19 August 2016  |  pdfCompany Announcement Pro Medicus 2016 Full Year Results – Acrobat pdf 189k

Highlights:

  • After-tax profit $6.37 million – up 98%
  • Underlying after-tax profit up 212%
  • Revenue increased to $27.58 million – up 57%
  • Cash reserves $17.1 million – up 32%
  • Final dividend of 1.5c per share unfranked; total for year 3c per share
  • Rapidly expanding footprint in North American market

Leading health imaging company Pro Medicus Limited [ASX: PME] today announced a full-year after-tax profit of $6.37 million for the 12 months to 30 June 2016 – a 98% increase on the previous corresponding period. Revenue for the year grew by 57% to $27.58 million.

The company’s cash reserves grew to $17.1 million an increase of 32%. The company remains debt-free.

Directors announced an unfranked final dividend of 1.5c per share, making a total dividend for the year of 3c per share.

During the period the company made announcements for contracts with a minimum value of A$60 million including:

  • Allegheny Health Network, USA – Sept 2015, A$11 million five-year contract.
  • German Government Hospital – Nov 2015, A$3 million five-year contract.
  • Mercy Health System – April 2016, A$21 million seven-year contract with the 
seventh largest Catholic health care system in the USA.
  • Franciscan Missionaries of Our Lady Health System – April 2016, A$7 million, 
seven-year contract with the largest health system in the US state of Louisiana.
  • Mayo Clinic – July 2016, A$18 million, six-year contract with Mayo Clinic, USA.

Key drivers of the company’s profit increase for the year were the significant increase in the performance of the North American operations, supplemented by a capital sale in Europe and a modest increase in Australian sales. As the Group’s costs are relatively fixed, this increase in sales had a significant impact on profitability.

Dr Sam Hupert, Pro Medicus Chief Executive Officer, said “This has been a good year for us. Not only did we continue to rapidly expand our North American footprint, we also made significant progress with implementing those contracts we have previously won. As a result, we are starting to see good growth in transaction based revenue in North America and the positive impact it is having on our margins.”

“We also had our first significant enterprise Hospital sale in Europe late in the first half and our Australian operations held their own in a difficult market all of which contributed to our result.”

Dr Hupert said he expected the momentum to continue in the FY16-17 financial year with the second half being stronger as a result of recent contract wins. “The first phase of the Mercy implementation is due to commence next month and will start to hit full stride in the 2nd half. This is to be followed by the Franciscan Missionaries and Mayo implementations scheduled to commence in the second half of 2017, early first half 2018, all of which will help build our transaction revenue pipeline going forward.”

The directors are confident that the holdings of reserve cash are sufficient to underpin the development and expansion needs of the company as the business looks to increase its penetration of existing markets.

Regarding the future, Dr Hupert said: “The pipeline remains strong despite having converted three big opportunities into contracts in the past few months. We are starting to see the network effect of our rapidly expanding North American footprint and believe we are well-positioned to pursue these and other opportunities as they arise.”