Plans on cutting receivables balance to a minimum

Durrant Pate/Contributor

Medical diagnostic company, Image Plus will be adding a new service to its offering in mammography, which is the process of using low-energy X-rays (usually around 30 kVp) to examine the human breast for diagnosis and screening. 

The goal of mammography is the early detection of breast cancer, typically through the detection of characteristic masses or microcalcifications. The company, which trades under the name Apex Medical is on track to introduce mammography in the second quarter of its 2024 financial year.

This will be a new modality added to an already wide range of services, which includes diagnostic X-Ray, Ultrasound, Computerized Tomography, Nuclear medicine, Fluoroscopy and Intervention services.

Closing in on property acquisition

In the meantime, Image Plus is closing in on completing the sale of 3a Winchester Road, Kingston property for its new branch. Having signed a sale agreement recently, the purchase transaction is expected to close in the first month of Q3 of its 2024 financial year.

The plan for the 3a Winchester Road branch operations is for the centralization of some services to maximize efficiency. For the remainder of the year, the management is steadfast on the goal of increasing revenues by growing case count whilst ensuring profits and shareholder value are enhanced. 

The focused review of receivables management and patient experience processes are important activities that continue in Q2 FY 2024. 

Addressing outstanding receivables

While the company plans to continue the growth in patient scan volumes, it is also addressing outstanding receivables. The management reports “the majority of the receivables balance is from one large payor, who continues to settle on a consistent basis and from whom we have written commitments and detailed payment timelines to reduce their outstanding amount.”

To date, this amount has since been reduced in the just-ended second quarter and the Directors continue to believe that this amount is fully collectible based on the historical experience with this payor. 

Balance sheet growth 

At the end of the first quarter of FY 2024, assets stood at J$1.23 billion when compared to J$498.6 million for the corresponding period in the prior year. This growth was driven by 

1. Increases in property, plant and equipment due to the acquisition of a new Fluoroscopy machine and a new Ultrasound machine plus costs associated with the outfitting of our Ocho Rios location. 

2. Increase in Right of Use Asset associated with leases on our locations 

3. Increase in trade and other receivables as a result of the continued growth in patient scan volumes. 

4. Reduction in financial investments. This represents a shift in assets from cash to deposits on both new equipment (mammography and MRI) and real estate. Total equity grew by J$589.2 million to J$927.8 million. This was due to the increase in our share capital of $465 million from our recent IPO coupled with the growth of J$124.5 million in retained earnings as a result of our growth in profits.