By Alex C
EKOcorp, formally known as Eko Hospital, revenue rose by 8 percent year-on-year to N1.21 billion from N1.12 billion in the prior year (FY12) for the year ended December 2013. Financial highlights of the hospital that has grown into a private teaching hospital, expanding from Ikeja to Surulere and beyond, reveal that Profit Before Tax (PBT) rose by 22 percent to N189.32 million compared with N155.02 million as of FY12.
Its Profit After Tax (PAT) followed the same growth trajectory as it rose by 16.68 percent to N152.76 million in FY13 as against N130.74 million as of FY12. Input costs increased to 60.64 million in FY13 as against 54.84 percent as of FY12. Also, gross profit margin declined to 39.36 percent in 2013 compared with 45.86 percent in 2012.
The reason behind the hospital’s profitability was due to reduction in operating expenses by 19.19 percent to N276.33 million in FY13 from N341.98 million as of FY12.however, EKOcorp’s operating expense margin decreased to 22.71 percent in 2013 from 30.22 percent.
Net margin, a measure of profitability and efficiency move, remained flat at 12 percent in the review period. Fixed assets turnover, which highlights the effectiveness of management of the Group in generating turnover from investment in assets, stood at 36xs. This means that EKOcorp was able to translate investment in assets to turnover and subsequently to profits.
The ability of the company to boost profits is expected to increase revenue reserves or retained earnings, which could be utilise for future expansion in form of embarking on projects that will maximise shareholders wealth.
EKOcorp’s total assets grew by 7.46 percent to 3.31 billion in the review period from N3.08 billion as of FY12.
The company was established in 1982 by three medical doctors; Alexander Eneli, Sunday Kuku, and Augustine Obiora with the trio merging the first letter of their surnames to form the hospital’s name, EKO.
After it became a public liability company in 1991, the hospital’s name was changed to Ekocorp plc in 1994. It has outstanding shares of 498.60 million with shareholders’ fund of N2.18 billion as of December 2013. Ekocorp, formerly known as EKO hospital, is the first healthcare service company to be quoted on the floor of the Nigerian Stock Exchange.
Image Source: https://ekocorp.com