DESPITE the fallout from a reduction in government-funded referrals, Image Plus Consultants Limited has held firm on revenues and is now pushing ahead with two acquisitions aimed at reinforcing its claim as the country’s leading diagnostic imaging provider.

The company, operating under the Apex Radiology brand, reported $267.4 million in revenue for the March to May 2025 period—its first quarter of fiscal year 2026. This represents a nearly 9 per cent decrease compared to the same quarter last year, but an increase from the previous quarter, defying expectations of a sharper decline after Jamaica’s regional health authorities restricted external referrals.

“This tells us the business is holding,” CEO Kisha Anderson told shareholders during the company’s annual general meeting on Wednesday. She pointed out that although scan volumes dipped, the appetite for diagnostic care has remained strong.

“Our patients didn’t disappear. What changed is how they’re paying, but the results from the first quarter show that persons are readjusting and actually finding the money to pay for the procedures themselves,” Anderson said.

Until recently, Image Plus had benefitted from steady volumes through the Ministry of Health’s Enhancing Health Care Service Delivery (EHCSD) programme, which outsourced diagnostics such as computed tomography (CT) scans and magnetic resonance imaging (MRI) scans to private operators in a bid to reduce backlogs in public hospitals. Business from the public health system contributed a third of Image Plus’s annual revenue, but with a renewed push for in-house services, particularly in the South East Regional Health Authority (SERHA), the company has had to pivot.

So far, a new agreement with the North East Regional Health Authority (NERHA) has been signed, while talks with SERHA and the Western Regional Health Authority are ongoing.

Growth is also coming inorganically. Image Plus has entered a deal to acquire The Woman’s Place, a well-regarded imaging centre founded by Dr Verna Reid in 2006, which offers mammography, bone densitometry and ultrasound services. The clinic will be absorbed into Apex Radiology, and Dr Reid will remain onboard as a reading radiologist.

“We think the one that we have announced will do something for the growth in that modality,” Anderson said. “And the one that we’re currently pursuing will do something overall for the growth of the company.”

That second deal is still in negotiation. It involves a multi-modality provider with locations outside the Corporate Area, and is expected to widen the company’s geographic footprint and bolster its referral base. The CEO did not disclose the cost of the acquisitions or the name of the second business under negotiation but assured shareholders that full details would be provided in due course.

“If we close both deals, we will definitely, without a doubt, be number one in our field — public or not public,” said Anderson, who was responding to a shareholder’s question about Image Plus’s standing in the market.

Although most diagnostic businesses in Jamaica are privately held and data are hard to come by, Anderson is confident Image Plus already leads the pack.

“I would say we’re number one. I can’t see anybody else that is close to us,” she said. “There’s one other private entity that we’re not sure of…but based on their footprint and their location, they could be coming close.”

Even as competition grows and margins tighten — net profit fell to $13.7 million, down from $31.6 million the year before — the company says it is focused on expanding revenue to restore profitability. Part of that strategy includes a return to full operations in nuclear medicine.

Image Plus recently acquired a brand-new SPECT unit–a specialized medical imaging device–replacing its 18-year-old machine that had been out of service since 2023. Nuclear medicine is a specialised modality that uses radioactive tracers to image internal organs and detect diseases such as cancer. It had previously contributed up to 10 per cent of revenues before equipment failure halted the service.

The company is also looking to reinforce its technical capacity, having brought most of its major imaging equipment up to date — including CT, MRI, mammography, and fluoroscopy units. Its maintenance team has been strengthened, and further training is planned.

From an operational standpoint, the company has begun to see the impact of tighter cost controls. Gross profit margins improved to 65 per cent, helped by a 13.7 per cent reduction in direct costs, while administrative expenses remained stable. Cash reserves climbed to $61.8 million, up from $11 million in the previous quarter, thanks to payments received on overdue amounts.

Looking ahead, Image Plus expects to complete its flagship diagnostic centre at 33 Lady Musgrave Road in St Andrew in 2026. The site, which will replace the company’s Winchester Road location (also in St Andrew), is a joint venture with Ripton Real Estate and is expected to modernise its service offering and reduce patient wait times.

For shareholders, the discussion of healthier dividend payments also returned to the table, following more conservative payouts in earlier quarters due to capital commitments and cash constraints. “Now that the cash flow position has improved and is continuing to improve… we have to say something in this financial year,” Anderson told shareholders.

She also hinted that greater focus will be placed on improving earnings per share through strategic growth. “We’re not just growing for growth’s sake. We’re being deliberate…adding services, acquiring strong operators, and making sure that what we build is sustainable.”

CEO Kisha Anderson addresses shareholders during Image Plus’s annual general meeting on Wednesday at the Terra Nova Hotel in Kingston. She, outlined the company’s acquisition plans and strategy for growth amid shifting referral patterns. ,