The ICSGlobal Ltd (ASX: ICS) share price has leapt up 13% today after the company provided a positive guidance update for FY21.
At the time of writing, the ICSGlobal share is price is trading at $2.09.
Strong performance in FY21
The medical billing company says that the results for November 2020 have continued on a positive trend, and as a consequence the board is in a position to provide guidance for the financial year ending 30 June 2021.
ICSGobal expects net profit after tax (NPAT) to be in the range of $1.5 million to $1.7 million. This would be an increase of 22–38% on the prior year’s NPAT of $1.23 million.
The company remains cautious, noting that in the current environment, risks remain including a worsening of the trading environment due to further COVID-19 impacts, and an adverse foreign exchange movement. Should such risks materialise, the company says it will be necessary to revise this guidance.
ICSGlobal also announced the appointment of Graham Dormer as managing director of its medical billing and collections (MBC) business unit. The company says Mr Dormer is ideally suited to this role, having an exceptional background in business operations, finance, IT, and retail.
More about ICSGlobal
ICSGlobal is the largest medical billing company in the United Kingdom, where it derives almost all of its revenue from.
The company’s revenue is based on an ‘annuity style’ model, where it collects on annualised recurring fees.
For the financial year 2020, the company delivered NPAT of $1.23 million, up 22% from the previous year. This came from a top line revenue of $6.08 million for the full year, which was 7% higher than FY19.
The company said that its strategy for 2020 was to implement key operational changes and efficiencies, which it says are now flowing to the FY21 bottom line.
About the ICSGlobal share price
The ICSGlobal share price had lost 5% this year before today’s increase. The share price went all the way down to $1.43 in March, but has recovered strongly since October. At the current market price, the ICSGlobal commands a market value of $20 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post The ICSGlobal (ASX:ICS) share price has climbed 13% today. Here’s why. appeared first on The Motley Fool Australia.
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