ELITE reports 2% increase in annual net profits

Date: September 27, 2018

Audited financials for the year ended June 30, 2018 showed Elite Diagnostic Limited (ELITE)booked a 13% increase in revenue to total $297.76 million compared to $263.10 million for the same period in 2017. Revenue for the fourth quarter fell by 7% to $77.85 million (2017: $83.81 million).

Direct costs for the period increased 22%, closing at $117.30 million, up from $96 million reported the prior year, while for the quarter there was a 45% increase closing at $46.45 million (2017: $32.01 million).

As such, gross profit for the twelve months amounted to $180.46 million, a growth of 8%, when compared to $167.10 million recorded last year. Gross profit for the final quarter declined 39% from $51.80 million to $31.39 million for the corresponding period in 2017.

Administrative expenses climbed by 40% for the period, to total $100.65 million (2017: $72.07 million). Depreciation and amortization also increased by 1% to total $28.33 million relative to the $28.02 million booked in 2017, while other income closed the year at $472,998, a 173% uptick when compared to last year’s $173,436. This resulted in profit from operations of $51.96 million, a 23% decrease relative to $67.18 million booked a year ago.

Finance cost for the twelve months totalled $16.05 million, a significant increase of 100% when compared to the $8.04 million recorded for the same period last year, while foreign loss amounted to $40,684 compared to a gain of $415,089 booked in 2017.

Profit before tax totalled $35.86 million compared to $59.56 million recorded last year, a 40% reduction year over year. ELITE reported an income tax credit for the year of $9.05 million compared to tax charges of $15.35 million recorded in 2017.

Consequently, Net Profit for the year totalled $44.91 million relative to $44.21 million recorded the prior financial year. Net profit for the quarter amounted to $26.28 million, a 134% increase compared to $11.24 million booked for the final quarter of 2017.

Earnings per share (EPS) for the year totaled $0.13 (2017: $0.13). EPS for the fourth quarter amounted to $0.07 (2017: $0.03). The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on September 26, 2018, at $3.01.

Balance Sheet at a glance:

As at June 30, 2018, total assets amounted to $591.79 million, up $320.76 million from the balance of $271.03 million as at the previous year. The increase in total assets was as a result of the increase in property, plant and equipment from $187.90 million to $454.55 million.

Shareholders’ Equity of $399.49 million was reported (2017: $223.53 million) which resulted in a book value per share of $1.13 (2017: $0.63).

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