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Elite Diagnostic makes partial recovery in second quarter

Following machine breakdowns across its three locations at different times during the last year, Elite Diagnostic Limited managed to claw back some of its lost revenue during the second quarter.

Despite this development, the company continued to underperform as net profit declined by 30 per cent to $3.1 million as higher administration expenses and depreciation costs rose for the period ending December 31, 2020.

The company which is in the business of diagnostic imaging saw its revenue grow by 7 per cent to $126.4 million due to its new St Ann location despite the curfew hours and intervention procedures that limited the earning potential during the quarter.

Due to direct costs declining by 9 per cent, the company’s gross profit increased by 18 per cent to $82.4 million.

As a result of a 21 per cent rise in administrative expenses to $46.9 million and higher depreciation charges at $25.4 million, operating profit fell by 19 per cent to $10.1 million. With no other income and lower finance costs, Elite’s profit for the 3 months remained lower at $3.1 million, with a flat earnings per share.

The result for the overall 6 months is a net loss of $7.3 million mainly from the sluggish first quarter.

Total assets declined by 1 per cent to $687.1 million emanating from a 3 per cent decline in property, plant and equipment which ended the period at $574.8 million.

Total liabilities grew by 4 per cent to $234.6 million, while shareholder’s equity dropped by 4 per cent to $452.5 million.

During the quarter, Elite fully paid off the remaining balance on its Sagicor Bank loan which restricted it from paying any dividends to shareholders. It is unknown if the company will consider a dividend in the year considering the $195- million loan from MF & G Management Limited, which affords the company a two-year moratorium on principal repayments.