ELITE Diagnostic Limited is set to upgrade its equipment and acquire new diagnostic imaging tools following a recently completed $400-million bond raise.

Elite has battled over the last two years with machine downtime for its array of diagnostic imaging solutions. Apart from installing solar equipment at its Old Hope Road location to cut its energy bill, the company formed an executive committee and hired an in-house service manager during 2024 to address machine downtime. Elite also spent $94.37 million on capital expenditure during its 2025 financial year (FY).

The company is now set to upgrade the equipment across its three locations to further improve machine uptime for its critical services like MRIs and CT scans. The proceeds of the bond were also used to refinance $293.20 million in long-term debt.

“We have undertaken a refurbishment exercise of the MRI machine at our Drax Hall location which, when completed — projected for September 2025 — will have a greater offering of MRI scans at the location. This is expected to positively impact the revenue generated at this branch,” stated the report signed by directors Warren Chung and Dr Neil Fung.

Elite Diagnostic is an imaging company with two locations in St Andrew (Old Hope Road and Holborn Road) and Drax Hall, St Ann. Elite commenced operations in August 2013 and offers services such as X-rays, ultrasounds and fluoroscopy.

The company had a slow start to its 2025 FY after it incurred a net loss in the first and second quarter due to unexpected downtime for two of its high-income-earning machines. That was subsequently followed by the resignation of its Chief Executive Officer (CEO) Harvey Levers in November 2024. General Manager Marjorie Miller assumed leadership of the business.

Despite those hurdles, the company was able to improve the uptime of its machines and increase its revenue in the subsequent quarters. For the company’s fourth quarter (April to June), Elite’s revenue dipped eight per cent to $225 million, with gross profit decreasing two per cent to $172.85 million. However, the company’s gross profit margin improved from 72.19 per cent to 76.82 per cent.

Elite’s operating profit decreased 55 per cent, from $46.64 million to $20.83 million, due to higher administrative expenses and a 39 per cent rise in depreciation charges to $43.26 million from its new equipment. After accounting for lower finance costs and taxes, Elite’s net profit declined 59 per cent from $32.75 million to $13.84 million.

However, for the overall twelve-month period, Elite’s unaudited revenue increased four per cent to $853.82 million with gross profit increasing nine per cent to $642.39 million. The gross profit margin increased from 71.55 per cent to 75.24 per cent, which reflects stronger cost management on input costs.

Elite’s operating profit declined 42 per cent, from $95.37 million to $55.85 million, due to a 17 per cent rise in administrative expenses and 26 per cent rise in depreciation charges. Although Elite’s net profit decreased 15 per cent — from $26.16 million to $22.52 million — the company’s cash provided by operations grew 54 per cent to $252.43 million after accounting for non-cash items like depreciation.

Elite’s audited results are set to be published by September 28.

Elite’s total assets grew five per cent to $1.11 billion, with cash at $224.47 million and property, plant and equipment (PP&E) at $701.16 million. Total liabilities and shareholders’ equity were $577.59 million and $533.50 million, respectively.

Elite’s stock price closed at $1.50, which leaves the stock down 21 per cent in 2025 with a market capitalisation of $530.10 million. Elite declared a $0.01 dividend totalling $3.53 million to be paid on October 10 to shareholders on record as of September 19.

“Despite increased competition from other players in the diagnostic industry, coupled with the partial reduction of referrals through the Ministry of Health Special Project, which contributed significantly to our revenue inflow, the demand for our services continues to be high. And with our planned increase in marketing efforts targeting international brokers, we remain confident in our continued growth,” the report closed.