Paragon Care (ASX: PGC) share price soars 5% on $8.3 million profit

Financial year 2021 saw Paragon back in the green…

| More on:
Lab worker puts hands in the air and dances around

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Paragon Care Ltd (ASC: PGC) share price is in the green today after the company released its earnings for financial year 2021 (FY21). 

Right now, the Paragon share price is 30 cents, 5.26% higher than its previous close.

Paragon Care share price gaining on return to profit

Here's a snapshot of how the producer of medical equipment, devices, and consumables performed during FY21:

All Paragon's remaining vendor earn-outs from previous acquisitions were completed in FY21. They totalled $15.3 million. 

The company ended the period with $33.1 million of cash and $69.1 million of debt. 

What happened in FY21 for Paragon?

Here's what drove Paragon and its share price in FY21:

Paragon's major news from the financial year just been was a joint venture between Paragon's diagnostic business, Immulab, and Jiangsu Zojiwat Bio-Pharmaceuticals Co. Ltd.

The companies will be working together to distribute Immulab's proprietary in vitro diagnostics blood bank reagents in China. 

To do so, they must complete patient trials in at least three domestic clinical institutions, in line with the recommended National Medical Products Administration (NMPA) approval process. The process will likely take around 2 years. 

The joint venture is Paragon's first foray into China. 

Additionally, Paragon announced it had renegotiated its financial facilities in May. The facilities are with National Australia Bank Ltd (ASX: NAB)

Finally, the company's aged care-related business was impacted by COVID-19. However, these impacts were offset by growth in its devices pillar and expansion revenue in New Zealand. 

What did management say?

Paragon Care's CEO Phil Nicholl commented on the news driving the company's share price today, saying:

These results validate our hard work over the past year to implement continuous improvement processes throughout the company and to diversify our revenue streams across product lines and geographies. The successful renegotiation of our banking facilities was a significant milestone and reflects the underlying strength of our business. We have taken the first steps in our China growth strategy, and we are now investing for growth to leverage our extensive portfolio of best-in-breed med-tech solutions.

What's next for Paragon?

Here's what investors interested in the Paragon share price may want to keep an eye on in FY22:

Paragon has stated it is looking to expand its product range and attract new agency agreements. 

It will also focus on cross-divisional selling to fully leverage the maturing pillar structure. Paragon believes this approach will likely see it report 15% EBITDA margins in the future. 

Paragon share price snapshot

The Paragon share price has gained 30% year to date. It is also 50% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »