After two years of lockdowns and pandemic health concerns, the sun is back shining on allied health company Healthia (ASX: HLA) which saw a big upswing in trading in November and December after many had been putting off non-urgent medical appointments during the pandemic.
The increased trading was witnessed across Healthia’s three disciplines – podiatry, physiotherapy and optometry. Importantly, the Company is no longer witnessing abnormally high staff absenteeism. During the peak of COVID-19 and its subsequent outbreaks, unwell clinicians resulted in cancelled appointments for the clinic.
In their latest trading update, Healthia expects that its revenue for the six months ended 31 December 2022 (H1) will be approximately $122.5m – $127.5m. On the low end, this would represent a 31.7% increase on the previous corresponding period.
On the earnings level, underlying EBITDA is expected to be in the range of $17.7m to $18.3m which would be a 45-50% increase on last year.
The strong uplift in trading has prompted Healthia to reconfirm its FY23 guidance where the Company anticipates more than $40 million in underlying EBITDA. At the lower end, this will represent at least a 63% increase on FY22 when delivering $24.5m.
“Trading conditions in H1FY23 have shown the business is moving back toward pre-pandemic levels, with impacts from patient cancellations and staff absenteeism subsiding,” said Healthia CEO, Wesley Coote.
“We are pleased with the expected underlying H1FY23 performance, particularly over key trading months in November and December. Trading to date in January is pleasing and in line with our expectations, with a strong recovery against last year which was impacted by COVID-19.
“We are proud of the engagement of our team and business and look forward to continuing to deliver on our organic and acquisition growth, via our 4-3-4 strategies, for the remainder of FY2023.”
The 4-3-4 strategy was unveiled by Coote in October 2022 at Healthia’s Inspired 2022 conference which was attended by more than 1,000 allied health professionals from the Healthia network. More specifically, it focuses on Healthia’s 4 key strategies, 3 unique selling propositions and 4 measurable outcomes which were detailed in their recent investor newsletter.
Increased trading following the Inspired 2022 conference reflected a boost in morale across the Healthia network where many team members met face-to-face for the first time in three years. The event featured allied health experts from around the world sharing research on the latest medical developments in the allied health industry, and industry-leading education that enable clinicians to offer new services at their respective clinics.
In the months ahead, Healthia expects increased trading to be assisted with their latest graduate intake where 110 allied health professionals enter the Healthia Graduate Program next month. The program has been particularly popular amongst podiatry, physiotherapy and optometry graduates who have a clear pathway towards clinic ownership within Healtha’s network of more than 300 allied health businesses.
Included in Healthia’s trading update was confirmation that the Company intends to deploy at least $20 million towards clinic acquisitions in FY23. Inbound inquiries are primarily generated by Healthia’s public profile where the Company has proven its marketing, human resources, IT and administrative services drive organic growth in clinics upon integration into the Healthia network.
Healthia will report its audited Half Year results in February 2023.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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