Medica Share Discussion Threads

[mighunter] 10/6/2021 11:23

Liontrust had borrowed shares returned to them yesterday... Jupiter closing short? Judging by price, big buy of 887,800 shares just gone through the books. Liberum this morning reiterates Medica as joint top pick in Medical sector, alongside Puretech, with MGP buy and price target of 235p vs 220p previously. Hoping we can make good progress through gap above between 170-190p.

[skyship] 09/6/2021 10:58

Holding up very well considering today's news from CLIN...

[tomps2] 14/5/2021 09:20

David Thornton speaks on Medica’s (MGP) results at 21:59 in the latest piworld interview

Watch the Video here:

Or listen to the Podcast version:

[boonkoh] 13/5/2021 10:39

From BBC this morning:A record high of 4.95 million people were waiting to start treatment at the end of March 2021, according to NHS EnglandMore than 436,000 people had to wait more than 52 weeks to start hospital treatment in March 2021 - compared with 3,097 in March 2020.Me: That's a ridiculous stat. More than 0.5% of the population has been waiting more than 52 weeks for treatment???

[boonkoh] 11/5/2021 09:00

Liberum broker comment out this morning."... the business appears to be tracking in-line with our 2021 forecasts as the Elective recovery gathers pace and hence we don't expect any changes to estimates. Over the next five years we expect Medica to deliver a 22% EPS CAGR to 2025, to diversify its revenue base and to generate c.30% of its market cap in cash. Despite this it still trades at a c.30% discount to peers. As such it remains remains the Top Pick across all 23 of the stocks in our universe."

[adamb1978] 11/5/2021 08:26

I sold out a couple months ago though retained them on the watch list as they generate high returns on capital and have historically delivered. I mainly sold as I didnt like the uncertainty from the acquisitions and price paid for the US business.

In the results, the outlook comments are weak though and my other concern is note 6 everything lumped into 'non-underlying'. I find that kitchen sinking this sort of thing is a common red flag (or course may not be here). They include:

- Costs incurred in respect of board succession <<-- this is a normal cost!
- Setup costs for newly incorporated companies <<-- this is a normal cost!
- Group redundancy costs <<-- this is only £48k so not many so really is business as usual raher than an exceptional

Good company and might have decent prospects on a say 2-3 year basis, but I feel the next 6-12 is too uncertain for me to be able to tell with enough certainty.

All the best for holders (I'll fade into the background again),

Adam

[rivaldo] 11/5/2021 08:09

I sold my small-ish initial holding on the bell in a couple of tranches for a reasonable profit. Results were as expected, but I felt the outlook was somewhat wishy-washy for this year and not as optimistic as I'd hoped. To not reinstate guidance even at this stage - not far from halfway through the year - was telling.

So recovery may not be as quick as perhaps hoped for, and there may be further buying opportunities further along the line. Good luck to holders anyway.

[rivaldo] 10/5/2021 12:29

Good to see the share price continuing to (slowly!) climb - the bid price is now up to 159.5p - before tomorrow's results and (more importantly) outlook update

[jumpingjack2016] 04/5/2021 20:42

Prelims out next week. Fingers crossed for a decent trading update.

[stun12] 28/4/2021 13:28

My son worked there for 18 months or so (Nighthawk) and never had any complaints. It was a couple of years ago, mind.

[phurley] 28/4/2021 11:21

Exceptionally badly. But I guess who cares right, as long as they keep acquiring and making money, thats what counts.

[leopoldalcox] 16/4/2021 09:11

On what basis?

[alphafund] 16/4/2021 08:03

Do they treat their staff badly?

[phurley] 16/4/2021 00:31

Disgusting company lacking moral compass.

[mighunter] 15/4/2021 10:33

Good overview of the company - Interview with Stuart Quin CEO. Also see on BBC that NHS operation waiting lists just hit 4.7m, highest since 2007. MGP sorely needed in future. HTtps://www.share-talk.com/stuart-quin-ceo-of-medica-group-plc-mgp-l-interview/

[mighunter] 08/4/2021 16:57

Tipped today in 1 page article in Shares Magazine

[boonkoh] 08/4/2021 16:53

Good volume today, lots of trades, good rise. Is there a rumour somewhere?

[jumpingjack2016] 26/3/2021 17:01

Very positive write-up of the transaction from Liberum.

Broker has upped its price target to 220p and sees earnings growth of 22% for the next five years

[sharw] 25/3/2021 09:23

They are all 'A' trades - looks like a badly programmed bot.

[mighunter] 24/3/2021 20:01

Did anyone else notice/can give explanation to the near minute by minute buys today in MGP, at deal sizes averaging about 160 shares per trade? Near continual throughout the day, most unlike MGP normal trading pattern? Someone accumulating??

[cockerhoop] 23/3/2021 14:37

If I owned a business with a 4 year orderbook I'd also demand a decent takeout multiple.

Also contained within the acquisition RNS was a trading update - MGP look sure to be involved in post covid effort the reduce the massive elective procedure backlog. Capacity increased by 13%.

[cockerhoop] 23/3/2021 14:23

Liberum

Medica has raised £16m to acquire the US based imaging contract research business (iCRO) RadMD. This gives it access to a highly attractive market (3.5x its core UK teleradiology market) through a quality platform with almost four years of revenue visibility driven by its order-book. We expect RadMD to grow faster as a part of Medica than it would have on its own and view the 11x run-rate EV/EBITDA as good value. We estimate that the deal will be 3% accretive in 2022 and 5% accretive in 2023 whilst it should yield a ROCE of >15% (note we do not change our numbers to reflect this until deal completion later this week). This deal alongside the recent GDI deal reduces NHS revenue from 100% of group in 2020 to less than 75% and should help to drive a further re-rating. Reiterate BUY.

[adamb1978] 22/3/2021 18:21

Looks like a good deal on the face of it and gives them exposure to the US. Business grew at 20% last year despite Covid so whilst multiple is ahead of the Irish deal last year, it seems justified. The two acquisitions take the company into a different scale - £46m revenue in 2019 (pre covid) and they've added about £20m to that through the two acquisitions.

Now need to crunch the numbers to work out where it'll settle down...