ELITE reports nine months net loss of $2.89 million

May 17, 2021

Elite Diagnostic Limited (ELITE) for the nine months ended March 31, 2021 booked a 5% increase in revenue to total $365.56 million compared to $347.29 million for the same period in 2020. Revenue for the third quarter rose by 16% to $129.47 million (2020: $111.37 million).

Direct costs for the nine months increased 2%, closing at $129.22 million, up from $126.68 million reported the prior year, while for the third quarter there was a 11% increase in direct costs, closing at $42.90 million (2020: $38.68 million).

As such, gross profit for the nine months amounted to $236.35 million, a growth of 7% when compared to $220.61 million recorded last year. However, gross profit for the third quarter increased 19% from $72.69 million in 2020 to $86.57 million for the period under review.

Administrative expenses climbed by 10% for the nine months to total $141.84 million (2020: $129.03 million). Depreciation and amortization increased 39% to total $76.54 million relative to the $55.20 million booked in 2020. This resulted in profit from operations of $17.97 million for the nine months ended March 31,2021, a 51% decrease relative to $36.38 million booked a year ago.

Finance cost for the nine months totalled $15.73 million, a slight 1% increase when compared to the $15.62 million recorded for the same period last year, while exchange loss amounted to $5.13 million compared to a loss of $1.69 million the prior year.

Loss before tax for the nine months ended March 31,2021 totalled $2.89 million compared to a profit of $19.07 million recorded last year. Profit before tax for the quarter amounted to $4.37 million relative to a loss before tax of $2.05 million booked for the prior year’s corresponding quarter.

Net loss for the period totalled $2.89 million relative to a net profit of $19.07 million recorded the prior financial year’s corresponding period. Net profit for the quarter amounted to $4.37 million, compared to a net loss of $2.05 million booked for the same quarter in prior year.

Loss per share (LPS) for the period totalled $0.01, relative to an earnings per share (EPS) of $0.05 booked in 2020. EPS for the third quarter amounted to $0.01 relative to a LPS of $0.006 in corresponding quarter of 2020. The trailing twelve-month LPS amounted to $0.04. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on May 14, 2021 at $3.14.

ELITE noted, “Covid-19 continues to negatively impact our revenues with shorter operational hours and reduced Interventional Procedures. Demand for imaging services continues to remain robust. Challenges still persisted at our Drax Hall location with our two main revenue drivers, MRI and CT. The company enlisted overseas expertise and currently, all modalities are operational at the Drax Hall location. The company feels it has moved past the year long challenges of the MRI and CT. Ultrasounds, X-ray and the Doctor Offices at the Drax Hall location are growing steadily.”

Balance Sheet at a glance:

As at March 31, 2021, total assets amounted to $690.34 million, up $3.04 million from the balance of $687.31 million as at the previous year. The increase in total assets was as a result of a 42% increase in ‘Receivables’ which closed at $46.33 million relative to $32.67 million as at March 31, 2020. This was tempered by a 2% decrease in ‘Property, Plant and Equipment’ from $580.38 million in 2020 to $569.34 million in 2021.

Shareholders’ equity of $456.88 million was reported (2020: $470.28 million) which resulted in a book value per share of $1.29 (2020: $1.33).


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