Quality through specialisation


Interim report January-June 2019: Important new market for GHP International

  • New management contract in Kuwait as from July 2019 contributes to future profitability in GHP
  • Changed assessment of division of revenues per quarter in International has positive impact on results for second quarter
  • Strong organic growth despite fewer working days
  • Positive development of Nordic business
  • Launch of two new digital pilot projects in Vårdsamverkan

Second quarter 2019

  • Sales revenues increased to SEK 335.7 million (287.6)
  • Organic growth amounted to 15.8 percent (17.0)
  • EBITDA increased to SEK 38.1 million (21.1)
  • EBITDA margin increased to 11.4 percent (7.3)
  • EBIT increased to SEK 17.1 million (14.3)
  • EBIT margin increased to 5.1 percent (5.0)
  • Result after tax (EAT) amounted to SEK 12.7 million (13.6)
  • Result per share amounted to SEK 0.17 (0.18)
  • Result excluding IFRS 16 effect to be found on page 3 in attached pdf

First half year 2019

  • Sales revenues increased to SEK 666.1 million (566.2)
  • Organic growth increased to 16.5 percent (13.7)
  • EBITDA increased to SEK 80.3 million (46.9)
  • EBITDA margin increased to 12.0 percent (8.3)
  • EBIT increased to SEK 38.5 million (33.6)
  • EBIT margin amounted to 5.8 percent (5.9)
  • Result after tax (EAT) increased to SEK 27.9 (27.7)
  • Result per share amounted to SEK 0.35 (0.36)

CEO’s comments
Our second quarter was a quarter full of exciting development. The highlight was our new management contract in Kuwait, which means that GHP International takes an important step forward. But the acquisition of Hagastaden Hudcentrum and the development of our urology and orthopaedics in Stockholm are also significant and important ventures for GHP.

Our Nordic region segment continued to grow in the quarter, despite the fact that we had a certain Easter effect in the second quarter. The growth is based on the fact there is strong demand for high-quality health care from patients and customers. We have recently also seen increased understanding for the fact that there must be reasonable price levels for specialty care. These signals strengthen our belief that our motto, “Quality through specialisation”, is the right way forward.

We have taken a big step in the field of urology in the quarter through an investment in a Da Vinci robot in Stockholm. GHP can now offer urological robotic surgery with world-class competence for prostate and kidney cancer operations. After the summer we expect this investment to begin to bear fruit. Furthermore, we have just completed the acquisition of Hagastaden Hudcentrum. This acquisition exemplifies how we work with acquisitions. For us to want to acquire a business, it must meet a number of criteria: at the forefront medically, strong ethical compass, interesting for insurance company care and a good entrepreneur. This means that we are extremely selective and this is how we build a strong Group. Another of this year’s important investments is the start-up of a new outpatient orthopaedic clinic in Stockholm. The clinic is still in a start-up phase, which has a negative impact on our financial results, but it gives us a stronger platform within orthopaedics.

In our International segment we have reached an important milestone with the new management contract in Kuwait as from July 2019. We anticipate that the agreement will give us SEK 35-45 million in annual revenue where GHP:s costs mainly derive from recruiting a smaller management organisation, at the same time as it is proof that our business development work in the region works. Furthermore, we are delighted that the investments that we have made in connection with the process in Kuwait have not impacted our business in the UAE, even though it has entailed a good deal of one-time costs for the segment in the quarter. The four hospitals in Ajman continued to develop in a positive direction in the second quarter as well. As our client in the UAE has this year to a greater extent decided to evaluate our work after the fourth quarter, we have made a changed assessment of how we manage the revenues in each quarter of the year. This new assessment of revenues has a positive result effect in the second quarter and a more even distribution of revenues and results between the quarters. This new assessment of revenues does not change the full year result. Even though we have taken an important step in the quarter by setting up business in Kuwait, we will continue to invest in business development within International. The focus at present is on new business deals in the UAE, Kuwait and Saudi Arabia.

The second quarter means that our third segment, Vårdsamverkan, has completed its first year of greater collaboration with Trygg-Hansa. This year has been a big learning experience and it confirms that our way of managing a large insurance patient group works very well. We have a model where the patient and quality are at the centre and which at the same time lowers customers’ costs.

We continue to invest in the development of Vårdsamverkan and have during the second quarter introduced two new pilot projects: one where patients can meet a physiotherapist via video and one where the patient at the meeting with the physiotherapist can be given a team assessment with an orthopaedic specialist via video. Here we use technology to bring the patient closer the care provider. This way of working combines patients’ needs for good access to specialists with optimal use of health care’s resources. Our objective is still a profitable and growing Vårdsamverkan.

Our efforts to develop GHP continue. We want to take more contracts in International, further build up the Nordic region and set up new innovative solutions in Vårdsamverkan at the same time as we increase our profitability. It will be an exciting autumn where we have three well-positioned segments.

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