits in comparison to H1 2024, with One Health treating 7,857 new patients during the period (H1 24: 6,091), delivering 19,674 consultations (H1 24: 15,239) and 3,427 surgical procedures (H1 24: 3,002) through 9 independent hospitals. The number of outreach clinics has increased to 37 (H1 24: 33) and consultants to 68 (H1 24: 65). Increasing patient numbers continue to be sourced from 'Patient Choice' through NHS e-Referrals (e-RS) following GP appointments and transfers to the Group from NHS Trusts internal waiting lists for treatment, reducing pressure on the system. This year One Health has successfully established 5 year contracts with our largest NHS commissioners representing 70% of our revenue, moving away from the historic annual renewal process.

This momentum has paved the way for a strong H2 with the second half of the year historically being the predominant period for NHS surgical activity. In addition to a significant increase in NHS patient referrals through 'Patient Choice' the Group continues to benefit from working closely with local NHS Trusts, with internal patient waiting list transfers continuing into the new financial year.

Capacity increased 8% in comparison to H2 2024 through a number of initiatives including significant collaborative efficiency improvements resulting in the Group sourcing additional surgical theatre capacity with existing providers supplemented by new capacity secured with two additional independent sector hospitals in the Midlands.

The Group continues to build its 'pipeline' of additional surgeons and hospitals and is progressing its plans for a new surgical hub in an area which is underserved by both NHS and private hospitals and where One Health currently receives high numbers of NHS patient referrals, which will significantly increase operating capacity and positively impact gross margins. The high demand for local care will result in the surgical hub quickly achieving strong utilisation. Following good feedback on the pre-application consultation, full planning will be submitted later this year. The Company is working with a number of specialist suppliers and currently estimates total land and hub costs will be in the region of £8 million to £9 million (inclusive of VAT) with a hub anticipated to be operational in c. 1 year following commencement of construction.  

The Group's robust cash position continues to provide substantial resources for investment in growth and underpinning the Group's progressive dividend policy. The Group recently changed banks and refinanced £1.1 million of property debt associated with office accommodation on improved terms in addition to benefitting from a significant improvement in interest received on cash held on account.

The Group intends to announce its half year results in late November 2024.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Which is part of the United Kingdom domestic law pursuant to the Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR").

The directors of One Health accept responsibility for this announcement.

- Ends -

For further enquiries:

One Health Group PLC	Via Square One Consulting
Derek Bickerstaff, Chairman
Adam Binns, CEO
Panmure Liberum Emma Earl, Will Goode, Mark Rogers, Joshua Borlant, Rupert Dearden	Tel: [phone]
Square 1 Consulting Limited
David Bick	Tel: [phone]        [phone]

Notes to Editors

One Health engages over 100 NHS Consultants who sub-specialise in the various surgeries offered by the Company, through a growing network of community-based outreach clinics and surgical operating locations. One Health continues to deliver strong growth and in the year to March 2024 provided much needed care to 13,266 new patients, through almost 34,000 consultations and over 6,000 surgical procedures. One Health deploys surgeons and anaesthetists that are mostly employed by the NHS, on a subcontracted basis. It currently works with over 100 professionals across 9 independent hospitals and 37 CQC registered outreach clinics. Within these community-based outreach clinics all consultations and post operative physiotherapy is delivered where required, reducing patient inconvenience and excess travel.

One Health's activities are focused on areas where NHS patient needs are under-supplied by the local NHS service, population density is relatively high and the level of private medical insurance or the ability to self-fund is relatively low. One Health has also sought to expand geographically from its Head Office in Sheffield into neighbouring counties, which meet these criteria. Currently, the Company's activities are focused in Yorkshire, Lincolnshire, Derbyshire, Nottinghamshire and Leicestershire. Revenue of over £23m in the year to 31 March 2024 was derived from over 60 NHS commissioning bodies in addition to contracts with local NHS Hospital Trusts to transfer their internal waiting list patients to One Health for quicker treatment.

One Health's business model has focused to date on four main areas: being Orthopaedics, Spine, General Surgery and Gynaecology. The split of inpatient procedures in the year to 31 March 2024 was as follows: Orthopaedics 46% Spine 22% General Surgery 22% Gynaecology 10%.

Spine and orthopaedics are particularly attractive areas for One Health as the Directors believe that they benefit from powerful growth drivers in terms of an ageing demographic, physical inactivity and an increasing proportion of the population being categorised as obese. Within orthopaedics, the most common surgeries performed by One Health are knee and hip replacements.

One Health delivered 6,169 procedures in the year to 31 March 2024 and the Directors expect the Company to deliver significantly more procedures in the year to 31 March 2025.

One Health was admitted to trading on Aquis in November 2022 with the ticker OHGR.AQ.  For additional information please visit https://www.aquis.eu/companies/OHGR

 

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