Integral Diagnostics Ltd reports: Underlying NPAT up 22.7%

Integral Diagnostics Ltd (ASX:IDX) reported a good set of numbers today.

| More on:
radiotherapy, cancer, health, private

Integral Diagnostics Ltd (ASX: IDX) reported its half-year result to 31 December 2017 today.

Integral Diagnostics is one of the larger radiology businesses on the ASX. Here are some of the highlights from its report compared to the prior corresponding period to 31 December 2016:

  • Operating revenue up 5.8% to $92.8 million
  • Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 12.4% to $19 million
  • Underlying earnings before interest and tax (EBIT) up 17.6% to $14 million
  • Underlying net profit after tax (NPAT) up 22.7% to $9.2 million
  • Free cash flow increased by 70.2% to $17.7 million.
  • Cash and cash equivalents increased by $4 million.

Underlying profit is the best measure of performance because the statutory performance includes one-off acquisition costs.

Management believe that the long-term drivers remain for the business. A number of Medicare and government changes means that the business’ future is rosier than before.

The ageing population of Australia will also be a very positive tailwind for the business over the coming years.

The business expects that normalised FY18 NPAT for the whole year will come in at around 20%, this prediction excludes the takeover costs.

Management expect to deliver revenue growth stronger than previously expected, better cost efficiency initiatives, a lower effective tax rate and lower capital spending due to economies of scale.

The board also gave an update about the takeover offer from Capitol Health Ltd (ASX: CAJ). The board re-iterated that shareholders should do nothing until they have read Integral Diagnostics’ target’s statement, which will be provided no more than 15 days after Capital Health has dispatched its bidder’s statement. The target’s statement will contain the Board’s recommendation.

Capitol may bid a higher amount for Integral, but I wouldn’t buy shares just for that purpose.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

The share price of ASX infant products retailer Baby Bunting Group Ltd (ASX:BBN) has been a solid performer so far …

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

A new landmark report by the Intergovernmental Panel on Climate Change (IPCC) was released earlier this week. It provided a …

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest …

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos Limited (ASX: AMS) share price has been on a tear this past week, rising 15% on the back …

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

Online furniture retailer Temple & Webster Group Ltd (ASX: TPW) had a breakout year in 2020, moving from relative obscurity …

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

Shares in ASX healthcare company Polynovo Limited (ASX: PNV) almost doubled in price last year. And, despite a shaky start …

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

Investing in other geographic markets has become a popular way to diversify a portfolio. The risks associated with being exposed …

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

Despite the News Corporation (ASX: NWS) share price getting a 31% bump between November last year and today, News Corp …

Read more »