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Integrated Diagnostics Holdings PLC 3rd Quarter Results

16/11/2021 7:00am

UK Regulatory (RNS & others)


Integrated Diagnostics (LSE:IDHC)
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TIDMIDHC

RNS Number : 4515S

Integrated Diagnostics Holdings PLC

16 November 2021

Integrated Diagnostics Holdings Plc

3(rd) Quarter Results

Tuesday, 16 November 2021

Integrated Diagnostics Holdings Plc reports another set of record-breaking results on the back of strong demand across its entire portfolio

(Cairo and London) Integrated Diagnostics Holdings ("IDH," "the Group," or "the Company"), a leading consumer healthcare company with operations in Egypt, Jordan, Sudan and Nigeria, released today its reviewed financial statements and operational performance for the nine-month period ended 30 September 2021, reporting revenue of EGP 3,767 million, up 126% from the comparable period of 2020. Profitability remained at an all-time high, with normalised EBITDA(1) growing 180% year-on-year to reach EGP 1,992 million, and net profit recording a three-fold year-on-year increase recording EGP 1,148 million in 9M 2021. IDH's nine-month results were bolstered by a record-breaking third quarter which saw the Company outperform its already remarkable results from the first and second quarters of this year to deliver revenue and net profit quarter-on-quarter growth of 27% and 47%, respectively.

Financial Results

 
  EGP mn                 9M 2020   9M 2021     Change 
======================  ========  ========  ========= 
 Revenues                  1,670     3,767       126% 
----------------------  --------  --------  --------- 
 Cost of Sales               840     1,600        90% 
----------------------  --------  --------  --------- 
 Gross Profit                830     2,167       161% 
----------------------  --------  --------  --------- 
 Gross Profit Margin         50%       58%    7.8 pts 
----------------------  --------  --------  --------- 
 Operating Profit (2)        575     1,823       217% 
----------------------  --------  --------  --------- 
 Normalised EBITDA(1)        710     1,992       180% 
----------------------  --------  --------  --------- 
 EBITDA Margin               43%       53%   10.4 pts 
----------------------  --------  --------  --------- 
 Net Profit                  375     1,148       206% 
----------------------  --------  --------  --------- 
 Net Profit Margin           22%       30%    8.0 pts 
----------------------  --------  --------  --------- 
 Cash Balance                465     1,807       288% 
----------------------  --------  --------  --------- 
 

Key Operational Indicators

 
                              9M 2020   9M 2021   change 
===========================  ========  ========  ======= 
 Branches                         471       507       36 
---------------------------  --------  --------  ------- 
 Patients ('000)                4,792     7,480      56% 
---------------------------  --------  --------  ------- 
 Revenue per Patient (EGP)        348       504      44% 
---------------------------  --------  --------  ------- 
 Tests ('000)                  18,765    24,960      33% 
---------------------------  --------  --------  ------- 
 Revenue per Test (EGP)            89       151      70% 
---------------------------  --------  --------  ------- 
 Test per Patient                 3.9       3.3     -15% 
---------------------------  --------  --------  ------- 
 

1 Normalised EBITDA is calculated as operating profit plus depreciation and amortization and excluding one-off fees incurred in 9M 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.

2 Operating Profit excludes one-off fees incurred in 9M 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.

Introduction

   i.    Financial Highlights 

-- Revenue increased by an impressive 126% year-on-year in 9M 2021 to EGP 3,767 million on the back of strong results across both the Company's Covid-19-related(3) and conventional tests portfolios. Top-line growth for the period was supported by a 33% year-on-year increase in tests performed coupled with a 70% year-on-year rise in average price per test. Controlling for Covid-19-related tests, IDH's top-line expanded a solid 30% year-on-year in 9M 2021 as the Company's conventional test offering continues to pick up steam following widespread shutdowns and lockdowns at the early onset of covid. In Q3 2021, IDH outperformed its already impressive results from the first and second quarters of this year to deliver quarter-on-quarter revenue growth of 27% and year-on-year revenue growth of 105%.

-- Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19. More specifically, during 9M 2021 core Covid-19 tests made up 42% of consolidated revenue, while other Covid-19-related tests made a 9% contribution to consolidated revenue for the nine-month period.

-- Consolidated revenues continued to be supported by IDH's house call service in Egypt and Jordan. Revenue generated by the service expanded 146% year-on-year in 9M 2021, with its contribution to total revenue reaching 20% versus 19% in 9M 2020. Through its house call service, IDH successfully served over 944 thousand patients in 9M 2021 (up 69% versus 9M 2020), performing 4.9 million tests (up 34% year-on-year). In response to the service's increasingly popularity, the Company has been expanding its house call capabilities and in 9M 2021 was able to carry out an average of 3,500 house call visits per day, up remarkably from the 2,000 visits per day performed in 9M 2020.

-- Gross Profit recorded EGP 2,167 million in 9M 2021, up 161% year-on-year, with gross profit margin at 58% or an eight percentage points expansion versus last year. Improved gross profitability for the period came on the back strong top-line growth and the subsequent dilution of fixed costs for the period such as direct salaries and wages and other expenses. On a quarterly basis, gross profit recorded EGP 861 million, up 29% from Q2 2021 and with an associated margin of 58% versus 57% last quarter.

-- Operating Profit(4) posted a strong 217% year-on-year rise in 9M 2021 to EGP 1,823 million. Operating profit margin expanded an impressive 14 percentage points to reach 48% in 9M 2021 versus 34% this time last year. The remarkable growth in operating profit was supported by strong gross profitability for the period. Operating profitability was further buoyed by the normalisation of provisions booked in 9M 2021, which stood at EGP 18 million down from the EGP 36 million in 9M 2020 that had been booked to account for expected credit losses in accordance with IFRS 9.

-- Normalised EBITDA(5) increased 180% year-on-year to EGP 1,992 million in 9M 2021, while EBITDA margin expanded 10 percentage points to record 53% for the period. Strong EBITDA profitability was supported by the Company's remarkable top-line growth and the subsequent dilution of its fixed costs. In Q3 2021, normalised EBITDA reached EGP 790 million, up a solid 31% from last quarter's figure. Normalised EBITDA margin stood at 54% for the quarter compared to 52% in Q2 2021.

-- Net Profit recorded EGP 1,148 million in 9M 2021, a three-fold increase from the same period of last year. Net profit margin stood at 30% versus 22% in 9M 2020. Net profit growth comes on the back of strong EBITDA level profitability and despite the Company booking EGP 29 million in one-off fees related to its dual-listing in May 2021. On a quarterly basis, net profit stood at EGP 480 million, up 47% quarter-on-quarter and with an associated margin of 33% in Q3 2021 versus 28% the previous quarter.

-- Full-year guidance: IDH is on track to deliver record high revenues of around EGP 4.9 billion in FY 2021 (representing year-on-year growth above the 80% mark) with a normalised EBITDA margin(5) in the 50% range. The record-breaking performance is set to be supported by the strong and sustained recovery witnessed by IDH's conventional business coupled with robust contributions coming from its Covid-19-related test offering in both Egypt and Jordan.

(3) Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

(4) Operating Profit excludes one-off fees incurred in 9M 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.

(5) Normalised EBITDA is calculated as operating profit plus depreciation and amortization and minus one-off fees incurred in 9M 2021 (EGP 29 million) related to the Company's EGX listing completed in May 2021.

ii. Operational Highlights

-- IDH's branch network stood at 507 branches as of 30 September 2021, up from 481 branches and 495 branches as of 31 December 2020 and 30 June 2021, respectively.

-- Total tests performed increased 33% year-on-year to reach 25.0 million in 9M 2021. Test volume growth came on the back of both strong demand for IDH's Covid-19-related(6) test offering coupled with a 20% year-on-year increase in conventional tests performed by the Group during the nine-month period. During the third quarter of the year, IDH performed 8.6 million tests, up 5% from the previous quarter supported by both higher Covid-19-related and conventional tests performed during the quarter.

-- Average revenue per test increased 70% year-on-year to EGP 151 in 9M 2021. Controlling for the generally higher value Covid-19-related(6) tests, average revenue per test records an 8% increase versus last year.

-- Total patients served reached 7.5 million in 9M 2021, an increase of 56% from the comparable period of last year. Meanwhile, average test per patient declined to 3.3 in 9M 2021 from 3.9 last year as an increasing number of patients visit the Group's labs for single Covid-19 tests (PCR, Antigen and Antibody).

-- IDH's Egyptian operations generated revenue of EGP 3,122 million, up 122% from 9M 2020 as both patient and test volumes posted solid year-on-year expansions for the period. The country's top-line growth continued to be supported by both Covid-19-related(6) and conventional tests, and was further bolstered by the Group's house call service which in 9M 2021 contributed 23% of Egypt's top-line versus 20% in 9M 2020. Controlling for Covid-19-related contributions in 9M 2021, revenue increased 30% year-on-year driven by a 21% increase in conventional tests performed versus last year.

-- Al-Borg Scan reported revenue of EGP 31 million, up 92% increase compared to 9M 2020. Top-line growth at the venture was supported by a 75% year-on-year rise in tests performed. To capitalise on the rising patient demand for IDH's radiology service, the Group inaugurated a third Al-Borg Scan branch in of the end of September 2021, with an additional two branches set to come online over the coming six months.

-- Wayak reported standalone revenues of EGP 6.6 million in 9M 2021, up from EGP 2.1 million this time last year. The venture's standalone EBITDA losses continued to narrow reaching EGP 1.1 million in 9M 2021 from EGP 6.4 million in 9M 2020, supported by management's cost optimisation strategy.

-- In Jordan, revenue expanded 172% year-on-year during 9M 2021 supported by solid growth in both tests performed and average price per test. Covid-19-related tests made up 62% of the country's top-line with the contribution further bolstered by Biolab's multiple revenue-sharing partnerships with Amman's Queen Alia International Airport (QAIA), Aqaba's King Hussein International Airport (KHIA) and Aqaba Port. The agreements, which see Biolab operate multiple testing stations primarily offering Covid-19-related tests, generated a total of EGP 141 million in 9M 2021, contributing 24% to Jordan's top-line. In parallel, demand for Biolab's conventional test offering continues to increase steadily, with the number of conventional tests performed and revenue generated during 9M 2021 increasing 32% and 35% year-on-year, respectively.

-- In Nigeria, revenues expanded 62% year-on-year (65% in NGN terms) in 9M 2021 supported by a 24% and 43% year-on-year increase in patients served and tests performed, respectively. Echo-Lab's revenues have been posting consistent quarter-on-quarter growth since the start of the year, and when combined with the successful cost optimisation strategy implemented by the venture's new management team, see Echo-Lab on track to turn EBITDA positive early next year.

(6) Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

iii. Management Commentary

Commenting on the Group's performance, IDH Chief Executive Officer Dr. Hend El-Sherbini said: "As we near the end of what is shaping out to be another record-breaking year for IDH, I am delighted to present to you a new set of impressive financial and operational results. During the third quarter of 2021, we successfully built on an already remarkable first half of the year to report our highest ever revenue and net profit figures for a single quarter. More specifically, during Q3 2021 we recorded top- and bottom-line quarter-on-quarter growth of 27% and 47%, respectively, an outstanding performance which was supported by growing demand across our entire offering. While our Covid-19-related(7) offering continued to make a significant contribution to consolidated revenue, we also witnessed a robust contribution coming from our traditional offering with conventional revenues for Q3 2021 and 9M 2021 up 19% and 30% year-on-year, respectively. It is also worth highlighting that our conventional test volumes are back to pre-Covid-19 levels on both a quarterly and year-to-date basis, and in 9M 2021 recorded a 3% increase versus the same nine months of 2019 once adjusting for the impact of the 100 Million Healthy Lives campaign.(8)

Since the start of the year, we have displayed a remarkable ability to adapt to changing market and demand dynamics and consistently cater to the evolving needs of our growing patient base. In the third quarter, we continued to effectively care for both our conventional and Covid-19 patients leveraging an expanded branch network, a ramped up house call service, and a growing digital presence to make our services increasingly accessible and our payment methods increasingly convenient. On the one hand, we are continuing to serve our Covid-19 patients by ensuring we are well-equipped to handle peaks in demand when infection rates increase, while promptly adapting our offering to the requirements of patients. Over the course of the year, IDH secured multiple partnerships with international air carriers and regional healthcare providers like National Air Services (NAS) and Pure Health UAE to conduct PCR testing for passengers traveling from Egypt to other regional destinations. We also offer PCR testing for passengers on a walk-in basis, with the Company being the first lab in Egypt to provide QR codes on travel certificates. This enabled us to not only to play an important role in supporting the recovery of international travel, but also ensured that we successfully captured a leading market share for the service. On the other hand, despite the challenges posed by the pandemic, we have never lost sight of the needs of our conventional patients, continuing to care for them even at the height of the Covid-19 crisis. Our efforts have focused on expanding our service offering and delivery capabilities, as well as organising special campaigns to raise healthcare awareness specifically targeting patients suffering from chronic diseases, a particularly vulnerable category in light of the ongoing pandemic.

