MedPal AI plc (AIM: MPAL; FRA: Z1N) has reported strong October trading, with group revenue climbing to approximately £4.1 million as its New Health weight management business recorded a sharp increase in repeat orders, taking the company’s annualised revenue run rate to £49 million.
The AI-powered digital health and pharmacy group said New Health generated £3.63 million in October revenue, up 33% from £2.73 million in September, supported by 29,450 customer orders.
Repeat order revenue more than doubled to £1.34 million, compared with £630,000 in September and approximately £100,000 in August, representing more than thirteenfold growth over two months.
Returning customers accounted for 37% of New Health’s October revenue, up from 23% in September. The company said repeat orders carried no additional customer acquisition cost and had an average order value approximately 23% higher than first-time purchases.
New Health has now served more than 53,000 customers since launching marketing activities in July 2026, including almost 20,000 new customers during October.
The business focuses on GLP-1 weight management treatments through its dedicated online clinic, new.co.uk.
MedPal reported that 46% of customers whose 28-day repeat order became due in October placed another order, providing an early indication of customer retention as the business develops.
Across the wider group, October revenue increased to approximately £4.1 million from £3.2 million in September, including around £500,000 from NHS prescriptions and eMARx subscriptions.
This represents an annualised revenue run rate of approximately £49 million, calculated by multiplying October’s revenue by twelve. The figure is a snapshot of current trading activity rather than a forecast of future annual sales.
Repeat orders and recurring subscription income totalled approximately £1.8 million, representing 45% of group revenue, compared with around 33% in September.
The growing contribution from returning customers could support more predictable revenue and reduce the company’s reliance on acquiring new customers.
MedPal is also expanding its operational capacity to support increasing prescription volumes, with New Health customer services and prescribing now operating seven days a week.
Pharmacy dispensing has increased to six days per week, while Sunday delivery has been introduced to improve service availability.
The company’s AI assistant, Juno, handled 91% of New Health’s WhatsApp replies during October, with 85% of WhatsApp conversations completed without human intervention.
MedPal believes the technology can help manage increasing customer enquiries while limiting the additional staffing requirements associated with rapid growth.
An expanded GLP-1 dispensing line at Sarus Court is expected to open in late November 2026, increasing potential processing capacity to 14,000 orders per day.
The additional capacity is intended to accommodate further growth and support the company’s extended operating schedule.
MedPal reported combined cash, receivables and inventory of approximately £6.2 million at 31 October, compared with £6.4 million on 6 October.
Cash balances were approximately £2 million, including more than £500,000 held by its card payment processor and expected to settle within three days of the related transactions.
The company also reported £2.5 million in VAT recoverable, approximately £400,000 in October NHS prescription income and £500,000 in estimated manufacturer rebates, with the latter two amounts expected to be received during the second week of November.
Medication inventory stood at approximately £750,000 at cost.
MedPal continues discussions with potential lenders over a working capital facility, having received indicative term sheets from several institutions.
The proposed facility could provide additional financial flexibility as the group invests in stock, dispensing infrastructure and customer service capacity.
Founder and Chief Executive Jason Drummond highlighted the rapid expansion of New Health’s repeat order business, describing returning customers as the fastest-growing component of its revenue.
He said the company’s strategy centred on competitive pricing, reliable delivery and customer service, supported by automation and expanded pharmacy operations.
For investors, October’s trading figures demonstrate continued revenue growth and an increasing contribution from repeat customers, with the group building a larger recurring and repeat-order revenue base.
However, the £49 million annualised run rate does not represent contracted annual revenue or guaranteed future sales, while the reported growth figures remain unaudited.
The company’s ability to translate revenue growth into sustainable profitability will depend on customer retention, treatment margins, acquisition costs, operating expenditure and working capital management.
Attention will now turn to the opening of the expanded Sarus Court dispensing facility, further repeat-order growth and progress towards securing a working capital facility, as MedPal AI seeks to scale its digital pharmacy operations and AI-enabled healthcare services.
