Image Plus Consultants Limited (IPCL), a cornerstone in Jamaica’s diagnostic imaging industry, is actively maneuvering through a period of transformation and financial recalibration. Recent activities, including the sale of 3.195 million shares by director Dr. Lilieth Bridgewater, highlight the company’s evolving landscape. This transaction, valued at $5.08 million at an average price of $1.59 per share, accounts for a modest 0.2578 per cent of the company’s total outstanding shares.
Despite this divestment, Dr. Bridgewater retains her stature as one of IPCL’s top shareholders. Her 12.75 per cent stake underscores her ongoing commitment to the company, alongside co-founder and board Chairman Dr. Karlene McDonnough, who holds a commanding 24.48 per cent share, and Quad G Limited with 16.92 per cent ownership.
Challenging Financial Terrain
The divestment announcement coincides with IPCL’s release of its second-quarter 2024 financial results, which paint a picture of operational challenges. Revenue for the quarter dropped by 3.4 per cent to $245.3 million, with a similar 2.8 per cent decline in revenue for the six-month period ending August 31, 2024, compared to the previous year. These downturns were attributed to reduced scan volumes and operational disruptions.
Key obstacles included equipment failures, such as the retirement of a critical CT scanner at the Old Hope Road branch. This necessitated a consolidation of services at the Winchester location, straining operational resources and impacting patient throughput. Consequently, IPCL posted a net loss of $16.2 million for the quarter, a stark contrast to the $38.7 million profit reported for the same period last year.
Strategic Responses
IPCL’s management remains focused on recalibrating its approach to address these challenges. Efforts include optimizing scan volumes across modalities, targeting a more balanced mix of private and public patients, and exploring inorganic growth opportunities to bolster revenue streams.
“We are taking a clinical approach to evaluate the actions required to achieve our revenue diversification goals,” the company stated, signaling its commitment to long-term growth despite near-term hurdles.
Concentrated Ownership and Future Outlook
IPCL’s concentrated ownership structure continues to align major stakeholders with the company’s strategic goals. The top 10 shareholders, including Advanced Imaging Limited (9.16 per cent) and Barita Investments Limited (4.73 per cent), collectively hold over 82 per cent of the company’s issued capital.
Looking forward, IPCL is optimistic about the second half of the fiscal year. Initiatives include optimizing operations, developing new service capabilities, and potentially advancing plans for its 33LMR facility, which is expected to strengthen the company’s service portfolio and revenue potential.
A Path to Recovery
IPCL’s resilience lies in its ability to adapt to the shifting landscape of Jamaica’s healthcare sector. With a clear focus on operational improvements and strategic growth, the company aims to navigate current challenges while positioning itself for a brighter, more sustainable future.
