The Paragon Care 2018 Annual Report has been added to the ASX and the Paragon Care website. Following is an excerpt from the Chairman’s Report on page 5 of the PGC Annual Report.
The Period in Review
The financial year ended 30th June 2018 was the busiest and most transformative year in the short history of the Company. Nine strategic acquisitions were successfully completed that resulted in a more balanced portfolio of businesses as well as a greater geographical reach where we materially invested for the first time in New Zealand, Queensland and South Australia. During the 2017/18 year, Paragon has delivered on its key strategy of becoming a less cyclical and more diversified business by key investments in the Device, Service & Technology and Diagnostic sectors. Our Capital and Consumable business continued to grow however other growth initiatives has seen Capital and Consumables reduce from 70% of the Company to around 40%.
Highlights for the year ended 30 June 2018 included:
- Revenues up 17% to $136.7m
- Gross Margins up from 39% to 40%
- EBITDA up 6% to $18.2m (up 15% to $19.7m before acquisition and restructuring expenses)
- EPS down from 6.2c to 5.4c (however EPS was 6.6c on Full Year Pro Forma basis)
- A 3% increase in Full Year Dividends
- Andrew Just was welcomed in January 2018 as the Company’s new CEO and Managing Director to take control of levels of growth – both organic and via acquisition
- Brent Stewart, an accomplished healthcare professional joined the board following the acquisition of Surgical Specialties in April
- A $69m capital raising in February 2018 at 72.5c per share (30th June 2018 closing price of 76.5c per share)
- A post balance date $45m share placement representing 15% of the Company at 91c per share via a new trategic investor, Pioneer Pharma (Australia) Pty Ltd wholly owned subsidiary of China Pioneer Pharma Holdings Limited
- Nine key and strategic acquisitions joined the Company including one of New Zealand’s premier healthcare services providers, REM Systems
At the end of the 2018 financial year, on a Pro Forma basis, Paragon’s revenue was $238m, effectively double the revenue generated in 2017. Growth of this nature is exciting but it comes with a huge amount of work and resources required to efficiently integrate and provide a value add for our shareholders. To date, all acquisitions over the past 9 years have been successfully integrated, managed and grown. There is a lot more to do in extracting greater benefits, savings and synergies from these businesses. The team led by Andrew Just are very focused on strong organic growth and the Company has invested heavily in the sales team through both additional numbers and better training and support systems.
On behalf of the Board, I would like to thank our shareholders, employees, suppliers and distributors for their continued support. The market Paragon operates in is still young and fragmented with solid long term growth prospects. Our new strategic shareholder, China Pioneer Pharma Holdings give us additional opportunities grow our business into the Asian Region and we therefore move into the 2019 year with great confidence.
On behalf of the Board, I would like to thank the employees, customers, suppliers and shareholders of Paragon Care for their continued support. The management team led by Managing Director Andrew Just continues to deliver outstanding results and we move into the 2018 year with great confidence.
27 August 2018