Medica shares rose after the teleradiology group set out financial targets in a presentation to investors.
The company said it was targeting organic growth at its UK business of 12-14% and more than 15% for its US and Irish units in the short-to-medium term with a goal of about £100m in revenue in three-to-five years.
In the short-to-medium term gross margins will exceed 45% with underlying operating profit of more than 20%, Medica said. The company will seek return on capital employed of at least 15% from acquisitions within a reasonable period while seeking to keep group ROCE above 20%.
Medica shares, up 40% in 2021, rose 5.6% to 169p at 11:53 BST.
Underlying operating profit to cash conversion will continue to be at least 80%, Medica predicted. The company said in July that first-half trading was positive as diagnostic services in the UK and Ireland picked up with the easing of the pandemic.
Stuart Quin, Medica’s chief executive, said: “Medica’s management team has worked hard to develop and begin executing upon a strategy that we believe will allow us to significantly scale and diversify the business. With market-leading teleradiology expertise, we have a strong platform upon which we can grow organically, whilst simultaneously looking for value-generating acquisitions. We are pleased with the progress we have made against this strategy so far.”
