The Pro Medicus Limited (ASX: PME) share price is trading 3.36% lower today following the company’s annual general meeting (AGM).
What was covered at the AGM?
Pro Medicus provided shareholders with a breakdown of the company’s current and future market position at its AGM today. The medical imaging IT provider cited significant growth and profitability over the last financial year as the result of executing its strategic plans.
Pro Medicus management elaborated on the company’s new and renewed contracts in its main markets. In addition, the company highlighted that it is well poised for increasing global and local growth citing a growing pipeline of innovative products and strong financial position.
Management also highlighted that the company was tracking ahead of expectations for 2020. Pro Medicus chairman Mr Peter Kempen stated “the board anticipates another strong year with the majority of growth occurring in the second half of the financial year.” Mt Kempen also informed shareholders that “the budget for the current financial years has been determined recognising strong growth and I am pleased to advise results to date are comfortably ahead of budget.”
How has Pro Medicus performed?
Despite trading down more than 4% at one point today, the Pro Medicus share price is up more than 191% over the last 12 months. The company reported earnings for FY19 earlier this year, which saw an 83.1% increase in underlying net profit after tax of $22.74 million. In addition, Pro Medicus paid a 10.5 cent fully-franked dividend for the financial year, up 75% from the previous year.
Despite paying an increased dividend, Pro Medicus was also able to grow its cash position from $25 million to $32 million for FY19. The company was also included in the ASX200 earlier this year after meeting the criteria of market capitalisation and liquidity.
Earlier this month, Pro Medicus announced the signing of a new 5-year contract with the Ohio State University Wexner Medical Centre. The contract, which is worth an estimated $9 million, joins other long-term agreements Pro Medicus has with businesses and institutions in Australia, Europe and North America. Notable names include Duke Health and Partners Healthcare in the United States and Healius Limited (ASX: HLS) (formerly Primary Healthcare) in Australia.
The company’s flagship Visage 7 technology delivers fast, multi-dimensional images to users. Pro Medicus also demonstrated its new Visage AI Accelerator platform at the AGM. The new product is designed to allow clients to implement artificial intelligence in their imaging strategy.
Pro Medicus did not provide guidance for FY20 or a trading update, which could explain why the company’s share price is trading down more than 3% at the time of writing.
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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Pro Medicus Ltd. 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 Scott Phillips.