For those of you in the room, could you please check that your mobile technology or anything that pings or bings is turned off or switched to silent? For a safety purpose point of view, if we do need to have any form of evacuation alarm or sound, please wait in the room, hopefully not for too long, until an emergency warden directs you to the evacuation points. It's now 10:00 A.M., and I'd like to begin the meeting by acknowledging the traditional owners and custodians of the land on which we meet today, the Wurundjeri people of the Kulin Nation, and I pay my respects to their elders past and present. I have been advised that a quorum is present for the meeting and therefore declare the meeting open.
Today's meeting is being held in person and virtually via the Computershare platform where attendees can watch through a live audio webcast of the meeting. Shareholders and proxies can ask questions and vote online. To provide you with sufficient time at each vote, I now declare the voting open on all items of business. A number of shareholders have already voted and/or appointed proxies ahead of the meeting, and we thank you all for doing so. We will show you the proxy voting results for each item ahead of discussion on the item.
I'll take you through a few procedural steps for voting and submitting questions for those in person, also those online. Following that, I will give an address, and Dr. Ian Kadish, our Managing Director and CEO, will follow with his address. Finally, we'll turn to the formal votes in the meeting.
Before we begin, I would like to introduce my fellow directors here with me today: Dr. Ian Kadish; Raelene Murphy, Independent Non-Executive Director and Chair of our Audit Committee; Andrew Fay, Independent Non-Executive Director and Chair of our People and Culture Committee; Ingrid Player, Independent Non-Executive Director and Chair of the Risk Compliance and Sustainability Committee; Laura McBain, Independent Non-Executive Director; Dr. Kevin Shaw, Independent Non-Executive Director; Dr. Manish Mittal, Radiologist Director; and right at the end of the line, Craig White, our CFO. They very handily sat in order.
That is quite impressive. Very well organized whoever did that. I'd also welcome our auditors, PwC, represented by their lead engagement partner, Amanda Campbell, and her team. She's able to answer any questions related to the conduct of the audit or the auditor's report. Assisting today is John Marrity, our Company Secretary.
Several members of our management team and our advisors and banking advisors are in the room, so thank you for joining us today. The notice of meeting dated 29th September 2025 has been distributed to all shareholders and is taken as read. I'll just discuss voting quickly. By joining the annual meeting today, you as Integral Diagnostics shareholders or your appointed proxy will have the opportunity to vote if you've not already done so.
Voting today will be conducted by way of poll on all items of business, and Computershare will act as the independent returning officer. For those attending the meeting online, you are eligible to vote as the poll is open. A voting icon is available on your screen. Selecting this item will bring up a list of resolutions and present you with voting options.
For those voting online, you are free to submit your votes at any time during the meeting. To cast your vote, simply select one of the options. There's no need to hit submit as your vote is automatically recorded. Please ensure you cast your vote for all resolutions. You will receive a vote confirmation notification on your screen.
You may change or cancel your vote online at any point until the poll is closed. For shareholders, proxies, and corporate representatives attending in person, I'll ask you to vote once we've gone through all the items of business today by completing the blue voting card that was provided on your admission to the meeting. White cards are for visitors only who cannot vote and cannot ask questions during the meeting. Shareholders with a yellow card are not entitled to vote on the items of business.
I will provide a warning before I move to close the voting at the end of the meeting. I'll just run through how to raise questions during the meeting as well. It's my duty to ensure that all shareholders have the opportunity to ask questions and discuss items of business during the meeting. We ask all questions and comments be concise and, of course, respectful, and be directed to the particular item of business that is being discussed and to matters relevant to shareholders as a whole. Given this is a hybrid meeting, for each item of business, I'll take questions firstly from those physically present in the room, followed by audio or written questions from participants who've joined us online, and lastly, questions received in advance of the meeting.
So far as we can, general questions that don't relate to resolutions before the meeting received prior to the AGM and during the AGM will be addressed after the items of formal business. If you are attending the meeting in person, only shareholders, validly appointed proxies, and corporate representatives who are given a blue or yellow voting card upon entry are entitled to ask questions. When I call for your questions, please raise your blue or yellow card and state your name or the shareholder who you represent before asking your questions. For those attending the meeting online who wish to submit a written question, you may do so at any time during the meeting via the Q&A speech bubble icon on your screen. Place your question in the chat box on the right of the screen and select Send.
Confirmation that your message has been received will appear on your screen. Please note that while you can submit written questions from now on, I will not address them until the relevant time in the meeting. While time constraints may prevent us from answering all questions, we'll do our best to address all the questions that you may have during the meeting. To ask a question verbally, please follow the instructions shown below the broadcast window on the online platform. If you are asking a verbal question, please state your full name before asking your question, and please limit your question to only one or two questions at a time. Rejoin the queue to allow others to ask questions. That is the formal process items out of the way for the meeting and how the meeting will flow.
