Word reaching IC insider.com is that the third branch of Elite Diagnostic is set to open by the beginning of August.
Earlier this week, IC Insider.com sited the new building that is substantially complete and seems ready to welcome patrons. Elite had purchase of MRI machine from early in 2018 and had it store for installation at this location.
The new location is expected to carry a smaller staff compliment that the two in Kingston. The new location will be a drag on earnings for the company until it gets up to speed, but the cost will be less than for the second location.
At the 2018 annual general meeting, the directors indicated that the cost to set up St Ann Bay is in the region of $20-22 million plus U$375,000 for the MRI machine.
The company bought the MRI equipment early because it became available locally, but it comes at a cost as it was being stored with rental and electricity cost incurred to maintain it at a cool temperature. While the company has 3 other MRI competitors in Kingston, there will be no immediate competitor within 50 miles in St Ann. Operating cost at this location will less than at Liguanea with the former being staffed by 7 employees versus a planned staffing of 4 or 5 for St Ann.
Drax Hall branch of Elite nearing completion.
Elite reported net profit for the December 2018 quarter of $5 million compared to $1 million for the same period a year ago. Net profit for the 6 months was $6.8 million, down from $12 million for the same period in 2017. Revenues rose strongly to $97 million in the second quarter compared to $72 million for the 2017 period. For the six months to December, revenues rose to $182 million compared with $142 million for the year ago period. The stock traded at $4.80 on the Junior Market on Tuesday, with PE ratio of 7.5 based on estimated 2020 earnings of 65 cents per share.
