ELITE reports six months net loss of $1.54 million

February 14, 2023

Elite Diagnostic Limited booked a 26% increase in revenue to total $363.51 million from $288.37 million booked the same period in 2021. Revenue for the second quarter rose by 20% to $177.55 million (2021: $147.54 million).

Gross profit for the six months amounted to $255.02 million, reflecting a growth of 33% when compared to $191.18 million recorded last year. Gross profit, for the second quarter ended December 31, 2022, increased 20% to $120.26 million from $100.42 million for the corresponding period in 2021.

Administrative expenses climbed by 39% for the period, to total $159.55 million (2021: $114.88 million). Depreciation and amortization expenses jumped 40% to $76.58 million, relative to $54.73 million recorded for the prior year.

Profit from operations amounted to $18.90 million, a decline of 12% relative to $21.58 million booked in the same period a year ago.

The Company recorded losses on foreign exchange of $4.17 million (2021: 3.67 million), while finance cost for the period amounted to $16.30 million (2021: $11.33 million).

There was no income tax for the period, as such net loss for the period totalled $1.54 million relative to a profit of $6.75 million recorded the prior corresponding period. Whereas, net loss for the quarter amounted to $7.35 million, a 201% decrease compared to profit of $7.26 million booked for the prior quarter of 2021. The company noted that, “We continue to be negatively affected by the extended downtime of major revenue-earning machines.”

Management also noted that, “With the recent overhaul of two of our more problematic machines which are no longer under warranty, and additional planned preventative maintenance exercises, we do not expect extraordinary downtime going forward. A new CT machine is being installed at our Liguanea location and will be commissioned into service by March 1, 2023 and this will provide a redundancy for future downtime of the other unit located at our New Kingston location. A new arrangement is being negotiated which will enable a significant reduction in our direct costs during the ensuing quarters at our two Kingston locations, in keeping with similar measures introduced last year at our Drax Hall location.”

Loss per share (LPS) for the period totalled $0.004 (2021: EPS $0.02). LPS for the second quarter amounted to $0.02 (2021: EPS $0.02). The trailing twelve-month EPS amounted to $0.11. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on February 13, 2023, at $3.20 with a corresponding P/E of 28.01 times.

Balance Sheet at a glance:

As at December 31, 2022, total assets amounted to $1.05 billion, up 35% from the $778.03 million reported as at the previous year. The increase in total assets was as a result of ‘Right of Use Assets’ amounting to $121.72 million (2021: $6.69 million).

Shareholders’ Equity of $469.94 million was reported (2021: $442.01 million) which resulted in a book value per share of $1.33 (2021: $1.25).


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