Profit drops at Image Plus

Image Plus reported sharply lower second quarter results with a 40 percent drop in earnings from $64 million before tax in 2022 to just $39 million for the second quarter as revenues declined by 7 percent to $254 million from $274 million in 2022 but remained flat for the half year at $554 million and resulting in pretax profit falling 33 percent from $153 million to $103 million.
The company indicated that revenues fell due to machine breakdown, although other areas saw growth in the modalities of X-ray and fluoroscopy cases.
Administrative expenses grew 21 percent from $94 million in the August 2022 quarter to $114 million and were up almost 26 percent for the half year to $232 million from $184 million in 2022. Depreciation and Amortisation charges rose from $10 million in the 2022 August quarter to $155 million in 2023 and for the six months to August, it jumped from $19 million to $30 million.
Interest income rose from $206,000 in the second quarter to $7.8 million and from $1.3 million to $12.6 million in the half year while interest cost declined from $6.5 million to $3 million in the quarter and from $9 million to $4.7 million for the half year.
Operations delivered Cash Flows of $120 million after interest income and expenses, but a surge in Receivables reduced the amount to a net outflow of $224 million. The company also purchased fixed assets amounting to $120 million, paid $74 million in dividends and utilized investment funds to help cover the cash flow shortfall, resulting in funds on hands falling to $110 million at the end of the half year.
Earnings per share ended at 3 cents for the second quarter and 8 cents for the year to date. ICInsider.com projects earnings for the year to 21 cents per share.

Dr. Karlene McDonnough – Chairman of Image Consultants Ltd.

Current assets stood at $763 million and include trade receivables of $631 million up from $248 million in August 2022. Cash at bank balances amount to $110 million. “The majority of the trade receivables balance is from one large payer who continues to settle consistently and from whom we have both written commitments and detailed payment timelines to consistently reduce their outstanding amount. This amount has since been reduced in Q3 to date and is believed to be fully collectible based on the historical experience with the payer,” the directors’ report stated.
Current liabilities amounted to $117 million from the August quarter and $124 a year ago.
Shareholders equity ended the period at $966 million up from $362 million a year ago before going public. Borrowings used in the operations totalled $192 million, up from $130 million in August 2022.