CAJ +4.84%: the diagnostic imaging company reported FY22 results today, coupled with an accretive acquisition that saw shares trade higher. Revenue grew 3.5%, and although it was down 3.5% in the second half, the fall was less than that implied by Medicare data. EBITDA was down 14% to $41m in line with market expectations. They extended the buyback which was left untouched in FY22, highlighting the strong balance sheet position the company holds. Capital Health has also announced the acquisition of FMIG for $56.1m, adding another 6 clinics in Victoria. The acquisition will add 16% to EBITDA and is expected to generate high single-digit EPS accretion.
MM is bullish CAJ and long in the Emerging Companies Portfolio
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