One Health Group [AQSE:OHGR] is the Aquis-listed, Sheffield-based healthcare provider published a trading update for the six-months to the end of September earlier this week.
The company had been operating for 20-years providing customers elective surgery and supporting the NHS through a network of community-based outreach clinics and independently managed hospitals. The company’s business model focuses on the NHS’ Patient Choice Initiative by treating patients on NHS elective surgery waiting lists.
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Given the crisis the government claims is overwhelming the NHS, trade for One Health has been brisk, with the healthcare provider reporting improved revenue and earnings year-on-year, which came in ahead of expectations.
One Health an NHS contractor
One Health Group primarily makes money through contracts with the NHS. Patients do not pay for the procedures they receive through One Health, as the NHS covers the cost. The company receives funding from the NHS based on the number of patients they treat, and the types of procedures performed. This funding model allows One Health to provide free healthcare services to NHS patients while generating revenue for the company.
In terms of revenue, One Health saw its revenue grow 20.7% to GBP13.4m year-on-year on the back of a 29% spike in new patient numbers. The revenue numbers were ahead of market expectations and management said that its second half was traditionally the better half of the year and should be ahead of market expectations.
One of the clouds that has hung over One Health’s operations has been the junior doctors strike in the NHS. However, with a new Labour government coming into power in July and finding resolution to the industrial dispute, One Health said it expects revenue for the year to be positively impacted as a result of the associated increase in the NHS tariff. This uplift, alongside a growth in patient numbers and One Heath increasing its roster of surgeons, means that earnings should exceed the previous year-end expectations of GBP1.9m.
With GBP4.9 in the bank at the end of 1H24 and an increased headcount, things are looking up for the medical services provider. Furthermore, with One Health planning expansion of the group through new surgical hubs – the company has nine hospitals and 37 clinics currently – with the company to submit planning permission for a new unit imminently, which from ground-breaking should be complete within one-year. The majority of One Health’s clinics and hospitals are mainly in the north of England and Midlands.
One Health considers AIM listing to fund growth
The growth potential of One Health has meant that it needs to find new sources of capital and is considering an AIM-listing. Adam Binns, One Health’s CEO said: “Our business model provides high quality surgical care, local to the patient, free at the point of delivery, and is becoming more widely recognised for helping to reduce the pressure of waiting lists on the NHS, supported by a greater level of awareness of ‘Patient Choice’ amongst the general public. We continue to look forward to the future with confidence.”
The company welcomed nearly 8,000 patients at its clinics in the half-year period. The group specialises in Orthopaedics, Spine and Back Surgery, Gynaecology and offers General Surgery including hernia repair, gallbladder removal, and appendicitis (the operational breakdown as at end-September was Orthopaedics 46%; Spine 22%; General Surgery 22%; Gynaecology 10%).
One Health offers its patients an efficient service, expediating patients on NHS waiting lists, sometimes reducing wait-time from six months to six weeks, and through post-operative care. The company hires its own qualified surgeons and nurses and is on a recruitment drive currently.
The company opened trading on 5th November at 210p and was up 35.5% over one-year and up 7.7% year to date with shares ranging between 160p and 210p over 52-weeks. The company has a market cap of GBP22.2m. One Health Group’s strong performance and strategic initiatives position it well for future growth. With a focus on patient care, efficient operations, and expansion plans, the company is poised to continue making a positive impact on the healthcare landscape.
