By Phil Boeyen, ShareChat Business News Editor
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Thursday 17th January 2002 |
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The company says it lost $842,000 in the six months ended November compared to a loss of $6.73 million for the same period the previous year.
Earnings before interest and tax was $1.42 million compared to the previous interim loss of $4.66 million however CEO Alan Clarke says Ebita has fallen.
"ElderCare's core operational performance, before interest, tax, depreciation, amortisation and corporate and support office costs, was down 13% on the same period last year.
"The main contributor to the shortfall was soft performance of the rehabilitation sector where Ranworth Healthcare's contribution was down over 25% on the same period last year."
Mr Clarke says on-going investment in restructuring the company for future growth resulted in an increase in corporate and support office expenditure, which further contributed to the half-year loss.
Revenues from operations of the retirement and rehabilitation sectors were $17.07 million for the period, slightly down from the previous year's $17.35 million, mainly due to Ranworth Healthcare.
Chairman, Jim Syme, says while the company did not achieve full profitability for the period, the result is a vast improvement on last year's loss.
"More importantly, improvements to the company's operations and financial position should result in an annual reduction in the cost of debt servicing from over $4.0 million a year to less than $2.5 million."
The company's acquisition of Medical Laboratory Wellington and Nelson Diagnostic Laboratories is expected to be settled by the end of this month and, once completed, is forecast to produce a 48% growth in annualised revenues from $33 million to $50 million.
Additional Ebit contributions of over $2.3 million a year, and no increase to the corporate overhead costs, are also predicted
"These improvements will only be partially seen in the second half of 2002 with full benefits realised in the 2003 financial year and beyond," says Alan Clarke.
ElderCare reports it is pursuing several opportunities for further acquisition and investment with announcements on progress expected to be made during the year.
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