Interim report January - March 2015: Strong organic growth despite fewer working days

• Good demand and constant development of the business continue to give growth.
• Fewer working days than previous year had a negative impact on profit margins during the quarter. On a full year basis we expect to be able to compensate for this.

First quarter 2015

• Sales revenues increased to SEK 217.6 million (206.6) and organic growth amounted to 5 percent (6)
• EBITDA amounted to SEK 19.9 million (22.9)
• EBITDA margin amounted to 9.1 percent (11.1)
• Result after tax (EAT) amounted to SEK 10.3 million (12.8)
• Result per share amounted to SEK 0.11 (0.15)

The CEO’s comments
GHP’s development continues according to plan and the first quarter results were as expected somewhat lower than last year due to fewer production days. Each additional or lost working day affects the operating result by approximately SEK 2-3 million. The effect is particularly great at those clinics where the time spent in care is longer, where free days affect business operations several days before they close. We are constantly working to try to reduce the negative effects of this. Despite this we had growth of more than 5 percent and we are pleased that most of our clinics are contributing to the good growth. The picture for the full year still looks good: we have good demand and several exciting development projects.

We continue to work on our areas of focus: content, profitability and growth. We will soon present the first compilation of our new continuous follow-up of all patients. Feedback from our patients is important both so that we can be better and so that we can demonstrate our quality. As regards the development of profitability, our clinics’ aim of achieving greater profitability has in most cases paid off, and where we have not been fully successful we are now increasing our efforts. Work on the growth projects is continuing and there are several exciting concrete projects which we unfortunately cannot further comment on for competitive reasons. There is great demand, but the challenge is to create the right conditions for the leading clinics of the future and at the same time manage costs during the start-up phase.

It is important that we are involved in leading the development towards value-based care, which means that the focus is not on individual measures but rather on the outcome of care in relation to costs. The effect will be increased focus on what really matters and will mean that care providers will have greater freedom to develop care in the direction of higher efficiency (defined as improvement of the quality of life in relation to cost). GHP is well positioned to both contribute to and benefit from this development, with our specialised clinics that achieve high-quality results at a lower cost than traditional health care. The development in this direction is proceeding faster and faster, as our customers find it difficult to meet the challenge of the population’s increased need for care at the same time as resources are limited. A good example of value-based care is the free choice of spine surgery in Stockholm, which we have been involved in designing. Here we have great freedom to conduct health care in the way we think best and the remuneration we receive depends on how successful we are in improving the patient’s health. This means that we are rewarded for our good quality and we have several development projects ongoing where we gain customers by designing health care in accordance with the value-based approach.  

28 April 2015
Gothenburg
Global Health Partner AB (publ)

Daniel Öhman
CEO

Queries should be addressed to:
Daniel Öhman, CEO, Tel: +46 (0) 708 55 37 07
Tobias Linebäck, CFO and Head of Investor Relations, Tel: +46 (0) 708 55 37 19

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. Multiple clinics with high patient volumes within the same diagnostic area produce increased efficiency and higher quality, which 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”.

Global Health Partner 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

Global Health Partner AB is required to publish the information herein according to the Swedish Securities Market Act. This information was published on 28 April 2015 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.

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