New contracts at Magellan more than double in H1 2010

2010-07-20

Magellan, the provider of financing solutions for healthcare providers and suppliers, reported a dramatic increase in the value of new contracts concluded in the first six months of the year. The company expects a continuation of rapid growth in the second half of 2010.
In the six months to the end of June, Magellan closed contracts worth almost PLN 392.7m (€96.7m), which represents an increase of 114% compared with the same period a year ago. (The figure includes short- and long-term financing agreements with customers in Poland, the Czech Republic and Slovakia).
Of this, off-balance sheet agreements (i.e. framework and conditional agreements), surged 57% y-o-y to PLN 123.4m (€30.4m). New balance-sheet agreements, a category which is a more immediate pointer to sales performance, soared by 156% y-o-y over this period and amounted to PLN 269.2m (€66.3m). In the second quarter, new off-balance sheet agreements were up by 27% y-o-y while balance sheet agreements by 137% y-o-y, with both results marking a slowdown compared with the January-March period.
In a statement to the Warsaw Stock Exchange, Magellan noted that the strong half-yearly results were due to a combination of new contracts with existing customers and expansion of its customer base, and stressed that it was not dependent on any particular client: in H1, it closed 836 balance-sheet agreements with a total of 213 customers, with the average contract worth PLN 0.32m (€0.08m).
Magellan is yet to publish its sales figures for the first half of 2010.