Pro Medicus Limited (ASX: PME) shares have started the week positively.
In fact, the health imaging technology company's shares have climbed to a record high of $88.69.
Why are Pro Medicus shares rising?
The catalyst for this rise has been the release of the company's annual general meeting update this morning.
Ahead of the event, Pro Medicus released a presentation that spoke positively about both its performance in the first quarter and its outlook.
In respect to the first quarter, the company revealed that it is "ahead of budget on constant currency."
It also highlights that, as we have covered previously, it has achieved a "record level of contract wins in the first 5 months" of the financial year. A total of $200 million will be generated from these contracts at a minimum.
Management also notes that these "contract wins span multiple market segments" which reinforces its large total addressable market.
Pleasingly, despite its record contract wins, it still has a strong pipeline across a broad range of opportunities. Furthermore, it is strategically positioned to leverage artificial intelligence and other ologies.
Commenting on FY 2024, Pro Medicus' chair, Peter Kempen, said:
The budget for the current financial year has been determined recognising anticipated continuing strong growth, from both existing and new clients. I am pleased to advise that results to date are ahead of budget on a constant currency basis and further ahead with the impact of a lower Australian dollar, relative to the US dollar. We anticipate that the second half of the financial year will be stronger than the first half, as is traditionally the case.
Looking further ahead, Kempen is very positive on the company's medium-term outlook. He adds:
As I mentioned at last year's AGM the Company has adopted a new strategic plan for FY24-FY26 which sets our objectives and our strategies for the next three years. The Board and management have set aggressive growth targets in keeping with the Company's current and potential opportunities. We are in the process of progressively implementing our plans to achieve our next growth phase. We are all committed to achieving further successful outcomes envisaged within the new strategic plan.
Pro Medicus shares are up over 50% on a 12-month basis.