I'm very pleased to be addressing you today as Chair of Integral Diagnostics. As a healthcare company, we have been built on excellent foundations and have strong values. Our services dramatically improve the diagnosis and treatment of illness and injury in the communities in which we operate across Australia. Our doctors and employees are motivated, committed, and I'm proud to be leading IDX as it enters an exciting new chapter of growth following our merger with Capital Health. Importantly, IDX is well positioned to future capitalize on industry tailwinds to drive strong revenue growth and further margin expansion, particularly through MRI deregulation, the new National Lung Cancer Screening Program, and GP bulk billing practice incentive program, which commenced, I believe, tomorrow. Our CEO, Dr. Ian Kadish, will have more to say on these issues. I'll just move to our performance for the year.
In FY25, IDX delivered strong financial results enhanced by a merger with Capital Health. On a consolidated basis, IDX delivered revenue growth up 33.7% to $628 million, improved operating EBITDA margin of 20.1%. Strong growth in operating diluted EPS of 32.9%, and a final dividend per share of $0.212. The Capital Health merger synergies materially came in above expectations, and we're expecting synergies of $40 million to be achieved on an annualized basis, with $7 million achieved in FY25. We have a strong balance sheet with reduced leverage of 2.6 at June 30, 2025, and a 2.4x, including the pro forma annualized capital synergies. The merger with Capital Health has been a great success clinically, culturally, and financially. IDX now operates in 145 clinics across Australia and New Zealand, with 459 employed or contracted radiologists.
We're already realizing the strategic benefits of the Capital Health merger across tele-radiology, procurement, and employee engagement, and we expect future benefits to come. As I mentioned earlier, the carefully planned and executed integration strategy has already delivered $7 million in cost synergies in the first six months and is expected to deliver synergies of $14 million by the end of this calendar year. This is well in excess of the $10 million synergies projected at the time the transaction was announced.
Our increased scale, improving margins, and successful integration of Capital Health means that IDX is well placed to take advantage of additional M&A growth opportunities as they arise and as industry consolidation continues. This year, we made significant progress embedding sustainability into the foundation of our business. Ensuring environmental, social, and governance responsibility is central to the way we operate.
In doing so, we continue to align our sustainability efforts with our stakeholders' expectations, evolving regulatory requirements, and the long-term needs of our patients, people, and communities. IDX has introduced three strategic pillars for our sustainability journey: healthy people, healthy planet, and trusted governance.
People are at the center of what we do. We are focused on healthy people. In FY25, IDX served over 1.8 million patients and performed more than 4 million examinations, contributing to positive health outcomes for the communities in which we operate. We delivered safety and compliance training across operations and supportive functions. The functions continued focus on clinical leadership development through structured programs for our radiologists and frontline teams. We also commenced development of a First Nations strategy to guide structured engagement with that community in future years.
FY26 will see us further advance workforce well-being initiatives and build organizational capability and diversity, equity, and inclusion, ensuring our workplace reflects and serves the communities in which we operate. I'm very pleased that IDX has taken these key steps for our contribution towards a healthy planet. This year, IDX completed our first unified greenhouse gas strategy, establishing an organizational baseline and developing an emissions reduction ambition to guide credible target setting for the future.
We also commenced work on renewable energy procurement and improved data collection to strengthen our Scope 3 reporting. In this current year, we will focus on completing compliant climate change scenario analysis, progressing our decarbonization strategy with a focus on Scope 2 and Scope 3 emissions, and integrating climate risk into the enterprise-wide governance program. In terms of trusted governance, we formalized our Sustainability Committee with cross-functional representation, embedding sustainability into all our decision-making.
We also commenced uplift of our enterprise risk management framework to reflect the new scale and complexity of our business, integrating climate-related risks into our governance processes. This year, we'll continue to strengthen our sustainability oversight at the board and committee level, ensuring robust ASRS readiness and maintaining the highest standards of transparency, ethical conduct, and stakeholder trust.
Let me move on to governance. In FY25, we welcomed three new directors to the board: Ms. Laura McBain, Dr. Kevin Shaw, and Dr. Manish Mittal, one of our longest-serving and most senior radiologists, who have all joined our board. Our new directors support specific skills and experience to the board, including specialist medical perspectives to the board's decision-making. I'm very pleased with the way that the board has come together since the merger, and particularly in delivering effective oversight and strategic guidance to the business.
Our new directors are standing for election today, and I commend them all to you. On a less joyful point, sadly, in May, our longstanding CEO, Dr. Ian Kadish announced his intention to retire at the end of FY26. Ian has led IDX from a small listed provider in the radiology market to the second-largest provider in Australia by clinic volume, as well as a significant provider in the New Zealand market. He's been a champion for the need for effective funding for the radiology sector, visionary, and seeing its potential to add value to the health of those we serve. I join my fellow directors in thanking Ian sincerely for his exceptional service to the organization.
The Board is in the final stages of its consideration of external recruitment processes for Ian's successor, and I expect to be able to announce Ian's successor very shortly. With those words, I'd like to now invite Ian to deliver his Managing Director and CEO's presentation.
Thank you very much, Toby, and good morning, everyone. It's good to see you all in the room and online. Our vision at IDX to build a healthier world is anchored on our six values: patients first always, medical leadership, one team, create value, integrity and excellence, and embrace change. These values shape our decisions daily, from recruitment to performance evaluation, from capital allocation to clinical governance.
Our values ensure that patient care remains at the heart of everything we do. Our values define us as healthcare professionals and caregivers. These values differentiate our company even amongst our healthcare peers. Our values build our culture, our commitment to always practice good medicine, and our patient-first ethos. We know that by putting our patients first, we will also be putting our shareholders first.
