Quality through specialisation


Interim report January-September 2018: Continued high growth and focus on business development

  • Strong organic growth and improved results in GHP's Nordic businesses
  • Seasonal variations have a negative impact on the results in all three segments
  • Significant investments in the digital offering and solutions
  • New agreement takes Vårdsamverkan to SEK 100 million in revenue on an annual basis
Third quarter 2018
  • Sales revenues increased to SEK 218.2 million (191.9)
  • Organic growth increased to 12.3 percent (6.1)
  • EBITDA increased to SEK 1.7 million (-0.2)
  • EBITDA margin increased to 0.8 percent (-0.1)
  • Result after tax (EAT) amounted to SEK -4.6 million (-2.8)
  • Result per share amounted to SEK -0.08 (-0.05)
First three quarters of 2018
  • Sales revenues increased to SEK 784.4 million (702.3)
  • Organic growth increased to 13.3 percent (3.9)
  • EBITDA increased to SEK 48.7 million (11.2)
  • EBITDA margin increased to 6.2 percent (1.6)
  • Result after tax (EAT) increased to SEK 23.1 million (-8.5)
  • Result per share amounted to SEK 0.27 (-0.14)

CEO's comments
GHP is in a very exciting period. The Nordic Region is progressing well, with considerable growth and strong performance in all parts. We are working on many development projects and investments in Vård-samverkan and International. The aim is to strengthen our position as the leading specialty care provider in the Nordic Region. We also want to expand our business in the Gulf region so that the we become a local care provider that has several legs to stand on and to create new types of collaboration and products through Vårdsamverkan. We are expanding with thorough control, with respect for the challenges, and with so as to ensure robust development where every quarter involves a few steps forward.

When we look at the third quarter, the Nordic Region is continuing to develop positively. We have organic growth of 13%, which is due to strong demand for our services, where our ability to attract personnel and the increases in capacity gained through the extension of premises and improvements in efficiency will give results. The third quarter is always tough for the Nordic Region in terms of results. Unlike primary care, nursing care and hospital care, our businesses do not have a constant inflow of revenues. The holiday period hits our results very hard. We are therefore pleased to see, despite all of this, a small increase in profitability during this quarter as well. If we look ahead, we expect the negative price trend to wane, or even turn positive. We base this on increased demand and the fact that competitors have closed down businesses, demon-strating that the current situation with public agreements without increased prices is unsustainable. Now we feel that there is an increased understanding that the conditions for private health care providers of high quality needs to be improved, so that we can be a part of the solution of coming challenges for Swedish health care. We expect this pressure of prices to turn into increased pressure for higher salaries. Therefore, it's important that we continue to work hard to be as good an employer as possible. We place great focus on appointing and developing good leaders and ensuring that our personnel feel that they can make a difference and be proud of what they achieve at our work places.

In International we continue to develop our four hospitals. We are very proud of how much we have been able to improve care, with greatly improved patient safety and result. Financially speaking, our remuneration is based on how well we can deliver a number of predetermined quality and efficiency KPIs and on a number of activities (such as training, quality audits and the appointment of the relevant personnel). Remuneration for activities is linked to the quarter they are carried out and this year we have an even greater shift towards the fourth quarter compared to last year. This means that we expect a strong result for the end of the year within International. The underlying KPIs remain at a high level. We continue the intense work of winning more agreements and starting new collaboration in the region. We currently have several high-quality projects and we are optimistic about our chances of growing in the segment. After 10 years in the region, we know that the processes are long and unpredictable.

Vårdsamverkan has taken large steps forward during the quarter. The new collaboration with Trygg Hansa is underway which means that the segment will now reach approximately SEK 100 million per annum. This means that we are now sufficiently big to really invest and extend the collaboration, solutions and necessary development. An important part of this is different forms of digital support. During the third quarter we started up our collaboration with Doctrin. There we work with dynamic forms in order to gather in an efficient and structured manner as much information as possible about patients and their injuries before the first appointment. What makes GHP Vårdsamverkan unique is that we own entire care chains. This is never the case in public health care, where instead the patient bounces from one system to another. This means that we can link up this structured data with precisely what care the patient receives and from what care provider, what the outcome of the care was (that is how well the patient becomes) and what the whole care chain cost. We do this in our own data banks. This knowledge allows us to then constantly continue to develop care through preventive tools, smarter care chains, the right level of care directly and digital support, such as chat or our physiotherapy app. Even though these strategic initiatives entail some costs, we are convinced, that eventually, it will create a great value. We are now fully focused on building all this up and ensuring really good and seamless care chains. To show what we can achieve with Vårdsamverkan, we have produced a movie which is available here: https://youtu.be/tgQCGt_-PT8 

As usual, it is a question of succeeding with all these initiatives at the same time as the whole foundation of our business, that is all our fine clinics in the Nordic Region and the hospitals in the Middle East, functions really well each and every day. We will use our fixed costs to help as many patients as possible as well as possible. We must never allow ourselves to lose this focus.

25 October 2018
GHP Specialty Care AB (publ)
The Board

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