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PRO MEDICUS LIMITED Annual Report 2007
65579_rns_2007-08-27_8d4f125e-4fbb-4abd-89e0-a64d96adc7e0.pdf
Annual Report
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28 August 2007
Pro Medicus delivers 3rd successive record profit
Financial highlights for year to June 2007
- Record NPAT (net profit after tax) of $7.05 million, up 15.3%.
- Record revenue of $13.03 million, up 11.9%.
- Operating margin increased to 77.6% from 75.8%.
- Final dividend increased to 3 cents per share fully franked.
- Special dividend of 1 cent per share fully franked.
- Total dividend for the year a record 7 cents per share fully franked (up 27%).
- Revenue from US and Canadian operations grew to $3.1 million, representing approximately 24% of the company's revenue - an increase of 34%.
- Cash reserves maintained above $11 million.
- The Company remains debt-free.
Business Highlights
- US Agfa deal delivering results with revenue up 40% on the previous year.
- Agfa's Imaging Centre team continues to successfully target the 8,500 Imaging Centres and community hospitals throughout the US.
- Agfa reports a growing percentage of leads converted to sales in the past six months indicating increased acceptance of the solution in the marketplace.
- Launch of advanced billing module for the US extends product offering to a broader segment of the market.
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- Strong contribution from Canada with revenue increasing by 20% from additional licence fees and recurring service revenues.
- In Australia over 40 practices (up from 25 a year ago) now use Pro Medicus digital integration technology with more sales expected as the efficiencies of digital imaging become more compelling for radiology businesses.
- Over 25,000 Australian doctors are now registered to use promedicus.net with transaction volumes growing by 7% to 3.1 million.
Leading medical IT and e-health company, Pro Medicus Limited (ASX:PME) has produced its 3rd consecutive record profit with a net profit after tax of $7.05 million for the year to June 2007, an increase of 15.3% over 2006.
Revenue rose by 11.9% to a record $13.03 million with income from North American operations growing to $3.1 million, a rise of 34%. The company holds a cash position in excess of $11 million and remains debt free. Pro Medicus has declared a final dividend of 3 cents per share with an additional special dividend of 1 cent per share bringing the full year payout to 7 cents per share fully franked, an increase of 27% over the previous year.
Sam Hupert, Managing Director of Pro Medicus said "This has been another successful year for us. Not only did we achieve record results in terms of revenue and profit, we have gained significant traction in our markets creating an excellent foundation for future growth. In Australia, the predicted move to digital by radiology practices has accelerated and we are ideally positioned to continue to benefit from this trend. We have also made considerable progress in both the US and Canada to the point that these countries now contribute nearly a quarter of our revenue, and we see growth continuing."
Outlook
Australia
Digital imaging
The move to digital has accelerated over the past year. The company now has over 40 sites using its digital imaging integration technology (up from 25 at the same time last year) with the number of practices adopting this technology predicted to grow in the coming year. Key drivers for this change are the significant efficiencies and clinical benefits this technology has been shown to deliver.
Telephone (03) 9429 8800 Fascimile (03) 9429 9455
e-health
Over 25,000 doctors are now registered to use promedicus.net, the company's ehealth network. This represents an increase of 15% over the previous period making promedicus.net the largest e-health network in Australia. The company continues to look for ways to extract additional value from the network.
Canada
Revenue from the AltaPACS contract increased during the period driven by new licence sales, recurring support revenue and the release of a new electronic patient master index (EMPI) interface. The EMPI software allows electronic verification of patient demographics against the regional records. This has enabled the construction of a single repository for all patients' diagnostic images in the province.
This software has been developed using international standards and will be applicable to other markets.
Agfa North American Contract
The company continues to make very solid progress in the US with revenues from the Agfa North American contract increasing by 40% over the past 12 months as a result of increased market penetration by Agfa's specialist imaging centre team.
Strike rate as measured by the percentage of leads converted to sales has increased by 15-20% over the past six months indicative of increasing market acceptance of the product. Agfa is continuing to grow its sales funnel and has recorded several new wins over the last months including its first sale to a large imaging centre group ranked in the Top 50 in the US.
A number of new capabilities have been introduced into the US product offering throughout the year including the recently released advanced US billing module as well as the integration of Agfa's Talk Technology voice recognition product. These developments further differentiate the product offering in a market where many imaging centres spend large amounts outsourcing their billing and transcription.
As a result, market penetration in the US is expected to accelerate throughout the 2008 financial year as Agfa and Pro Medicus build on the solid base that has been created.
Telephone (03) 9429 8800 Fascimile (03) 9429 9455
For further information:
Dr Sam Hupert Rudi Michelson Pro Medicus Limited Phone: +61 3 9620 3333 Phone: +61 3 9429 8800
Managing Director Monsoon Communications
About Pro Medicus
Pro Medicus Limited [ASX: PME] is Australia's leading medical IT and e-health provider. Founded in 1983, the company provides a full range of integrated software products and services to individual, corporate and public health providers. Over 25,000 doctors are now connected to the company's e-health service, promedicus.net, with the number of transactions across the network between GPs and specialists growing strongly. A key growth area for the company is the adoption of its digital technology by radiology providers as they move away from analogue systems. An increasing number of Australian practices are taking up Pro Medicus' digital technology and the company is now also making substantial inroads into the North American market. In late 2004, the company signed a watershed three-year $10 million deal with Agfa to exclusively license the Pro Medicus Practice Management and digital radiology software products for the large and rapidly growing private imaging centre market in the US and Canada. It subsequently announced a $2.6 million contract with a large Canadian radiology group which was completed in 2005.