MedPal AI is scaling at remarkable speed, with September trading showing further acceleration and the Group now running at more than £35 million of annualised revenue just eleven months after starting from zero.
The latest trading update from MedPal AI plc (LSE:MPAL) provides another clear indication of the pace at which the AI-native digital health and pharmacy group is building its business.
The headline number is striking: based on trading between 1 and 19 September, MedPal’s annualised revenue run rate has climbed to more than £35 million, up from approximately £28 million in August and £8.6 million in July. The company is careful to point out that these are annualised figures based on monthly trading rather than forecasts.
For investors, however, the direction of travel is difficult to ignore.
New Health continues to drive the acceleration
The key growth engine is New Health, MedPal’s dedicated GLP-1 weight-management clinic.
New Health generated more than £1.5 million of revenue in the first 19 days of September, from more than 12,000 orders. That represents a daily trading rate approximately 35% higher than August, while August itself delivered revenue growth of more than 800% compared with July.
The customer numbers are expanding just as quickly.
New Health has now acquired more than 25,000 customers since marketing began in July, compared with more than 16,000 reported just two weeks earlier.
That rapid customer acquisition is already translating into significant operational scale.
On 15 September, New Health recorded its biggest trading day to date, dispensing 2,000 orders and generating approximately £300,000 of revenue in a single day.
For a business that only began trading in June, the progression is significant.
The repeat-order opportunity
Perhaps one of the more interesting elements of the update is what could happen as the rapidly acquired customer base matures.
MedPal says 27% of first-time customers have already placed a second order, despite the majority of New Health customers having joined during the second half of August or in September and therefore still being on their first month’s medication.
That gives the company an increasingly valuable second layer of potential growth: new customer acquisition alongside repeat purchasing from the existing customer base.
Importantly, repeat orders do not carry the same customer acquisition cost as the initial sale, meaning the company expects margins to widen as the customer base matures.
This is potentially an important part of the investment story as MedPal moves from rapid customer acquisition towards building a recurring customer relationship.
£5m raise to fund the growth
MedPal has also announced a £5 million placing at 5p per share, predominantly supported by existing shareholders alongside institutional and other investors.
The key point is where that capital is going.
Approximately £4 million of the £4.7 million net proceeds will be used to fund medication stock and working capital, allowing the Group to purchase medication ahead of receiving NHS payments, supplier rebates and VAT reclaims.
A further approximately £700,000 will be invested in expanding the GLP-1 pick-and-pack operation at the company’s Sarus Court facility.
That investment is expected to increase capacity to 14,000 orders per day, equivalent to approximately £2 million of orders per day, with the expanded line expected to be operational by the end of October.
In other words, MedPal is putting capital behind infrastructure designed to accommodate further growth.
A business beginning to scale
There is another potentially important development in the background.
MedPal has opened discussions with UK clearing banks regarding a working-capital facility secured against its receivables. The discussions remain at an early stage, but if successful, the company expects such a facility could reduce the need for further equity to fund its working-capital cycle as the business expands.
That would represent an important evolution for a company currently growing so rapidly that working capital itself has become a constraint.
CEO and founder Jason Drummond summed up the situation by saying that growth at this pace needs to be funded and that the placing allows MedPal to accelerate rather than pace its growth according to available cash.
The bigger picture
MedPal’s story is increasingly about more than a single fast-growing digital pharmacy.
The Group’s annualised revenue now comprises approximately £29 million from New Health, £5.6 million from NHS prescriptions and £0.8 million from eMARx, according to the latest update.
That combination gives MedPal exposure to digital pharmacy, healthcare services, NHS prescriptions, GLP-1 weight management and its developing health technology platform.
The numbers also demonstrate just how quickly the business has moved.
From zero to an annualised revenue run rate above £35 million in eleven months is a dramatic rate of expansion. The next question for investors is whether MedPal can convert that rapid top-line growth into a progressively more profitable and cash-generative business as customer numbers mature, repeat orders increase and operational capacity expands.
For now, the latest update suggests that MedPal is still accelerating rather than slowing down.
With more than 25,000 New Health customers, record daily order volumes, early evidence of repeat purchasing, a £5 million injection of growth capital and capacity expansion underway, the company enters the final quarter of 2026 with its operating platform being built around a business that is scaling at pace.
For investors watching the rapidly evolving UK digital-health market, MedPal’s latest figures put the company firmly on the radar.
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