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UK — Allied Healthcare benefits from increased demand for Homecare

25 November 2009

US quoted Allied Healthcare (AHCI:NSQ), has reported fiscal fourth quarter and year end results for the period ended 30 September 2009. While quoted in the US, the Company is one of the UK's leading providers of domiciliary home care and healthcare staffing services.

For the fourth quarter of fiscal 2009 revenues increased by $6.3 million, or 8.4%, to $81.2 million, compared with $75.0 million reported during the same period in fiscal 2008.

 
Contributing to the increase in revenues was Allied's Homecare revenues, which grew by 18.5% to $68.1 million. Nursing Homes revenues declined by 22.5% to $7.5 million. Hospitals revenues decreased by 28.2% to $5.6 million. After the unfavorable impact of currency exchange of $11.4 million, revenues decreased to the reported $69.8 million.

Total gross profit for the fourth fiscal quarter increased 7.5% to $24.6 million, compared with $22.9 million reported for the comparable quarter in fiscal 2008. Gross profit percent for the fourth quarter was 30.3%, as compared to 30.6% for the comparable prior period. Foreign exchange decreased gross profit by $3.4 million to the reported $21.2 million for the quarter.

SG&A for the fourth fiscal quarter was $19.6 million, compared with $18.6 million reported last year, an increase of 5.5%. As a percent of revenues, SG&A costs were 24.4%, compared to 24.8% in the comparable prior year period. Foreign exchange decreased costs by $2.6 million to the reported $17.0 million for the quarter.
Operating income for the fourth quarter of fiscal 2009 increased to $5.0 million, compared to operating income of $4.3 million reported during the 2008 fourth fiscal quarter. Foreign exchange decreased operating income by $0.8 million to the reported $4.2 million for the quarter.

Net income for the fourth quarter of fiscal 2009 was $2.9 million, as compared with $2.9 million reported during the 2008 fourth fiscal quarter. Diluted earnings per share was $0.07 for the quarter, compared to diluted earnings per share of $0.06 last year.

For the year ended 30 September 2009 revenues increased by $19.1 million, or 6.4%, to $317.7 million, compared with $298.6 million reported during the same period in fiscal 2008.

Operating income for the year ended September 30, 2009, increased to $17.5 million, compared to operating income of $12.7 million reported during the comparable prior year period, an increase of 37.5% over the prior year. Foreign exchange decreased operating income by $4.4 million to the reported $13.1 million for the year.

"We continue to see good growth in our homecare business, which now represents over 80% of our business," commented Sandy Young, Chief Executive Officer of Allied.

"The homecare revenue growth in the quarter of 18.5% was particularly pleasing and was ahead of our 10-15% growth range expectation. The Company's homecare business should benefit from many favourable market dynamics. These include: an aging population; continued shift from residential care to homecare; the lower cost of private business homecare provision; and continued consolidation of local authority suppliers. These factors all favour a growth in demand in our core homecare business."

At close of business Allied's shares were up by 4.53% to US € 3.00.

 

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