The market has reacted negatively to Integral Diagnostics’ FY21 results.
The post Integral Diagnostics (ASX:IDX) share price slides 14% on FY21 earnings appeared first on The Motley Fool Australia. –
Right now, the Integral share price is trading at $4.62, 14.44% lower than its previous close.
Integral Diagnostics share price down despite revenue boost
Here’s how the diagnostic imaging provider performed in FY21:
$350.9 million of revenue, 27.2% higher than that of FY20
Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to $88.9 million, up 28.5% on the prior financial year
Net profit after tax of $38.1 million, up 25.3%
$66.5 million of free cash flow
7 cent fully franked final dividend, up from FY20’s 4 cent final dividend.
Integral Diagnostics received $6.6 million in JobKeeper payments in FY21. Of that, it chose to voluntarily pay back $2.9 million ($2 million after tax).
The company experienced organic revenue growth of 12.2% in Australia and 12.5% in New Zealand. Its average fee per exam also increased by 3.3%.
The company ended the period with $62.2 million of cash and $137.4 million of debt.
What happened in FY21 for Integral Diagnostics?
FY21 was a busy period for Integral Diagnostics and its share price.
The company acquired New Zealand-based Ascot Radiology in September. Integral said Ascot’s operating performance in 9 diagnostic imaging clinics was in line with expectations.
In February, Integral also announced a joint venture with UK-based Medica Group. The companies will provide teleradiology reporting services and additional reporting capacity in Australia, New Zealand, the United Kingdom, and Ireland.
In addition, the company has added new technology to many of its sites during FY21. It installed a 3T non-rebateable MRI at the Spine Centre on the Gold Coast, a second CT in Toowoomba, and a Cardiac CT in Busselton.
Integral also initiated an MRI service for the Western Australia Health Service and replaced an older MRI with a new 3T MRI at Ascot Radiology.
It also opened several new clinics and solidified plans to develop 4 sites in FY22.
What did management say?
Integral CEO and managing director Dr Ian Kadish commented on the results:
Our financial performance in FY21 was strong. Our patients and referrers were well taken care of, and our teams across the business delivered all that was asked, and more.
COVID-19 outbreaks and associated government lockdowns and border closures all took a toll, team morale was impacted, but the professionalism, dedication and commitment of our doctors and staff has been inspiring.
What’s next for Integral Diagnostics?
Here’s what those interested in the Integral share price might want to keep an eye on in FY22:
The company believes COVID-19 will continue to impact its business. It notes that the first half of FY22 has already seen its businesses hit with restrictions and closures.
In FY22, it will focus on organic growth, accelerating digital and AI technologies, strategic expansion opportunities, and its environmental, social and governance strategy.
Integral also expects its business to grow in the longer term due to the growing elderly population.
It noted that increasing occurrences of chronic disease and promising new digital, imaging, and AI technologies placed it in a strong position.
Additionally, MRI, CT and PET scans are well-positioned for growth from new diagnostic applications in the fields of oncology, cardiology and neurology.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.