We completed our merger with Capital Health in December of last year, and we're now one team. The merger could not have progressed better and could not have been more successful from a clinical, cultural, and financial perspective. Our tele-radiology arm, IDXT, has provided significant support to Capital clinics even prior to the merger since October 2024, reducing turnaround time and expediting patient care, alleviating bottlenecks, and retaining referrer goodwill. Best practices and policies have been evaluated across both groups, and best practices have been adopted.
Employee and referrer engagements in both groups have remained strong or have strengthened. The combined IDX and Capital Health served 1.8 million patients over the past financial year, performed more than 4 million examinations, and helped more than 80,000 referring doctors to reach a diagnosis. Our 3,025 employees, including doctors and staff, delivered exemplary patient care at 145 clinics across Australia and New Zealand.
We're now the second-largest radiology network in Australia and the only pure play radiology provider on the ASX. Scale matters in our business. Larger providers are able to adopt new technology sooner, spread investment costs across a broader network, and attract top clinical talent. I'd like to, in particular, call out our tele-radiology business unit, IDXT, as IDXT provides genuine 24/7 reporting services both to our own network and also to a growing list of external clients, including private practices, hospitals, and regional health services. IDXT has continued its rapid growth trajectory over the past year.
The business unit currently engages 114 radiologists, and its reported revenue has grown consistently at a CAGR above 30%. The IDXT employee value proposition is compelling as it's able to provide radiologists with as much work as they want in an area of their interest at a time and place of their choosing.
We closed financial 25 in a far stronger position than we began, with significantly higher patient volumes and revenue, improved margins, materially improved earnings per share, greater operating free cash flow, and a stronger balance sheet. The operating environment presented challenges to us in the first half of the financial year, including clinical skills shortages, which were more acute in the regional areas, and inflationary cost pressures.
We effectively addressed many of these challenges in the second half, particularly through the increased use of tele-radiology and AI, and the adoption of technologies that optimized the patient care pathway, including e-referrals and online appointments, and the realization of people and procurement and administrative synergies from the Capital Health merger. For financial 25, IDX delivered revenue and other income of $628 million, up 33.7% on the prior year.
Operating EBITDA rose to $126.5 million, an increase of $38.3 million, with an EBITDA margin expanding to 21.1%, up 60 basis points on the prior corresponding period. Operating free cash flow improved to $80 million, up 42.9%, and reflected disciplined capital expenditure and effective working capital management. Our net debt to EBITDA reduced to 2.6 times, or 2.4 times pro forma if you include the annualized merger synergies, down from 2.8 times on 31 December 2024.
Growth was driven by increased volumes across the higher value modalities, in particular PET/CT and MRI. Continued expansion in tele-radiology and efficiency gains from procurement and process improvements that were implemented in the latter part of financial year 25. PET/CT continues to be our fastest-growing modality, reflecting its importance in oncology, in neurology, and in other specialty areas.
We remain disciplined in our capital allocation, ensuring that each investment meets strict return thresholds while enhancing patient care in areas where there's high demand. In FY25, we also delivered against our strategic goals. Toby has touched on the success of our merger with Capital Health. We have implemented a new organizational structure to support our focus on patients and to drive the business, and our merged procurement function is driving cost savings above the initial synergy expectations.
I'm particularly proud of the strong employee engagement scores recorded in our annual July survey. In relation to organic growth, we've continued to drive organic growth and focus on operational efficiencies. Radiologist recruitment, both on the ground and in our tele-radiologist business, continues to be a strategic focus in a very tight recruitment market.
During the financial year, we opened five new greenfield clinics, including Spotswood in Victoria, Glenorchy in Tasmania, and Noosa in Queensland. We also relocated two clinics to new state-of-the-art facilities: Ocean Grove here in Victoria, and to the Smith Street Nuclear Medicine and Women's Imaging Center in Southport, Queensland. Consolidation continues in our diagnostic imaging industry, and IDX will rigorously evaluate additional M&A opportunities as they arise.
IDX is well-positioned to improve access and benefits for our patients and to capitalize on the positive industry fundamentals. The demand for diagnostic imaging is supported by strong demographic drivers, including aging populations and the rising incidence of chronic disease, and by the expansion of medical expertise and treatment options that depend on accurate diagnostic imaging.
Globally, diagnostic imaging advances in both hardware, things like faster CT, higher resolution MRI, and digital PET scans, and software, including AI-enabled image analysis and secure digital platforms, are enabling more accurate diagnosis, faster turnaround times, and better patient experiences. Medicare announced indexation of 2.4% for diagnostic imaging services, commencing on July 1, 2025. Also, on July 1, 2025, all radiology clinics with an MRI license, whether full or partial, received full Medicare eligibility for all MRIs at that clinic.
IDX received 16 new full licenses that were automatically upgraded from partial licenses on July 1, 2025. Ten of those upgrades came from the newly merged Capital Health and six from the original IDX sites. A full MRI license provides a clinic with an ability to service specialist referrals as well as GP referrals.