Looking at our geographies in more detail, I am pleased to note that Egypt, Jordan and Nigeria continued to report strong growth during the third quarter of the year. Highlights for Q3 2021 include the outstanding growth of Al-Borg Scan, the continued ramp up of our house call services and of our AI-focused subsidairy Wayak, and the important contributions coming from our revenue-sharing partnerships in Jordan. During the quarter, Al-Borg Scan reported year-on-year revenue growth of 52% and successfully rolled out its third branch located in the strategic East Cairo neighbourhood of Heliopolis. The launch comes as part of a wider ramp up strategy which in the coming six months will see us roll out an additional two branches. Meanwhile, our house call services in both Egypt and Jordan are continuing to record steady growth, and in Q3 2021 we served 39% more house call patients than in the comparable quarter of last year. Through our house call service, we are able to carry out more tests per patient than at our traditional branches, enabling us to deliver on an important pillar of our long-term growth strategy and further emphasising the significant potential offered by the service well beyond the end of the Covid-19 pandemic. Meanwhile, operations at Wayak continued to be ramped up effectively, with the venture's losses declining further, supported by strong top-line growth and management's cost optimisation strategy. In Jordan, our multiple revenue-sharing agreements with QAIA, KHIA and Aqaba Port, made a noteworthy 46% contribution to the country's topline for the quarter, with their positive impact on Biolab's top-line set to continue in the coming months as international travel recovers further. In Nigeria, EBITDA losses excluding a one-time adjustment continued their steady narrowing. Revenue at Echo-Lab has been consistently growing quarter-on-quarter throughout 2021, and when combined with the stellar work being done by the company's new management team to streamline operations, sees the venture on track to turn EBITDA positive early next year. Finally, in Sudan our results continued to be heavily impacted by the Sudanese Pound devaluation from earlier in the year. Moreover, we are continuing to monitor the mounting political and social unrest across the country, and our management team on the ground is well-prepared to take the necessary measures to protect our patients, staff, and operations.

Looking ahead, our strategic priorities remain unchanged as we continue assisting local authorities in their battle against Covid-19 while simultaneously pressing forward with our post-pandemic strategy and set the foundations for a new chapter of sustainable growth. On this front, during the quarter we launched our new loyalty programme specifically aimed at retaining the new patients we were able to acquire since the start of the pandemic. At the same time, we rolled out an additional 12 branches in Q3 2021, and remain on track to reach our target of 30 to 35 new branch rollouts in 2021. Our ability to consistently rollout new branches currently sees us operate the largest network of branches amongst private players in the country and enables us to maintain our leadership position in the market. We are also continuing to assess potential value-accretive acquisition opportunities in new markets across Africa, the Middle East, and Asia where we feel our business model is best-suited to capitalise on healthcare and consumer trends similar to those prevailing in our current markets of operation. Finally, while the ongoing global supply chain disruptions have had no impacts on our operations so far, we are keeping a close eye on the evolving situation and have taken proactive steps to build up our inventory to shield ourselves from any potential future disruptions. It is also worth highlighting that our test kits are purchased on fixed-price contracts with tenors ranging from five to seven years, providing effective protection from short-term price fluctuations.

In light of our most recent results, we are on track to post record revenues of around EGP 4.9 billion in FY 2021, representing a year-on-year growth above the 80% mark, with a normalised EBITDA margin(9) in the 50% range. The record-breaking performance is expected to come on the back of strong and sustained recovery witnessed at our conventional business coupled with robust contributions from our Covid-19-related test offering in both Egypt and Jordan."

- End -

(7) Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

(8) The 100 Million Healthy Lives Campaign which ran from November 2018 through June 2019. As part of the Campaign, the Group performed 2.4 million tests in 1H 2019.

(9) Normalised EBITDA is calculated as operating profit plus depreciation and amortization and minus one-off fees incurred in 9M 2021 (EGP 29 million) related to the Company's EGX listing completed in May 2021.

(10) Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

Analyst and Investor Call Details

An analyst and investor call will be hosted at 1pm (UK) | 3pm (Egypt) on Thursday, 18 November 2021. You can access the call by clicking on this link , and you may dial in using the conference call details below:

-- Event number: 2374 489 7777

-- Event password: C5wWfFNBa46

For more information about the event, please contact: halaa@EFG-HERMES.com

About Integrated Diagnostics Holdings (IDH)

IDH is a leading consumer healthcare company in the Middle East and Africa with operations in Egypt, Jordan, Sudan and Nigeria. The Group's core brands include Al Borg, Al Borg Scan and Al Mokhtabar in Egypt, as well as Biolab (Jordan), Ultralab and Al Mokhtabar Sudan (both in Sudan) and Echo-Lab (Nigeria). A long track record for quality and safety has earned the Company a trusted reputation, as well as internationally recognised accreditations for its portfolio of over 2,000 diagnostics tests. From its base of 507 branches as of 30 September 2021, IDH will continue to add laboratories through a Hub, Spoke and Spike business model that provides a scalable platform for efficient expansion. Beyond organic growth, the Group's expansion plans include acquisitions in new Middle Eastern, African, and East Asian markets where its model is well-suited to capitalise on similar healthcare and consumer trends and capture a significant share of fragmented markets. IDH has been a Jersey-registered entity with a Standard Listing on the Main Market of the London Stock Exchange (ticker: IDHC) since May 2015 with a secondary listing on the EGX since May 2021 (ticker: IDHC.CA).

Shareholder Information

LSE: IDHC.L

EGX: IDHC.CA

Bloomberg: IDHC:LN

Listed on LSE: May 2015

Listed on EGX: May 2021

Shares Outstanding: 600 million

Contact

Nancy Fahmy

Investor Relations Director

T: +20 (0)2 3345 5530 | M: +20 (0)12 2255 7445 | nancy.fahmy@idhcorp.com

Forward-Looking Statements

These results for the nine-month period ended 30 September 2021 have been prepared solely to provide additional information to shareholders to assess the group's performance in relation to its operations and growth potential. These results should not be relied upon by any other party or for any other reason. This communication contains certain forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, and can be identified by the use of such words and phrases as "according to estimates", "aims", "anticipates", "assumes", "believes", "could", "estimates", "expects", "forecasts", "intends", "is of the opinion", "may", "plans", "potential", "predicts", "projects", "should", "to the knowledge of", "will", "would" or, in each case their negatives or other similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements containing information on future financial results, plans, or expectations regarding business and management, future growth or profitability and general economic and regulatory conditions and other matters affecting the Group .

Forward-looking statements reflect the current views of the Group's management ("Management") on future events, which are based on the assumptions of the Management and involve known and unknown risks, uncertainties and other factors that may cause the Group's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The occurrence or non-occurrence of an assumption could cause the Group's actual financial condition and results of operations to differ materially from, or fail to meet expectations expressed or implied by, such forward-looking statements.

The Group's business is subject to a number of risks and uncertainties that could also cause a forward-looking statement, estimate or prediction to differ materially from those expressed or implied by the forward-looking statements contained in this communication. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. The Group does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this communication.

Group Operational & Financial Review

   i.    Revenue and Cost Analysis 
 
            Revenue 
             Consolidated revenue recorded EGP 3,767 million in 
             9M 2021, a 126% year-on-year increase driven by both 
             a 33% year-on-year increase in tests performed and 
             a 70% year-on-year rise in average price per test. 
             The Group's top-line growth was supported by its Covid-19-related(12) 
             and conventional test portfolios, both of which recorded 
             growing demand during the period. IDH's Covid-19-related 
             offering contributed to exactly half of consolidated 
             revenue versus the 14% contribution made this time 
             last year. Meanwhile, revenues generated by IDH's conventional 
             test offering recorded a robust 30% year-on-year rise 
             as tests performed increased 20% versus last year and 
             average price per conventional test increased 8% from 
             9M 2020. 
             Breaking down the Group's Covid-19-related offering 
             further, revenues generated from core Covid-19 tests 
             (PCR, Antigen and Antibody) reached to EGP 1,580 million 
             in 9M 2021, contributing to 42% of total revenue for 
             the period. In parallel, revenue generated by IDH's 
             other Covid-19-related tests reached EGP 321 million 
             in 9M 2021. 
             IDH's consolidated top-line was further bolstered by 
             its house call services in Egypt and Jordan, with revenue 
             generated by the service expanding 146% year-on-year 
             in 9M 2021 to reach EGP 770 million. The service's 
             contribution to total revenue reached 20% in 9M 2021 
             versus the 19% contribution in 9M 2020. Through its 
             house call service, IDH served more than 944 thousand 
             patients in the nine-month period, an increase of 69% 
             from last year, and performed more than 4.9 million 
             tests, up 34% year-on-year. In response to the service's 
             increasingly popularity, the Company has been expanding 
             its house call capabilities, and in 9M 2021 was able 
             to carry out an average of 3,500 house call visits 
             per day, up remarkably from the 2,000 visits per day 
             performed in 9M 2020. It is worth noting that in 9M 
             2021, average revenue per house call test stood at 
             EGP 157 (versus the Group's average of EGP 151), while 
             the number of tests per house call patient stood at 
             5.2 (versus the Group's average of 3.3 tests). 
             The Group's year-to-date performance was supported 
             by a record-breaking third quarter, which saw the Company 
             outperform its results from the first and second quarters 
             of 2021 to record revenues of EGP 1,473 million, up 
             27% versus Q2 2021 and 30% versus Q1 2021. Moreover, 
             revenues in the third quarter more than doubled year-on-year. 
             Top-line growth for the quarter was supported by strong 
             results across the entirety of IDH's service portfolio 
             with the number of conventional tests performed increasing 
             8% quarter-on-quarter. It is worth noting that revenues 
             during the month of September reached record highs, 
             recording 44% above the average monthly revenue in 
             the preceding eight months. Total Covid-19-related 
             tests contributed to 59% of September's top-line as 
             the recovery in international travel saw IDH record 
             growing demand for PCR tests from travellers. 
             Detailed Consolidated Revenue Breakdown                        Q1      Q1     Q2      Q2      Q3      Q3      9M             9M 
              EGP mn               2020    2021   2020    2021    2020    2021    2020           2021 
             -------------------  -----  ------  -----  ------  ------  ------  ------  ------------- 
              Total revenues        500   1,130    450   1,164     720   1,473   1,670          3,767 
              Conventional 
               tests                495     594    367     595     568     676   1,430          1,865 
              Total 
               Covid-19-related 
               tests                  5     536     83     569     152     797     240          1,901 
               Core Covid-19 
                tests (PCR, 
                Antigen, 
                Antibody)             5     399     26     431      92     750     123          1,580 
               Other 
                Covid-19-related 
                tests                 0     137     57     138      60      47     117            321 
             -------------------  -----  ------  -----  ------  ------  ------  ------  ------------- 
                                      Contribution to consolidated revenue 
             -------------------------------------------------------------------------------------- 
              Conventional 
               tests                99%     53%    82%     51%     79%     46%     86%            50% 
              Total 
               Covid-19-related 
               tests                 1%     47%    18%     49%     21%     54%     14%            50% 
               Core Covid-19 
                tests (PCR, 
                Antigen, 
                Antibody)            1%     35%     6%     37%     13%     51%      7%            42% 
               Other 
                Covid-19-related 
                tests                0%     12%    13%     12%      8%      3%      7%             9% 
 
 
             (12) Covid-19-related tests include both core Covid-19 
             tests (Polymerase Chain Reaction (PCR), Antigen, and 
             Antibody) as well as other routine inflammatory and 
             clotting markers including, but not limited to, Complete 
             Blood Picture, Erythrocyte Sedimentation Rate (ESR), 
             D-Dimer, Ferritin and C-reactive Protein (CRP), which 
             the Company opted to include in the classification 
             as "other Covid-19-related tests" due to the strong 
             rise in demand for these tests witnessed following 
             the outbreak of Covid-19. 
 
