Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Integrated Diagnostics Holdings Plc LSE:IDHC London Ordinary Share JE00BV9H9G76 ORD USD1.00
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.03 -0.76% 3.93 3.82 3.93 3.93 3.85 3.89 61,447 16:28:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Pharmaceuticals & Biotechnology 104.5 35.6 16.0 24.1 590

Integrated Diagnostics Holdings PLC Half-year Report

02/09/2020 7:02am

UK Regulatory (RNS & others)


Integrated Diagnostics (LSE:IDHC)
Historical Stock Chart


From Aug 2020 to Nov 2020

Click Here for more Integrated Diagnostics Charts.

TIDMIDHC

RNS Number : 7342X

Integrated Diagnostics Holdings PLC

02 September 2020

-Integrated Diagnostics Holdings Plc

1H 2020 Results Update

Wednesday, 2 September 2020

Integrated Diagnostics Holdings Plc results show resilient performance despite Covid-19; Board approves dividend of USD 28 million

(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 unaudited highlights of its financial and operational performance for the first half of 2020, recording revenue of EGP 950 million and a net profit of EGP 175 million.

Results*

 
                        1H2020   1H2019    change 
=====================  =======  =======  ======== 
 Revenues**                950    1,061      -10% 
---------------------  -------  -------  -------- 
 Cost of Sales           (503)    (563)      -11% 
---------------------  -------  -------  -------- 
 Gross Profit              446      498      -10% 
---------------------  -------  -------  -------- 
 Gross Profit Margin       47%      47%         - 
---------------------  -------  -------  -------- 
 Operating Profit          277      366      -24% 
---------------------  -------  -------  -------- 
 EBITDA(1)                 367      440      -17% 
---------------------  -------  -------  -------- 
 EBITDA Margin             39%      42%   (3 pts) 
---------------------  -------  -------  -------- 
 Net Profit                175      216      -19% 
---------------------  -------  -------  -------- 
 Net Profit Margin         18%      20%   (2 pts) 
---------------------  -------  -------  -------- 
 Cash Balance              719      272      200% 
---------------------  -------  -------  -------- 
 

*The results for 1H 2019 and 1H 2020 reflect the adoption of IFRS 16.

**Excluding the 100 Million Healthy Lives Campaign from 1H 2019 figures, consolidated revenues would have declined by 6% year-on-year. The 100 Million Healthy Lives campaign ran from November 2018 through June 2019. For the first half of 2019 IDH served 224 thousand patients under the campaign's umbrella and performed 2.4 million tests. Total campaign-related revenue in 1H 2019 reached EGP 47 million.

(1) EBITDA is calculated as operating profit plus depreciation and amortization

Financial Highlights

-- Revenue for the first half of the year was EGP 950 million, a 10% year-on-year decline due to the Covid-19 outbreak, as well as a high base effect with 1H 2019 figures having included the impact of the 100 Million Healthy Lives campaign in Egypt. Excluding the campaign, the Group's consolidated revenue records a modest 6% year-on-year decline despite the lockdowns and curfews across IDH's geographies. Performance was supported by a ramp up of IDH's house calls service and higher demand for Covid-19 indicative tests(2) in Egypt, alongside offering Covid-19 testing in Jordan. Together these efforts drove a steep 38% year-on-year revenue recovery in June 2020.

-- Gross profit decreased in line with revenues by 10% year-on-year to EGP 446 million in 1H 2020. Gross profit margin remained stable at 47%, supported by lower raw material costs as well as lower wages and salaries.

-- Operating profit recorded EGP 277 million in 1H 2020, down by 24% year-on-year as management booked cautionary provisions to account for elongated collection cycles.

-- EBITDA for 1H 2020 was EGP 367 million, down 17% year-on-year on account of higher provisions. EBITDA margin was 39% in 1H 2020 compared to 42% in the same period last year.

-- Net profit recorded EGP 175 million in the first half of 2020, down 19% year-on-year and with a net profit margin of 18% compared to 20% in 1H 2019. As provisions for doubtful accounts are not accounted for in taxable income, net profitability reflects an increase in the effective tax rate by around 1%.

-- Net cash flow from operating activities was EGP 149 million in 1H 2020, with the Group maintaining total cash balances of EGP 719 million as of 30 June 2020, reflecting a strong liquidity position.

-- Owing to the Group's strong cash position and management's confidence in the Group's outlook, the Board of Directors has approved an interim dividend of USD 28 million, or USD 0.187 per share, to be paid to shareholders who appear on the register as at 11 September 2020, with an ex-dividend date of 10 September 2020 and a payment date of 2 October 2020.