As of today, IDX holds 42 fully licensed MRIs and 22 MRIs in Australia that are not yet able to access Medicare rebates. From July 1, 2025, the Health Department also launched the National Lung Cancer Screening Program. This program uses low-dose CT scans to look for lung cancers in smokers between 50 and 70 years old without any other symptoms. Its aim is to detect lung cancer early and to save lives.
IDX has introduced an IDX-wide program called Chest Scan to provide patients with easier access to this lifesaving program. The $8 billion expansion of the GP bulk billing practice incentive to all Australians, effective, as Toby said, from tomorrow, November 1, 2025, will drive increased GP visits and also increased radiologist referrals.
The benefits are much higher in the regional areas, two to three times the urban rates, which will be a positive, particularly for our regional clinic network. Industry growth rates on a 12-month rolling basis have recovered to be in line with long-term trends driven by Medicare indexation and a continued positive modality mix shift, as well as the structural demographic trends. The top line on the chart we're looking at represents Medicare benefits paid to DI providers.
The bottom line on the chart represents the number of tests that were performed. The reason that the two lines are diverging is due to the higher rate of increase in the higher value, higher acuity tests like CT, MRI, and PET/CT relative to the lower value tests like the basic x-rays and ultrasounds. MRI deregulation and the National Lung Cancer Screening Program is expected to drive further growth.
In the near to medium term, the National Lung Cancer Screening Program is already driving growth in screening CTs, and we're seeing our first follow-up growth in interventional CT and in PET/CT. The Health Department has committed $264 million over the four-year forward estimates to the National Lung Cancer Screening Program.
Our priorities in financial year 2026 are clear: to drive organic earnings growth, including a relentless focus on radiologist recruitment and productivity together with operational efficiency; to accelerate the use of tele-radiology, digital, and AI to improve the patient's referrer experience and doctor efficiency; to drive our ESG strategy; to lead through our values; and to complete the IDX and Capital Health merger integration, including the ongoing realization of additional synergies. IDX is a specialized quality provider of diagnostic services and is well-positioned to benefit from the positive industry fundamentals and to grow services strongly going forward.
The combined group, IDX and Capital Health, achieved an 8.3% revenue growth year-to-date in September in Australia, versus the prior comparable period on a like-for-like basis, compared to 9.4% Medicare benefits growth for that same period.
Revenue growth and operating EBITDA margin is expected to expand further over time, with a projected operating EBITDA margin of about 20% for the first half of FY26 and about 21% for the full year FY26, driven by inclusion of the $14 million of annualized merger synergies, the ramp-up of new greenfield and brownfield investments, scale benefits including the increased use of IDX tele-radiology both internally and externally, together with the procurement efficiencies. Seasonally, a stronger second half organic operating EBITDA performance is also expected, as has occurred in the most recent prior years.
In recent years, second half EBITDA has been about 53% of full year EBITDA compared to 47% in the first half. In FY26, the second half weighting may be more pronounced, driven by the ramp-up of further deregulation of MRIs, the continued ramp-up of the National Lung Cancer Screening Program, and the $8 billion expansion from 1 November 2025 of the GP bulk billing incentive to all Australians.
Our group financial year replacement and growth CapEx is expected to be between $45 million - $55 million in financial 2026 versus the $55.3 million in financial 2025. I'd like to end my address with a short note of appreciation. As many of you know, I will be retiring from IDX at the end of FY26 after what has been an extraordinary journey.
I joined IDX when it was a regional radiology practice in 2017, and over the course of the next eight years, we built Australia's second largest radiology network, owning and operating clinics in every state of Australia and in the greater Auckland region of New Zealand. This remarkable journey has only been made possible by the extraordinary team I've had the privilege of working with, a team that is dedicated to delivering the best health outcome for every patient we serve. In April 2017, the month prior to my commencement at IDX, our share price averaged $1.25, and our total market capitalization was $180 million. Today, our share price is $2.48 at close last night, and our market capitalization is $955 million. Over that period, we have also declared $142.7 million in dividends.
Even more importantly, we have positively impacted the health and the lives of millions of Australians and New Zealanders. Today, your company is in excellent shape, ideally positioned to capitalize on the strong industry fundamentals, the favorable demographic tailwinds, and some awesome new capabilities in diagnostic radiology and AI. IDX's people, our scale, our clinical expertise, and technological capabilities are truly world-class.
I remain excited about the company's prospects. In closing my address, I'd like to thank our frontline healthcare heroes across IDX, who continue to put our patients first every single day. Our doctors and staff include some of the finest healthcare professionals in the world. Their professionalism and dedication and their commitment to our patients and referrers is inspiring.
My thanks also to our patients who put their trust in us, to our referrers who trust their patients to us, and to you, our shareholders, who put your faith in us. My sincere thanks to Toby Hall, our Chair, and to the IDX board and to the management team for their valuable insight, counsel, commitment, and support. Doing good medicine will always be good business.
Thanks very much for that, Ian. I'll now proceed to the formal business as set out in the notice of meeting. I'll introduce each resolution in turn, and the proxy votes for each resolution will be displayed on the screen. Shareholders will have the chance to ask questions on the resolution before we move on to the next resolution.
