Year-end report 2016: Fourth quarter displayed strong growth for both sales and results

• Revenues increased in all of GHP’s markets 
• Strong growth and efficient processes contributed to improved results (EBITDA increased by 72 percent) 
• Successful takeover of the running of the hospitals in United Arab Emirates 
• 2016 – GHP’s strongest financial year ever 
• The Board proposes doubling of dividend

Fourth quarter 2016 

• Sales revenues increased to SEK 272.8 million (229.9) 
• Organic growth was 16.4 percent (8.4) 
• EBITDA amounted to SEK 23.6 million (13.7) 
• EBITDA margin amounted to 8.6 percent (6.0) 
• Result after tax (EAT) was SEK 14.8 million (13.0) 
• Result per share amounted to SEK 0.21 (0.19)

Full year 2016 

• Sales revenues increased to SEK 955.4 million (820.0) 
• Organic growth was 14.5 percent (6.1) 
• EBITDA amounted to SEK 80.9 million (52.5) 
• EBITDA margin amounted to 8.5 percent (6.4) 
• Result after tax (EAT) was SEK 45.1 million (27.3) 
• Result per share amounted to SEK 0.60 (0.33) 
• The Board proposes dividend of 30 öre per share

CEO’s comments
We end 2016 with yet another strong quarter. Both the Nordic Region and International contributed to strong growth and a considerably better result than the same period last year. In the Nordic Region we are proud of how we have been able to meet the combination of a fall in prices and an increase in salaries through greater efficiency and organic growth. In the Middle East we have now taken over the running of Sheikh Khalifa Medical City Ajman (SKMCA).  

In the Nordic Region GHP Stockholm Spine Center is worthy of mention, where we have had unacceptably long queues for a long time. Under the leadership of our new CEO, Björn Zoëga, we have been able to drastically shorten the queues through increased business operations. This has also meant that we have been able to meet the fall in prices that we have seen through increased efficiency and sales. We were particularly pleased when a new study showed that GHP’s two spine clinics have by far the shortest number of days off sick after surgery. So in addition to using tax revenues efficiently, as our care costs the County Councils less than at the publicly funded hospitals, we also contribute to considerably lower costs for sick leave.

We have now come to the end of our complete year with the new Collaborative Care scheme, the partnership with Skandia within orthopaedics in Stockholm. We have already been able to develop the care chains during the first year so that the total consumption of care is considerably reduced at the same time as both patient satisfaction and quality results are high and at least at the same level as previously. We believe that this shows the way in which health care needs to develop when health care resources are limited at the same time as demand is increasing. The best way of meeting this challenge is for us as care providers to take our responsibility and in partnership with our customers ensure resources last as long as possible.

We have now taken over the running of SKMCA in Ajman. Everything has worked according to plan and we have begun the development of the hospital group into a leading operation in the region. In parallel we have established a business development office in Dubai where we are working on all the exciting opportunities that exist in the region.

The debate on profits in social welfare took off again during the autumn. We do not believe that it is likely that the proposal limiting profits in the report of the “Ordning och reda i välfärden” enquiry (“Order and Control in Social Welfare”) will become a reality. Moreover, only a small part of our profits come from Swedish County Councils. However, we interpret the debate as the Swedish people being worried that profit interests will be to the detriment of quality. We know that it is almost always the opposite, but to show this and to calm public opinion we are positive to high quality requirements in private care. Furthermore, we believe that it is important to continue to tell the truth: when County Councils use our services, they save tax revenues and get very high quality. When we in November carried out an opinion poll, it also showed that as long as this is the case, a clear majority are positive to private health care.

We now look forward to 2017. We have strengthened GHP through a number of new competencies so as to be even better at new technology, digital communication, analysis and leadership development. We believe that this will be important in continuing the development of GHP towards even better service, quality and efficiency.

22 February 2017
Gothenburg
GHP Specialty Care AB (publ)

The Board

Queries should be addressed to:
Daniel Öhman, CEO, Tel: +46 708 55 37 07
Philip Delborn, CFO, Tel: +46 702 12 52 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 22 February 2017 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.

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