Medica Group PLC Trading Update (3154S)
08 Julio 2020 - 1:00AM
UK Regulatory
TIDMMGP
RNS Number : 3154S
Medica Group PLC
08 July 2020
8 July 2020
Medica Group Plc
Trading Update
Medica Group Plc (LSE: MGP, "Medica" or the "Company"), the UK
market leader in the provision of teleradiology services, announces
a trading update for the six months ended 30 June 2020.
Medica expects revenue for H1 2020 to be GBP17.0 million,
compared to GBP22.0 million in H1 2019, due to the impact of the
COVID-19 pandemic on radiology reporting activity, as previously
announced. Medica's cash position remains robust and, despite the
decline in revenues, there has been limited impact on the Company's
cash generation, with a cash balance of GBP20.0 million at 30 June
2020 compared to GBP16.5 million at 31 December 2019.
Further to the announcement on 20 May 2020, reporting activity
has continued to improve towards levels experienced before the
pandemic and the Company returned to profitability in June 2020. To
note, Medica has not required any government funding to support its
business and the Company has not furloughed any staff.
For NightHawk, the Company's out-of-hours service, reporting
activity has returned to around 95% of the level experienced prior
to the COVID-19 pandemic. The Company expects to maintain this
level of activity following the ease of restrictions imposed by the
UK government in an attempt to curb the spread of the virus,
notwithstanding a return to national or regional lockdowns
resulting from subsequent peaks of infection.
The Company's routine (elective) reporting has started to
increase steadily and is now around 10% of the level experienced
prior to the COVID-19 pandemic. Medica expects its routine
reporting volumes to continue to increase in the coming months, as
NHS hospitals work to process the substantial backlog of elective
procedures and government restrictions are eased.
Despite the reduction in reporting activity during the period,
capacity has strengthened and recruitment has been strong as
radiologists realise the benefits of Medica's secure and reliable
home-reporting capabilities. In addition, the pandemic has had a
limited impact on the Company's ability to drive forward projects
in support of the new strategy, which was announced in March 2020.
Medica has also taken advantage of the reduction in workload to
initiate an operational excellence programme and to accelerate
training and implementation of new clinical protocols to improve
the quality of its services.
Further to the announcement on 30 March 2020, Richard Jones will
be joining Medica as Chief Financial Officer on 3 August 2020.
Dr. Stuart Quin, Chief Executive Officer of Medica,
commented:
"Whilst demand for our services was significantly impacted
during the period, particularly our routine service due to the
suspension of elective procedures, we are encouraged to see a
continuing improvement in activity. This is particularly evident
for our Nighthawk service, with activity now similar to
pre-COVID-19 levels. We continue to work closely with our clients
to provide timely reporting of imaging for elective procedures as
they actively manage waiting lists that have built up over the past
months.
"I want to thank all involved at Medica who have ensured the
high level of service we offer the NHS has been sustained during
this challenging time. I recognise the professionalism and
commitment shown by our reporters working in the front line and our
team working hard to maintain our services from their homes. As a
result, Medica has been able to quickly adapt and respond to
client's needs, strengthening its position as a leader in the
provision of teleradiology services."
Medica plans to provide an update on guidance for the full year
and publish its financial results for the six months ended 30 June
2020 on 14 September 2020.
For further information, please contact:
Medica Group Plc:
Roy Davis, Chairman
Stuart Quin, Chief Executive
Officer +44 (0)33 33 111 222
Investec Bank Plc
Sara Hale
Daniel Adams +44 (0)20 7597 5970
FTI Consulting
Victoria Foster Mitchell
Robert Winder +44 (0)20 3727 1000
About MEDICA
MEDICA is the UK market leader in the provision of teleradiology
services, providing outsourced interpretation and reporting on MRI
(magnetic resonance imaging), CT (computerised tomography) and
plain film (x-ray) images. The Company currently offers three
primary services to hospital radiology departments: NightHawk, an
out-of-hours service, routine cross-sectional reporting on MRI and
CT scans, and routine plain film reporting on x-ray images.
MEDICA has developed a bespoke secure IT platform that provides
market-leading linkage between a hospital's Radiology Information
System (RIS) and Consultant Radiologists who contract with MEDICA.
Direct RIS access ensures that the full wider patient information
is available and reviewed with every report.
The Company contracts with the largest pool of consultant
radiologists outside of the NHS and has been trusted to provide
more than 1.3 million examinations annually across its customer
base of more than 100 NHS Trusts and various private hospital
groups and diagnostic imaging companies. For more information
please visit www.medicagroup.co.uk
About Teleradiology
Teleradiology is the electronic transmission of radiological
patient images, including plain film (x-rays), CT scans and MRI
scans, from one location to another for the purposes of diagnostic
interpretation and reporting.
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Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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