             Revenue Analysis: Contribution by Patient Segment 
 
             Contract Segment 
             At the Group's contract segment, revenue increased 
             133% year-on-year in 9M 2021 on the back of 34% year-on-year 
             increase in test performed and a 74% year-on-year rise 
             in average revenue per contract test. This pushed the 
             segment's contribution to total revenues up to 57% 
             for the period versus 55% in the comparable nine-month 
             period of last year. Covid-19-related(13) testing contributed 
             52% of contract revenues in 9M 2021 as the Company 
             continued to witness strong demand for its offering 
             in both Egypt and Jordan. Controlling for contributions 
             made by Covid-19-related tests during the period, the 
             contract segment would record a 32% year-on-year increase 
             in revenue supported by a 23% rise in tests performed 
             and a 7% increase in average revenue per test. 
             The contract segment's results continued to include 
             contributions from IDH's multiple partnerships to conduct 
             PCR testing for passengers. More specifically, IDH's 
             agreement with Pure Health UAE, generated EGP 81 million 
             in the nine-month period. Meanwhile, the Group's agreement 
             with National Air Services (NAS) contributed EGP 79 
             million to the segment's top-line. In Jordan, the Group's 
             partnership with Queen Alia International Airport (QAIA) 
             generated EGP 84 million, while Biolab's agreements 
             with Aqaba's King Hussein International Airport (KHIA) 
             and Aqaba Port contributed an additional EGP 57 million 
             to the segment. It is worth highlighting that Biolab's 
             partnership with KHIA started in August 2020, followed 
             by the company's agreement with Aqaba Port which kicked 
             off in May 2021, and its partnership with QAIA which 
             commenced in August 2021. 
             Walk-in Segment 
             Revenue from IDH's walk-in segment recorded a 116% 
             year-on-year expansion in 9M 2021, contributing 43% 
             of consolidated revenues for the nine-month period 
             versus the 45% contribution in 9M 2020. During 9M 2021, 
             average revenue per test at the walk-in segment increased 
             66% year-on-year, while tests performed increased by 
             30% versus the same period a year ago. The contribution 
             of Covid-19-related tests to the walk-in segment stood 
             at 48% in 9M 2021. Controlling for this, walk-in revenues 
             recorded a 29% increase versus last year, as conventional 
             walk-in tests grew 13% year-on-year and revenue per 
             conventional walk-in test increased 13% versus 9M 2020. 
             Key Performance Indicators                         Walk-in Segment           Contract Segment                Total 
             ===================  =======================  =========================  ========================= 
                                    9M20    9M21   Change     9M20     9M21   Change     9M20     9M21   Change 
             ===================  ======  ======  =======  =======  =======  =======  =======  =======  ======= 
              Revenue^ 
               (EGP mn)              749   1,619     116%      921    2,148     133%    1,670    3,767     126% 
               Total 
                Covid-19-related 
                revenue 
                (EGP mn)             101     785     679%      139    1,117     701%      240    1,901     692% 
              Patients 
               ('000)              1,531   2,488      62%    3,261    4,992      53%    4,792    7,480      56% 
              % of Patients          32%     33%               68%      67% 
              Revenue 
               per Patient 
               (EGP)                 489     651      33%      282      430      52%      348      503      44% 
             -------------------  ------  ------  -------  -------  -------  -------  -------  -------  ------- 
              Tests ('000)         4,984   6,491      30%   13,780   18,469      34%   18,765   24,960      33% 
              % of Tests             27%     26%               73%      74% 
               Total 
                Covid-19-related 
                tests ('000)         322   1,202     273%      825    2,557     210%    1,147    3,760     228% 
              Revenue 
               per Test 
               (EGP)                 150     249      66%       67      116      74%       89      151      70% 
              Test per 
               Patient               3.3     2.6     -20%      4.2      3.7     -12%      3.9      3.3     -15% 
             -------------------  ------  ------  -------  -------  -------  -------  -------  -------  ------- 
 
             (13) Covid-19-related tests include both core Covid-19 
             tests (Polymerase Chain Reaction (PCR), Antigen, and 
             Antibody) as well as other routine inflammatory and 
             clotting markers including, but not limited to, Complete 
             Blood Picture, Erythrocyte Sedimentation Rate (ESR), 
             D-Dimer, Ferritin and C-reactive Protein (CRP), which 
             the Company opted to include in the classification 
             as "other Covid-19-related tests" due to the strong 
             rise in demand for these tests witnessed following 
             the outbreak of Covid-19. 
             Revenue Analysis: Contribution by Geography 
             Egypt 
             In Egypt, revenues recorded EGP 3,122 million in 9M 
             2021, up 122% year-on-year on the back of a 30% year-on-year 
             rise in tests performed and a 70% year-on-year increase 
             in average revenue per test. Revenue growth for the 
             nine-month period was supported by both the Group's 
             Covid-19-related(14) test offering which in 9M 2021 
             made up 49% of the Egypt's top-line, as well as the 
             country's conventional test offering. When controlling 
             for contributions made by Covid-19-related tests during 
             the period, revenue generated by conventional tests 
             increased 30% versus 9M 2020 supported by a 21% rise 
             in conventional tests performed. 
             On a quarterly basis, revenues generated by IDH's Egyptian 
             operations reached EGP 1,187 million in Q3 2021, up 
             97% versus the same three months of last year and 17% 
             above Q2 2021. During the third quarter, IDH saw Covid-19-related 
             revenues in Egypt reach EGP 614 million versus EGP 
             504 million in Q2 2021, mainly driven by growing demand 
             for PCR tests coming from international travellers 
             as restrictions imposed by governments around the world 
             continued to ease. 
             IDH's house call service, which has been successfully 
             ramped up to capitalise on the service's growing popularity, 
             recorded revenue of EGP 725 million in 9M 2021, up 
             152% year-on-year. The service's contribution to Egypt's 
             top-line stood at 23% in 9M 2021, versus the 20% contribution 
             made in the comparable period of last year. 
             Al-Borg Scan reported revenue of EGP 31 million in 
             9M 2021, a 92% year-on-year increase. Top-line growth 
             at the venture was supported by a 75% rise in tests 
             performed versus the same nine months a year ago. To 
             capitalise on the rising patient demand for IDH's radiology 
             service, the Group inaugurated a third Al-Borg Scan 
             branch at the end of September of this year, with an 
             additional two branches set to come online over the 
             coming twelve months. 
             Overall, IDH served 6.3 million patients in Egypt and 
             performed 22.1 million tests in 9M 2021, up by 45% 
             and 30% year-on-year, respectively. 
             Detailed Egypt Revenue Breakdown                              Q1     Q1     Q2      Q2     Q3      Q3      9M      9M 
              EGP mn                     2020   2021   2020    2021   2020    2021    2020    2021 
             -------------------------  -----  -----  -----  ------  -----  ------  ------  ------ 
              Total revenues              424    920    381   1,015    602   1,187   1,407   3,122 
              Conventional 
               tests                      424    507    314     510    482     573   1,220   1,590 
              Total Covid-19-related 
               tests                        0    414     67     504    120     614     187   1,531 
               Core Covid-19 
                tests (PCR, 
                Antigen, Antibody)          0    277     10     366     60     567      70   1,210 
               Other Covid-19-related 
                tests                       0    137     57     138     60      47     117     321 
             -------------------------  -----  -----  -----  ------  -----  ------  ------  ------  ------- 
                                               Contribution to Egypt revenue 
               -------------------------------------------------------------------------------------------- 
              Conventional 
               tests                     100%    55%    82%     50%    80%     48%     87%     51% 
              Total Covid-19-related 
               tests                       0%    45%    18%     50%    20%     52%     13%     49% 
               Core Covid-19 
                tests (PCR, 
                Antigen, Antibody)         0%    30%     3%     36%    10%     48%      5%     39% 
               Other Covid-19-related 
                tests                      0%    15%    15%     14%    10%      4%      8%     10% 
 
 
             Jordan 
             IDH's Jordanian operations reported year-on-year revenue 
             grow of 172% in 9M 2021 recording EGP 592 million. 
             Top-line growth was driven by an 81% increase in test 
             performed coupled with a 50% rise in Biolab's average 
             revenue per test. In the nine-month period, Covid-19-related 
             tests (PCR, Antigen, and Antibody) contributed to 62% 
             of Biolab's revenue and to 31% of its tests performed. 
             Controlling for this, revenue increased 35% year-on-year 
             on the back of a 32% increase in conventional tests 
             performed. Meanwhile, the country's top-line continued 
             to be bolstered by Biolab's house call service which 
             in 9M 2021 generated EGP 45 million in revenue, up 
             81% year-on-year. 
             On a quarterly basis, Jordan's revenue reached EGP 
             269 million, a 101% increase from last quarter's figure 
             and up 167% versus Q3 2020. The impressive quarter-on-quarter 
             expansion was supported by an EGP 84 million net revenue 
             contribution coming from Biolab's new partnership with 
             QAIA coupled with the EGP 40 million in net revenue 
             coming from its partnerships with KHIA and Aqaba Port. 
             PCR test volumes generated by Biolab's testing stations 
             in QAIA, KHIA, and Aqaba Port more than offset a general 
             decrease in demand for Covid-19-related testing as 
             infection rates declined following the continued ramp 
             up of the country's vaccination campaign. 
             Detailed Jordan Revenue Breakdown                             Q1     Q1     Q2     Q2     Q3     Q3      9M      9M 
              EGP mn                    2020   2021   2020   2021   2020   2021    2020    2021 
             ------------------------  -----  -----  -----  -----  -----  -----  ------  ------ 
              Total revenues              58    190     59    134    100    269     218     592 
              Conventional 
               revenue                    53     68     44     69     68     86     165     222 
              Total Covid-19-related 
               revenue (PCR, 
               Antigen, Antibody)          5    122     16     65     32    183      53     370 
                                                                                                 ----------------- 
                                                  Contribution to Jordan revenue 
               --------------------------------------------------------------------------------------------------- 
              Conventional 
               revenue                   91%    36%    74%    52%    68%    32%     76%     38% 
              Total Covid-19-related 
               revenue (PCR, 
               Antigen, Antibody)         9%    64%    26%    48%    32%    68%     24%     62% 
 
 
             (14) Covid-19-related tests include both core Covid-19 
             tests (Polymerase Chain Reaction (PCR), Antigen, and 
             Antibody) as well as other routine inflammatory and 
             clotting markers including, but not limited to, Complete 
             Blood Picture, Erythrocyte Sedimentation Rate (ESR), 
             D-Dimer, Ferritin and C-reactive Protein (CRP), which 
             the Company opted to include in the classification 
             as "other Covid-19-related tests" due to the strong 
             rise in demand for these tests witnessed following 
             the outbreak of Covid-19. 
             Nigeria 
             At the Group's Nigerian subsidiary, revenue recorded 
             EGP 40 million in 9M 2021, up 62% year-on-year. In 
             local currency terms, growth was even more pronounced 
             with revenues up 65% year-on-year on the back of a 
             43% year-on-year expansion in tests performed (patients 
             served were up 24%) and a 13% rise in average revenue 
             per test. The continued growth in patient and test 
             volumes over the last two years has come as a direct 
             result of management's revamp strategy which has involved 
             the complete renovation of Echo-Lab's branches combined 
             with the rollout of targeted marketing campaigns aimed 
             at stimulating demand for the venture's services. In 
             parallel, volumes are also benefitting from a gradual 
             normalisation of traffic following the easing of restrictive 
             measures enforced to curb the spread of Covid-19 throughout 
             2020. On a quarterly basis, IDH's Nigeria operations 
             reported revenues of EGP 14.9 million in Q3 2021, up 
             54% year-on-year and 16% versus Q2 2021. It is worth 
             noting that Dr. Alok Bhatia joined Echo-Lab as CEO 
             in March 2021. 
 
             Sudan 
             In Sudan, IDH reported a 41% year-on-year decline in 
             revenues to EGP 12 million for 9M 2021. The country's 
             results continue to be significantly impacted by the 
             devaluation of the Sudanese pound in early 2021 with 
             the average SDG/EGP rate in 9M 2021 standing at 0.07 
             versus 0.30 this time last year. Nonetheless, management's 
             continued success in raising prices in step with inflation, 
             saw revenue in local currency terms expand a remarkable 
             169% year-on-year in 9M 2021. 
             Revenue Contribution by Country                            9M 2020   9M 2021   Change 
             =========================  ========  ========  ======= 
              Egypt Revenue (EGP 
               mn)                         1,407     3,122     122% 
                Covid-19-related (EGP 
                 mn)                         187     1,531     719% 
              Egypt Contribution             84%       83% 
             =========================  ========  ========  ======= 
              Jordan Revenue (EGP 
               mn)                           218       592     172% 
                Covid-19-related (EGP 
                 mn)                          53       370     598% 
              Jordan Revenue (JOD 
               mn)                            10        27     174% 
              Jordan Contribution            13%       16% 
             =========================  ========  ========  ======= 
              Nigeria Revenue (EGP 
               mn)                            25        40      62% 
              Nigeria Revenue (NGN 
               mn)                           620     1,020      65% 
              Nigeria Contribution            1%        1% 
              Sudan Revenue (EGP 
               mn)                            21        12     -41% 
              Sudan Revenue (SDG 
               mn)                            69       187     169% 
              Sudan Contribution              1%      0.3% 
             =========================  ========  ========  ======= 
 
             --- 
             Patients Served and Tests Performed by Country                                    9M 2020   9M 2021   Change 
             =================================  ========  ========  ======= 
              Egypt Patients Served (mn)             4.3       6.3      45% 
              Egypt Tests Performed (mn)            17.0      22.1      31% 
                  Covid-19-related tests (mn)        1.1       3.0     179% 
             =================================  ========  ========  ======= 
              Jordan Patients Served (k)             284     1,031     263% 
              Jordan Tests Performed (k)           1,372     2,482      81% 
                  Covid-19-related tests (k)          77       778     916% 
              Nigeria Patients Served (k)             95       117      24% 
              Nigeria Tests Performed (k)            150       215      43% 
              Sudan Patients Served (k)               91        47     -48% 
              Sudan Tests Performed (k)              289       140     -51% 
             =================================  ========  ========  ======= 
              Total Patients Served (mn)             4.8       7.5      56% 
              Total Tests Performed (mn)            18.8      25.0      33% 
 
