Interim report January-September 2016: GHP’s best holiday quarter
- Continued good growth and results despite holiday period
- Our client is pleased with of our initial work at Sheikh Khalifa Medical City Ajman (SKMCA)
- Our new management team is now in place and leading the development of SKMCA
Third quarter 2016
- Sales revenues increased to SEK 189.1 million (160.4) and organic growth amounted to 15 percent (7)
- EBITDA amounted to SEK 7.4 million (1.1)
- EBITDA margin amounted to 3.9 percent (0.7)
- Result after tax (EAT) amounted to SEK 0.8 million (-4.6)
- Result per share amounted to SEK 0.01 (-0.07)
January - September 2016
- Sales revenues increased to SEK 682.6 million (590.1) and organic growth amounted to 14 percent (6)
- EBITDA amounted to SEK 57.3 million (38.8)
- EBITDA margin amounted to 8.4 percent (6.6)
- Result after tax (EAT) amounted to SEK 30.3 million (14.3)
- Result per share amounted to SEK 0.39 (0.14)
We are delighted that we have had the first holiday quarter ever, with positive operating results. A large part of this is of course our new agreement for SKMCA in the United Arab Emirates, where we have now been working for a little more than two quarters, and which is not affected by holiday periods. In the Nordic region, the summer holiday had, as usual, a great negative impact on the results. The quarter was characterised by intensive work at SKMCA, where our operative management team is now in place and has begun work on creating a strong organisation and on improving the quality of the work done there. Apart from our fixed costs being covered, our financial compensation is flexible and is based on how well we succeed in delivering a number of predefined key ratios and certain strategic measures. Since starting in March our work has been met with approval, and this is reflected in the strong financial results. We expect we will be able to continue to deliver at a high level, but a large part of the compensation continues to be flexible. During the quarter, we also established the management for GHP International in Dubai, which will work on continued business development in the region, where there are many interesting opportunities.
The results in the Nordic region were somewhat better than during the corresponding period last year. It is a larger improvement than it seems, bearing in mind that, all other things being equal, when the Nordic business operations grow, the cost mass is also affected and the losses have an even greater impact in the holiday period. However, considering the comprehensive development work ongoing in the clinics, we had aimed for better results. One factor is orthopaedics in Stockholm, where we have not been able to implement the planned increases in production necessary to counteract the effects of the large fall in prices in some of the publicly funded patient groups. We now anticipate that we will achieve the higher volumes during the fourth quarter of 2016. The challenges of very low publicly funded volumes also continued at our clinic in Århus.
Collaborative Care continued to develop positively during the period and contributed to the good results for the quarter. We are now working on developing several digital solutions, whereby we will be able to even more efficiently ensure that each patient receives the right individual care. This includes digital anamnesis, online booking and digital communication.
During the quarter, we have brought together all our personnel in regional celebrations of the fact that GHP has its tenth birthday this year. It has been fantastically inspiring on these occasions to meet all our competent personnel and experience the pride that exists regarding our great business operations. We look forward to adding one further business to the list during the coming quarter, GHP Idrottscentrum, which we will soon be giving more information about.
28 October 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 pursuant to the EU Market Abuse Regulation. This information was published, through the agency of the contact persons set out above, on 28 October 2016 at 08:00 a.m. CET.
This is a translation of the Swedish version of the Interim report. When in doubt, the Swedish wording prevails.