AUS
NZ
UK
CA
USA
IND
Paragon Care Limited (ASX:PGC) has announced its half-yearly report for the financial year 2019. It reported approximately 9% organic growth achieved in 1H FY2019 from its continuing business. Its gross margin for 1H FY2019 stood at around 38%. It reported its continuing business EBITDA of circa $14 million in line with recently provided 1H FY2019 guidance.
With the strong financials, the company board declared fully franked interim dividend of 1.1 cents the same as the previous period. It reported its payment date on April 26, 2019, and record date on March 22, 2019.
Companyâs improved sales performance in 2018 has strengthened sales leadership, transformed sales culture and improved accountability. It has also commenced migration to Microsoft D365 single platform, to create standard systems and processes across the Group. Its due diligence on legacy capital equipment business is progressing well.
As per the reports, its stated group EBITDA has been negatively impacted by the legacy capital equipment business, delays with MIDAS business development, and delays to integration cost synergies.
Paragon expects addressable market opportunity to be around $9 billion, with only 3% share of a highly fragmented market, the company sees significant opportunity for organic growth through strong customer support and an optimised product range.
It is working as a true partner with its customers by providing them with leading technology backed up by excellent support which is most likely to strengthen its customer base. It has a huge focus on attractive customer âvalue poolsâ such as acute care, critical care, surgical and speciality diagnostics.
By the end of 2018, the company had completed 16 acquisitions in the last 5 years, creating vast corporate and operational complexity with 46 companies, 19 trading companies, 4 trust companies. It strengthened it's 14 different financial, operating, HR, payroll and reporting systems with its disparate processes and procedures, and limited cultural integration.
Its four key sales and marketing verticals comprised of devices, diagnostics, capital & consumables, and services. The Significant future benefits anticipated from Paragonâs transformation is the company turning into a world-class provider of advanced technology in the healthcare sector.
Its FY2019 revenue guidance remains unchanged and is on target. The company expects improvement of around 12% in EBITDA in FY2020 for continuous business through significant cost outdrive. It expects positive operating cash flow in an expanding business environment in 1H FY2019.
Benefits of the IT integration expected to build from 1 July 2019 â cost reductions in FY20 expected to be > $3 million. The company would Roll out and migrate 70% of business onto a single platform by the end of H2 FY2019, targeting 100% by FY2020. Companyâs continuing business is expected to generate $240 Mn of revenue and $28 million of EBITDA in FY2019 including $4 million benefit from lease adjustments. Its focus areas include finalising divestment of legacy equipment business by the end of 2H FY2019.
Paragon Care is a health care solutions provider. It provides end-to-end solutions for acute, aged and primary care. It operates mainly in Australian and New Zealand health care markets. It has recently added e-Health capabilities and technology management in its portfolio.
On stock information, Paragon Care closed flat at $0.465 on February 28, 2019 with the market capitalization of ~$156.76 million. Its current PE multiple is at 8.61x and reported EPS at 0.054 AUD. Its 52 weeks high has been noted at $0.89 and 52 weeks low at $0.455. Its absolute return for 3 months, 1 year, and 5 years are -30.60%, -38.00%, and 48.80% respectively.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
