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.

Other case studies


Sector: Financial Services

Date of investment: Jul 2012

Date of exit: Mar 2018

Return: 4.4x MoC

CBPE contact: Ian Moore


Sector: Healthcare and Pharmaceuticals

Date of investment: Aug 2006

Date of exit: Feb 2013

Return: 3.2x MoC

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Sector: Healthcare and Pharmaceuticals

Date of investment: Sep 2005

Date of exit: Apr 2015

Return: 22.0x MoC

CBPE contact: Sean Dinnen