             Branches by Country                   31 December   30 September         Change 
                                       2020           2021 
             ================  ============  =============  ============= 
              Egypt                     429            455             26 
             ================  ============  =============  ============= 
              Jordan                     20             21              1 
             ================  ============  =============  ============= 
              Nigeria                    12             12              - 
             ================  ============  =============  ============= 
              Sudan                      20             19             -1 
             ================  ============  =============  ============= 
              Total Branches            481            507             26 
             ================  ============  =============  ============= 
 
             Cost of Goods Sold 
             IDH's cost of goods sold increased 90% year-on-year 
             to EGP 1,600 million in 9M 2021, rising at a significantly 
             slower pace than the Group's top-line during the period. 
             As such, gross profit for 9M 2021 increased 161% year-on-year 
             to EGP 2,167 million, with an associated margin of 
             58% versus 50% last year. 
             COGS Breakdown as a Percentage of Revenue                                9M 2020   9M 2021 
             =============================  ========  ======== 
              Raw Materials                    16.4%     18.3% 
             =============================  ========  ======== 
              Wages & Salaries                 16.0%     12.5% 
             =============================  ========  ======== 
              Depreciation & Amortisation       7.1%      4.0% 
             =============================  ========  ======== 
              Other Expenses                   10.8%      7.6% 
             =============================  ========  ======== 
              Total                            50.3%     42.5% 
             =============================  ========  ======== 
 
             Raw material costs, which include cost of specialized 
             analysis at other laboratories, recorded EGP 690 million 
             in 9M 2021, and continued to make up the lion share 
             of total COGS at 43%. As a share of revenue, raw material 
             costs increased to 18.3% in 9M 2021 compared to 16.4% 
             last year. This increase is primarily attributable 
             to higher raw material costs as a share of revenue 
             recorded in Jordan, with Biolab's raw material to revenues 
             ratio reaching 33% in 9M 2021 from 25% in 9M 2020 mainly 
             due to additional fees incurred by the company during 
             the months of August and September as part of its revenue 
             sharing agreement with QAIA. 
             Direct salaries and wages increased 77% year-on-year 
             to EGP 473 million in 9M 2021 and made up the second 
             largest share of total COGS for the nine-month period 
             at 30%. The year-on-year increase is largely attributable 
             to a rise in the share of profits allocated to direct 
             salaries and wages to EGP 141 million in 9M 2021 from 
             EGP 50 million in the comparable period of 2020 following 
             higher net profit recorded at its Egyptian operations,(15) 
             in addition to higher bonuses and incentives paid during 
             9M 2021 in light of the impressive performance recorded 
             during the period. 
             Direct depreciation and amortisation increased 28% 
             year-on-year in 9M 2021 to EGP 152 million, principally 
             due to the incremental amortisation of additional branches 
             (IFRS 16 right-of-use assets). 
             EBITDA 
             IDH's normalised EBITDA(16) recorded EGP 1,992 million 
             in 9M 2021, up 180% year-on-year. Normalised EBITDA 
             margin expanded to 53% in 9M 2021 versus 43% last year. 
             Improved EBITDA level profitability was supported by 
             strong top-line growth and the subsequent dilution 
             of fixed costs. EBITDA growth was further bolstered 
             by the normalization of provisions booked during 9M 
             2021, which recorded EGP 18 million versus the EGP 
             36 million booked in 9M 2020 to account for expected 
             credit losses in accordance with IFRS 9. It is worth 
             noting that normalised EBITDA excludes one-off listing 
             fees of EGP 29 million incurred in 9M 2021 related 
             to the Company's dual listing on the EGX completed 
             in May 2021. 
             On a quarterly basis, normalised EBITDA expanded 130% 
             year-on-year to record EGP 790 million in Q3 2021. 
             This represents a 31% quarter-on-quarter increase largely 
             driven by the strong top-line growth recorded by the 
             Group during the third quarter. Normalised EBITDA margin 
             stood at 54% for the quarter, up from the 48% margin 
             recorded in Q3 2020 and the 52% margin recorded in 
             Q2 2021. 
             In Egypt, EBITDA recorded EGP 1,761 million in 9M 2021, 
             up 177% year-on-year on the back of strong top-line 
             growth. EBITDA margin increased to 56% for the nine-month 
             period from 45% in 9M 2020. 
             IDH's Jordanian operations recorded a 206% year-on-year 
             increase in EBITDA to EGP 236 million for 9M 2021 supported 
             by strong revenue growth for the period. In local currency 
             terms, EBITDA grew 208% compared to 9M 2020. EBITDA 
             margin recorded 40% in 9M 2021 compared to 35% in 9M 
             2020. 
 
             In Nigeria, EBITDA losses increased to EGP 5.2 million 
             in 9M 2021 compared to EGP 3.8 million in the same 
             nine months of 2020. Increased losses are partially 
             attributable to an increase in management salaries 
             incurred during the course of 2021 following the hiring 
             of a new CEO at Echo-Lab in Q1 2021. Moreover, it is 
             also worth noting that the figure includes a one-off 
             adjustment related to the previous year of EGP 4.4 
             million. Excluding the one-off adjustment, EBITDA losses 
             would have reached EGP 0.8 million, representing a 
             significant improvement compared to the same period 
             of last year. 
             Finally, Sudan's EBITDA recorded EGP 0.2 million in 
             9M 2021, down 86% year-on-year with an EBITDA margin 
             of 1% compared to 6% in 9M 2020. EBITDA for the period 
             was weighed down by the sharp SDG devaluation in February 
             of this year. In SDG terms EBITDA declined 38% year-on-year. 
             Regional EBITDA in Local Currency Mn                 9M 2020   9M 2021   Change 
             -----------------  --------  --------  ------- 
              Egypt        EGP       636     1,761     177% 
              margin                 45%       56% 
              Jordan       JOD       3.5      10.7     208% 
              margin                 35%       40% 
              Nigeria      NGN       -94      -131      40% 
              margin                -15%      -13% 
              Sudan        SDG         4         3     -38% 
              margin                  6%        1% 
 
 
             (15) According to IAS 1, 10% of Egypt's net profit 
             is allocated to direct wages and salaries. 
             (16) Normalised EBITDA is calculated as operating 
             profit plus depreciation and amortization and minus 
             one-off fees incurred in 9M 2021 related to the Company's 
             EGX listing completed in May 2021. 
 
             Interest Income / Expense 
             IDH recorded interest income of EGP 69 million in 9M 
             2021, up 56% year-on-year on the back of higher cash 
             balances during the period coupled with proper cash 
             allocation between T-bills and time deposits. 
 
             Interest expense recorded EGP 83 million in the 9M 
             2021, up 56% year-on-year. The increase in attributable 
             to: 
              *    Higher interest on lease liabilities related to IFRS 
                   16 following the addition of new branches and the 
                   renewal of medical equipment agreements with our main 
                   equipment suppliers. 
 
 
              *    Higher bank charges resulting from increased 
                   penetration of, and reliance on, POS machines and 
                   electronic payments in both Egypt and Jordan during 
                   the period. It is important to note that bank charges 
                   recorded by IDH's Jordanian operations represented 
                   51% of total bank charges during 9M 2021, which is 
                   mainly related to the newly launched partnership with 
                   QAIA. 
 
 
              *    Loan-related expenses incurred by IDH during the 
                   period as the Company secured a new eight-year US$ 45 
                   million facility with the International Finance 
                   Corporation (IFC) in May 2021. During 9M 2021, IDH 
                   booked loan-related expenses of EGP 14.6 million 
                   including a front-end fee, syndication fee, and legal 
                   advisory fees. 
 
 
             Interest Expense Breakdown EGP Mn                           9M 2020   9M 2021   Change 
             ===============================  ========  ========  ======= 
              Interest on Lease Liabilities 
               (IFRS 16)                          38.3      44.0      15% 
             ===============================  ========  ========  ======= 
              Interest Expenses on 
               Borrowings(17)                      9.9       7.0     -29% 
             ===============================  ========  ========  ======= 
              Loan-related Expenses                  -      14.6      N/A 
               on IFC facility 
             ===============================  ========  ========  ======= 
              Interest Expenses on 
               Leases                              3.0       4.8      62% 
             ===============================  ========  ========  ======= 
              Bank Charges                         1.9      12.5     549% 
             ===============================  ========  ========  ======= 
              Total Interest Expense              53.1      82.9      56% 
             ===============================  ========  ========  ======= 
 
             (17) Interest expenses on medium-term loans divided 
             as EGP 2.3 million related to IDH's facility with the 
             Commercial International Bank (CIB) and EGP 4.6 million 
             related to IDH's facility with Ahli United Bank Egypt 
             (AUBE). 
             Foreign Exchange 
             IDH recorded a net foreign exchange loss of EGP 18 
             million in 9M 2021 compared to EGP 10 million in the 
             same nine months of 2020. The figure largely reflects 
             FX losses on the back of the SDG devaluation versus 
             the EGP in February 2021. 
 
             Taxation 
             Tax expenses recorded in the first nine months of 2021 
             were EGP 610 million compared to EGP 182 million in 
             the same period of last year. The effective tax rate 
             stood at 35% in the period versus 33% in 9M 2020, reflecting 
             the change in withholding tax on undistributed profits 
             from 5% to 10% which came into effect in Egypt in September 
             of last year. It is important to note that there is 
             no tax payable for IDH's two companies at the holding 
             level, while tax was paid on profits generated by operating 
             subsidiaries. 
             Net Profit 
             IDH's consolidated net profit recorded EGP 1,148 million 
             in 9M 2021, an impressive three-fold year-on-year increase. 
             Improving net profitability was supported by strong 
             revenue growth coupled with the dilution of fixed costs, 
             higher interest income and normalising provisions for 
             the nine-month period. As such, net profit margin expanded 
             eight percentage points year-on-year to record 30% 
             in 9M 2021. 
 

ii. Balance Sheet Analysis

Assets

Property, Plant and Equipment

IDH held gross property, plant and equipment (PPE) of EGP 1,569 million as at 30 September 2021, up from the EGP 1,256 million as of 31 December 2020. Meanwhile, CAPEX outlays represented around 8% of consolidated revenues in 9M 2021. The increase in CAPEX outlays as a share of total revenue is partially due to the EGP 149 million in equipment related to the SPA (Reagent deals) and the EGP 48.7 million spent on a new radiology branch (CBP) during the period.

Total CAPEX Breakdown

 
 EGP Mn                           9M 2021   % of Revenue 
===============================  ========  ============= 
 Mega Lab                           130.2           3.5% 
===============================  ========  ============= 
 Al-Borg Scan Expansion             100.3           2.7% 
===============================  ========  ============= 
 Leasehold Improvements/others       83.0           2.2% 
===============================  ========  ============= 
 Total CAPEX Additions              313.5           8.3% 
===============================  ========  ============= 
 

Accounts Receivable and Provisions

As at 30 September 2021, accounts receivables' Days on Hand (DOH) stood at 107 days compared to 144 days at year-end 2020, continuing to highlight a sustained improvement in collections versus 2020. Accounts receivables' DOH is calculated based on credit revenues amounting to EGP 967 million during 9M 2021.

The receivables balance in Egypt and Jordan stood at EGP 376 million as of 30 September 2021. More specifically, in Egypt account receivables' DOH declined to 96 days as at 30 September 2021 compared to 145 days as at 31 December 2020. Accounts receivables' DOH for Egypt is calculated based on credit revenues amounting to EGP 812 million during 9M 2021. Meanwhile, in Jordan accounts receivables' DOH increased from 150 days to 172 days largely due to recent agreements with various airline companies as part of QAIA and KHIA agreements. Accounts receivables' DOH for Jordan is calculated based on credit revenues amounting to EGP 144 million during 9M 2021.

Provision for doubtful accounts established during the nine months to 30 September 2021 amounted to EGP 18 million, down from the EGP 36 million booked in the comparable nine-month period of last year.

Inventory

As at 30 September 2021, the Group's inventory balance reached EGP 190 million, up from EGP 100 million as at year-end 2020. Days Inventory Outstanding (DIO) decreased to 59 days as at 30 September 2021 from 72 days as at year-end 2020. The decline is mainly due to the high turnover of PCR testing for Covid-19.

Cash and Net Debt/Cash

IDH's cash balances increased to EGP 1,807 million as at 30 September 2021 compared to EGP 877 million as at 31 December 2020.

 
 EGP million         31 Dec 2020   30 Sep 2021 
==================  ============  ============ 
 Time Deposits             162.4         366.5 
==================  ============  ============ 
 T-Bills                   461.2         943.1 
==================  ============  ============ 
 Current Accounts          234.3         474.3 
==================  ============  ============ 
 Cash on Hand               19.0          22.7 
==================  ============  ============ 
 Total                     876.8       1,806.7 
==================  ============  ============ 
 

Net cash balance(18) amounted to EGP 1,013 million as at 30 September 2021, an increase of 215% compared to EGP 321 million as at 31 December 2020.

