Solid operating performance with strong pathway to growth post merger with Quantum Health Care
Paragon Care Limited (ASX: PGC), a leading provider of medical equipment, devices and consumables to the healthcare markets in Australia and New Zealand, is pleased to report its financial results for the half year ended 31 December 2021 (“1H FY22”). Key highlights from the results include:
-- Significant improvement in underlying EBITDA: In 1H FY22, Paragon Care delivered a 20% improvement in underlying EBITDA (excluding the $3m contribution from JobKeeper in 1H FY21).
-- Improved gross profit margins and NPAT: Revenue stabilised in 1H FY22 at $111.3m, down by 3% on 1H FY21, which was a solid result in a business environment which continued to be challenging due to COVID-19 related lockdowns and business disruptions. However, profitability increased in 1H FY22 due to an increase in gross profit margins to 42% (up from 38.7% in 1H FY21) and NPAT increased to $5.4m in 1H FY22, up 4% on 1H FY21.
-- Merger with Quantum Health finalised: Paragon Care and Quantum Health Group officially combined operations on 16th February 2022 to create a leading medical distribution business across Australia, New Zealand and South-East Asia. Pro-forma results in 1H FY22 for the combined entity show revenue of $137.7m and EBITDA of $19.4m and a materially strengthened balance sheet.
-- New CEO and Group Managing Director: In December 2021, Paragon Care announced the appointment of Mark Hooper as Chief Executive Officer and Group Managing Director. Mark Hooper ended his former role as CEO of Sigma Healthcare (ASX:SIG) on 31 December 2021 and will commence his role with Paragon Care on 5 April 2022.
-- Two new Directors appointed: John Walstab (Executive Director) and Alan McCarthy (Non-Executive Director) joined the Board of Paragon Care, effective 16th February 2022.
-- Interim dividend declared: A fully franked interim dividend of 0.6 cps has been declared, with a record date of 22 March 2022, to be paid on 26 April 2022. Whilst this represents a 70% payout of Paragon Care 1H NPAT, it represents only a 41% payout of the merger pro-forma 1H NPAT.
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