Elite Diagnostic’s profits slashed amid equipment, COVID-19 turmoil
Recurrent equipment breakdowns in conjunction with the economic downturn caused by the novel coronavirus pandemic has resulted in an 84 per cent decline in Elite Diagnostic Limited’s after-tax profit for its financial year ended June 30, 2020.
The health service company recorded a profit of $8.6 million for the period under review, compared to the $51.8 million reported for the previous corresponding year.
“The company faced many challenges during the year with equipment breakdown, the St Ann location, and the effects of COVID-19. The St Ann location continued to underperform due to CT [computerised tomography] and MRI [magnetic resonance imaging] breakdowns,” Chief Executive Officer Warren Chung explained in the report to shareholders posted Monday last.
He further indicated that the company experienced challenges with procurement of parts and repairs and as a result, both machines were operational only for a very short period during the year.
The company’s fourth quarter also experienced decreased demand for imaging services and reduced opening hours due to disruptions caused by COVID-19.
Elite Diagnostic, however, achieved revenue of $439.8 million for the period under review, compared to the $404.9 million recorded in the previous corresponding year.
Total assets also increased to $690.6 million from the $664.1 million recorded in the previous year, while total liabilities stood at $230.8 million, up from $212.9 million.
Earnings per share for the period under review ended at $0.02, a decrease compared with the $0.15 recorded in the prior corresponding period.
While the company expects the continuation of the negative effects of COVID-19 on the business, Chung underlined that the MRI and CT are now functioning and the St Ann location is at desired operating capacity, with improving revenues.
The branch, which opened in September 2019, is the company’s third and offers MRI, CT scans, ultrasounds and X-rays along with doctors’ offices.
Elite Diagnostic’s two other locations are in Kingston — Holborn Road and Liguanea.
