- Record financial results in 2015:
- – PLN 49.33 million revenue, +66% YOY
– PLN 22.74 million EBITDA, +57% YOY
- Increase in revenue on subscription sales by 129% YOY; decrease in revenue on device sales (-28%) due to the legal dispute with one of the distributors, AMI Monitoring Inc
- Net result charged with additional costs of dispute with AMI Monitoring Inc. and financial costs related to the decrease of fair value of investment certificate
- The process of acquisition of another U.S. strategic partner, Medi-Lynx Cardiac Monitoring, LLC (initiated in 2015) is an opportunity for speeding up the Group growth
- An ambitious, long-term motivation program for the key managers adopted after the balance date provides additional support for the long-term strategic plan of the Company growth
Medicalgorithmics S.A., a provider of cutting-edge system and algorithmic solutions for cardiovascular diagnosis, particularly for ECG analysis, has published its annual report for 2015. Last year, the Company revenue reached PLN 49.33 million, which means an increase by 66% YOY. At the same time, EBITDA increased by 57% YOY and reached PLN 22.74 million. Medicalgorithmics S.A. ended the year with PLN 13.93 million net profit, which was similar YOY (-4.1%).
– We are proud of the financial results in 2015. High, double-digit increase in revenue and EBITDA confirm the increasing interest in our innovative solution, PocketECG, and make us optimistic about the planned launch of the product on another markets,” says Marek Dziubiński, the President of the Board of Medicalgorithmics S.A. “This time we cannot boast of the equally dynamic increase of the net profit, since it has been negatively impacted by increased costs related to the on-going dispute with one of our strategic partners in the U.S. – AMI Monitoring Inc. This situation forced our organization to face numerous business challenges on an unprecedented scale. However, I am confident that this is only temporary and will make Medicalgorithmics S.A. stronger as a unique opportunity for faster Company occurred with the acquisition of the other strategic partner in the U.S. – Medi-Lynx Cardiac Monitoring, LLC – which is now being finalized”.
The reported Medicalgorithmics S.A. profit in 2015 was also influenced by increased financial costs related mainly to the negative valuation of Bezpieczne Obligacje CEF investment certificates owned by the Company. The certificate devaluation results mainly from the investment fund write-off adjusting the bonds of Spółdzielczy Bank Rzemiosła i Rolnictwa in Wołomin due to the petition in bankruptcy of this bank filed by KNF (Polish Financial Supervision Authority). As of the date of publishing the financial report for 2015 and according to the information available to the Board, there were no other events which could result in significant devaluation of the owned certificates.
Medicalgorithmics S.A. net profit excluding the influence of the most important one-time events reached PLN 26.4 million at the end of 2015, which represents an increase by over 82% YOY. Taking into account the structure of sales in the discussed period, the revenue on PocketECG subscription sales increased by 129% YOY, and the revenue on the PocketECG device sales decreased by 28% due to the court dispute with one of the distributors (AMI Monitoring Inc.).
“The normalization of our situation on the U.S. market – especially no more additional costs related to the legal dispute and finalizing Medi-Lynx Cardiac Monitoring, LLC acquisition – will enable Medicalgorithmics S.A. to continue dynamic growth and increase financial results. Additionally, an ambitious, long-term motivation program for the key managers adopted after the balance date shall provide additional support for efficient execution of the long-term strategy of the Company growth,” stresses Marek Dziubiński.