Capitol Health Ltd share price up 2% on growth news

The Capitol Health Ltd (ASX:CAJ) share price has grown thanks to a positive update.

| More on:
radiotherapy, cancer, health, private

The Capitol Health Ltd (ASX: CAJ) share price has risen by 1.79% on news of its latest growth plans.

The business has completed the acquisition of I-Rad Radiology, which is expected to add $3.7 million in annual revenue and $0.8 million in earnings before interest, tax, depreciation and amortisation.

The company has also completed two of its three planned clinics for FY18. Those clinics are now open and operational. The two clinics are located at Vermont Private Hospital and Altona in Melbourne. These two clinics expands Capitol’s presence in high-demand areas and builds on its referrer base.

Capitol Health Managing Director, Andrew Harrison, said “I-Rad is an example of Capitol deploying our cash reserves to build our network and deliver value for our shareholders.”

“Our balance sheet is strong and this acquisition, as well as that of Radiology Tasmania, speak to our commitment to deliver on our existing growth strategy through our reserves as well as pursue our proposed takeover of Integral Diagnostics Ltd (ASX: IDX).”

“We believe in the merits of our growth strategy as well as the merits of our offer to Integral shareholders, and are hopeful we will see constructive engagement from Integral’s Board.”

The company confirmed that I-Rad was acquired for an upfront consideration of $3 million with up to an additional $0.5 million payable under earnout over two years.

It also announced that it intends to reinstate dividends for FY18, consistent with restrictions.

Foolish takeaway

Capitol Health could be one to watch as it grows organically and through acquisitions. The ageing population of Australia should be a good tailwind for the business.

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 »