However, post pandemic recovery continues into June 4th quarter

Durrant Pate/Contributor

Jamaican medical diagnostic outfit, Elite Diagnostic Limited is bleeding heavily from its non-functioning scanning machines.

The latest data shows that machinery downtime, particularly in late May into June, has seriously impacted the company negatively with two units being out of service for a combined period of over five weeks. This resulted in an income loss of over J$10 million.

In spite of the bleeding from the machinery downtime, the company managed to record a solid June fourth quarter, where  revenues increased by J$39 million from J$136.7 million the prior year to J$175.7 million for the quarter in review. Net profit for the quarter was J$13.9 million compared to $3.5 million, an improvement of 397 per cent over the previous year.

Installation of new MRI machine

Also Elite Diagnostic’s Drax Hall location continues to grow month over month, leading to the improved bottom line. In the meantime, the new MRI machine was installed in June at the Old Hope Road location with the setting of scan protocols and staff training continuing.

The unit has been commissioned into service and this is expected to have a very favourable impact on  performance. Total assets as at the June quarter were $917.9 million compared to $700.4 million in the previous period, an increase of 31 per cent, largely due to the installation of the new MRI machine.

The company is fairly liquid and is in a strong financial state, with current assets exceeding current liability by over two times.

Profitability improving

Pretax profit for the year end amounted to J$48.82 million compared to J$1.93 million recorded in 2021, an increase of 2431 per cent year over year. Revenues for the year jumped by 23 per cent to total J$625.20 million compared to J$507 million in 2021.

For the fourth quarter, revenue increased 48 per cent from J$136.70 million booked June 2021 to J$175.69 million for the period under review. Direct costs for the year increased seven per cent, closing at J$191.87 million, up from J$178.60 million reported the prior year, while for the fourth quarter there was a 32 per cent uptick in direct costs, closing at J$51.56 million (2021: J$45.98  million).

Administrative expenses climbed 24 per cent for the year, closing at J$243.27 million (2021: J$196.67 million). Depreciation and amortization reflected a five per cent increase to total J$107.53 million relative to the J$102.06 million reported in 2021.

This resulted in profit from operations of J$82.53 million for the year ended June 30, 2022, a 178 per cent increase relative to J$29.58 million booked 12 months earlier. Finance cost for the year ended June 30, 2022 totaled J$27.24 million, an increase of 30 per cent compared to the J$21.02 million recorded for the prior year.

Foreign exchange loss amounted to J$6.47 million compared to a loss of J$6.72 million the prior year.