Durrant Pate/Contributor

Medical diagnostic company Elite Diagnostic is expanding to the second city of Montego Bay, which it says remains high on the agenda, in keeping with the junior market-listed company’s medium-term expansion plans.

The expansion plans come in the midst of the company’s positive presence within the medical diagnostic industry and at a time when the industry has become even more competitive to operate within. This is due to the fact that additional players have entered the space and existing providers have increased their service offerings.

In preparing for the expansion and remaining competitive in the space, Elite Diagnostic has increased its customer service training seminars, as well as its marketing and promotions efforts so as to retain and increase its present market share.

Extended equipment downtime

Some of the company’s diagnostic equipment experienced extended downtime throughout the financial year, which resulted in higher repair and maintenance costs. While the downtime impacted the growth in revenues with extended working hours and increased marketing efforts, Elite Diagnostic was still able to exceed the prior year’s sales by 21 per cent.

The company became liable for payment of corporate income taxes in the middle of its third quarter, ended March 2023, at 50 per cent of the legislated rate. This concession will continue until February 2028, at which time the full rate becomes applicable.

Financial highlights

Revenues for financial year ended June 30, 2023 went up by 21 per cent to J$755.3 million, compared to J$624.2 million for the previous year. Net profit closed on J$13.3 million, compared to J$48.6 million in 2022.

Although gross revenues increased by J$131.1 million, the company saw increases in administrative expenses of J$77.8 million, depreciation expense of J$28.9 million, and finance costs of J$19.5 million. Total assets grew by J$178.9 million to J$1.1 billion compared to J$919.5 million in the previous year, as the stock of medical equipment was increased during the year.

At the same time, total liabilities went up by J$172.5 million to J$613.5 million, from J$441.0 million the previous year due mainly to the associated financing of the new medical equipment purchased.