ELITE reports year end net profit of $48.66 million

September 30, 2022

Elite Diagnostic Limited (ELITE) for the year ended June 30, 2022 booked a 23% increase in revenue to total $624.22 million compared to $506.91 million in 2021. For the quarter, revenue increased 48% from $136.70 million booked June 2021 to $174.71 million for the period under review.

Direct costs for the year increased 7%, closing at $191.96 million, up from $178.60 million reported the prior year, while for the fourth quarter there was a 32% uptick in direct costs, closing at $51.65 million (2021: $45.98 million).

As such, gross profit for the year amounted to $432.26 million, relative to $328.31 million in 2021. Elite’s gross profit for the fourth quarter climbed 57% from $90.72 million in 2021 to $123.07 million for the corresponding quarter in 2022.

Administrative expenses climbed 23% for the year, closing at $242.29 million (2021: $196.67 million). Depreciation and amortization reflected a 5% increase to total $107.53 million relative to the $102.06 million reported in 2021. This resulted in profit from operations of $82.45 million for the year ended June 30, 2022, a 179% increase relative to $29.58 million booked twelve months earlier.

Finance cost for the twelve months ended June 30, 2022 totaled $27.33 million, an increase of 30% when compared to the $21.02 million recorded for the prior year, while finance income totalled $11,261 (2021: $91,051). Foreign exchange loss amounted to $6.47 million compared to a loss of $6.72 million the prior year.

Profit before tax for the year end amounted to $48.66 million compared to $1.93 million recorded last year, an increase of 2422% year over year. Profit before tax for the quarter amounted to $13.76 million relative to the $3.64 million booked for the prior year’s corresponding quarter.

Net profit for the period totalled $48.66 million relative to $1.93 million recorded the prior financial year. Net profit for the quarter amounted to $13.76 million, compared to the $3.64 million booked for the same quarter in 2021.

Earnings per share (EPS) for the period totaled $0.138 (2021: $0.005). EPS for the fourth quarter amounted to $0.04 relative to EPS of $0.01 recorded for the corresponding quarter of 2021. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on September 29, 2022, at $3.50, with a corresponding price to earnings ratio of 25.42 times.

Balance Sheet at a glance:

As at June 30, 2022, total assets amounted to $919.56 million, up 31% from the balance of $700.41 million as at the previous year. The improvement in total assets was because of the 32% increase in ‘Property, plant and equipment’ to $776.84 million (2021: $587.41 million).

Shareholders’ equity of $478.54 million was reported (2021: $461.69 million) which resulted in a book value per share of $1.36 (2021: $1.31).



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.