Medica Sector: Healthcare and Pharmaceuticals Date of investment: May 2013 Date of exit: Mar 2017 Return: 7.0x invested capital CBPE contact: Anand Jain The proof “CBPE have been an incredibly supportive investor, bringing expertise and advice to help us achieve the growth so far. As a management team, we are excited by the IPO in further building Medica’s profile with existing and potential new clients. We are looking forward to introducing new services to benefit our clients and ultimately leveraging our platform to help more hospitals cope with ever growing demands. Our business model is based on maintaining the highest clinical governance standards and a robust technical platform, which alongside the strong fundamentals in our sector, positions us well.” John Graham, CEO of Medica A robust platform for growth Maintaining exceptional clinical standards while facilitating growth for Medica Group The opportunity Medica Group is the largest remote radiology reporting network in the UK. It provides high value radiology services including outsourced interpretation and reporting on MRI, CT and plain film images for over 100 NHS hospitals in the UK. We supported Medica’s management team to complete a buyout from former owners, Nuffield Health. There was a clear opportunity to add scale while also improving Medica’s platform. This would ensure that Medica’s extremely high clinical standards were maintained as the business grew. The strategy We invested in systems, processes, operational infrastructure and management in order to create a robust platform that would allow Medica to significantly scale its activities. This was achieved through a combination of higher volumes from existing clients, winning new clients and expanding the service offering. Specifically, we made a substantial investment in Medica’s technology platform to improve its robustness, scalability and ability to deliver best-in-class service. Average turnaround times for an emergency out-of-hours scan have been reduced to under 20 minutes: a market-leading performance that can have a highly positive impact on a patient’s prognosis. The improvements to the platform also enabled Medica to expand its service offering into adjacent areas such as Rheumatology. Another key area of focus for our team was to strengthen Medica’s clinical governance. At the time of our investment, Dr Stephen Davies (ex-President of the British Institute of Radiologists) joined the Board as Medical Director. In addition, we established a new Clinical Advisory Group comprising two other former Presidents of the British Institute of Radiologists as well as several other highly respected radiologists. The result Medica grew significantly under our ownership. Headcount rose from around 38 to 85 at the time of our exit, while the number of consultant radiologists more than doubled from 103 to around 250. Daytime scan volumes grew by 42%, with out-of-hours volumes growing by around 45% CAGR 2013-16. Revenues increased from £13.8m in 2013 to £28.5m in 2016, with EBITDA rising from £4.7m to £9.2m. In March 2017, Medica became a publicly listed entity on the Main Market of the London Stock Exchange at an Enterprise Value of £160m (17.4x 2016 EBITDA). We realised 85% of our equity shareholding at the listing and have generated a return of 7.0x invested capital to date. We retain a small residual shareholding. Previous All case studies Next Get in touch We’re not silent investors, we’d like to talk and find out more about you. If you feel the same, please get in touch. Contact T +44 (0)20 7065 1100 enquiries@cbpecapital.com Location CBPE Capital LLP 2 George Yard London EC3V 9DH Media enquiries Peter Ogden Powerscourt Phone: +44 (0)20 7250 1446 Email: Peter.Ogden@powerscourt-group.com Copyright © 2021 CBPE Capital LLP. All rights reserved. CBPE Capital is committed to conform with the Walker guidelines. CBPE Capital LLP is authorised and regulated by the Financial Conduct Authority. Privacy Policy. Legal. Make an enquiry Name Email Message Send