The fundamentals of Vitura Health are “back on track” with its Q4 performance forecast to hit all business targets, chief executive Geoff Cockerill has said.
In a trading update, the company said revenue growth in the final quarter of FY25 should support an annualised increase of 11%, while margins and a reduction in operational expenditure are forecast to rise 3% and improve 10% respectively, in line with its FY25 goals.
In addition, earnings before interest, tax, depreciation and amortisation (EBITDA) should increase 20% year-over-year, Vitura said.
However, its full-year revenue is still likely to fall short of the 10% target set out in last year’s strategic “reset”.
Similarly, operational expenditure will reduce by only 3% for the 12-month period following the costs associated with the acquisition of Candor Medical and the Releaf Group joint venture.
In February, Vitura admitted that its growth plans “might take a bit longer than expected”.
But Cockerill said progress in Q3 and into Q4 was encouraging.
“Our strategy reset has now been in place for nearly 12 months and under a renewed leadership team, we’re encouraged to see the benefits of our hard work starting to emerge,” he said. “We’ve got the fundamentals of the business back on track and we’re looking forward to continuing that momentum into the near and mid-term future.”
Vitura reported revenue and EBITDA increased successively during February, March and April which it said demonstrated “positive momentum in line with the company’s stated objectives”. Synergies are “already evident” with Candor, it added.
Additionally, the company said it is continuing to add new suppliers to its Canview platform. It also flagged continued diversification of the Doctors on Demand patient base.
“The team is focused on leveraging the company’s momentum to deliver a positive finish to FY25, setting the foundations to execute well against the company’s strategy into FY26 and beyond,” Cockerill said.
Vitura shares climbed 4.16% to 7.5 cents in early Monday trading. The company is valued at A$47.68m.