Panmure Liberum’s latest research, led by healthcare analyst Seb Jantet, highlights One Health Group Plc (AQSE:OHGR) as a standout player in the UK healthcare sector, focused on delivering NHS-funded surgical procedures to underserved regions. This strategic approach not only aligns with NHS goals but positions One Health Group as a significant partner in tackling the NHS backlog. With a “Buy” rating and an optimistic target price of 275p, Panmure Liberum underscores One Health’s potential for sustained growth.
Strategic Model Aligned with NHS Needs
Operating primarily in the Midlands and the North of England, One Health Group brings critical surgical procedures in orthopaedics, spine, gynaecology, and general surgery to areas with limited NHS infrastructure. Through 37 community-based clinics and partnerships with independent surgical sites, the group efficiently channels patients through consultations and follow-ups near their homes, with surgeries held at the closest partnered hospitals. “One Health brings NHS capacity to underserved areas,” Jantet explains, noting how their model alleviates waiting lists where demand is greatest.
Growing Patient Access and Positive Market Conditions
One Health Group’s approach also benefits patients by providing shorter wait times – typically around eight weeks versus the NHS average of 20 weeks in some areas. This appeal has led to a consistent increase in procedures performed, with a compound annual growth rate of 12% over the last two years. Jantet’s report points to the efficiency of One Health’s liaison team, which guides patients from consultation through recovery, resulting in a smooth experience that has yielded patient satisfaction scores above 99%.
Scaling through Surgical Hubs for Robust Growth
Looking ahead, One Health aims to open proprietary surgical hubs, which could add an estimated £6 million in revenue per site. With a potential return on investment (ROI) of 10-17%, this expansion is set to “supercharge growth,” according to Jantet. Each hub is designed to address local demand and draw on One Health’s established patient and consultant network, optimising patient outcomes while increasing EBITDA margins to nearly 20%.
A Bright Financial Future
Financially, One Health’s growth prospects are equally compelling. With its current asset-light model, the group has achieved a 15% revenue CAGR over the past two years. Panmure Liberum forecasts suggest that revenue growth will remain strong at 10% CAGR in the coming years. However, if surgical hubs perform as projected, EBITDA growth could double, giving One Health a significant earnings boost.
In Closing
One Health Group’s efficient NHS-aligned model, geographic focus on underserved regions, and plans for surgical hub expansion all point towards a promising investment trajectory. Analyst Seb Jantet affirms, “Shares are cheap in absolute terms and vs closest comparators,” adding that potential developments like a renewed Independent Sector Treatment Centre (ISTC) programme could be “transformative” for the company. With a Buy rating and strong fundamentals, One Health Group is well-positioned to support the NHS and drive value for investors.
