Medica Group (MGP)

Medica Group MGP Logo

The UK market leader by revenue in the provision of teleradiology services

12-Mar-2018 – 157p – £174.4m – PER 20.5

Preliminary Results For The 12 Months To End December 2017 – Revenue up 18.2% to £33.7m,  Gross profit margin of 48.7% (2016: 49.8%) as expected, Net Debt down significantly to £5m (2016: £22m), Proposed maiden final dividend of 1.10p, 1.65p for the year. Adjusted PBT is up 48.6% to £8.8m, £5.9m last time and Adjusted EPS is up 39.0% to 6.92p, 4.98 last time. 2018 has started well, trading in line with the Board’s expectations. Expects to grow Revenue at a double-digit rate similar to that seen in 2017.

Not looked at this before and it seems there was a mild profit warning in January. Following this, these results don’t appear too bad at all. Will keep an eye out here for updates as there seems to be decent Quality here and arguably based on that Quality, Value too (even though Stockopedia does not agree, Value Rank 14).

23-May-2018 – 133.4p – £148.2m – PER 16.4

AGM Statement – Started well, FY in-line with the Board’s expectations.

EPS forecast as +39% in 2018 and +14.1% the year after, ROCE and Operating Margin are great, there’s a small well covered Dividend and Debt is small. Not sure I am missing something here but this looks pretty good!

Subsequent note: I decided to buy in here.

25-Jul-2018 – 116p – £128.9m – PER 14.0

Trading Update For The 6 Months To End June 2018 – Recruitment momentum continued during H1 2018, FY to be in-line with market expectations.

I hold here and was getting a little nervous – Will see how the market reacts here, hopefully this will provide some support.

12-Sep-2018 – 145p – £161.1m – PER 17.2

Interim Results For The 6 Months To End June 2018 – Revenue up 18.2%, Adjusted Operating Profit up by 15.4% and Net Debt significantly reduced to £2.5m (2017: £8.5m). FY to be in-line.

I sold out here a couple of months or so ago as I was just getting a little nervous. This remains on my Watchlist because the forecasts if met, are quite impressive considering the current valuation.

Subsequent note: Gone Neutral here as more research indicated a 1 and 2 year downside here.

25-Mar-2019 – 125p – £139m – PER 15.2

Results For The 12 Months To End December 2018 – Revenue up 15.6%, Gross Profit Margin up slightly to 49%, Adjusted Operating Profit up 12.8%, Adjusted EPS up 12%, FY Dividend of 2.25p (1.65p last time), Net Debt down from £5m to 0. Expects double digit Revenue growth this year again. CEO to step down at some point in 2019.

As an ex-holder I am not yet tempted back in here.

22-May-2019 – 152p – £169m – PER 17.7

AGM Statement And Trading Update – 2019 started well, trading in-line, expects FY to be in-line. CEO replacement annouced, seems smooth and friendly.

Looks about fairly priced here (at best) based on the Stockopedia forecasts.

25-Jul-2019 – 134p – £145m – PER 14.2

Trading Update For The 6 Months To End June 2019 – Expects FY Revenues to be slightly ahead and Profit to be in-line.

Still looks fairly priced around the 150p (at best) or so level.

9-Sep-2019 – 132p – £146m – PER 16

Interim Results For The 6 Months To End June 2019 – Revenue up 18.2%, Adjusted PBT up 7.2% with EPS up 9.5, the Interim Dividend is up 13.3%. Expects FY Revenue slightly ahead with Profit in-line.

I still see 150p or so as fair value here so not enough to get me anymore interested at present.

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