Elite Diagnostic Reports Lower Year End Net Profit
- Owing to higher direct and indirect expenses, Elite Diagnostic Ltd. experienced a 77.4% YoY decline in net profit to $1.93Mn (EPS: $0.005) for the financial year ending June 30, 2021.
- Admin and other expenses increased by 22.6% ($36.30Mn) on the back of higher spending on advertising and promotion, repairs and maintenance and utilities, and higher expected credit losses. Staff costs also grew due to higher expenditure on salaries and wages, statutory contributions and staff welfare and training.
- Direct costs also rose by 10.6% (or $17.09Mn), and depreciation and amortization by 15.7% (or $13.89Mn). Also negatively impacting the bottom-line was an increase in loss on foreign exchange from $465K in 2020 to $6.72Mn in 2021. The overall falloff in net profit was tempered by a 15.3% (or $67.11Mn) increase in income.
- The company faced many challenges during the year with the St Ann branch and the negative effects of the COVID-19 pandemic. The St Ann location continued to underperform most of the year due to the MRI and CT breakdown. The equipment challenges were finally resolved during the end of the 3rd quarter with the enlistment of overseas expertise. However, the pandemic continued to negatively impact its operating hours and interventional procedures.
- Elite continues to see increased demand for imaging services and has purchased a new MRI system that will be installed at the Liguanea branch and become operational in early 2022. The new MRI system will reduce the company’s operating hours and its related expenses. With the issues at St Ann branch finally resolved, the location is now operating at a desired capacity. These factors could result in improved earnings in 2022, however, the evolving pandemic still poses downside risks to its performance.
- Elite Diagnostic’s stock price has declined by 0.3% since the start of the year and closed Tuesday’s trading session at a price of $3.00 per share.
(Source: Pulse Investment Financials & NCBCM Research)