MedPal AI (LSE:MPAL) said its group annualised revenue run rate increased to more than £38 million following further growth in September.
The digital health and pharmacy group generated approximately £3.2 million of revenue during the month and dispensed more than 58,800 prescription items and orders.
Revenue at its New Health business rose approximately 50% month on month to more than £2.7 million, generated from over 22,600 orders.
Repeat and Recurring Revenue Exceeds £1 Million
MedPal said repeat orders, NHS prescriptions and eMARx subscriptions generated more than £1 million of revenue in September, representing around one-third of group revenue.
The company said these orders generated higher average order values than first-time orders and expects the proportion of repeat and recurring revenue to increase as recently acquired customers reach their reorder dates.
MedPal is also expanding capacity at Sarus Court using proceeds from its recent £5 million placing. An enlarged GLP-1 production line is expected to increase daily order capacity to 14,000 by the end of October.
MedPal Seeks Receivables-Backed Financing
The company said its growth has created additional working capital requirements because payments for medication are made before the receipt of NHS reimbursements and supplier rebates.
MedPal is in discussions with UK clearing banks regarding a receivables-backed financing facility and also expects changes to supplier credit terms.
The company said these financing arrangements, if completed, could reduce its reliance on additional equity funding. No agreement on a bank facility has been confirmed in the supplied material.
Shareholders to Vote on New Equity Authorities
MedPal is convening a general meeting to seek renewed authority for directors to issue equity securities after existing authorities were used in connection with acquisitions, fees and other share issuances.
The company has also granted warrants owed to its broker, Clear Capital, some of which have been exercised. MedPal expects to issue the remaining shares associated with the warrants after obtaining the required shareholder authorities.
Following admission of 3.7 million warrant shares, the company’s issued share capital will comprise 889,949,135 ordinary shares. Each share carries one voting right, and the company holds no shares in treasury.
Shareholders are being asked to approve the renewed authorities ahead of MedPal’s next annual general meeting, scheduled for March 2027.
MedPal AI Operations
MedPal AI operates digital healthcare, pharmacy and software businesses in the UK. These include NHS Distance Selling Pharmacy hubs, the New Health GLP-1 weight-management service, eMARx medication administration software and a pharmacy supply operation serving care homes.
The group is also developing Juno, an AI health companion built using Anthropic’s Claude, as part of its planned Health OS platform connecting prescribing, dispensing, delivery, medication administration and patient support.
MedPal’s shares are traded on AIM and Frankfurt.
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