(2) Covid-19 indicative tests include a bundle of inflammatory and clotting markers such as Complete Blood Picture, ESR, D-Dimer, Ferritin and CRP, among others, that witnessed increased demand during the period

Operational Highlights

-- IDH's branch network included 462 branches as at 30 June 2020, up from 452 branches as at 31 December 2019, with IDH resuming its branch rollout plan for the year.

-- IDH served 2.9 million total patients in 1H 2020, down 21% year-on-year due to the impact of Covid-19 on operations during the months of March, April and May. Factoring out the campaign's contribution (224 thousand patients and 2.4 million tests in 1H 2019), total patients served records a 16% year-on-year decline in 1H 2020.

-- Total number of tests performed decreased 28% year-on-year to 11.2 million in 1H 2020 due to Covid-19, however, tests performed during the month of June were up 17% year-on-year. Factoring out the campaign from 1H 2019 figures, tests performed decline 15% year-on-year in 1H 2020.

-- Average revenue per test was up 24% year-on-year to EGP 85 for 1H 2020. The increase was partly driven by a low base effect of the campaign in 1H 2019. Controlling for the campaign's effect, average revenue per test would still have increased 10% year-on-year in 1H 2020.

-- IDH's average test per patient was down 8% year-on-year to 3.9 in 1H 2020. Excluding the campaign, the average test per patient would have increased 2% year-on-year.

-- Branches in Egypt remained operational throughout the six-month period, albeit with reduced working hours. Lower activity was offset with a ramp up of the house calls service and a bundle of Covid-19 indicative testing.

-- In Jordan, following the closure of 17 out of 19 branches during March through May, all of Biolab's 19 branches are now operational. Local currency revenue grew 6% year-on-year supported by Covid-19 testing.

-- In Sudan, branches operated at reduced hours between late March and May 2020, followed by the closure of 15 out of 21 branches due to the imposition of stricter measures by the government. As of June 2020, the number of operational branches increased to nine, operating at reduced hours, while 12 remained closed.

-- Nigeria continued to capitalize on the recently acquired state of art radiology equipment in 4Q 2019, resulting in a 28% increase in test volumes and a similar 28% increase in local-currency revenue. This comes despite Covid-19 related disruptions and reduced traffic during a government-imposed lockdown.

-- Al-Borg Scan launched a second branch in Cairo which commenced operations in February 2020, with revenue increasing 47% year-on-year in 1H 2020. Progress continues toward the launch of a third branch.

Commenting on the Group's performance for the six-month period, IDH Chief Executive Officer Dr. Hend El-Sherbini said: " The Group's results in the first half of 2020 reflect IDH's defensive business model and its success in minimizing the impact of Covid-19. Despite severe operational disruptions across our geographies including complete branch closures for several weeks during the months of April and May, our top-line declined by a relatively modest 10% year-on-year.

Our ability to limit the impact of Covid-19 was in part supported by management's proactive initiatives, including the ramp up of our house calls service in Egypt offered at no extra charge to our patients. The success of this strategy is clearly reflected in the growing contribution to revenue from this service, which expanded from only 12% in the first quarter of the year to constituting almost a third our top line in Egypt by June 2020. We have also captured the growing demand for Covid-19 indicative tests, including inflammation and clotting markers, providing our patients with bundled test packages that helped support our top-line. And owing to IDH's strong brand equity and our position as the only CAP-accredited facility in Egypt, the Group has been requested by the UAE government to conduct PCR testing to screen passengers travelling from Egypt.

In Jordan, Biolab has been at the forefront of PCR testing for Covid-19 since the onset of the outbreak, which along with strong demand for our services helped deliver a 6% growth in local currency revenue despite the closure of multiple branches. I am also very pleased with our performance in Nigeria where volumes and revenue continued to grow even during shelter-in-place orders. Nigeria's performance is supported by the success of our value-building efforts and increased brand awareness, with the geography holding significant growth potential. Finally, in Sudan, we maintained largely stable local-currency revenue despite continued branch closures.

Meanwhile Group profitability remained intact with a stable and robust gross profit margin of 47% made possible through strict cost discipline, including lower raw material costs as well as lower wages and salaries. Our EBITDA margin was 39%, inching down only slightly primarily due to the cautionary provisions to account for doubtful debts and longer collection cycles due to Covid-19.

Overall, our Group remains highly liquid thanks to a strong cash generation profile and over EGP 719 million in cash balances on our under-levered balance sheet.

