The Pro Medicus Limited (ASX: PME) share price has come under pressure following its full year results release.
In morning trade the Pro Medicus share price is down almost 5% to $24.10.
How did Pro Medicus perform in FY 2020?
For the 12 months ended 30 June 2020, the leading health imaging company reported a 23.9% increase in revenue from underlying operations to $56.8 million.
Management advised that this was driven by solid growth in key jurisdictions, with North American revenue up 23.7% and Australian revenue rising 19.2%. This offset a 37.7% decline in revenue in Europe, which was largely a result of the one-off sale to the German government in the previous period.
Thanks to a lift in its margins to 52.5%, underlying profit before tax (which excludes a $3 million one-off capital sale to the German government in the previous period) was up 33.4% to $30.24 million.
On the bottom line, Pro Medicus posted a full year reported net profit of $23.1 million. This was up 20.7% on the prior corresponding period.
In light of this strong form and its very strong balance sheet (cash reserves of $43.4 million and no debt), the board declared a fully franked final dividend of 6 cents per share. This lifted its total FY 2020 dividend to 12 cents per share, up 14.3% year on year.
Pro Medicus’ CEO, Dr. Sam Hupert, was pleased with the company’s performance in FY 2020.
He said: “It reinforces the momentum achieved in recent years. Key drivers of the profit increase were growth in transaction revenue in North America and increased RIS sales in Australia. The three key contract wins in the USA extends our growing footprint in the academic hospital segment as well as regionally-based community hospitals.”
The chief executive also provided investors with an update on how COVID-19 was impacting the business. Pleasingly, while there has been some impact, it has not been substantial.
Dr. Hupert said: “We have kept momentum going operationally, and our client volumes have increased steadily after an initial steep drop in exam numbers at the end of March/beginning of April. By 30th June, average examination volumes were back above 90% of normal business levels across the USA and Australia. Compared to many other businesses, we have held up very well.”
No guidance was given for FY 2021, but the chief executive notes that its pipeline remains strong and has continued to grow even during the pandemic.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and 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.
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