Medica is the UK’s market leader in providing outsourced interpretation and reporting of magnetic resonance imaging, computerized tomography and X-ray images.
Full-year 2021 revenue to 31 December is expected to be in line with market expectations of around £62 million, an increase of 68% on 2020 and 33% on 2019 as scanning activity returned to pre-pandemic levels during the summer.
Better gross margins and good cost control during the pandemic means the company now expects underlying profit to be ahead of consensus analyst forecasts.
Numis Healthcare analyst Kane Slutzkin commented: ‘In our mind, Medica has now strung together multiple updates showing positive momentum, as the story is pivoting from recovery to growth.’
INTEGRATIONS GOING TO PLAN
In March 2021 Medica made its first foray into the US with the purchase of RadMD, an expert in medical imaging for clinical trials. A new senior management team has been put in place supporting the founders to ‘drive new opportunities and to scale operations to meet client demands.’
A resumption of trials led to increased growth in the second half and new contract wins with an increase in the order book and backlog.
Medica Ireland which was acquired in November 2020 also delivered a positive operating performance and overall, the company said it was ‘satisfied’ with progress made to integrate both acquisitions into the group.
The company said it was well positioned to build upon a successful 2021 and take advantage of future opportunities. Chief executive Stuart Quinn commented: ‘Medica continues to focus on driving reporter capacity and to look at opportunities to internationalise and further diversify its services going forward.’