ELITE reports 6% increase in year end net profits

Date: August 13, 2019

Elite Diagnostic Limited (ELITE), for the year ended June 30, 2019, booked a 36% increase in revenue to total $404.39 million compared to $298.23 million for the same period in 2018. Revenue for the fourth quarter rose by 46% to $115.14 million (2018: $79.08 million). The Company highlighted that, “the increase in revenue was due to a greater utilization of the Liguanea branch which also extended their hours of operation.”

Direct costs for the period increased 2%, closing at $119.21 million, up from $117.30 million reported the prior year, while for the quarter there was a 6% increase closing at $29.61 million (2018: $27.91 million).

As such, gross profit for the twelve months amounted to $285.19 million, a growth of 58%, when compared to $180.93 million recorded last year. Gross profit for the final quarter increased 67% from $51.18 million in 2018 to $85.53 million for the corresponding period in 2019.

Administrative expenses climbed by 51% for the period, to total $152.05 million (2018: $100.65 million). Depreciation and amortization increased by 97% to total $55.83 million relative to the $28.33 million booked in 2018. This resulted in profit from operations of $77.31 million, a 49% increase relative to $51.96 million booked a year ago. While, for the quarter, administrative expenses and depreciation & amortization closed at $32.62 million (2018: $36.05 million) and $14.03 million (2018: $7.51 million), respectively.

Finance cost for the twelve months totalled $20.05 million, an increase of 25% when compared to the $16.05 million recorded for the same period last year, while foreign loss amounted to $9.82 million compared to a loss of $40,684 booked in 2018.

Profit before tax totalled $47.44 million compared to $35.86 million recorded last year, a 32% increase year over year. ELITE reported no taxation for the period under review relative to a tax credit of $9.05 million in 2018.

Consequently, Net Profit for the year totalled $47.44 million relative to $44.91 million recorded the prior financial year. Net profit for the quarter amounted to $24.64 million, a 698% increase compared to $3.09 million booked for the final quarter of 2018.

Management also noted that, “the construction of the new St. Ann (Drax Hall) location is completed and the company expects to open its doors in September 2019. This new location will have full imaging services and doctor’s offices.”

Earnings per share (EPS) for the year totaled $0.13 (2018: $0.13). EPS for the fourth quarter amounted to $0.07 (2018: $0.01). The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on August 12, 2019, at $6.44.

Balance Sheet at a glance:

As at June 30, 2019, total assets amounted to $652.88 million, up $61.09 million from $591.79 million as at the previous year. The increase in total assets was as a result of the increase in property, plant and equipment from $454.55 million in 2018 to $533.63 million in 2019. ‘Receivables’ and ‘Repayments’ also contributed to the increase closing at $15.22 million (2018: $10.66 million) and $10.25 million (2018: $4.57 million), respectively.

Shareholders’ Equity of $446.94 million was reported (2018: $399.49 million) which resulted in a book value per share of $1.26 (2018: $1.13).


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