With a market capitalisation of just $200 million, Capitol Health Ltd (ASX: CAJ) flies well under the radar of many investors, however today's release to the market of impressive results guidance for the full year may force investors to sit up and take notice.
Capitol health offers diagnostic imaging services such as X-rays and ultrasound. In this regard the company competes with other much larger providers such as Sonic Healthcare Limited (ASX: SHL) and Primary Health Care Limited (ASX: PRY).
Great Results
Capitol is expected to report a 44% increase in revenue to $90.3 million and a whopping 92% increase in profit before tax to $10.2 million, thanks in part to the acquisition of MDI during FY 2014. Investors can also expect to receive a fully franked final dividend of 0.5 cent, which amounts to a 67% increase on the prior year.
Growth to continue
Capitol Health Managing Director Mr John Conidi stated in the release that he expects the, "strong growth to continue in the coming year as we realise the full benefits of our strategic focus on MRI, following on from the expansion of direct GP referrals for MRI for adults."
Given their size it would be hard for Sonic and Primary to grow at anywhere near the rate of Capitol Health. While Sonic and Primary both have impressive businesses, if investors can pick up Capitol at an appropriate price it could well be the better bet.
