English

Year-end report 2014: GHP’s best full-year results so far give scope for dividend

Report this content

  • Continuing strong results from the clinics in Stockholm and better results in Denmark, Skåne and Västra Götaland.
  • Strong balance sheet enables both dividend to be paid to the shareholders and the plan for expansion and growth to be retained.
  • GHP adopts a new dividend policy to distribute a dividend of 50 percent of the net result and proposes a dividend amounting to 13 öre per share.

Fourth quarter 2014

  • Sales revenues increased to SEK 209.9 million (208.4) and the organic growth amounted to 1 percent (4)
  • EBITDA improved to SEK 18.0 million (8.5)
  • EBITDA margin was 8.6 percent (4.0)
  • Result after tax (EAT) was SEK 16.4 million (-33.2)
  • Result per share amounted to SEK 0.20 (-0.54)

Full year 2014

  • Sales revenues increased to SEK 767.6 million (737.7) and the organic growth amounted to 4 percent (6)
  • EBITDA improved to SEK 60.3 million (49.7)
  • EBITDA margin was 7.9 percent (6.7)
  • Result after tax (EAT) was SEK 31.6 million (-25.1)
  • Result per share amounted to SEK 0.36 (-0.50)

The CEO’s comments
We are happy to be able to present GHP’s best full-year results so far. At the same time there is considerable potential left in several parts of the business.

The clinics in Stockholm continue to make a considerable contribution to GHP’s profitability and in our assessment we continue to have very great growth opportunities. We are also pleased that we have managed to substantially improve the results in Västra Götaland, Skåne and Denmark, which are the markets where we have had the greatest challenges historically. There is still, however, considerable potential for improvement. Another contributory factor regarding the improved results is that we have reduced central costs appreciably compared to previous years.

Specialist dentistry had a challenging year, with considerably lower results than last year. This is why we implemented a change of strategy in the summer, and we have had a new head of operations since October. We thus look ahead to the future with confidence with regard to this part of GHP. The other part of the business that has faced headwinds this year is GHP Stockholm Spine Center, which was given considerably lower levels of payment in the new free choice of health care scheme, at the same time as the start-up of the new outpatient business operations consumed a great deal of energy. There will be an increased focus on internal efficiency there as well as the development of opportunities within the free choice of health care during 2015.

When we look at the quarter in isolation we see the same effects as for the full year, that is considerably better results in Västra Götaland, Skåne and Denmark, while the results of specialist dentistry and spine business operations in Stockholm have deteriorated.

After some dampening of growth in the fourth quarter of 2014, we have a positive view of the current year. We have a good deal of growth projects, above all organic, but we want to grow while maintaining quality.

During the year we have launched a major project to strengthen GHP and better exhibit the Group – we are one of the largest suppliers of specialist care and we provide very good quality. We have introduced new quality follow-up key ratios which all our Swedish health care clinics measure as from the beginning of the year, we have developed the management systems and we have launched a new common brand. As we have said earlier on, we have also carried out a major reorganisation at head office.

We feel secure in our profitability and anticipate that it will continue to develop well. We also have a considerably stronger balance sheet; net debt has decreased over the past two years from almost 3 to less than 1 times the operating result before depreciation and amortisation. We have therefore adopted a new dividend policy, which says that in the long term 50 percent of profits after tax and minority interests shall be distributed to the shareholders. The proposal to the Annual General Meeting for 2014 is 13 öre per share. We are comfortable that such a dividend policy will not be an obstacle to GHP’s future growth and we are maintaining our current growth objectives

19 February 2015
Gothenburg
Global Health Partner AB (publ)

The Board

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 OMX 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 19 February 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 Year-end report. When in doubt, the Swedish wording prevails.

Tags:

Global Health Partner ghp healthcare provider specialist clinics quality through specialisation Tobias Linebäck Daniel Öhman Year-end report 2014

Documents & Links