One Health Group plc: strong H1 results as new patient referrals increase 12%

One Health Group plc (AQSE:OHGR), a provider of NHS-funded medical procedures, has announced its unaudited interim results for the six months ended 30 September 2023.

Financial Highlights

The Group has performed well in the first half with excellent increases in revenues, profitability and cash. The interim dividend has been increased by 22% to 2.03p per share.

Declaration of Interim Dividend

One Health Group has announced that the Board of Directors has declared an interim dividend at the rate of 2.03 pence per share, to be paid on on 12 January 2024 to shareholders on the register as at close of business on 22 December 2023.  The ex-dividend date will be 21 December 2023.

Operational Highlights

·      New patient referrals increased by 12%

·      Surgical procedures carried out on some 3,000 NHS patients, a 7% increase

·      Surgical activity started at a new independent hospital in a new geographical area

·      Additional capacity sourced within two current independent hospital partners

·      Attracted 15 new clinicians to the business to support growth.,

·      Increased demand for Waiting List transfers with two new NHS Trust contracts

·      National media campaign launched by the NHS to promote knowledge of ‘Patient Choice’ will increase GP referrals.

Planned developments & Potential Profit Impact

·      Another 30 clinicians in the application process.

·      Surgical hubs are being actively pursued to increase the Group’s surgical capacity to help to satisfy the demand from the NHS.

Review of the period

Operationally, 2023 has seen a further increase in the national NHS waiting list and industrial action causing disruption to NHS patients care caused by cancelations. As a result demand for support by the independent sector remained high during the first half of the year. During the period we saw an increased demand for waiting list transfers and direct referrals from NHS Trusts. The Group has attracted 15 new clinicians to the Group into new geographical areas and continues to expand surgical capacity in existing areas, meaning One Health is well placed to support the NHS in the second half of the year, traditionally our busiest period. The Group continues to work closely with NHS trusts to support the reduction of waiting lists for elective care.

From a financial perspective One Health has performed well in the first half of the year. Financial performance is in line with management and market expectations and as we enter our busiest period of the year, we are confident we will achieve full year revenue and profit expectations.

Cash reserves at the end of September 2023 of £3.64m support ongoing investment in growth and our progressive dividend policy. The Board is therefore declaring an increased interim dividend of 2.03p per Ordinary Share (H1 22/23: 1.66p per share) to be paid on 12 January 2024 to shareholders on the register as at close of business on 22 December 2023. Last year’s interim dividend was agreed by the Board before the business was listed and was paid in January 2023. Following the IPO in November 2022, the Group is adjusting the profile of dividend payments and expects the interim dividend to represent 1/3 of the full year dividend going forward.

Adam Binns, Chief Executive Officer, said:

“One Health has performed well in the first six months of the financial year, with turnover up 13% to £11.06m, underlying EBITDA up 48% to nearly £0.8m and new patient referrals up 12% at 6,094.

“Notably these referrals include an increasing number of NHS patients transferring to One Health from local Trust waiting lists to help them reduce their internal waiting lists, with two new contracts secured in H1. The Trust transfer activity is in addition to patients received through the traditional route by choosing to be referred to One Health through ‘Patient Choice’ after visiting their GP.

“We are pleased with performance in the first half of the year and expect to achieve our year end forecasts.”