26/03/2008
Operating at the intersection of the medical and legal professions, Mobile Doctors joined AIM last July to increase the pace of expansion. Having made its first acquisition in December, the company is eyeing a few more.
Mobile Doctors' main service is the supply of independent medical evidence, from its network of 2,500 UK doctors to lawyers and insurance companies engaged in personal injury claims, for anything from road traffic accidents to professional negligence cases. Ancillary services include the organisation of MRI scans and X-Rays as well as after-care such as hospital treatment and physiotherapy.
The UK’s personal injury claims market is growing strongly, with the number of accident claims having risen 8.3% in 2006/07. Founder chief executive Matthew Game says, ‘It’s quite a crowded market and we feel it’s a great opportunity for consolidation.’ He wants to more than double the group's market share by doing one or two more acquisitions, promising that ‘the next one’s significantly bigger’.
Recent results for the year to November showed a turnaround to profits of £835,000 before tax and exceptionals. A new outsourced back office facility cut the cost per case by 19% and Game foresees this being shaved quite a bit further. In March, two sizeable contracts were won – one with a law firm and the other with an arm of personal insurance intermediary group BGL. Game predicts the total net value of these contracts to the company will be around £10m during the next two and a half years.
House broker Daniel Stewart had upgraded its earnings forecasts from 6.6p to 7p for 2008, even before the recent wins. Mobile Doctors has a lot going for it and looks a good defensive buy for the long term.
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| Market cap: | £10.03m |
| PE Forecast: | 8.6 |
| Share price: | 60p |
| AIM | £3.93m |
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| Other company articles: |
| 02/06/2008 |
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