Capitol Health has updated the market on its FY15 unaudited results. Key points revenue of $111.2m (up 23% on FY14 and higher than our forecast of A$108.8m) - driven by above system organic growth (8%) and from acquisitions. Underlying NPBT before acquisitions is A$16.1m (up 58% on pcp and higher than our forecast of A$13.6m) The NPBT margin has increased to 14.6% (from 11.3%). The restructuring and acquisition costs are A$8.3m higher than our $6m forecast. The final dividend is guided at 0.65 cps which is slightly ahead of our forecast of 0.6cps. Tis had full year dividend at 1.2cps ff. The market should respond positively to the solid underlying growth (organic + acquisition). Near-term fundamentals look stretched however the company has put few steps wrong in implementing its acquisition strategy so far. Market will now focus on FY16 where PE is 22x on our forecast. Key risk on the medium term horizon is the Government's review of the Medicare Item numbers which is due to report by year end. (CAJ, Hold, A$0.94). Here is the (VIEW LINK) to the blog
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