Capitol Health (ASX: CAJ) expects FY24 revenue to be backed by FMIG acquisition

Highlights

• Capitol Health offers medical imaging and related services through community-based medical imaging clinics
• In FY23, the company registered 13.8% YoY growth in revenue to AUD 209.6 million
• Australian Ethical Investment Ltd. Has the highest stake in the firm, with a shareholding of nearly 10.38%

Capitol Health Limited (ASX:CAJ) is an ASX-listed healthcare equipment and services firm which offers medical imaging and related services through community-based medical imaging clinics across the nation.

During the financial year 2023 (FY23), the company reported 13.8% YoY growth in revenue to AUD 209.6 million, backed by  expansion of the services in existing clinics and the acquisition of Future Medical Imaging Group (FMIG).

The reported period saw a 10.8% YoY rise in free cash flow to AUD 20.5 million, a 2.3% YoY fall in operating EBITDA to AUD 40.2 million and a loss after tax of AUD 11.3mn.

Top 10 shareholders of CAJ

The top 10 shareholders of CAJ have around 55.44% shareholding in the company, while the top four shareholders have nearly 34.73% stake in the firm. Australian Ethical Investment Ltd. and Wilson Asset Management (International) Pty. Ltd. have the maximum stake in the company, with a shareholding of ~10.38% and ~9.77%, respectively.

Recent business update

On 16 October 2023, the company informed that its annual general meeting would take place on 15 November 2023.

Through an ASX filing dated 28 September 2023, the company informed about the release of over 2.34 million shares from voluntary escrow to the vendors of direct radiology. The due date of the security release was 6 October 2023.

Outlook

The company marked a solid start to FY24, as its August YTD revenue  increased by 16.6% over the previous year, excluding revenue from the FMIG acquisition. The company informed that its recently acquired entity, FMIG, has been performing substantially and has been integrated.

The company has three MRIs planned for the network and one planned for the greenfield clinic.

The management focuses on  organic revenue growth and cost control whilst navigating a high inflationary environment.

Share performance of CAJ

 CAJ shares closed 2.56% down at AUD 0.19 apiece on 25 October 2023. With this, CAJ’s share price has dropped by 22.45% in the last three months.

The 52-week high of CAJ is AUD 0.33 apiece, recorded on 14 November 2022, and the 52-week low is AUD 0.185 apiece, recorded on 25 October 2023 (today).

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 25 October 2023. The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

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