Date: December 5, 2018
Elite Diagnostic Limited’s (ELITE) first AGM since listing was held today December 5, 2018 and was hosted by Mr. Steven Gooden, Chairman of the company which began with usual welcoming subsequent to the auditor’s report.
For the financial year under review revenues were $34 million more than 2016’s $263 million, and as a result closed the period at $297.8 million. This translated into a net profit of $44.9 million versus $44.2 million a year ago. According to management, “The net profit remained flat due to added operating expenses from the Liguanea location.”
The company was listed on the Jamaica Junior Market Stock Exchange in February 2018. Prior to listing, The business operations expanded with the opening of its second location in Liguanea in late 2017 which houses the only 3T MRI machine in Jamaica. However there were challenges faced during the year, which have been resolved since July 2018. Mr. Warren Chung, CEO, highlighted that as “These modalities have become functional, revenue growth is expected over the upcoming months/quarters.
The company’s recent financials for the first three months ended September 30, 2018 saw revenues increasing from $69 million in 2017 to $85 million in 2018. However, increased administrative and depreciation expenses have weighed on the bottom line resulting in a modest $1.8 million in net profit compared to $10.7 million of last year.” Despite this, the company expects to thrive with both machines being functional and the addition of a new one.
The purchase of the third MRI machine to be housed in St. Ann and “the estimated cost associated with the development of this facility is $20- $22 million” as mentioned by the CEO. This is expected to be financed through cash and from funds left over from the IPO. The major equipment has already been bought and has been booked in the previous financials that were released. Notably compared to Liguanea,“the third location is much cheaper in terms of rent which could lead to greater profitability,” as stated by Mr. Chung.
- The location in St. Ann (Draux Hall area) is expected to open in the late 2019.
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