Directors pleased with record-breaking 2022/2023 performance

Durrant Pate/ Contributor

It was a fantastic 2022/2023  for medical diagnostic company, Image Plus, which posted record revenues and profits.

The company, which trades as Apex X-Ray and Ultrasound Services and listed on the Jamaica Stock Exchange Junior Market via an Initial Offering (IPO) on January 20, 2023, also broke the one billion revenue mark in a year.  For the financial year ended February 28, 2023, Image Plus saw revenues of $1.09 billion, the highest in its history, surpassing the J$777 million made in the previous year.           

Pre-tax profit closed on J$251.9 million, also the highest in the company’s history, a significant increase from the J$113.1 million posted in 2022.  Earnings per share closed the year at J$0.23, up from J$0.09 in the previous year.

The company operates from three locations in Kingston namely, Apex Medical Centre, Winchester Medical and Surgical Institute, 129 Pro (Liguanea) and White River Commercial Complex Shops 8,9&10, Ocho Rios, St. Ann.  The company offers diagnostic X-Ray, Ultrasound, Computerized Tomography and Intervention services under the business name of Apex X-Ray and Ultrasound Services.  

Details of revenue growth

Total revenues of J$1.09 billion, represent growth of J$316.3 million or 40.7 per cent when compared with the previous year. This performance was driven by the growth in case count which ended the year at 54,840, an increase of 8,469 cases or 18.3 per cent over the previous year. 

The increase in case count was driven by the addition of on-call services in Q4 FY 2023 in Kingston and Ocho Rios, an increase in interventional studies as well as the high value CT scans continuing to account for over 50 per cent of Image Plus modality case mix. The management continued to prudently manage costs and benefit from efficiencies of economies of scale such that expenses only grew by 24.8 pr cent, relative to revenue growth of 40.7 per cent. 

Administrative expenses for the year in review were impacted by expenses associated with one-off costs from othe IPO and the recent relocation expenses of the company’s Ocho Rios location.  Depreciation would also have increased with the addition of the new fluoroscopy unit.   

At J$251.9 million, pre-tax profit reflects growth of 122.9 per cent over 2022. Profit after tax at J$236.4 million reflects growth of 150.7 per cent or J$142.1 million year-over-year. 

Balance sheet growth

As at the end of February 2023, assets stood at J$1.16 billion compared to J$447.4 million last year. Assets have grown by J$710.6 million while liabilities went up by J$39.4 million compared to 2022.  

Shareholders equity grew by J$671.2 million to J$938 million for the year in review.  This was due to the increase in share capital of J$465.8 million from the recent IPO coupled with the growth of J$206.4 million in retained earnings, as a result of  significant profits during the year.    

On the asset side, a new fluoroscopy unit was acquired for the Winchester location and the relocation of the Ocho Rios operations to a larger space in White River North Commercial Complex in Q3, which drove growth in leasehold improvements. The significant increase in patient scan volumes resulted in a growth of J$159.4 million in trade receivables. 

The management says “It continues to actively manage these receivables and written commitments have been received from the largest payer, which gives us confidence that these receivables will continue to be honoured.”

In the area of Corporate Social Responsibility, Image Plus says it “continued its participation in the Ministry of Health Extended Healthcare Service delivery project as well as its discounted price offering to public patients, which are a tangible demonstration of our commitment to the Nation’s health.”

Two new modalities to be added next year

Despite the potential economic headwinds, the trajectory of performance for FY 2023 is anticipated to continue in the year ahead. 
The company anticipates that it will be able to add two new modalities (mammography and MRI) by Q3 FY2024 along with further growth in interventional studies is expected to contribute to the continued growth in case count.

Image Plus reports “a focused review of receivables and inventory management, and our patient experience processes, are important activities to be undertaken in the year ahead. We remain committed to pursuing growth and innovation, while staying true to our core values and commitment to quality. We believe that our focus on patient care combined with our financial strength and pursuit of operational excellence, positions us for continued success in the years to come.”