Image Plus Consultants Records a 150% Increase in Profitability for FY 2022/23

• Image Plus Consultants Limited (IPCL) recorded a net profit of $236.43Mn for the year ended February 28, 2023, representing a 150.7% increase in profitability when compared to the $94.29Mn recorded over a similar period in 2022.
• Revenue for the year was up by 40.7% y-o-y to $1.09Bn mainly attributed to higher case count which increased by 18.3% (or 8,469 cases) to 54,840 over FY 2022. This increase was driven by the addition of on-call services in Q4 FY 2023 in Kingston and Ocho Rios as well as increases in interventional studies and high-value CT scans.
• Cost of sales increased by 38.7% (or $105.29Mn) in line with revenue growth, moving to $377.49Mn. However, the growth in COGS was outpaced by revenue growth resulting in a marginal increase in the gross margin to 65.5% up from 65.0% in 2022. Administrative expenses were 14.4% (or $52.46Mn) higher when compared to the $364.72Mn recorded in the same period of last year. This was largely due to expenses associated with one-off costs from its recent IPO (January 2023) and the relocation expenses of its Ocho Rios branch.
• IPCL’s stock price has increased by 8.0% since its IPO in January. The stock closed Wednesday’s trading session at $2.16 and currently trades at a P/E of 9.4x which is below the Junior Market Heath Sector Average of 16.0x.
• The outlook for the company is optimistic as it anticipates that it will be able to add two new modalities (mammography and MRI) by Q3 FY2024. This along with further growth in interventional studies is expected to contribute to the continued growth in its case count. Having listed on the Junior Market of the Jamaica Stock Exchange in 2023, IPCL benefits from a full tax holiday for the first five years and a 50% tax holiday in years 6 to 10. This should bode well for its bottom line and drive shareholder value over the next 10 years.

(Sources: JSE and NCBCM Research)