Interim report January-March 2016: Good development in key areas
- First phase in United Arab Emirates ongoing and proceeding according to plan
- Improving results for GHP Vårdsamverkan (GHP Collaborative Care), our new collaboration with the insurance companies
- Continuing good organic growth
- Urologcentrum acquired and taken over
First quarter 2016
- Sales revenues increased to SEK 231.5 million (217.6) and organic growth amounted to 5 percent (5)
- EBITDA amounted to SEK 18.1 million (19.9)
- EBITDA margin amounted to 7.8 percent (9.1)
- Result after tax (EAT) amounted to SEK 9.4 million (10.3)
- Result per share amounted to SEK 0.12 (0.11)
The results for the first quarter of 2016 were satisfactory bearing in mind that Easter was earlier this year compared to previous year, which affected the quarter negatively. Our assessment is that this had a negative impact of SEK 4-6 million on the operating result due to lost working days around Easter. In spite of fewer working days, growth for the quarter amounted to 6 percent (of which 1 percentage point is acquired), which witnesses to higher underlying growth.
What was particularly positive about the quarter was that, despite the fact that the new agreement in the United Arab Emirates (UAE) has only been in force for a month and we have had costs throughout the quarter, GHP International made a positive contribution to the results for the quarter and the work is proceeding according to plan. The positive trend looks as if it will continue in the second quarter. We are now carrying out a comprehensive analysis of the hospitals we are to take over, the focus being on producing a development and business plan. In parallel with this we are in the process of employing experienced and competent managers for the management team which will lead the hospitals at site. We are happy with how both these processes have developed. It is as from 1 September that we will take over the management of the hospitals, as planned.
The results of GHP Vårdsamverkan (formerly integrated care solutions) are improving and even though they had a negative impact on results for the first quarter, the losses were considerably less than in Q4 2015. This is due to increased efficiency and to reduced start-up and development costs. We anticipate that these business operations will have a positive impact on the full year 2016.
We can also see positive developments in Specialist Dentistry and GHP Ortho Center Skåne. Within Specialist Dentistry we have been able to attract skilled specialists and strengthen cooperation regarding patient referrals. GHP Ortho Center Skåne’s results are better due to new rental agreements. At GHP Stockholm Spine Center we can see positive tendencies, even though we have a way to go before reaching the potential that we see in the business. We are also pleased with our new acquisition, Urologcentrum, which we took over on 1 March and which made a positive contribution to the quarter.
Some businesses have unfortunately developed in a negative direction. We continue to see considerably lower demand for publicly funded obesity surgery. We think this is an effect of the fact that the “queue billion” paid to County Councils by the Swedish government was taken away at the beginning of the year. At GHP OPA Privathospital in Århus we have seen considerably reduced demand for publicly funded spine surgery after responsibility for payment for free choice of care patients was transferred from the region to the University Hospital. In both cases the underlying need is just as great as previously, which leads to the formation of queues due to changes in regulations, which in turn leads to increased costs for society. We think that these patients will come back when the queues grow longer, but this irregular demand is not good for our profitability.
By way of summary, the results for the quarter are coloured by Easter, but the underlying work on the clinics is proceeding according to plan, at the same time as GHP International and GHP Vårdsamverkan are developing positively.
26 April 2016
GHP Specialty Care AB (publ)
Queries should be addressed to:
Daniel Öhman, CEO, Tel: +46 708 55 37 07
Susanna Laursen, Acting CFO, Tel: +46 709 61 64 64
GHP is an internationally active health care provider that operates specialist clinics in a select number of diagnostic areas through the application of a business model that is unique in the health care industry, where leading doctors become partners and shareholders. Each clinic specialises in a particular patient group, and this leads to increased efficiency and higher quality. This is the cornerstone of GHP’s business philosophy – “Quality through specialisation”. GHP shares are traded on the Small Cap list of Nasdaq Stockholm under the ticker symbol “GHP”.
GHP Specialty Care AB (publ) | Corp. ID No. 556757-1103
Södra Hamngatan 45 | SE-411 06 Gothenburg | Sweden
Tel +46-31 712 53 00 | Fax +46-31 313 13 21 | www.ghp.se
GHP Specialty Care AB (publ) is required to publish the information herein according to the Swedish Securities Market Act. This information was published on 26 April 2016 at 8:00 a.m. CET.
This report has not been the subject of review by the company’s auditor.
This is a translation of the Swedish version of the Interim report. When in doubt, the Swedish wording prevails.