Cost Cuts and Service Shifts: Can Doctor Care Anywhere Sustain Its Turnaround?

• £2.2m positive operating and investing cash inflow in Q2 2025
• 1.3% quarter-on-quarter increase in consultations
• Introduction of Physiotherapy and Mental Health services
• New contracts signed with Santé Group, Zest, and Biffa
• £4.8m cash on hand and convertible debt maturing in 2028

Historic Cash Flow Milestone

Doctor Care Anywhere Group PLC (ASX – DOC) has achieved a significant financial milestone in the quarter ended 30 June 2025, reporting a positive total operating and investing cash inflow of £2.2 million (approximately A$4.5 million). This marks a notable turnaround from near breakeven in the prior corresponding period and a £1.6 million outflow in the previous quarter. The improvement was driven by increased customer receipts, including a one-off payment from AXA, and substantial cost reductions following a restructuring program.

Operational Performance and Patient Engagement

Consultation volumes rose modestly by 1.3% quarter-on-quarter to 176,051, aligning with management expectations despite a 7.3% year-on-year decline largely attributed to the phased closure of the secondary care pathway. Activated Lives, the number of registered patients, increased 15% year-on-year to 1.2 million. Returning patients accounted for 73% of consultations, reflecting strong patient retention and engagement, boosted by a simplified booking process on the company’s app.

Service Expansion and New Contracts

In a strategic move to broaden its care offerings and reduce costs, Doctor Care Anywhere introduced Mental Health Practitioners and Physiotherapists to its platform during the quarter. This diversification aims to enhance patient access to a wider range of services. The company also secured new contracts with Santé Group, Zest, and Biffa, expanding its footprint in corporate wellbeing solutions and virtual GP services.

Financial Position and Future Outlook

At quarter-end, the company held £4.8 million (A$9.8 million) in cash, supported by a convertible loan facility of £10.6 million maturing in January 2028 with zero coupon interest. Management reiterated its medium-term guidance to double revenues within 3 to 5 years from £38 million in 2024, targeting a compound annual growth rate between 12% and 19%, alongside an underlying EBITDA margin of 15%. Ongoing transformation initiatives are expected to deliver further cost savings in the second half of 2025, underpinning the path to sustained profitability.

Navigating Challenges and Opportunities

While the closure of the secondary care pathway has impacted consultation volumes year-on-year, the company’s focus on operational efficiency and service diversification positions it well for future growth. The success of new service lines and contract wins will be critical to validating the company’s growth trajectory and margin improvement ambitions.

Bottom Line?

Doctor Care Anywhere’s positive cash flow and service expansion mark a pivotal step, but the market will watch closely for sustained revenue growth and margin gains.

Questions in the middle?

• How will the new Physiotherapy and Mental Health services impact long-term revenue and margins?
• What are the risks and opportunities associated with the phased closure of the secondary care pathway?
• Can the company sustain and accelerate consultation growth amid evolving telehealth competition?