 
 EGP million                          31 Dec 2020   30 Sep 2021 
===================================  ============  ============ 
 Cash and Investments at Amortised 
  Cost                                      876.8       1,806.7 
===================================  ============  ============ 
 Interest Bearing Debt ("Medium 
  Term Loans")(19)                           96.5         103.4 
===================================  ============  ============ 
 Lease Liabilities Property                 389.9         475.4 
===================================  ============  ============ 
 Lease Liabilities Equipment                 69.1         215.2 
===================================  ============  ============ 
 Net Cash Balance                           321.3       1,012.8 
===================================  ============  ============ 
 

Lease liabilities on property stood at EGP 475 million as at 30 September 2021 versus the EGP 390 million booked as at year-end 2020. The increase is attributable to the addition of new branches during 9M 2021 including Al-Borg Scan's third branch which came online at the start of October 2021. Meanwhile, financial obligations related to equipment recorded EGP 215 million as at 30 September 2021, up from EGP 69 million as at year-end 2020. This increase reflects the renewal of the Company's contracts and the addition of new equipment. Finally, the increase partially reflects a rise in the interest bearing debt related to IDH's two medium term facilities with Commercial International Bank (CIB) and Ahli United Bank of Egypt (AUBE). More specifically, IDH's interest bearing debt as at 30 September 2021 is split as EGP 27.2 million related to its medium term facility with CIB and EGP 76.1 million to its facility with AUBE. It is worth noting that interest bearing debt in both periods includes accrued interest.

(18) The net cash balance is calculated as cash and cash equivalent balances less interest-bearing debt (medium term loans), finance lease and Right-of-use liabilities.

(19) IDH's interest bearing debt as at 30 September 2021 is split as EGP 27.2 million related to its medium term facility with the Commercial International Bank (CIB) and EGP 76.1 million to its facility with Ahli United Bank Egypt (AUBE).

Liabilities

Accounts Payable

As at 30 September 2021, accounts payable balance stood at EGP 292 million up from EGP 178 million as at year-end 2020. However, the Group's days payable outstanding (DPO) stood at 95 days as at 30 September 2021 down from 127 days as year-end 2020. The decline primarily reflects the fact that PCR testing kit suppliers are paid within a period of 15 days.

iii. Cash Flow Analysis

Net cash flow from operating activities recorded EGP 1,641 million in 9M 2021 compared to EGP 370 million in 9M 2020, continuing to display the Company's strong cash generation ability.

-End-

 
 INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH" 
  AND ITS SUBSIDIARIES 
 
 
  CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 
 
  FOR THE NINE MONTHSED 
  30 SEPTEMBER 2021 
 
 
 Index to the condensed consolidated interim financial information    Pages 
-------------------------------------------------------------------  -------- 
 
 Condensed consolidated interim statement of financial position         21 
 Condensed consolidated interim statement of profit or loss             22 
 Condensed consolidated interim statement of comprehensive income       23 
 Condensed consolidated interim statement of changes in equity          24 
 Condensed consolidated interim statement of cash flows                 25 
 Notes to the condensed consolidated interim financial information    26 - 44 
 

Condensed consolidated interim statement of financial position - As of 30 September 2021

 
 (All amounts in Egyptian Pounds "EGP'000")                 30 September         31 December 
                                               Notes                2021                2020 
--------------------------------------------  ------  ------------------  ------------------ 
                                                                 EGP'000             EGP'000 
                                                              (Reviewed)           (Audited) 
 ASSETS 
 Non-current assets 
 Property, plant and equipment                   4             1,006,695             787,590 
 Intangible assets and goodwill                  5             1,659,481           1,659,755 
 Right of use assets                             6               417,708             354,688 
 Investment at fair value through profit 
  and loss                                       7                10,372               9,604 
 Total non-current assets                                      3,094,256           2,811,637 
                                                      ------------------  ------------------ 
 
 Current assets 
 Inventories                                                     190,178             100,115 
 Trade and other receivables                     8               489,813             388,903 
 Investments at amortized cost                   9               856,016             276,625 
 Cash and cash equivalents                      10               950,703             600,130 
 Total current assets                                          2,486,710           1,365,773 
                                                      ------------------  ------------------ 
 Total assets                                                  5,580,966           4,177,410 
                                                      ==================  ================== 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share Capital                                                 1,072,500           1,072,500 
 Share premium reserve                                         1,027,706           1,027,706 
 Capital reserve                                               (314,310)           (314,310) 
 Legal reserve                                                    51,641              49,218 
 Put option reserve                                            (809,677)           (314,057) 
 Translation reserve                                             150,988             145,617 
 Retained earnings                                             1,234,832             603,317 
 Equity attributable to the equity holders 
  of the parent                                                2,413,680           2,269,991 
 Non-controlling interest                                        176,992             156,383 
 Total equity                                                  2,590,672           2,426,374 
                                                      ------------------  ------------------ 
 
 Non-current liabilities 
 Deferred tax liabilities                      19-C              316,693             240,333 
 Provisions                                                        3,799               3,408 
 Long term Loans and borrowings                 13                67,591              67,617 
 Other long-term financial obligations          15               581,471             398,525 
 Long-term financial liability at fair 
  value                                         14                33,682              31,790 
 Total non-current liabilities                                 1,003,236             741,673 
                                                      ------------------  ------------------ 
 
 Current liabilities 
 Trade and other payables                       11               649,117             383,623 
 Other short-term financial obligations         15               109,123              60,517 
 Short-term financial liability at fair 
  value                                         12               775,995             282,267 
 Short term loans and borrowings                13                33,457              25,416 
 Current tax liabilities                                         419,366             257,540 
 Total current liabilities                                     1,987,058           1,009,363 
                                                      ------------------  ------------------ 
 Total liabilities                                             2,990,294           1,751,036 
                                                      ------------------  ------------------ 
 Total equity and liabilities                                  5,580,966           4,177,410 
                                                      ==================  ================== 
 
 
 
 These condensed consolidated interim financial information were 
  approved and authorized for issue by the Board of Directors and 
  signed on their behalf on 15 November 2021 by: 
 Dr. Hend El Sherbini                                                 Hussein Choucri 
                                                                      Board member of the audit 
 Chief Executive Officer                                               committee 
 
 
   The accompanying notes on pages 26 - 44 form an integral part of 
   these condensed consolidated interim financial information. 
 
 

Condensed consolidated interim statement of profit or loss For the three and nine months period ended 30 September 2021

(All amounts in Egyptian Pounds "EGP'000")

 
                                            For the three months                    For the nine months period 
                                       period ended 30 September                            ended 30 September 
                     Notes              2021                2020                 2021                     2020 
                    ------ 
                                     EGP'000             EGP'000              EGP'000                  EGP'000 
------------------  ------  ----------------  ------------------  -------------------  ----------------------- 
                                                     (Unaudited)                                   (Unaudited) 
                                  (Reviewed)      / (Unreviewed)           (Reviewed)           / (Unreviewed) 
 
 Revenue              23           1,473,411             720,290            3,766,581                1,669,977 
 Cost of sales                     (612,146)           (336,615)          (1,600,019)                (840,105) 
 Gross profit                        861,265             383,675            2,166,562                  829,872 
 
 Marketing and 
  advertising 
  expenses                          (41,273)            (26,781)            (107,928)                 (72,456) 
 General and 
  administrative 
  expenses            17            (82,969)            (51,546)            (259,101)                (154,809) 
 Impairment loss 
  on 
  trade and other 
  receivable                         (7,816)             (7,300)             (18,081)                 (35,581) 
 Other income                          (135)                 487               12,296                    8,377 
 Operating profit                    729,072             298,535            1,793,748                  575,403 
                            ----------------  ------------------  -------------------  ----------------------- 
 
 Finance income       18              23,838              10,434               69,086                   44,199 
 Finance cost         18            (30,261)            (21,583)            (105,161)                 (62,555) 
 Net finance cost                    (6,423)            (11,149)             (36,075)                 (18,356) 
                            ----------------  ------------------  -------------------  ----------------------- 
 Profit before tax                   722,649             287,386            1,757,673                  557,047 
                            ================  ==================  ===================  ======================= 
 
 Income tax 
  expense            19-B          (242,961)            (86,591)            (609,775)                (181,627) 
 Profit for the 
  period                             479,688             200,795            1,147,898                  375,420 
                            ================  ==================  ===================  ======================= 
 
 Profit attributed 
 to: 
 Equity holders of 
  the 
  parent                             454,236             194,371            1,100,676                  373,139 
 Non-controlling 
  interests                           25,452               6,424               47,222                    2,281 
                                     479,688             200,795            1,147,898                  375,420 
                            ================  ==================  ===================  ======================= 
      Earnings per share (expressed in EGP): 
 Basic and diluted 
  earnings 
  per share           22 
                                        0.76                0.32                 1.83                     0.62 
                            ================  ==================  ===================  ======================= 
 

The accompanying notes on pages 26 - 44 form an integral part of these condensed consolidated interim financial information.

Condensed consolidated interim statement of comprehensive income For the three and nine months period ended 30 September 2021

(All amounts in Egyptian Pounds "EGP'000")

 
                                            For the three months                   For the nine months 
                                          period ended 30 September              period ended 30 September 
                                           2021               2020             2021                  2020 
                                         EGP'000            EGP'000           EGP'000              EGP'000 
----------------------------------  -----------------  -----------------  --------------      ----------------- 
                                                             (Unaudited)                            (Unaudited) 
                                           (Reviewed)     / (Unreviewed)          (Reviewed)     / (Unreviewed) 
 
 Net profit                                   479,688            200,795       1,147,898                  375,420 
 Items that may be reclassified 
  to profit or loss: 
 Currency translation differences             (4,285)            (5,607)           8,090                 (19,747) 
 Other comprehensive (loss) 
  / income for the period net 
  of tax                                      (4,285)            (5,607)           8,090                 (19,747) 
                                    -----------------  -----------------  --------------      ------------------- 
 Total comprehensive income 
  for the period                              475,403            195,188       1,155,988                  355,673 
                                    =================  =================  ==============      =================== 
 
 Attributed to: 
 Equity holders of the parent                 449,464            196,889       1,106,047                  362,621 
 Non-controlling interests                     25,939            (1,701)          49,941                  (6,948) 
                                              475,403            195,188       1,155,988                  355,673 
                                    =================  =================  ==============      =================== 
 
 

The accompanying notes on pages 26 - 44 form an integral part of these condensed consolidated interim financial information.

 
                                                                                                                                                                            Total 
                                                                                                                                                                     attributable 
                                                                                                                                                                           to the 
                                                            Share                                                  Put                                                     owners 
                                         Share            premium          Capital              Legal           option        Translation           Retained               of the    Non-controlling              Total 
                                       capital            reserve          reserve           reserve*          reserve            reserve           earnings               Parent          interests             equity 
--------------------------   -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 
 At 1 January 2021                   1,072,500          1,027,706         (314310)             49,218        (314,057)            145,617            603,317            2,269,991            156,383          2,426,374 
                             -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 Profit for the period                       -                  -                -                  -                -                  -          1,100,676            1,100,676             47,222          1,147,898 
 Other comprehensive income 
  for the period                             -                  -                -                  -                -              5,371                  -                5,371              2,719              8,090 
 Total comprehensive income                  -                  -                -                  -                -              5,371          1,100,676            1,106,047             49,941          1,155,988 
                             -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 Transactions with owners 
  of the Company 
 Contributions and 
 distributions 
 Dividends                                   -                  -                -                  -                -                  -          (455,182)            (455,182)           (23,566)          (478,748) 
 Legal reserve formed 
  during 
  the period                                 -                  -                -              2,423                -                  -            (2,423)                    -                  -                  - 
 Movement in put option 
  liability                                  -                  -                -                  -        (495,620)                  -                  -            (495,620)                  -          (495,620) 
 Impact of hyperinflation                    -                  -                -                  -                -                  -           (11,556)             (11,556)            (5,766)           (17,322) 
 Total contributions and 
  distributions                              -                  -                -              2,423        (495,620)                  -          (469,161)            (962,358)           (29,332)          (991,690) 
                             -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 Balance at 30 September 
  2021 (Reviewed)                    1,072,500          1,027,706         (314310)             51,641        (809,677)            150,988          1,234,832            2,413,680            176,992          2,590,672 
                             =================  =================  ===============  =================  ===============  =================  =================  ===================  =================  ================= 
 
 At 1 January 2020                   1,072,500          1,027,706         (314310)             46,330        (229,163)            155,823            456,661            2,215,547            144,710          2,360,257 
                             -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 Profit for the period                       -                  -                -                  -                -                  -            373,139              373,139              2,281            375,420 
 Other comprehensive loss 
  for the period                             -                  -                -                  -                -           (10,518)                  -             (10,518)            (9,229)           (19,747) 
 Total comprehensive income                  -                  -                -                  -                -           (10,518)            373,139              362,621            (6,948)            355,673 
                             -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 Transactions with owners 
  of the Company 
 Contributions and 
 distributions 
 Dividends                                   -                  -                -                  -                -                  -          (441,855)            (441,855)            (8,883)          (450,737) 
 Legal reserve formed 
  during 
  the period                                 -                  -                -              1,331                -                  -            (1,331)                    -                  -                  - 
 Movement in put option 
  liability                                  -                  -                -                  -           20,481                  -                  -               20,481                  -             20,481 
 Impact of hyperinflation                    -                  -                -                  -                -                  -            (3,296)              (3,296)                790            (2,506) 
 Non-controlling interest 
  cash injection in 
  subsidiaries 
  during the period                          -                  -                -                  -                -                  -                                       -             17,372             17,372 
 Total contributions and 
  distributions                              -                  -                -              1,331           20,481                  -          (446,482)            (424,670)              9,279          (415,391) 
                             -----------------  -----------------  ---------------  -----------------  ---------------  -----------------  -----------------  -------------------  -----------------  ----------------- 
 Balance at 30 September 
  2020 
  (Unaudited)/(Unreviewed)           1,072,500          1,027,706         (314310)             47,661        (208,682)            145,305            383,318            2,153,499            147,041          2,300,540 
                             =================  =================  ===============  =================  ===============  =================  =================  ===================  =================  ================= 
 

Condensed consolidated interim statement of changes in equity For the nine months period ended 30 September 2021

(All amounts in Egyptian Pounds "EGP'000")

*Under Egyptian Law, each subsidiary in Egypt must set aside at least 5% of its annual net profit into a legal reserve until such time that this represents 50% of each subsidiary's issued capital. This reserve is not distributable to the owners of the Company.

