MedLife’s shares rally on Q3 earnings and profit capitalisation
MedLife Group (BVB ticker: M), the leader of the private medical services market in Romania, announced on November 13 above-expectations earnings in the third quarter.
On the same day, MedLife summoned its shareholders to approve the capitalization of retained earnings and distribution of free shares.
The combined effect was a 19% rally of the company's shares on the Bucharest Stock Exchange in the November 16 trading session.
The company's market capitalization thus reached RON 1.05 billion (EUR 215 mln), the highest level since its listing almost four years ago.
This year, the share price has advanced by close to 40%. MedLife reported a turnover of RON 770 million (EUR 158 mln) in the first nine months of 2020, an increase of 8.4% compared to the same period of 2019. The profit reached RON 44 mln (EUR 9 mln) in the period, up 126% year-on-year.
"These results give us an excellent perspective for the period of difficult economic and social recovery after the pandemic and until its end. The figures look good, we are revving our engines again, we are structuring new business plans, we are reactivating the M&A program and last but not least, we are developing new projects related to tech and research," said Mihai Marcu, president and CEO of MedLife Group.
The company summoned its shareholders on December 15 to approve the capitalization of RON 27.5 mln (EUR 5.6 mln) by issuing new shares to be distributed for free to existing shareholders.
The company's equity would rise six-fold from RON 5.5 mln (EUR 1.1 mln) to RON 33 mln (EUR 6.8 mln). The group will also elect new board members for the next four years.
The board members get a monthly net remuneration of EUR 5,000 while the chairman of the board gets EUR 7,000 per month.
(Photo courtesy of the company)