May 16, 2023
Elite Diagnostic Limited (ELITE) for the nine months ended March 31, 2023 booked a 26% increase in revenue to total $565.76 million compared to $449.51 million for the same period in 2022. Revenue for the third quarter rose by 26% to $202.21 million (2022: $160.97 million).
Direct costs for the nine months increased 25%, closing at $175.19 million, up from $140.31 million reported the prior year, while for the third quarter there was a 55% increase in direct costs, closing at $66.70 million (2022: $43.12 million).
As such, gross profit for the nine months amounted to $390.57 million, a growth of 26% when compared to $309.20 million recorded last year. However, gross profit for the third quarter increased by 15% from $117.85 million in 2022 to $135.51 million for the period under review.
Administrative expenses climbed by 36% for the nine months to total $237.47 million (2022: $175.11 million). Depreciation and amortization increased rose to total $116.76 million down from the $76.16 million booked in 2022. ELITE noted, “The installation of solar equipment at our Liguanea branch and subsequently at our Drax Hall branch is being coordinated and this will result in significant reductions in our operating expenses.”
Profit from operations of $36.34 million was recorded for the nine months, a 37% decline relative to $57.93 million booked a year ago.
Finance cost for the nine months totalled $27.57 million, a 48% increase when compared to the $18.69 million recorded for the same period last year. The increase was due to purchase of new equipment.
Profit before tax for the nine months totalled $4.56 million compared to a profit of $34.90 million recorded last year. Profit before tax for the quarter amounted to $6.09 million relative to a profit before tax of $28.15 million booked for the prior year’s corresponding quarter.
Net profit for the period totalled $4.56 million relative to a net profit of $34.90 million recorded in the prior financial year’s corresponding period. Net profit for the quarter amounted to $6.09 million, compared to a net profit of $28.15 million booked for the same quarter in the prior year. The company added, “This resulted from the loss of revenue, due to machine downtime, that continued from the second quarter into the first five weeks of the third quarter, whilst incurring additional maintenance costs and depreciation.”
Earnings per share (EPS) for the period totalled $0.01, relative to an EPS of $0.10 booked in 2022. EPS for the third quarter amounted to $0.02 relative to an EPS of $0.08 in corresponding quarter of 2022. The trailing twelve-month EPS amounted to $0.052. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price last traded on May 15, 2023 at $2.32 with a corresponding P/E ratio of 44.76x.
ELITE highlighted, “Our March 2023 performance can be taken as an indication of what a typical month can be in the absence of operational hitches, and we remain confident in the growth prospects of the company as we seek to modernize our equipment and expand our branch network island wide.”
Balance Sheet at a glance:
As at March 31, 2023, total assets amounted to $1.05 billion, up $154.63 million from the balance of $898.56 million as at the previous year. The increase in total assets results from a 39% increase in ‘Property, plant and equipment’ which closed at $779.07 million relative to $561.29 million in the prior period.
Shareholders’ equity of $476.03 million was reported (2022: $467.26 million) which resulted in a book value per share of $1.35 (2022: $1.32).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.