Union Diagnostic and Clinical Services, a Nigerian company that deals in ultra sound diagnostic facilities, is in a growth spurt as half year (H1) net income doubled amid environmental challenges, analysis of the financial statement shows.
For the first six months through June 2014, the company’s profit after tax increased by 50.98 percent to N41.93 million from N20.55 million the same period of the corresponding year (HY) 2013.
Earnings per share (EPS) increased to 118k in HY 2014, compared with 58k as of HY 2013.
There was growth also at the top-line level as sales rose by a double digit 18.87 percent in HY 2014, to N517.73 million as against N420.03 million as of HY 2013.
Analysts say the performance of the company can be attributed to the savvy management of financial resources by its management and board of directors.
Based on business analysis, cost-of-sales margin jumped to 50.67 percent in HY 2014, from 54.09 percent the preceding year, while cost of sales increased by 13.54 percent to 13.54 percent to N262.38 million.
Union Diagnostic can tap into the Nigeria economy of $510 billion (N80.22trn) and its burgeoning middle-class with rising disposable income who crave for health care services.
Some industry in the healthcare sector are calling for better banking initiative with low interest rate and space out repayment that will encourage investors coming into the country.
This is expedient given that the private sector provides over 60 percent of healthcare services to the multibillion dollar industry.
Union Diagnostic management direct cost is attributable to projects as gross profits increased by 32.18 percent to N255.35 million from N193.17 million as of HY 2013, while gross profit margin jumped to 49.32 percent in 2014 as against 45.98 percent last year.
Net margin, a measure of profitability and efficiency increased to 8.09 percent in the review period from 4.89 percent last year.
Current ratio, which measures the ability of a company to meet short-term obligation as at when due was 2.4 xs, which is within the industry average of 2.1 xs.
The company’s share price closed at N0.50 on the floor of the Nigerian Stock Exchange, while market capitalisation was N1.77 billion.