Leading medical imaging IT provider, Pro Medicus Limited (ASX: PME) has released its half-year results for FY 2019. For the half-year period, the company reported an after-tax profit of $9.1 million which is 184.3% higher than the previous corresponding period (pcp). Following the release of the results, the share price of the company increased by 5.018% as on 21 February 2019.
The company witnessed growth in the revenues of all Jurisdictions. The revenues increased by 40% in North America, by 30% in Australia, and by 204% in Europe, resulting in the total revenue for the half year increasing by 59.4% to $25.3 million.
During the half-year period, the Company made strong inroads into the North American market winning a key $27.0m contract with Partners Healthcare, the largest health system in the state of Massachusetts and one of the largest and most respected health providers in North America. The Company also made significant progress with all key implementations being on or ahead of schedule.
While commenting on the company’s half-year results, the company’s CEO Dr. Sam Huper informed that there was a significant uptick in transaction revenues in the US as a greater number of transactions flowed from the company’s Yale and Mayo implementations. Dr. Sam Huper further informed that the company’s implementations in Australia are progressing well and its wholly-owned European subsidiary, Visage Imaging GmbH, signed an A$3+million extension to the contract it has with a large German Government Hospital network.
The company’s Board has declared a fully franked interim dividend of 3.5 cents per share and special fully franked dividend of 2.5 cents per share. The payment for Interim dividend of 22 March 2019 and Special dividend of 17 May 2019.
During the half year period, the Company's cash reserves decreased by $0.503 Mn due to a $1.061 Mn increase in dividend payout, $1.683 Mn increase in tax payments and greater investment in R&D for the 6-month period. At the end of December 2018, the company had Cash reserves of $24.735 Mn, and the company remains debt free.
Currently, the Company is looking to further build on its presence in North America. The company is actively pursuing a growing number of opportunities within the enterprise imaging/large teaching hospital and corporate/private imaging centre market.
Now, let us have a quick look at Pro Medicus Limited’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $14.650 with a market capitalization of ~$1.45 Bn as on 21 February 2019. The counter opened the day at $14.450, reached the day’s high of $14.970 and touched the day’s low of $14.270 with a daily volume of 268,882. The stock has provided a Year Till Date return of 22.48% & also posted a return of 52.46%, 52.13% & 8.48% over the past six months, three & one-months period respectively. It had a 52-week high price of $14.970 and touched 52 weeks low of $6.850, with an average volume of 95,591 approximately.
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