The first item of business is to receive and consider the financial report of the company and its controlled entities and the reports of the directors and auditors for the year ended 30th June 2025. The Corporations Act and the company's constitution require these statements and reports be laid before shareholders, but do not require a vote from shareholders to be taken on them. Shareholders may ask questions about or make comments on the company's financial statements and reports.
You may also ask the auditors questions in relation to the conduct of the audit, the preparation and content of the auditor's report, and the accounting policies adopted by the company, and the independence of the auditor in relation to the audit. I'll now invite questions on this agenda item. Firstly, are there any questions from the floor?
My name is Peter Rain, shareholder of IDX. Fairly recent shareholder. I did come to visit. I'm pleased to see the merger between the two working groups and the CDPs from. Two questions just before that. Thank you again for his stewardship of the company over his time as CEO. We look forward to the new CEO continuing to grow the company. I just had a question regarding radiologists.
They are a key driver or key component of the business. You're talking about recruiting as part of your strategy, looking to drive recruitment with new radiologists over the next year and a few years. My question is, what are your retention rates for radiologists? Do you lose any radiologists? Looking to keep them and attract them under your recruitment program? Do you need to pay out incentives to do that? I guess that's the proxy question. Have there been any losses of radiologists involved?
I'll let our Chief Executive answer most of that question. To be clear, from a board point of view, we put a significant amount of time and effort into looking at radiologist acquisition and retention within the organization. We've got clear strategies in play to look at both their remuneration and also their incentive to work with the organization. In terms of the decline, I actually don't know the numbers that might have left during the year. Ian, I'll let you answer that one.
Thanks, Toby. Very few radiologists move companies. While we may have lost one or two over the course of the year, we would have gained more than that from other companies. In fact, at IDXT specifically, the tele-radiology business, we've increased the capacity of that business by about 50%.
We've increased the number of radiologists over the course of FY25 from about 80 radiologists at the beginning to 114 at the end. We really have been increasing the number of tele-radiologists significantly, and the number of other radiologists have increased roughly in proportion to the growth of the business, the 7 or 8%. Importantly, what we do at IDX as well is we sponsor the Dean's Address and the graduation ceremony that was recently held here in Melbourne, the college address of the Royal Australian and New Zealand College of Radiologists.
We've sponsored that address for the new graduates every year for the past seven years, and we do attract a lot of the new graduates from that program because of the exposure we have to them at the time of their graduation and the continued engagement after that. Radiologists are absolutely core to our business. They are the business. Their attraction, retention, and engagement is key to what we do. Thank you.
Good morning, Marie from SableJack. My question relates to one of those values that we talked about, creating value for stakeholders. Since 2019, the return on equity has reduced or collapsed really from high teens to mid-single digits. Is there an ongoing cause of that, and is there a plan to recover any of that in the future?
The board clearly is focused on return on equity. I think the focus on continuing to grow the business and the merger of Capital Health was clearly put in place to ensure that we continue to grow the return on equity. Our focus is to grow the revenue, ensure that we deliver effective EBITDA for the business, and continue to see that margin grown, and that will lead to return on equity. I can understand every shareholder would like it to be higher. I'm a shareholder, and several of my board members are as well. We continue to focus on that, and we'll continue to focus on it. .
This question was placed. It was up at 18% and 19%. Now it's at 4 5%. It's not exactly clear to me what's caused that significant drop.
Ian, do you want to maybe make a comment on that?
Yeah. I guess the main driver, looking back over that long period of time, the main driver has been the expansion initially into the New Zealand market, which is a market that we did very, very well in. In the first three or four years, we were in that market because we were generating margins above 40%, EBITDA margins, because we were sweating the assets there very, very hard.
We had MRIs that were running 40-plus patients a day. The New Zealand market during the time of COVID changed fairly dramatically, where some of the orthopedic surgeons in that market put their own MRIs in place during the COVID period. There's no legislation in New Zealand like there is in Australia and most developed countries around the world that prevent referring doctors from getting remuneration from the referrals that they generate.
The New Zealand market's fairly unregulated in that regard. That's been the single biggest driver of the decline in utilization and therefore the decline in return on investment, on invested capital over the period. What we are focused on now, and where we will see an improvement in the right going forward, is sweating our assets a lot harder.
That has been helped a lot by the deregulation of MRIs in Australia and the expansion of things like the National Lung Cancer Screening Program that allows us to sweat our assets a lot more and put much more volumes through the same hardware. If we look at the most outstanding examples of that, Imaging Olympic Park would be the standard, where we have three MRIs.
Every one of those MRIs is doing more than 40 patients a day on each MRI. If you look at the average across the country, across the industry, today they're about 15 on average per MRI. That's in most practices. We've invested in a third MRI in that facility, but every one of those MRIs are really being sweated to their full extent. Utilization issues as whiteboards. Correct. Correct.
We're focused on increasing utilization going forward, and we're assisted a lot now by the deregulation of MRI licenses in Australia, by the National Lung Cancer Screening Program in Australia, and soon by the additional referrals we'll get from GPs as the bulk billing program, the $8 billion bulk billing program, kicks in as from tomorrow. Thank you. Any further questions from the floor?
Yeah. We did. Deepest data is 2.6 or 2.4 on the record base. Also talked about a trending down. Just want to be aware that it's likely to trend down. 6.7 in the back covenants.
