Despite efforts to boost revenue through expanded services and operational adjustments, Image Plus Consultants Limited, operating as Apex Radiology, continues to face performance declines in key areas.

The company anticipated improved revenues following the introduction of new services, such as MRI and mammography. However, second-quarter revenues fell by 3.4 per cent to $245.3 million, compared to the same period in 2023.

Its bottom line also turned negative, with a net loss of $16.2 million for the second quarter, a stark contrast to the $38.7 million profit reported in the corresponding quarter of 2023.

One major contributor to the shortfall was prolonged downtime of critical CT machines at the Ocho Rios and Winchester branches, which significantly impacted revenue from high-value CT scans. These scans typically generate a substantial portion of the company’s earnings. Furthermore, the decision to retire the malfunctioning CT unit at the 129Pro location and consolidate operations at Winchester has yet to deliver the expected recovery in scan volumes and revenues.

In a statement to shareholders accompanying the company’s financial results, Chairman Karlene McDonnough acknowledged that while new modalities had been introduced, the company had not yet achieved its projected targets, placing additional strain on overall performance.

“Despite the desired build-out of modalities, we have not achieved the targeted growth in revenue from our diversified revenue streams,” McDonnough stated.

“Though growing, our MRI and mammography scan count performed below expectations. There continues to be strong demand for MRI, and we are working on optimising scan volumes and mix to ensure projected revenues are realised from our investments. For mammography, we are exploring strategies to increase scan volumes, especially in the competitive Kingston and St Andrew market,” she added.

The equipment malfunctions at the Ocho Rios and Winchester locations further hindered performance, contributing to a 6 per cent year-over-year decline in total scans, limiting the company’s ability to capitalise on its service expansion.

For the half-year period ending August 31, 2024, revenues declined by 2.8 per cent to $539 million. Earnings fell sharply to $15.4 million, down from $102.8 million in the same period last year.

The results were driven by a combination of operational setbacks and rising administrative costs, including increased staff expenses, asset depreciation, and higher utility costs. McDonnough explained that while the company had hoped to improve performance in the second half of the year through extended operating hours at Winchester and patient redirection from other locations, the anticipated revenue growth has not materialised as expected.

“We are still reviewing ways to optimise our scan modalities and grow revenues, but the disruptions have significantly impacted our progress,” she noted.

Despite these challenges, the company says it remains focused on potential acquisitions and market opportunities to drive future growth, although these initiatives are still in the exploratory stage. Progress has also been made on the build-out of the 33LMR facility, with discussions underway with potential partners.

“We continue to take a very clinical approach in reviewing the actions needed to achieve the desired mix of scans by modality and source — whether private or public patients. We are also actively scanning the market for inorganic growth opportunities that would add value to our performance,” McDonnough added.