Shares in teleradiology services firm Medica (MGP:AIM) gained 5% to 162p after the company said elective procedures at hospitals had continued to recover, contributing to a positive first half to 30 June.
Key drivers of performance came from the UK and Ireland which performed strongly against a backdrop of a ‘sustained recovery’ in diagnostic services.
The firm said it had seen a ‘marked’ increase in elective activity and continued growth in its NightHawk out of hours service since the last trading update on 11 May, driven by underlying demand, contract extensions and tender wins.
Medica’s nationwide network of consultant radiologists perform outsourced interpretation of MRI and CT scans under contract for the NHS and private hospitals.
The company has experienced month-on-month improvements in elective activity as the NHS continues to work through its considerable backlog of work with activity running around 75% of pre-pandemic levels.
The recovery is expected to strengthen over the summer in line with increased scanning activity, but Medica has yet to see the full impact from the removal of restrictions and the rate of hospitalisations.
The effect of increased volumes and cost efficiencies resulted in higher first half gross margins and the company expects to achieve full year margins at least in line with 2020, despite an expected adverse change in case mix in the second half.
Medica said it had now fully integrated Global Diagnostics and rebranded it as Medica Ireland with good progress made winning new clients.