John, do you want to answer that?
Thanks, Toby. Just to perhaps answer the covenants, our net debt-to-EBITDA ratio at the bank sits at 3.5, so we're comfortably below that. The leverage ratio has been decreasing over time. Obviously, 2.6 at 30 June, pro forma 2.4, we'd expect in the ordinary course it'll continue to trend down. We have a target range of two to two and a half times. We feel that that's about where it should sit for the company.
Thank you. Any further questions from the floor? Thank you, John. Any online or audio questions? Okay. There'll be no further questions. We'll come to the items of business for which voting is required. Item two relates to the adoption of the remuneration report. The resolution being put to the meeting is displayed on the screen. The remuneration report is contained in the annual report. It describes the policies and sets out the remuneration arrangements in place for directors and key management personnel. The company has a remuneration framework which aims to ensure the reward for performance is competitive and aligned to shareholder interests.
The vote on this item is advisory only and does not bind the directors or the company. Nevertheless, the People, Culture and Remuneration Committee will take into account the discussion on this item and the outcome of the vote when considering the future remuneration policies and practices of the company. The valid proxies received by the company for item two are shown on the screen. Are there any questions from the floor on this resolution?
Okay. There've been no questions from the floor. John, are there any online or audio questions? As there are no further questions on the resolution, I move that the remuneration report for the year ended 30 June 2025 be adopted. I'll draw shareholders' attention to the voting restrictions applicable to this resolution as contained in the notice of meeting. That concludes the business for item two.
I'd now like to move on to the election of directors. Item three relates to the election of Laura McBain as a director of the company. Details of Laura's qualifications and experience were set out in the notice of meeting. I'll now invite Laura to say a few words in regards to her election.
Thank you, Toby. Thank you, everyone. And thank you, shareholders, for considering my election. I am an independent non-executive director who joined Integral Diagnostics Ltd following the merger with Capital Health. I currently serve on the Audit Committee and the Risk Compliance and Safety Committee. My background spans 25 years in executive leadership, finance, governance, and brand transformation across ASX-listed and high-growth consumer-focused businesses. I've led three ASX-listed businesses, all of which were operating in complex, dynamic, and regulated environments.
I've also served on a range of boards, a diverse range of boards, and currently serve as a director for Bank of Us, the wonderful Tasmanian Devils Football Club, Tasmanian Irrigation, which is an SOE, and the Australia-China Business Council, where I'm also the president of the Tasmanian branch. I bring to IDX extensive experience in strategy, risk management, and organizational culture, disciplines critical to supporting sustainable growth and clinical excellence across our expanding network. IDX's vision of a healthier world through delivering accessible, high-quality diagnostic care to communities across Australia and New Zealand strongly aligns with my own commitment to values-driven leadership and long-term impact.
It is a genuine privilege to serve alongside such capable colleagues, and I remain deeply committed to contributing my experience, energy, and passion to the continued success of IDX. Thank you, and thank you for your support.
Thanks so much for that, Laura. The resolution being put to the meeting is displayed on the screen. The board, with Laura abstaining, unanimously recommends the election of Laura as a director of the company and recommends you vote in favor of the resolution. The valid proxies received by the company for item three are shown on the screen. Are there any further questions from the room in relation to the resolution? John, are there any online or audio questions?
There've been no further questions. I move that Laura McBain, who was appointed on 20th December 2024, retires and be elected as a director of the company. That concludes the business for item three. Item four relates to the election of Kevin Shaw, a director of the company. Details of Kevin's qualifications and experience were set out in the notice of meeting. I'll now invite Kevin to say a few words regarding his election.
Thank you, Toby. Hello to our shareholders who have taken time out to attend this year's hybrid AGM. As you may know, I joined IDX as a non-executive director in December last year after the merger with Capital Health. I was previously a non-executive director with Capital Health for three years prior to the merger. I'm a locally trained radiologist with a subspecialty interest in MRI.
I'm currently a staff specialist with Barwon Health as the Director of the Radiology Department. I'm also a Clinical Professor at Deakin Medical School. I have extensive knowledge of the radiology industry, including the latest technology development in different imaging modalities, as well as software advancement, including the multitudes of reporting platforms and the rapidly expanding field of artificial intelligence.
Barwon Health is a major teaching hospital here in Victoria, which provides me with detailed knowledge of the radiology training program, a crucial source of potential future radiologist recruits to join IDX. I currently sit on the Risk Compliance and Sustainability Committee and People Culture Remuneration Committee at IDX. I seek to complement the existing committee members with my experience in quality and safety governance and medical credentialing in our interaction with the management team. I would like to conclude by thanking the shareholders for your support and for the opportunity to address my election.
Thanks very much, Kevin. The resolution being put to the meeting is displayed on the screen. The board, with Kevin abstaining, unanimously recommends the election of Kevin as a director of the company and recommends that you vote in favor of the resolution.
The valid proxies received by the company for item four are shown on the screen. Are there any questions or comments in relation to this resolution from the floor? John, are there any audio or online questions? There've been no further questions. I move that Dr. Kevin Shaw, who was appointed on 20th December 2024, retires and be elected as a director of the company. That concludes the business for item four.
