Integral Diagnostics Ltd’s (ASX:IDX) fiscal 2018 profit forecast of $18 million implies year-on-year growth of 20%, a substantial increase on previous guidance which pointed to high single digit growth.
The provider of diagnostic health services generated higher than expected revenues in November and December.
Top line growth which will stem from the group’s first half performance, along with improved operational efficiencies, will contribute towards the group’s profitability in 2018.
Integral Diagnostics has also benefited from economies of scale with lower capital spending a result of the company’s improved equipment purchasing power.
Acquisitions, organic growth and cost efficiencies expected to provide sustained earnings momentum
The company currently provides diagnostic services to patients and their referrers at 47 radiology clinics, including 13 hospital sites.
Having increased its footprint through acquisitions and entry into new regions in Victoria, Queensland and Western Australia the company expects continued growth from its established clinics.
However, there is scope for increased capacity at the company’s current areas of representation.
Management will also consider further acquisitions where they provide entry into new geographic regions.