Capitol Health (ASX: $CAJ) HY FY24 Results Summary

Capitol Health Limited (ASX: $CAJ) has released its half-year financial results for FY24, reporting a significant 20.1% increase in revenue to $117.8 million compared to the previous corresponding period (pcp). The operating EBITDA also saw a notable surge, rising by 21.4% to $23.9 million, with the operating EBITDA margin increasing to 20.3% from 20.1% pcp. However, the free cash flow experienced a substantial decline of 96.1% pcp, amounting to $0.3 million. The net debt to LTM operating EBITDA ratio stood at 2.1x, while the interim dividend for FY24 was maintained at 0.5 cents per share fully franked.

Executive Commentary on HY FY24 Performance

The company's HY FY24 performance reflects our strategic focus on expansion, operational excellence, next-generation technology, and becoming a destination employer. We have successfully integrated FMIG into our network, opened a new MRI comprehensive clinic in Melbourne, and made significant progress in radiologist recruitment and workforce stability. Our growth initiatives, including organic revenue growth and unifying the clinic operating system nationally, are yielding positive results. Despite challenges such as the impact of neighboring fire events and increased costs, we remain committed to delivering exceptional patient experiences and pursuing operational excellence.

Summary of HY FY24 Results and Outlook

Capitol Health's HY FY24 results demonstrate robust financial performance, marked by substantial revenue growth and improved operating EBITDA. The company's strategic initiatives, including expansion, operational excellence, and next-generation technology, have contributed to its positive momentum. Looking ahead, Capitol Health aims to continue its organic revenue growth, align labor resources to patient demand, and focus on cost-to-serve reviews of clinics. The company remains committed to its vision of being the diagnostic imaging specialists of choice, serving communities with compassion, integrity, and precision. Despite economic uncertainties and challenges, Capitol Health is optimistic about its future prospects and is dedicated to maintaining its position as a leading provider in the Australian healthcare market.