Item five relates to the election of Manish Mittal as a director of the company. Details of Manish's qualifications and experience were set out in the notice of meeting. I will now invite Manish to say a few words regarding his election.
Thank you, Chair. Thank you to the shareholders for considering my election for an Executive Director of Integral Diagnostics. I'm honored to be a part of, to be appointed as the Radiologist Director for Integral Diagnostics.
It's been a privilege to be a part of Integral Diagnostics, which I call a professional home for more than 18 years. During this time, I've not only grown as a radiologist but as a. Clinical person or clinical leader, but also as a person by sharing a lot of challenges and successes with my colleagues who I still get inspired with. My journey has spanned across various business units in Integral Diagnostics Ltd over these years and given me front-row seat in understanding the business deeply and familiarizing me with the compassionate group of people who work with IDX.
After gaining my qualifications in India, I enhanced my career by obtaining fellowship in the United Kingdom. Colleges of the United Kingdom and the Australian New Zealand College of Radiologists. My passion isn't radiology as a whole, but I specialize in musculoskeletal imaging and cardiac imaging.
I've also got subspecialty qualifications being Fellow of Cardiac MRI. I've also got a certificate in business management from RMIT Melbourne and also done a course at the Australian Institute of Company Directors. As a Clinical Director of IDXT, our most fast-growing business, and also being in a clinical role every day, I am acutely aware of how our decisions impact our patients and our team, and I bring that into the board, making them aware about what we do is how we do it. I believe in the mission of IDX, not just as a business, but as a community that puts people first, our patients, our staff, and our partners.
In taking this role, I bring my clinical perspective from a clinical governance point of view, an independent perspective, and a heartfelt commitment to making Integral Diagnostics Ltd the best it can be for everyone we serve. I'm excited by the vision for our future to bring innovation and quality, humbled by the opportunity to contribute to it. Thank you for your trust and support, and I hope I earned your vote today. Thank you.
Thanks, Manish. The resolution being put to the meeting is displayed on the screen. The board, with Manish abstaining, unanimously recommends the election of Manish as a director of the company and recommends that you vote in favor of the resolution. The valid proxies received by the company for item five are shown on the screen. Are there any questions or comments in relation to this resolution from the floor? John, any online? Okay. There've been no further questions. I move that Dr. Manish Mittal, who was appointed on 5th February 2025, retires and be elected as a director of the company. That concludes the business for item five.
I'd like to congratulate the three directors and thank you for your ongoing efforts and the work you put in today on the board. Item six relates to proposed awards of long-term incentive rights and performance rights to our CEO, Dr. Ian Kadish. Details of the terms and conditions of the proposed equity grants are set out in the notice of meeting. The resolution being put to the meeting is displayed on the screen. The board, with Dr. Kadish abstaining, unanimously recommends that shareholders approve the equity grants to Dr. Kadish and recommends that you vote in favor of the resolution. The valid proxies received by the company for item six are shown on the screen. Are there any questions from the floor on this recommendation?
Just a question. Do you have any knowledge of incentive grants?
Sorry, could you repeat that? I couldn't quite hear. As far as I'm aware, most of the proxy advisors recommended that shareholders vote in favor of this resolution. The only feedback we've had from investors is different views on whether ROIC, particularly in terms of SDI, should be included but not in relation to LTIs. The recommendations, I think, and Andy, correct me if I'm wrong, from all proxy houses are in favor?
All proxy houses were in favor. Typically, you will get a protest vote because that's what people do. If you see a similar thing, I'll put it in the ring report as well. The support from those shareholders that we met with was positive as well.
Any further questions from the floor? Any online or audio? There've been no further questions. I move that approval be given for all purposes, including ASX-listing rule 10.14, for the grant to the company's Managing Director and Chief Executive Officer, Dr. Ian Kadish, of 114,688 LTI rights as his annual long-term incentive grant for the year ended June 2026, and 71,911 capital merger performance incentive rights on the terms described in the explanatory memorandum.
I draw shareholders' attention to the voting restrictions applicable to this resolution as contained in the notice of meeting. That concludes items of business for item six. The last item of business is a technical resolution relating to the merger last year with Capital Health and the proposal for one of our acquired subsidiaries to provide financial assistance as part of our debt facility. Details of the proposed financial assistance are set out in the notice of meeting. The resolution being put to the meeting is displayed on the screen.
It is a special resolution. The board unanimously recommends that shareholders vote in favor of the financial assistance. The valid proxies received for item seven by the company are shown on the screen. Are there any questions from the floor on this resolution? John, are there any online questions? Okay.
There've been no further questions. I move that for the purposes of Section 260(b)(2) of the Corporations Act 2001, approval be given for the financial assistance to be provided by the company's wholly-owned subsidiary, Imagine at Olympic Park Pty Ltd, in connection with the acquisition as described or defined in the explanatory memorandum. That concludes the last item of business. Now we will move to answer any remaining shareholder questions regarding the resolutions before the meeting or any other general questions. Can I start with any questions from the floor?
Just a general question. In the presentations, there wasn't much on AI, and medical imaging seems to be an area right for capture interpretation of lots of scans. Could you expand on what's happening in the AI space at IDX?
