IMAGE Plus Consultants has earned more in six months than it did during its entire previous financial year, as its expanded diagnostic network handled more than 20,000 scans in the second quarter.

The company, which operates as Apex Radiology, reported profit of $59.4 million for the six months ended August 31, surpassing the $48.7 million earned during the year ended February. Half-year revenue rose by 50.9 per cent to $794.1 million, following acquisitions that have broadened its services and extended its reach into central Jamaica.

The results include the first full quarter of Island Radiology’s operations, showing more of the acquisition’s impact on the business following its completion on May 1. The acquired locations at 8 Rivers Town Centre in Ocho Rios and Caledonia Mall in Mandeville now operate under the Apex brand, although the Santa Cruz location has not reopened.

“The quarter reflects growth from both the legacy and acquired portfolios,” the directors said in the report accompanying the results.

The expansion is lifting profits, though higher interest charges and the cost of integrating the acquired business are eating into those gains.

During the June-to-August quarter, Image Plus completed 20,635 scans, up 57.4 per cent from 13,107 a year earlier. Revenue increased even faster, rising 70.9 per cent to $442.1 million, while quarterly profit climbed to $26.8 million from $9.4 million.

The company has not disclosed how much of the latest quarter’s revenue or profit came from Island Radiology, making it difficult to separate the acquisition’s contribution from growth at existing locations.

Nevertheless, the full quarter of activity marks a further step in an acquisition programme that also included the diagnostic imaging operations of The Woman’s Place, purchased during the previous financial year.

The acquisitions followed a period in which reduced government-funded referrals had weighed on the business. In the latest quarter, Ministry of Health referral scans represented 11.2 per cent of revenue, compared with 8.9 per cent in the preceding three months, with management attributing the higher share to the addition of Island Radiology’s volumes.

The enlarged network has also required more staff. Image Plus ended the period with 108 employees, up from 86 at the February financial year-end. Revenue growth outpaced the increase in administrative expenses when measured against the corresponding quarter last year. Those expenses rose 55.9 per cent to $200.3 million, reducing their share of revenue to 45.3 per cent from 49.7 per cent.

That improvement helped quarterly operating profit more than double to $42.7 million, despite higher depreciation and amortisation associated with the expanded asset base.

However, the company is also carrying higher direct costs. Over the six months, its gross profit margin declined to 63.9 per cent from 66.5 per cent, meaning it retained less from each revenue dollar after paying the direct costs of providing its services. The financing of the expansion is becoming more visible in the accounts. Image Plus replaced the short-term overdraft used to assist with the Island Radiology acquisition with a long-term bank loan in June.

Quarterly finance costs subsequently increased to $16.2 million, up 58.7 per cent from a year earlier. Total borrowings, combining current and long-term portions, stood at $685.1 million at August 31, compared with $314.3 million at February 28.

A further $158.5 million was recorded as deferred consideration, representing outstanding purchase payments for Island Radiology and The Woman’s Place. The latest quarter also included $15.6 million in what management described as one-time expenses associated with the acquisition and activities to manage growth.

Those expenses and higher  financing charges help explain why the stronger year-on-year results did not translate into higher profit than in the immediately preceding quarter. Revenue rose from approximately $351.9 million in March to May to $442.1 million in June to August, but profit declined from approximately $32.7 million to $26.8 million, based on the figures presented in the latest report.

Image Plus generated $88.1 million in net cash from operating activities over the six months and ended August with $45.8 million in cash. Its cash flow statement recorded $412.5 million paid on business acquisition and an equal amount in proceeds from borrowings during the period.

The company’s next substantial operational milestone is its planned move to 33 Lady Musgrave Road in St Andrew, which management has identified as a priority for the remainder of the financial year ending February 2027. The latest report does not provide a precise opening date or quantify the expected earnings contribution.