First Half (1H FY2021) Results Deliver Improved Profitability and Cashflow

Paragon Care delivered a solid first half financial result with improved profitability and cashflow.  Our diversified product portfolio generated revenue stability, down only 5% on the previous corresponding period due to the disrupted healthcare market.  EBITDA was up a significant 63% to $14.7m, reflecting the improved margins and streamlined operations.  Gross margins were up slightly to 38.7% and we delivered over $7m in annualised savings.

Operating cashflow increased to $15.5m due to the significant reduction in days debtors and inventories.  In the first half, we also paid out over $14m to vendors in earn-outs from previous acquisitions.  As at March 2021, there are no further vendor payments outstanding, thus leading to future improvements in cashflow moving forward.

Our focus is now on organic growth and continuous improvement to drive revenue growth and operational efficiency across all four pillars.  We expect further opportunities to capitalise on our existing local manufacturing capability and we are well positioned to benefit from growth in aged care moving forward.

Paragon Care CEO, Phil Nicholl, recently discussed the first half results with Finance News Network (FNN).

  • See here for the key highlights of the first half results
  • See here for the full investor presentation of the first half results

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