The Integral Diagnostics Ltd (ASX: IDX) share price is having a day to forget on Wednesday.
In morning trade, the ASX healthcare stock is down 30% to $2.00.
This follows the release of the medical imaging services provider's half year results.
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ASX healthcare stock crashing 30% today
- Revenue of $252.9 million
- Operating EBITDA of $46.2 million
- Operating net profit after tax of $8.8 million
- Statutory loss after tax of $0.4 million
- Interim dividend of 2.5 cents per share
What happened during the half?
For the first half, Integral Diagnostics reported consolidated revenue of $252.9 million. This reflects a 7.8% increase in standalone revenue to $249.4 million and a $3.5 million contribution from the Capitol Health business.
As a reminder, Integral Diagnostics and Capitol Health merged late last year to create an almost $1 billion diagnostics imaging group.
Operating EBITDA was $46.2 million for the half. This was driven by an 8.2% increase in Integral Diagnostics EBITDA to $46.8 million, partially offset by an EBITDA loss of $0.6 million from Capitol Health.
On the bottom line, a statutory loss of $0.4 million was record, disappointing the market and sending many investors to the exits.
Commenting on the half, the ASX healthcare stock's CEO, Dr Ian Kadish, said:
On a standalone basis we have seen solid revenue growth in 1H FY25, but have also experienced higher than expected clinical staff cost inflation, particularly in two remote regional areas. The continued organic growth of IDXt and recruitment initiatives will help to address these regional clinical cost challenges.
Dr Kadish remains positive on the future despite the tough half. He said:
The fundamentals of the radiology industry are strong, and will be materially strengthened by further deregulation of MRIs and the introduction of a National Lung Cancer Screening Program (NLCSP) in Australia, both effective from 1 July 2025.
The merger with Capitol Health provides us with increased scale that will improve margins and growth in metropolitan areas. The merger synergies of at least $10.0m before tax annually are on track, and going forward the Company is ideally positioned to materially benefit from the merger synergies, MRI deregulation and the NLCSP.
Outlook
No real guidance was given for the second half. But management advised that it remains focused on key operational improvement initiatives, which are expected to improve its operating EBITDA margin over time.
Furthermore, the integration of IDX and Capitol, following the merger on 20 December 2024, is progressing well and is on track to deliver at least $10 million of annual pre-tax net cost synergies. The majority is expected to be realised within the first year post implementation.