Yeah, absolutely. I'll just go in from the board's point of view and then ask Ian to respond. AI is a significant part of our business already. In fact, probably, I would say we are one of the leading users of AI in radiology in Australia, if not the leading user. We see it's an important part of our future, and it's going to be an ongoing part of our strategy. I'll let Ian talk through how we're implementing that across the organization.
Thanks, Toby, and thank you for the question. AI is absolutely integral to radiology going forward. We were at IDX one of the first users in Australia of AI and radiology, with the first program here starting back in 2018 and 2019. We currently have 12 or more AI algorithms across the group, and about 10% of our scans are done by AI. Importantly, AI is necessary to do the lung cancer screening scans in a way that's cost-effective.
Without AI, it takes radiologists about three times as long to look at a lung cancer screening study as what it takes with using the AI, as well as by the AI automatically populating the 70-odd fields that we need to populate as part of the study. I believe that AI's use in lung cancer screening may be the catalyst that gets radiologists and referrers a lot more comfortable with the use of AI in radiology, and we'll see the AI grow. Materially going forward.
It's an exciting part of the industry right now. We were at the college meeting a week ago here in Melbourne. There's an international college meeting in Chicago that's held every year. More and more space and airtime at these college meetings are dedicated to AI because of its importance in radiology. We at IDX, as Toby said, are at the forefront of that. AI is already improving the quality of care we do across the group. It has saved lives.
There's good documented evidence we have across the IDX group where we've had tangible improvements in quality through the use of AI. Now, with lung cancer screening going forward, we should see an improvement in the efficiency of radiologists as well. Both quality and efficiency will be enhanced by AI going forward. AI automatically triages cases for us.
Even in February 2018, when we put the first AI systems in place, what the AI did is when it detected abnormalities in the scan, it automatically escalated that abnormality to become the next scan that the radiologist looked at. That's where we've seen the real difference in terms of quality. If there is something abnormal in the scan, the AI picks it up. It escalates the scan to the top of the worklist. It becomes the next scan that the radiologist sees. There've been incidences in Western Australia, for example, where at an emergency department, a patient presented after a motor vehicle accident. The scan was read, there was an abnormality detected in the scan by the AI. It was escalated to the top of the worklist.
It was seen by an overseas radiologist reporting for us at the time, and we called the ED to bring the patient back in this case from the parking lot with a cervical spine collar on, where the patient otherwise would have been sent home with a cervical spine fracture that, in this case, was detected. There's excellent anecdotal evidence right now of the assistance that AI is providing to us by escalating the scan so it becomes the next scan in the triage list that the radiologist sees, and by picking up abnormalities in some cases that have been missed or that otherwise would have been missed.
Thanks very much for that, Ian. Suffice to say, AI is an area which has got a lot of opportunity, also carries risks. The board's got a good governance process around how we implement AI, and we've got a great technology team in-house. Julian, who heads it up, is here. I should be happy to have a discussion after we close the meeting around everything we're doing in that space. Refer to say it is integral to our business going forward, and it's going to become increasingly important. Any further questions from the floor? John, I think we have two online questions.
We've got two questions submitted before the AGM from Mr. Alexander Ng and Mr. Pablo Solis, very similar. I'll summarise them. Revenues projected to head north, but why are earnings remaining the same, and what are the profit prospects for the business?
Okay. I think the Managing Director in his report clearly outlined where revenue is growing and also where earnings are growing, and also our expectation of continued expansion in EBITDA margin. Our kind of expectation is we will continue to see revenue grow in, I think, pointed out, I think it was 8.4% year to date, and we're expecting around a 21% EBITDA margin.
Our view would be that all the indicators are moving in the direction they should be. Any further questions, John? Okay. As there are no more questions, that concludes our discussion on the items of business. Shortly, I will close the online voting system. Please ensure you've cast your vote on all resolutions. I'll now pause to allow you 30 seconds or so to finalize those votes. Oh, you saw that. Yeah, that's useful.
Okay, thank you, everyone. Voting is now closed. The voting results from this meeting will be released to the ASX later today. That concludes our meeting. I would like to thank very much our Board of Directors for their incredible support and effort over this last year, particularly with the acquisition of Capital Health, which took a few additional meetings, which no one got remunerated for, but we enjoyed it.
It was great. I'd also like to thank Ian for his significant contribution to the business. Ian is just an all-round good person. He's passionate about radiology. He has grown this business significantly. You should be proud of what you've done, Ian. I've really enjoyed working with you. I know our radiologists have. You've done a great job. It's been good to work with you. Shareholders will be good to say thank you to Ian.
Given that AGMs are such fun and exciting places to be, earlier in the year, we obviously did the merger of Capital Health. Tonight, I'm going to see the Oasis Band play live. If you know your history, the two brothers had a bit of a rough kind of relationship over the last 20 years. Would it be fair to say at some points that was the same between Capital Health and Integral Diagnostics Ltd?
Now we're all sitting around the table together, enjoying our business in radiology. It's incredible how different things can come together in the same year. We're looking forward to the year ahead. I'd like to thank our shareholders, our staff, our executive, particularly our board, for their ongoing work and for the ongoing focus on radiology. As Ian says, great health is good business. Thanks very much, everyone.