The accompanying notes on pages 26 - 44 form an integral part of these condensed consolidated interim financial information.

 
 (All amounts in Egyptian Pounds "EGP'000")                  30 September            30 September 
                                                 Note            2021                    2020 
----------------------------------------------  -----  -----------------------  ---------------------- 
                                                               EGP'000                  EGP'000 
                                                                                      (Unaudited) 
                                                              (Reviewed)             / (Unreviewed) 
 Cash flows from operating activities 
 Profit for the period before tax                                    1,757,673                 557,047 
 Adjustments                                                                 -                       - 
 Depreciation of property, plant and 
  equipment and right of use                                           164,534                 130,982 
 Amortization                                                            5,002                   4,045 
 Gain on disposal of Property, plant 
  and equipment                                                          (208)                   (274) 
 Impairment in trade receivables                                        18,081                  35,582 
 Interest expense                                 18                    55,822                  53,118 
 Interest income                                  18                  (69,086)                (44,199) 
 Equity settled shares financial investments                             (768)                 (3,464) 
 ROU Asset/Lease Termination                                             1,038                       - 
 Loss / (gain) in hyperinflationary net 
  monetary position                               18                     4,628                   (192) 
 Unrealised foreign currency exchange 
  loss                                            18                    17,588                   9,629 
 Net cash from operating activities before 
  changes in working capital                                         1,954,304                 742,274 
 
 Change in Provisions                                                      392                 (1,982) 
 Change in inventory                                                  (95,002)                (15,424) 
 Change in trade and other receivables                               (127,907)                (65,856) 
 Change in trade and other payables                                    183,011               (125,204) 
 Cash generated from operating activities 
  before income tax payment                                          1,914,798                 533,808 
                                                       -----------------------  ---------------------- 
 Income tax paid during period                                       (273,881)               (163,571) 
 Net cash from operating activities                                  1,640,917                 370,237 
                                                       -----------------------  ---------------------- 
 
 Cash flows from investing activities 
 Interest received                                                      68,048                  43,505 
 Decrease in restricted cash                                                 -                     247 
 Payments for the purchase of short term 
  investments                                                        (904,779)               (460,476) 
 Proceeds for the sale of short term 
  investments                                                          325,388                 527,869 
 Acquisition of Property, plant and equipment     4                  (177,580)                (77,892) 
 Acquisition of intangible assets                 5                    (8,285)                 (3,665) 
 Proceeds from sale of Property, plant 
  and equipment                                                          6,255                   1,278 
 Net cash flows(used in)/from investing 
  activities                                                         (690,953)                  30,866 
                                                       -----------------------  ---------------------- 
 
 Cash flows from financing activities 
 Proceeds from borrowings                                               20,724                  10,311 
 Repayments of borrowings                                             (12,708)                (12,708) 
 Interest paid                                                        (56,696)                (49,532) 
 Dividends paid                                                      (478,748)               (450,737) 
 Payment of finance lease liabilities                                 (68,372)                (26,921) 
 Injection of cash by non-controlling 
  interest                                                                   -                  17,372 
 Net cash flows used in financing activities                         (595,800)               (512,216) 
                                                       -----------------------  ---------------------- 
 
 Net increase (decrease) in cash and 
  cash equivalent                                                      354,164               (111,114) 
 Cash and cash equivalent at the beginning 
  of the period                                                        600,130                 409,139 
 Effect of exchange rate fluctuations 
  on cash held                                                         (3,591)                  13,092 
 Cash and cash equivalent at the end 
  of the period                                   10                   950,703                 311,118 
                                                       =======================  ====================== 
 

Condensed consolidated interim statement of cash flows For the nine months period ended 30 September 2021

The accompanying notes on pages 26 - 44 form an integral part of these condensed consolidated interim financial information.

(In the notes all amounts are shown in Egyptian Pounds "EGP' 000" unless otherwise stated)

   1.    Reporting entity 

Integrated Diagnostics Holdings plc "IDH" or "the Company" is a Company which was incorporated in Jersey on 4 December 2014 and established according to the provisions of the Companies (Jersey) Law 1991 under Registered No. 117257. These condensed consolidated interim financial information as at and for the nine months ended 30 September 2021 comprise the Company and its subsidiaries (together referred as the 'Group'). The Company is a dually listed entity, in both London stock exchange (since 2015) and in the Egyptian Exchange (during May 2021).

The principal activities of the Company and its subsidiaries (together "The Group") include investments in all types of the healthcare field of medical diagnostics (the key activities are pathology and Radiology related tests), either through acquisitions of related business in different jurisdictions or through expanding the acquired investments they have. The key jurisdictions that the Group operates are in Egypt, Jordan, Nigeria and Sudan.

The Group's financial year starts on 1 January and ends on 31 December of each year.

These condensed consolidated interim financial information were approved for issue by the Directors of the Company on 15 November 2021.

   2.    Basis of preparation 
   A)   Statement of compliance 

These condensed consolidated interim financial information have been prepared as per IAS 34 'Interim Financial Reporting' (As adopted by the IASB). The group's assessment for the differences with IAS 34 'Interim Financial Reporting' (As adopted by the EU) concluded that there are no material differences on the consolidated financial position and consolidated financial performance of the Group for the period then ended, as the accounting policies adopted are consistent with those of the previous financial year ended 31 December 2020 and corresponding interim reporting period.

These condensed consolidated interim financial information do not include all the information and disclosures in the annual consolidated financial Statement, and should be read in conjunction with the financial Statement published as at and for the year ended 31 December 2020 which is available at www.idhcorp.com, In addition, results of the nine-month period ended 30 September 2021 are not necessary indicative for the results that may be expected for the financial year ending 31 December 2021.

   B)    Basis of measurement 

The condensed consolidated interim financial information has been prepared on the historical cost basis except where adopted IFRS mandates that fair value accounting is required which is related to the financial assets and liabilities measured at fair value.

   C)    Functional and presentation currency 

These condensed consolidated interim financial information is presented in Egyptian Pounds (EGP'000). The functional currency of the majority of the Group's entities is the Egyptian Pound (EGP) and is the currency of the primary economic environment in which the Group operates.

The Group also operates in Jordan, Sudan and Nigeria and the functional currencies of those foreign operations are the local currencies of those respective territories, however due to the size of these operations there is no significant impact on the functional currency of the Group, which is the Egyptian Pound (EGP).

   3.    Significant accounting policies 

In preparing these condensed consolidated interim financial information, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the consolidated financial information for the year ended 31 December 2020 "The preparation of these condensed consolidated interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Information about significant areas of estimation uncertainty and critical judgement in applying accounting policies that have the most significant effect on the amount recognised in the condensed consolidated interim financial statement is described in note 2.2 of the annual consolidated financial information published for the year ended 31 December 2020. In preparing these condensed consolidated interim financial information, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the consolidated financial information for the year ended 31 December 2020".

   4.    Property, plant and equipment 
 
                                             Medical,                                       Building & 
                                             electric                                        Leasehold 
                                        & information                        Fixtures,   assets in the 
                                               system        Leasehold      fittings &       course of 
                   Land & buildings        equipment*     improvements        vehicles    construction              Total 
----------------  -----------------  ----------------  ---------------  --------------  --------------  ----------------- 
 Cost 
 At 1 January 
  2021                      332,345           565,697          254,474          73,261          21,207          1,246,984 
 Additions                   48,886           222,230           49,915          20,822           3,891            345,744 
 Hyperinflation 
  effect                          -          (12,377)                -               -               -           (12,377) 
 Disposals                        -           (2,968)            (893)         (1,330)               -            (5,191) 
 Transfers                        -                 -            5,310                         (5,310)                  - 
 Translation 
  differences                 (329)           (9,742)          (2,226)         (1,298)         (1,079)           (14,674) 
                  -----------------  ----------------  ---------------  --------------  --------------  ----------------- 
 At 30 September 
  2021 
  (Reviewed)                380,902           762,840          306,580          91,455          18,709          1,560,486 
                  -----------------  ----------------  ---------------  --------------  --------------  ----------------- 
 
 Depreciation 
 At 1 January 
  2021                       47,724           245,929          138,511          27,230               -            459,394 
 Depreciation 
  for the period              4,238            68,444           27,722           5,212               -            105,616 
 On disposals                     -           (2,573)            (751)         (1,131)               -            (4,455) 
 Translation 
  differences                  (29)           (4,855)            (895)           (985)               -            (6,764) 
                  -----------------  ----------------  ---------------  --------------  --------------  ----------------- 
 At 30 September 
  2021 
  (Reviewed)                 51,933           306,945          164,587          30,326               -            553,791 
                  -----------------  ----------------  ---------------  --------------  --------------  ----------------- 
 
 Net book value 
  at 30 
  September 
  (Reviewed)                328,969           455,895          141,993          61,129          18,709          1,006,695 
                  =================  ================  ===============  ==============  ==============  ================= 
 
 At 31 December 
  2020 (Audited)            284,621           319,768          115,963          46,031          21,207            787,590 
                  =================  ================  ===============  ==============  ==============  ================= 
 
   *     Medical equipment 

The group entered into purchase agreement with an external party to supply medical equipment. These equipment's are supplied to service the Group's new state-of-the-art Mega Lab. The agreement provides for annual base payments, The Group entered into new agreements for the period ended 30 September 2021 to replace the current equipment in use.

   5.    Intangible assets and goodwill 

Intangible assets represent goodwill acquired through business combinations and brand names.

 
                                             Goodwill   Brand name          Software           Total 
-----------------------------------------  ----------  -----------  ----------------      ---------- 
 Cost 
 Balance at 1 January 2021                  1,261,808      383,922            67,157         1,712,887 
 Additions                                          -            -             8,285             8,285 
 Translation                                  (3,169)        (347)              (47)           (3,563) 
                                           ----------  -----------  ----------------      ------------ 
 Balance at 30 September 2021 (Reviewed)    1,258,639      383,575            75,395         1,717,609 
                                           ----------  -----------  ----------------      ------------ 
 
 Amortisation and impairment 
 Balance at 1 January 2021                      1,849            -            51,283            53,132 
 Amortisation                                       -            -             5,002             5,002 
 Translation                                        -            -               (6)               (6) 
                                           ----------  -----------  ----------------      ------------ 
 Balance at 30 September 2021 (Reviewed)        1,849            -            56,279            58,128 
                                           ----------  -----------  ----------------      ------------ 
 
 Carrying amount 
 Balance at 31 December 2020 (Audited)      1,259,959      383,922            15,874         1,659,755 
                                           ==========  ===========  ================      ============ 
 
 Balance at 30 September 2021 (Reviewed)    1,256,790      383,575            19,116         1,659,481 
                                           ==========  ===========  ================      ============ 
 
 

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. No indicators of impairment have been identified during the nine months ended 30 September 2021.

   6.    Right of use assets 
 
                                                             30 September   31 December 2020 
                                                                     2021 
-------------------------------------------  ----------------------------  ----------------- 
                                                               (Reviewed)          (Audited) 
 
 Balance at 1 January                                             354,688            264,763 
 Addition for the period / year                                   128,864            152,030 
 Depreciation charge for the period / year                       (58,918)           (60,803) 
 Terminated contracts                                             (3,454)            (1,302) 
 Translation                                                      (3,472)                  - 
 Balance                                                          417,708            354,688 
                                             ============================  ================= 
 
   7.    Investment at fair value through profit and loss 
 
                        30 September 2021   31 December 2020 
---------------------  ------------------  ----------------- 
                               (Reviewed)          (Audited) 
 
 Equity investments*               10,372              9,604 
                       ------------------ 
                                   10,372              9,604 
                       ==================  ================= 
 

* On August 17, 2017, Almakhbariyoun AL Arab (seller) has signed IT purchase Agreement with JSC Mega Lab (Buyer) to transfer and install the Laboratory Information Management System (LIMS) for a purchase price amounted to USD 400 000, which will be in the form of 10% equity stake in JSC Mega Lab. In case the valuation of the project is less or more than USD 4,000,000, the seller stake will be adjusted accordingly, in a way that the seller equity stake shall not fall below 5% of JSC Mega Lab.

