Revenue and profits surged solidly for the most recently Junior Market listed Image Plus Consultants for the financial year ended February 2023, with revenue jumping a robust 40.7 percent to a record $1.094 billion, up from $777 million in 2022 but, with a slower pace of 33 percent in the final quarter of $290 million compared with $218 million in 2022 as the company that specializes in diagnostic services delivered a convincing 123 percent growth in Profit before Tax to $252 million, up from $113 million in 2022.
Profit after tax jumped 139 percent to $236 million over the $94 million generated in 2022. Results equated to earnings per share of 23 cents up from 9 cents in 2022. ICInsider.com revised earnings for the current fiscal year to 40 cents from 30 cents previously and 85 cents for the fiscal year ending February 2025.
Revenue was driven by the growth in case count of 54,840, an increase of 8,469 cases or 18.3 percent over the 2022 financial year, the company advised shareholders in a release accompanying the financials.
Gross profit jumped 39 percent to $716 million from $505 million in the previous year as the company maintained a 39 percent cost of sales for a second year.
Administrative expenses rose 14 percent to $417 million from $365 in 2022, depreciation charge climbed to $43 million versus $36 million in 2022 and finance costs remained almost flat at $7 million.
Current liabilities stood at $138 million, Shareholders’ equity grew from $267 million to $945 million, helped by an infusion of $465 million in proceeds from the IPO earlier in 2023 coupled with the growth of $213 million in the year’s profit. Long term liabilities amount to $75 million, with current loans amounting to $39 million. Cash and investment funds totalled $492 million and helped to swell Current assets to $811 million from just $223 million at the end of the fiscal year 2022.
Dr. Karlene McDonnough – Chairman of Image Consultants Ltd.
Cash flow generated $271 million, but working capital absorbed $83 million as receivables Increased by $159 million due partially to greater business activity. Addition to fixed assets consumed $152 million, with Lab equipment taking $104 million and leasehold improvement $43 million.
According to management, “a new fluoroscopy unit was acquired for our Winchester location and the relocation of our Ocho Rios operations to a larger space in White River North Commercial Complex in Q3 drove growth in leasehold improvements. The significant increase in patient scan volumes resulted in a growth of $159 million in trade receivables. Management 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.”
The company incurred income tax on profit for ten months of the financial year 2023 before listing and will enjoy five years tax free status as JSE Junior Market listed company.
The stock, around $2, is attractive and can potentially deliver good returns for investors at the current price. Investors could benefit from cash dividends as the directors will meet this month to consider a dividend payment.
