Another brilliant result from this outstanding company. Here’s the headline numbers.

Revenue from ordinary activities $44.33m – up 40.3% ▪ Underlying profit before tax $28.8m – up 53.5%

▪ Net profit $20.68m – up 52.7%

▪ Cash reserves $76.17m – up $14.91m

▪ Company remains debt-free

▪ Fully franked interim dividend 10c per share – up 42.9%

Pro Medicus CEO Dr Sam Hupert said the result represented the strongest half-year revenue and profit results in Pro Medicus’ history, powered by contract wins and renewals in the US and an extension of a European contract to cover new regions.

“We thought it was a good result with all our key financial indicators heading in the right direction, not just revenue growth but also profit growth, margin expansion and retained earnings,” he said. “There were two key drivers behind the result. Firstly, the jump in transaction revenue from our US contracts, as several large implementations came on-stream towards the second half of FY21, such as Northwestern, NYU and Medstar. Secondly, the extension of the German government contract to a fourth hospital. Renewals of contracts should also not be underestimated; they are like a whole new contract.”

Dr Hupert said the company recorded growth in revenue in all key jurisdictions: USA, Europe and Australia. “Our pipeline remains strong with a good spread of opportunities in different markets. Many are Cloud-based – a trend gathering significant momentum – and many are interested in more than one of our Visage solutions.”

Dr Hupert said the company’s operations had not been unduly affected by Covid-19.

“Exam volumes in North America were strong, and in many cases greater than pre-Covid levels. The only region that was marginally affected was Australia, where the majority of our revenue is not exam-based. In terms of sales capability and implementations these were not impacted. During the half we did a mix of remote, onsite and hybrid remote/onsite implementations.”

“Our pipeline remains strong with very healthy representations across academic, non- academic/IDN, corporate and private market opportunities. Many are for more than one of our products and increasingly we are seeing opportunities that have Cloud-first policy which favours us as we believe we are the only company to have a proven, fully Cloud-native offering that operates at scale.”

Disc: Held IRL