- ownership percentage in JSC Mega Lab at the transaction date on April 8, 2019, and as of September 30, 2021, was 8.25%.

- On April 8, 2019, Al Mokhabariyoun Al Arab (Biolab) has signed a Shareholder Agreement with JSC Mega Lab and JSC Georgia Healthcare Group (CHG), whereas, BioLab Shall have a put option, exercisable within 12 months immediately after the expiration of five(5) year period from the signing date, which allows BioLab stake to be bought out by CHG at a price of the equity value of BioLab Shares/total stake (being USD 400,000.00) plus 15% annual IRR (including preceding 5 Financial years). After the expiration of above 12 months from the date of the put option period expiration, which allows CHG to purchase Biolab's all shares at a price of equity value of Biolab's stake (having value of USD 400,000) plus higher of 20% annual IRR or 6X EV/EBITDA (of the financial year immediately preceding the call option exercise date. In case the Management Agreement or the Purchase Agreement and/or the SLA is terminated/cancelled within 6 months period from the date of such termination/cancellation, CHG shall have a call option, which allows the CHG to purchase Biolab's all Shares at a price of the equity value of BioLab's stake in JSC Mega Lab (having value of USD 400,000.00) plus 205 annual IRR. If JCI accreditation is not obtained, immediately after the expiration of the additional 12 months period of the CHG shall have a call option (the Accreditation Call option), exercisable within 6 months period, which allows CHG to purchase BioLab's all Shares at a price of the equity value of BioLab's stake in JSC Mega Lab (having value of USD 400,00.00) plus 20% annual IRR.

   8.    Trade and other receivables 
 
                                       30 September 2021   31 December 2020 
------------------------------------  ------------------  ----------------- 
                                              (Reviewed)          (Audited) 
 
 Trade receivables - net                         380,490            325,770 
 Prepayments                                      27,859             19,363 
 Due from related parties note (16)                3,847              2,910 
 Accrued revenue                                   2,044              1,006 
 Other receivables*                               75,573             39,854 
                                      ------------------ 
                                                 489,813            388,903 
                                      ==================  ================= 
 

* Other receivables during the period ended 30 September 2021, including EGP 27m related to advance to suppliers for purchasing fixed assets and leasehold improvement the new and existing pathology branches.

   9.    Investments at amortised cost 
 
                         30 September 2021   31 December 2020 
----------------  ------------------------  ----------------- 
                                (Reviewed)          (Audited) 
 
 Term deposits                      96,294                  - 
 Treasury bills                    759,722            276,625 
                                   856,016            276,625 
                  ========================  ================= 
 

The maturity date of the treasury bills and Fixed-term deposits is between 3-12 months and have settled average interest rates of 12.53% and 7.85% respectively. Treasury bills are classified as held to collect.

10. Cash and cash equivalents

 
                                       30 September 2021   31 December 2020 
------------------------------------  ------------------  ----------------- 
                                              (Reviewed)          (Audited) 
 
 Term deposits (less than 90 days)               270,237            162,380 
 Treasury bills (less than 90 days)              183,419            184,525 
 Cash at banks and on hand                       497,047            253,225 
                                                 950,703            600,130 
                                      ==================  ================= 
 

11. Trade and other payables

 
                                     30 September 2021   31 December 2020 
----------------------------------  ------------------  ----------------- 
                                            (Reviewed)          (Audited) 
 
 Trade payable                                 291,591            177,602 
 Accrued expenses                              254,525            151,201 
 Due to related parties note (16)                  121                439 
 Other payables                                100,555             50,959 
 Accrued finance cost                            2,325              3,422 
                                               649,117            383,623 
                                    ==================  ================= 
 

12. Short-term financial liability at fair value

 
                         30 September 2021   31 December 2020 
----------------------  ------------------  ----------------- 
                                (Reviewed)          (Audited) 
 
 Put option liability              775,995            282,267 
                                   775,995            282,267 
                        ==================  ================= 
 

The accounting policy for put options after initial recognition is to recognise all changes in the carrying value of the put liability within equity as all these transactions are with the non-controlling interests of the Group.

During the historic acquisitions of Makhbariyoun Al Arab (Biolabs) which took place at 31 December 2011, the Group entered into separate put option arrangements to purchase the remaining equity interests at a subsequent date. At acquisition, a put option liability has been recognised for the net present value for the exercise price of the option. The options are exercisable in whole from the fifth anniversary of the completion of the original purchase agreement, which fell due in September 2016. The vendor has not exercised this right at 30 September 2021.

13. Loans and borrowings

A) In April 2017 AL-Mokhtabar for medical lab, one of IDH subsidiaries, was granted a medium-term loan amounting to EGP 110m from the Commercial International Bank "CIB Egypt" to finance the purchase of the new administrative building for the group. As at 30 September 2021, loan amount EGP 110m had been drawn down in full. The loan contains the following financial covenants which if breached will mean the loan is repayable on demand:

   1.    The financial leverage shall not exceed the following percentages 
 
            Year                2017              2018              2019              2020              2021              2022 
-----------------   ----------------  ----------------  ----------------  ----------------  ----------------  ---------------- 
 
                 %              2.33              1.71              2.31              1.95              1.64              1.47 
 

"Financial leverage": total liabilities divided by net equity

   2.    The debt service ratios   (DSR) shall not be less than 1. 

"Debt service ratios": cash operating profit after tax plus Depreciation for the financial year less annual maintenance on machinery and equipment divided by total distributions plus accrued interest and loan instalments.

   3.    The current ratios shall not be less than 1. 

"Current ratios": Current assets divided current liabilities.

4. The capital expansions in AL Mokhtabar company shall not exceed EGP 50m per year, other than year 2017 which includes in addition the value of the building financed by EGP 110m loan facility. This condition is valid throughout the term of the loan.

The agreement includes other non-financial covenants which relate to the impact of material events on the Company and the consequential ability to repay the loan.

B) In July 2018, AL-Borg lab, one of IDH subsidiaries, was granted a medium term loan amounting to EGP 130.5m from the Ahli United Bank "AUB Egypt" to finance the investment cost related to the expansion into the radiology segment. As at 30 September 2021 only EGP 75m had been drawn down from the total facility available. The loan contains the following financial covenants which if breached will mean the loan is repayable on demand:

   1.    The financial leverage shall not exceed 0.7 throughout the period of the loan 

"Financial leverage": total bank debt divided by net equity

   2.    The debt service ratios   (DSR) shall not be less than 1.35 starting 2019 

"Debt service ratio": cash operating profit after tax plus depreciation for the financial year less annual maintenance on machinery and equipment adding cash balance divided by total financial payments.

"Cash operating profit": Operating profit after tax, interest expense, depreciation and amortisation, is calculated as follows: Net income after tax and unusual items adding Interest expense, Depreciation, Amortisation and provisions excluding tax related provisions less interest income and Investment income and gains from extraordinary items.

"Financial payments": current portion of long-term debt including finance lease payments, interest expense and fees and dividends distributions.

   3.    The current ratios shall not be less than 1. 

"Current ratios": Current assets divided current liabilities.

The terms and conditions of outstanding loans are as follows:

 
                          Currency    Nominal interest rate       Maturity      30 September 2021   31 December 2020 
-----------------------  ----------  -----------------------  ---------------  ------------------  ----------------- 
                                                                                       (Reviewed)          (Audited) 
 CIB - Bank                  EGP        Secured rate 9.5%       5 April 2022               25,947             38,654 
 AUB - Bank                  EGP       CBE corridor rate+1%    26 April 2026               75,101             54,379 
                                                                                          101,048             93,033 
 Amount held as: 
 Current liability                                                                         33,457             25,416 
 Non- current liability                                                                    67,591             67,617 
                                                                                          101,048             93,033 
                                                                               ==================  ================= 
 
   *     As at 30-September-21 corridor rate 9.25% (2020: 9.25%) 

The companies (Mokhtabar and Borg) didn't breach any covenants for both MTL agreements.

C) On 25 May 2021, IDH has secured an 8 years USD 45 million debt financing package from the International Finance Corporation (IFC). The eight-year loan will be used to finance IDH's growth plans across new and existing markets and help expand access to high-quality diagnostic services in high growth emerging markets, in addition to its current presence in Egypt, Jordan, Nigeria and Sudan. The loan has an availability period of two years. As of September30, 2021, the USD 45 million debt has not been withdrawn by IDH.

14. Long-term financial liability at fair value

 
                          30 September 2021   31 December 2020 
-----------------------  ------------------  ----------------- 
                                 (Reviewed)          (Audited) 
 
 Put option liability*               33,682             31,790 
                                     33,682             31,790 
                         ==================  ================= 
 

* According to definitive agreements signed on 15 January 2018 between Dynasty Group Holdings Limited and International Finance Corporation (IFC) related to the Eagle Eye-Echo scan transaction, IFC has the option to put it is shares to Dynasty in year 2024. The put option price will be calculated on the basis of the fair market value determined by an independent valuer.

15. Other Financial obligations

 
                                                   30 September 2021   31 December 2020 
---------------------------------------------  ---------------------  ----------------- 
                                                          (Reviewed)          (Audited) 
 
 Lease liabilities - buildings                               475,408            389,920 
 Financial obligations- laboratory equipment                 215,186             69,122 
                                                             690,594            459,042 
                                               =====================  ================= 
 

The financial obligations for the laboratory equipment and building are payable as follows:

 
                                                 30 September 2021 
                                           Minimum 
                                          payments        Interest         Principal 
----------------------------  --------------------  --------------  ---------------- 
                                        (Reviewed)      (Reviewed)        (Reviewed) 
 
 Less than one year                        195,078          85,955           109,123 
 Between one and five years                653,533         208,045           445,488 
 More than five years                      161,382          25,399           135,983 
                                         1,009,993         319,399           690,594 
                              ====================  ==============  ================ 
 
 
                                           31 December 2020 
                               Minimum payments    Interest   Principal 
----------------------------  -----------------  ----------  ---------- 
                                      (Audited)   (Audited)   (Audited) 
 
 Less than one year                     126,998      66,481      60,517 
 Between one and five years             463,646     176,312     287,334 
 More than Five years                   131,605      20,414     111,191 
                                        722,249     263,207     459,042 
                              =================  ==========  ========== 
 

Amounts recognised in profit or loss:

 
                                  For the three months ended 30 September     For the nine months ended 30 September 
                                                   2021              2020                 2021                  2020 
-----------------------------  ------------------------  ----------------  -------------------  -------------------- 
                                             (Reviewed)       (Unaudited)           (Reviewed)           (Unaudited) 
 
 Interest on lease 
  liabilities                                    15,165            11,955               44,037                38,343 
 Expenses related to 
  short-term lease                                5,504             1,961               14,143                 6,255 
 

16. Related party transactions

The significant transactions with related parties, their nature volumes and balance during the period 30 September 2021 are as follows:

 
                                                                          30 September 2021 
                      Nature of           Nature of          Transaction amount 
 Related Party       transaction         relationship             of the period                   Balance 
---------------   -----------------   -----------------   ---------------------      -------------------- 
                                                                                               (Reviewed) 
 Life Scan          Expenses paid on 
  (S.A.E.)*              behalf            Affiliate                           -                       350 
 
 International 
  Fertility         Expenses paid on 
  (IVF)**                behalf            Affiliate                           -                     1,767 
 
                                        Entity owned by 
                                         Company's board 
 H.C Security       Provided service         member                          242                     (121) 
 
 Life Health         Medical Test      Entity owned by 
 Care                  analysis         Company's CEO                     3,321                         - 
 
   Provided service 
       "Medical 
      insurance"                                                        (2,306)                       652 
 
 Dr. Amid Abd          Put option        Bio. Lab C.E.O 
  Elnour                liability        and shareholder               (493,728)                 (775,995) 
 
 Integrated         Rental income      Entity owned by 
 Treatment for                          Company's CEO 
 Kidney 
 Diseases 
 (S.A.E.)                                                                   125                         - 
     Medical Test 
       analysis                                                             410                     1,078 
 Total                                                                                          (772,269) 
                                                                                     ==================== 
 
 
 
                                                                              31 December 2020 
                             Nature of              Nature of         Transaction amount 
 Related Party              transaction           relationship               of the year     Balance 
--------------------   --------------------   --------------------   -------------------  ---------- 
                                                                                           (Audited) 
                           Expenses paid on 
 Life Scan (S.A.E) *            behalf               Affiliate                          6         350 
 
 International             Expenses paid on 
  Fertility (IVF)**             behalf               Affiliate                    (3,449)       1,767 
 
                                                  Entity owned by 
                                                   Company's board 
 H.C Security              Provided service            member                       (412)        (76) 
 
                                                  Entity owned by 
 Life Health Care          Provided service         Company's CEO                (11,058)       (363) 
 
                                                 Bio. Lab C.E.O and 
 Dr. Amid Abd Elnour     Put option liability        shareholder                 (83,126)   (282,267) 
 
 Integrated                Rental income         Entity owned by 
 Treatment for                                    Company's CEO 
 Kidney Diseases 
 (S.A.E)                                                                             344           - 
              Medical Test analysis                                                  377         793 
 
                                                                                             (279,796) 
                                                                                          ============ 
 
 

Related party transactions (continued)

* Life Scan is a company whose shareholders include Dr. Moamena Kamel (founder of IDH subsidiary Al-Mokhtabar Labs).

