One Health Group – ‘Bringing healthcare closer to you’ – the shares are looking extremely appealing, with increasing sales, profits and cash, shares 210p, brokers TP 292p

20.12.2024

This morning’s Interim Results from the Aquis-quoted One Health Group (AQSE:OHGR) should inspire investors enough to be tucking a few of its shares away right now.

One Health Group utilises specialist consultants and healthcare managers working together to provide the best possible diagnosis and treatment for its patients.

It is an independent provider of free, high-quality NHS care for patients referred through 'Patient Choice' for treatment in Orthopaedics, Spine, General Surgery and Gynaecology.

The Business

Established in 2004, One Health is a leading provider of surgical care across South Yorkshire, Derbyshire, Nottinghamshire, West Yorkshire, Lincolnshire and Hull.

The group engages over 100 NHS Consultants who sub-specialise in the various surgeries offered by the Company, through a growing network of community-based outreach clinics and surgical operating locations. 

In the last year to end-March 2024 it provided much-needed care to 13,266 new patients, through almost 34,000 consultations and over 6,150 surgical procedures.

It currently works with over 100 professionals across 9 independent hospitals and 37 outreach clinics. 

Oberon Capital took the group onto the AQSE market in November 2022, when it handled the Placing of its shares @ 150p each, valuing the company at £15.05m.

Interim Results

The six months to end-September reported a 22% jump in group turnover to £13.30m (£10.94m), while the underlying EBITDA was an impressive 40% better at £0.96m (£0.69m), with a 74% increase in earnings of 7.46p (4.28p) per share, easily covering a 2% rise in the Interim dividend to 2.07p (2.03p).

In the period the Group performed well with strong increases in revenue, profitability and cash, ahead of previous management expectations, representing significant increases on H1 24.

Since the period end, record-high levels of NHS patient referrals to One Health have continued.

In addition, and as anticipated, several NHS Trusts have also approached the company to establish additional capacity available over the second half of H2 25 and H1 2026 to support their demanding internal year-end waiting list targets. 

Management Comment

CEO Adam Binns stated that:

"One Health has performed strongly in the first six months of the financial year, significantly ahead of last year with turnover up 22% to £13.3m, underlying EBITDA up 40% to nearly £1m and new patient referrals up 29% at 7,857.

These referrals include a continuation of NHS patients transferring to One Health from local Trusts to help them reduce their internal waiting lists.

The Trust transfer activity is in addition to patients received through the traditional route by choosing to be referred to One Health through 'Patient Choice' after visiting their GP.

We are very pleased with performance in the first half of the year and expect to achieve our year end forecasts."

The Equity

There are 10,550,093 shares in issue, the larger holders include David Bickerstaff (56.87%), One Health Group Trustees (9.26%), Sirius G (5.07%) and Chelverton Asset Management (3.48%).

Analyst’s Views

Seb Jantet and Julie Simmonds, analysts at Panmure Liberum, rate the group’s shares as a Buy, looking for 292p as their Price Objective.

For the current year to end-March 2025 they estimate sales of £27.0m (£23.0m), with pre-tax profits of £1.9m (£1.3m), raising earnings to 14.8p (9.7p) and paying a 6.2p (6.1p) per share dividend.

For the coming year the analysts go for £29.0m sales, £2.2m profits, 17.6p earnings and a 6.3p per share dividend.

In My View

Over the last year this group’s shares have gradually moved up from 185p to the current 210p, valuing it at only £22.0m.

Considering its early stage of development, One Health Group shares are too cheaply valued, especially as it is making attractive profits and could have some £4.5m of cash on its balance sheet come end-March.

We will hear more about this group over the next year or so, make sure some are tucked away in your AQSE portfolios.