October 17, 2023
Image Plus Consultants Limited (IPCL) for the six months ended August 31, 2023, reported a slight decrease in revenue totalling $554.14 million compared to $554.82 million in the corresponding period last year. Revenue for the second quarter had a 7% decrease to close at $253.96 million relative to $273.73 million for the comparable quarter of 2022. Management noted that one of the factors that led to this performance was the reduction in the CT modality case count due to machine downtime with the units at 129Pro and Winchester locations. Notwithstanding, Management anticipates continued growth in their scan count across all modalities and improved revenue performance in keeping with their first quarter trajectory.
Cost of sales amounted to $200.45 million (2022: $190.88 million), this represents an increase of 5% year over year. Consequently, gross profit decreased by 3% to $353.70 million compared to $363.94 million for the six months ended August 31, 2022. The company booked gross profit of $161.92 million for the second quarter versus $174.78 million reported for the similar quarter of 2022.
Administrative expenses increased by 26% to close at $231.65 million (2022: $184.34 million), while depreciation and amortisation increase by 57% from $19.10 million in 2022 to $29.90 million in the period under review. Other expenses amounted to $181,401 (2022: nil).
Operating profit for the six months ended August 31, 2023, amounted to $91.97 million, a 43% decrease relative to $160.42 million reported in 2022. Operating profit for the second quarter amounted to $32.05 million (2022: $70.14 million). Net finance income totalled $7.93 million relative to net finance cost in 2022 of $7.79 million.
Profit before tax for the six months ended August 31, 2023, amounted to $102.77 million, a 33% decrease relative to $152.78 million reported in 2022. Profit before tax for the second quarter amounted to $38.66 million (2022: $63.93 million).
There was no income tax expense for the six months ended August 31, 2023 (2022: $27.88 million). Therefore, net profit for the six months amounted to $102.77 million, an 18% decrease from the $124.91 million reported in 2022. For the second quarter, net profit was $38.66 million (2022: $52.05 million).
Consequently, earnings per share (EPS) for the six months amounted to $0.08 (2022: $0.10), while EPS for the quarter totalled $0.03 (2022: $0.04). The twelve-month trailing EPS was $0.17 and the number of shares used in these calculations was 1,239,449,680.
Notably, IPCL’s stock price closed the trading period on October 13, 2023 at a price of $2.08 with a corresponding P/E ratio of 12.03x.
Management noted: “the purchase of land for our soon-to-be flagship location is in its final stages and the transaction is estimated to close in Q3 FY 2024. Regarding the new modalities, mammography services have been launched, and though delayed by a month our MRI unit has been shipped from the manufacturer and is anticipated to be in place and operational by Q4 of the financial year.”
Balance Sheet Highlights:
The company’s assets totalled $1.24 billion, representing a 100% increase relative to $619.37 million booked in 2022. This upward movement was largely due to trade and other receivables, which increased by 155% to $630.81 million (2022: $247.50 million), followed by a 50% increase in property, plant and equipment, which amounted to $414.99 million (2022: $277.00 million).
Shareholder’s equity was $966.42 million (2022: $361.75 million), representing a book value per share of $0.78 (2022: $0.29).
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