** International Fertility (IVF) is a company whose shareholders include Dr. Moamena Kamel (founder of IDH subsidiary Al-Mokhtabar Labs).

Compensation of key management personnel of the Group

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel.

 
                                 30 September   30 September 
                                         2021           2020 
                                -------------  ------------- 
                                   (Reviewed)    (Unaudited) 
                                                (Unreviewed) 
 
 Short-term employee benefits          47,617         38,256 
                                -------------  ------------- 
                                       47,617         38,256 
                                =============  ============= 
 

17. General and administrative expenses

 
                         For the three months ended 30 September          For the nine months ended 30 September 
                                     2021                   2020                    2021                    2020 
--------------------  -------------------  ---------------------  ----------------------  ---------------------- 
                               (Reviewed)            (Unaudited)              (Reviewed)             (Unaudited) 
                                                    (Unreviewed)                                    (Unreviewed) 
 
 Wages and salaries                36,239                 28,954                  97,875                  78,337 
 Depreciation                       6,050                  5,382                  17,237                  15,796 
 Other expenses*                   40,680                 17,210                 143,989                  60,676 
                      -------------------  ---------------------  ----------------------  ---------------------- 
 Total                             82,969                 51,546                 259,101                 154,809 
                      ===================  =====================  ======================  ====================== 
 
   *     Other expenses included EGP 29m related to dual listing expenses in Egyptian Exchange. 

18. Net finance cost

 
                                                                                           For the nine months ended 
                                               For the three months ended 30 September                  30 September 
                                                           2021                   2020          2021            2020 
------------------------------------------  -------------------  ---------------------  ------------  -------------- 
                                                     (Reviewed)            (Unaudited)    (Reviewed)     (Unaudited) 
                                                                          (Unreviewed)                  (Unreviewed) 
 Finance income 
 Interest income                                         23,838                 10,434        69,086          44,199 
                                            -------------------  ---------------------  ------------  -------------- 
 Total finance income                                    23,838                 10,434        69,086          44,199 
 
 Finance cost 
 (Loss) / gain on hyperinflationary net 
  monetary position                                     (3,424)                      -       (4,628)             192 
 Bank charges                                           (7,137)                  (699)      (12,501)         (1,927) 
 Interest expense                                      (21,433)               (15,734)      (70,444)        (51,191) 
 Net foreign exchange (loss) / gain                       1,733                (5,150)      (17,588)         (9,629) 
                                            -------------------  ---------------------  ------------  -------------- 
 Total finance cost                                    (30,261)               (21,583)     (105,161)        (62,555) 
 
 Net finance cost                                       (6,423)               (11,149)      (36,075)        (18,356) 
                                            ===================  =====================  ============  ============== 
 

19. Tax

   A)   Tax expense 

Tax expense is recognised based on management's best estimate of the weighted-average annual income tax rate expected for the full financial year multiplied by the pre-tax income of the interim reporting period.

   B)    Income tax 

Amounts recognised in profit or loss as follow:

 
                                       For the three months              For the nine months 
                                         ended 30 September               ended 30 September 
                                       2021            2020              2021           2020 
----------------------------  -------------  --------------  ----------------  ------------- 
                                 (Reviewed)     (Unaudited)        (Reviewed)    (Unaudited) 
                                               (Unreviewed)                     (Unreviewed) 
 Current tax: 
 Current year                     (182,332)        (76,973)         (464,677)      (163,182) 
 Deferred tax: 
 Deferred tax arising on 
  undistributed reserves 
  in subsidiaries                  (55,518)        (13,742)         (139,298)       (24,132) 
 Relating to origination 
  and reversal of temporary 
  differences                       (5,111)           4,124           (5,800)          5,687 
                              -------------  --------------  ----------------  ------------- 
 Total Deferred tax expense        (60,629)         (9,618)         (145,098)       (18,445) 
 Tax expense recognised 
  in profit or loss               (242,961)        (86,591)         (609,775)      (181,627) 
                              =============  ==============  ================  ============= 
 

Tax (continued)

   C)    Deferred tax liabilities 

Deferred tax relates to the following:

 
                                                     30 September   31 December 
                                                             2021          2020 
------------------------------------------------  ---------------  ------------ 
                                                       (Reviewed)     (Audited) 
 Property, plant and equipment                           (23,945)      (18,334) 
 Intangible assets                                      (105,603)     (106,702) 
 Undistributed reserves from group subsidiaries         (187,218)     (116,657) 
 Provisions and finance lease liabilities                      73         1,360 
                                                  --------------- 
 Net deferred tax liabilities                           (316,693)     (240,333) 
                                                  ===============  ============ 
 

20. Financial instruments

The Group has reviewed the financial assets and liabilities held at 30 September 2021. It has been deemed that the carrying amounts for all financial instruments are a reasonable approximation of fair value. All financial instruments are deemed Level 3.

Contingent liabilities

As required by article 134 of the labour law on Vocational Guidance and Training issued by the Egyptian Government in 2003, Al Borg Laboratory Company and Al Mokhtabar Company for Medical Labs are required to conform to the requirements set out by that law to provide 1% of net profits each year into a training fund. During the year, Integrated Diagnostics Holdings plc have taken legal advice and considered market practice in Egypt relating to this and more specifically whether the vocational training courses undertaken by Al Borg Laboratory Company and Al Mokhtabar Company for Medical Labs suggest that obligations have been satisfied through training programmes undertaken in-house by those entities. Since the issue of the law on Vocational Guidance and Training, Al Borg Laboratory Company and Al Mokhtabar Company for Medical Labs have not been requested by the government to pay or have voluntarily paid any amounts into the external training fund. The board of Integrated Diagnostics Holdings plc have concluded that an outflow of funds is not probable.

Should a claim be brought against Al Borg Laboratory Company and Al Mokhtabar Company for Medical Labs, an amount of between EGP 19.5m to EGP 49 m could become payable, however this is not considered probable.

21. Dividends distributions

 
                                                               30 September   30 September 2020 
                                                                       2021 
-----------------------------------------------------------  --------------  ------------------ 
                                                                 (Reviewed)         (Unaudited) 
 Cash dividends on ordinary shares declared and paid:                              (Unreviewed) 
 US$ 0.0485 per share (2020), US$ 0.04675 per share (2019)        (455,182)           (441,855) 
                                                             --------------  ------------------ 
                                                                  (455,182)           (441,855) 
                                                             ==============  ================== 
 

22. Earnings per share

 
                                  For the three months ended 30 September     For the nine months ended 30 September 
                                              2021                   2020                   2021                2020 
----------------------------  --------------------  ---------------------  ---------------------  ------------------ 
                                        (Reviewed)            (Unaudited)             (Reviewed)         (Unaudited) 
                                                             (Unreviewed)                               (Unreviewed) 
 
 Profit attributed to owners 
  of the parent                            454,236                194,371              1,100,676             373,139 
 Weighted average number of 
  ordinary shares in issue                 600,000                600,000                600,000             600,000 
                              --------------------  ---------------------  ---------------------  ------------------ 
 Basic and diluted earnings 
  per share                                   0.76                   0.32                   1.83                0.62 
                              ====================  =====================  =====================  ================== 
 

There is no dilutive effect from equity.

* At the Extraordinary General Meeting on 4 December 2020, the Company decided to the following share split: The existing issued ordinary share capital of 150,000,000 ordinary shares of US$1.00 each (the "Existing Ordinary Shares") have been split into four new ordinary shares of US$0.25 each (the "New Ordinary Shares"). The comparative figures have been updated.

23. Segment reporting

The Group has four operating segments based on geographical location rather than two operating segments based on service provided, as the Group's Chief Operating Decision Maker (CODM) reviews the internal management reports and KPIs of each geography.

The Group operates in four geographic areas, Egypt, Sudan, Jordan and Nigeria. The revenue split between the four regions is set out below.

 
                                                      Revenue by geographic location 
For the three 
months ended         Egypt region            Sudan region           Jordan region         Nigeria region              Total 
 
30 September 
 2021 
 (Reviewed)             1,186,803                   2,912                 268,770                 14,926          1,473,411 
30 September 
 2020 
 (Unaudited)/ 
 (Unreviewed)             601,775                   8,316                 100,477                  9,722            720,290 
 
 
                                                                 Revenue by geographic location 
For nine months period ended                  Egypt region  Sudan region  Jordan region  Nigeria region    Total 
 
30 September 2021 (Reviewed)                   3,121,862       12,179        592,288         40,252      3,766,581 
30 September 2020 (Unaudited)/ (Unreviewed)    1,406,769       20,607        217,820         24,781      1,669,977 
 
 
                                                          Net profit / (loss) by geographic location 
For the three months ended                    Egypt region  Sudan region  Jordan region  Nigeria region    Total 
 
30 September 2021 (Reviewed)                       419,408       (3,922)         68,430         (4,228)  479,688 
30 September 2020 (Unaudited)/ (Unreviewed)        184,124       (2,426)         23,453         (4,356)  200,795 
 
 
                                                           Net profit / (loss) by geographic location 
For nine month period ended                   Egypt region  Sudan region  Jordan region  Nigeria region      Total 
 
 
30 September 2021 (Reviewed)                     1,035,620      (18,723)        151,677        (20,676)  1,147,898 
30 September 2020 (Unaudited)/ (Unreviewed)        363,328       (6,963)         38,515        (19,460)    375,420 
 

Segment reporting (continued)

 
                                      Revenue by type                         Net profit by type 
              For the three months ended 30 September    For the three months ended 30 September 
                          2021                   2020                2021                   2020 
                    (Reviewed)            (Unaudited)          (Reviewed)            (Unaudited) 
                                         (Unreviewed)                               (Unreviewed) 
Pathology            1,447,526                703,380             494,667                206,918 
Radiology               25,885                 16,910            (14,979)                (6,123) 
                     1,473,411                720,290             479,688                200,795 
 
 
                                      Revenue by type                        Net profit by type 
               For the nine months ended 30 September    For the nine months ended 30 September 
                           2021                  2020                2021                  2020 
                     (Reviewed)           (Unaudited)          (Reviewed)           (Unaudited) 
                                         (Unreviewed)                              (Unreviewed) 
Pathology*            3,695,510             1,629,137           1,184,241               401,782 
Radiology                71,071                40,840            (36,343)              (26,362) 
                      3,766,581             1,669,977           1,147,898               375,420 
 
 
                                Revenue by categories                     Revenue by categories 
              For the three months ended 30 September    For the nine months ended 30 September 
                          2021                   2020                2021                  2020 
                    (Reviewed)            (Unaudited)          (Reviewed)           (Unaudited) 
                                         (Unreviewed)                              (Unreviewed) 
Walk-in                590,504                306,296           1,619,543               749,283 
Corporate              882,907                413,994           2,147,038               920,694 
                     1,473,411                720,290           3,766,581             1,669,977 
 

* On 30 September 2021 includes Covid-19 related Pathology tests amounted to EGP 1,531m (30 September 2020: EGP 187m).

 
                                            Non-current assets by geographic location 
                               Egypt region  Sudan region  Jordan region  Nigeria region      Total 
 
 
30 September 2021 (Reviewed)      2,693,564         3,889        299,257          97,546  3,094,256 
31 December 2020 (Audited)        2,409,797        24,132        263,767         113,941  2,811,637 
 

Segment reporting (continued)

The operating segment profit measure reported to the CODM is EBITDA, as follows:

 
                               For the three months period ended 30          For the nine months period ended 30 
                                                          September                                    September 
                                        2021                   2020                   2021                  2020 
                                  (Reviewed)            (Unaudited)             (Reviewed)           (Unaudited) 
                                                       (Unreviewed)                                 (Unreviewed) 
 
Profit from 
 operations                          729,072                298,535              1,793,748               575,403 
Property, plant and 
 equipment 
 depreciation                         46,548                 28,316                105,616                86,675 
Amortisation of right 
 of use                               12,241                 14,852                 58,918                44,307 
Amortisation of 
 Intangible assets                     1,953                  1,373                  5,002                 4,045 
EBITDA                               789,814                343,076              1,963,284               710,430 
Non-recurring 
 expenses                                  -                      -                 29,034                     - 
Normalised EBITDA                    789,814                343,076              1,992,318               710,430 
 

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