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Interim report January-September 2014: Positive EBITDA for third quarter despite holiday period

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  • 8 percent organic growth
  • Adjusted EBITA has more than doubled during the first nine months of the year
  • 57 percent of GHP’s revenues so far during 2014 stem from other sources of revenue than Swedish County Councils

Third quarter 2014

  • Sales revenues amounted to SEK 150.2 million (139.7) and organic growth to 8 percent (8)
  • EBITDA amounted to SEK 1.2 million (-1.1)
  • EBITDA margin amounted to 0.8 percent (-0.8)
  • Result after tax (EAT) was SEK -6.9 million (-12.0)
  • Result per share was SEK -0.11 (-0.20)

January - September 2014

  • Sales revenues amounted to SEK 557.7 million (529.3) and organic growth to 5 percent (7)
  • EBITDA amounted to SEK 42.3 million (41.2, adjusted 31.7)
  • EBITDA margin amounted to 7.6 percent (adjusted 6.0)
  • Result after tax (EAT) was SEK 15.2 million (8.1)
  • Result per share was SEK 0.16 (0.05)

The CEO’s comments
Continuing good demand and an efficient organisation are maintaining the improvement in results that we have seen during the past quarters. The third quarter is a challenge as the demand for specialist care goes down during the holiday period and the surgical wards at our clinics are closed for the summer holidays. We are therefore pleased to be able to deliver a positive EBITDA for Q3, something which we have not done for a long time.

The work in our areas of focus - growth, profitability in existing clinics and GHP’s identity – is continuing. In the growth area we have several exciting projects and we hope that one or two of them will come to fruition during the coming six months. During Q3 we opened our new doctors’ office at Garnisonen in Stockholm. Stockholm Spine Center and Ortho Center Stockholm will be able to grow their business there in 35 new doctors’ offices. Together with the new free choice of care for rehab, this is an opportunity for Stockholm Spine Center to increase the range of treatments offered by also being able to take care of the very severest back cases that we cannot treat through surgery.

As regards profitability in our existing clinics, we continue to do work on the clinics that are still some way from fulfilling their potential. We are also working on new agreements and structures on the supplier and customer side so as to cut costs and grow. The work on profitability in existing clinics is crucial if we are to manage the threat of a drop in profitability as a result of the development of prices in combination with annual cost increases.

You can see one of the results of the work on GHP’s identity in this interim report. We have a new logotype that links our clinics and clearly shows that they are a part of GHP. We are continuing to work on being even better at displaying our quality and informing about GHP, and you will see the results of this in the coming months.

The Government and the Left Party launched their agreement on “profits in welfare” during the past quarter. The agreement is formulated in general terms and it is difficult to know what the enquiry will lead to. This agreement involves both opportunities and risks for GHP: opportunities as we have long sought higher demands from the County Councils and as a period of concern can lead to decreased competition with regard to growth opportunities; and risks as it causes our partners concern and as a curbing of future dividends could affect the desire to invest in GHP. However, 57 percent of our revenues come from other sources than public sector health care customers, which should mean, even in the more negative scenarios, that curbs on the paying of dividends will not be an obstacle to GHP’s future dividends.

In the meantime we are working on holding up our business as a good example, where we with relatively good profitability benefit society by contributing with high quality at the same time as we save the taxpayers money.

31 October 2014
Gothenburg
Global Health Partner AB (publ)

Daniel Öhman
CEO

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

GHP is an internationally active healthcare provider that operates specialist clinics in a select number of diagnostic areas through the application of a business model that is unique in the healthcare 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’s shares are traded on the Small Cap list of NASDAQ OMX Stockholm under the abbreviation “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 31 October 2014 at 8.00 a.m. CET.

This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.

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Global Health Partner ghp healthcare provider specialist clinics quality through specialisation Tobias Linebäck Daniel Öhman Interim report January-September 2014

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