Durrant Pate/Contributor

Having been in discussions for months with a new partner for the development of its planned 33 LMR facility in St Andrew, Image Plus is close to clinching a deal.

The company is reporting that discussions with the potential partner for the buildout of its 33LMR facility is far advanced and expects to ink a deal anytime now. The new complex is to be built on the property located across from the AC Marriott Hotel in New Kingston.

Image Plus, which trades as Apex Radiology is anticipating completion of legal agreements and work to begin on that project during the current fourth quarter of its financial year, which ends next month. 

Design for the new facility is awaiting regulatory with Image Plus planning to embark on an aggressive schedule to make the new complex a reality by the end of the February 2026 financial year. 

Poor Q3 results

Turning to the latest unaudited financial statements for Q3, which ended November 30, 2024. revenues declined by 5.9 per cent to J$296.8 million compared to the third quarter in the prior year. Revenues for the nine months to November 2024 also went south, closing on J$835.6 million, representing a decline of J$33.8 million or 3.9 per cent when compared to the similar period in 2023. 

Scan volume for the nine-month period to November 30, 2024 was 40,323 cases compared to 44,306 cases for the same period in the prior year. This was a contraction of nine per cent, which was heavily influenced by lower scan volumes in Q2 when CT studies were impacted by machine downtime across three of Image Plus’ four locations. 

Though the affected CT units returned to full functionality in the quarter under review but the outturn was not sufficient to bring the year-to-date (YTD) volumes in line with prior year. However, direct costs for both the third quarter and nine-month YTD were contained below prior year by 12.1 per cent or J$13.5 million and 7.9 per cent (J$24.6 million) respectively. 

The aforementioned factors resulted in the company’s profitability declining to J$26.2 million for Q3 and J$41.6 million for the nine months to November 30, 2024. This represents a reduction of J$35.3 million and J$122.6 million respectively over the prior periods.

Although revenues have rebounded in Q3, the YTD shortfall continues to impact the company’s overall profit performance. Newer modalities of MRI and mammography continue to show increased volumes and now contribute nine per cent and growing to Image Plus’ overall scan count. 

Balance sheet highlights

At the end of the combined three quarters, total assets were flat at the start of the year closing at J$1.6 billion due to: 

1. $5 million increase in Right-Of-Use Asset associated with the lease of our Winchester Road location. 

2. $11.8 million reduction in other investments 

3. $38.6 million increase in Trade and other receivables

Total liabilities jumped by J$54.5 million during the combined three quarters compared to the prior year. Primary contributors were increases in bank overdraft, borrowing and current portion of lease liability. 

During the third, the company sold some of its trade receivables to improve its cashflow position, and as such a recourse liability of J$75.8 million is reflected. 

Total equity for the nine months to November 2024 increased by J$4.4 million to J$1.08 billion, as a result of the modest increase in retained earnings.