This resilient performance and our defensive position leave me confident in IDH's ability to contain and mitigate the impact of Covid-19. As such, following on our earlier postponement of the 2019 dividend decision, and after carefully considering the developments in the global pandemic and given the Group's liquidity position, the Board of Directors approved a dividend payment of USD 28.0 million. Management is confident that with the dividend payment, the Group will maintain its ability to meet its financial obligations, including its operational needs and debt service.

Going forward, we will continue to prioritize the health and safety of our people and patients, while focusing on ensuring business continuity and minimizing the impact of Covid-19 as we navigate through this challenging time. We are cautiously optimistic as regards to the recovery across our markets, with volumes and revenue already having witnessed strong growth beginning in June. Thus, our guidance for the full year is for consolidated revenue of EGP 2.1 to 2.2 billion, with an EBITDA margin of circa 40%. On the long term, management is confident in the strong fundamentals of our geographies as well as our leading market position, and we look forward to the resumption of our historical growth trajectory post Covid-19."

Analyst and Investor Call Details

An analyst and investor call will be hosted at 2pm (UK) | 3pm (Egypt) on Wednesday, 2 September 2020. You may dial in using the conference call details below:

 
 Country             Dial In 
 International UK    +44-20-3936-2999 
------------------  ----------------- 
 International US    +1-646-664-1960 
------------------  ----------------- 
 UAE Toll Free       0800-0357-04553 
------------------  ----------------- 
 UK Toll Free        0800-640-6441 
------------------  ----------------- 
 US Toll Free        +1-855-9796-654 
------------------  ----------------- 
 

Conference ID: 257185

A live audio webcast can be accessed at this link .

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-Scan (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 1,400 diagnostics tests. From its base of 462 branches as of 30 June 2020, 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 and African 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.

IDH's forward-looking strategy rests on leveraging its established business model to achieve four key strategic goals, namely: (1) continue to expand customer reach; (2) increase the number of tests per patient; (3) expand into new geographic markets through selective, value-accretive acquisitions; and (4) introduce new medical services by leveraging the Group's network and reputable brand position. Learn more at idhcorp.com .

Shareholder Information

LSE: IDHC.L

Bloomberg: IDHC:LN

Listed: May 2015

Shares Outstanding: 150 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 six-month results 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 six-month 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.

Operational & Financial Review

Revenue

IDH recorded revenue of EGP 950 million in 1H 2020, down by 10% year-on-year due to the Covid-19 outbreak and its impact during the months of March, April and May. Revenue in April and May 2020 declined by around 49% and 22%, respectively, as lockdowns and curfews imposed across IDH's geographies to contain the spread of Covid-19 impacted patient volumes at IDH's branches. However, IDH witnessed a sharp recovery beginning June 2020, with revenue for the month increasing by approximately 38% versus the same month last year. Improved performance toward the tail end of the period coincided with easing of containment measures across IDH's markets and was also supported by a ramp up of IDH's house calls service in Egypt. Additionally, IDH bundled tests indicative of Covid-19 infection, including inflammatory and clotting markers such as Complete Blood Picture, ESR, D-Dimer, Ferritin and CRP, among others, that witnessed increased demand during the period. Finally, the company's performance was also supported by the application of PCR and antibody testing for COVID-19 in Jordan since the onset of the pandemic.

The decline in consolidated revenue in 1H 2020 is also owing to the comparable period's inflated figures on account of the 100 Million Healthy Lives Campaign in Egypt. Excluding campaign-related figures from 1H 2019, the Group's consolidated revenues record a 6% year-on-year decline in 1H 2020.

Revenue Analysis: Contribution by Patient Segment

Contract Segment

The Group's contract segment recorded a 22% year-on-year fall in revenues in 1H 2020, making up 53% of consolidated revenues for the period versus the 61% share in 1H 2019. The decline was volume driven on account of Covid-19, and also reflects the normalisation in contract to walk-in ratio following the end of the 100 Million Healthy Lives campaign in Egypt, which contributed 224 thousand patients in 1H 2019.

Additionally, during 2019 management had analysed the segmentation of Egypt's patient base leading to a reclassification between walk-ins and contract volumes. Factoring out campaign-related tests from 1H 2019 figures and controlling for the reclassification, contract revenue and tests would record a 5% and 13% year-on-year decline, respectively, on account of Covid-19.

Walk-in Segment

Revenue from IDH's walk-in segment increased 7% year-on-year in 1H 2020 and made up 47% of IDH's total revenue for the period at EGP 443 million. When controlling for the 2019 reclassifications, walk-in revenue would record a 7% decline in 1H 2020 while walk-in test would record a 19% year-on-year decrease, primarily due to Covid-19.

Key Performance Indicators

 
                                 Contract Segment          Walk-in Segment                 Total 
===========================  ========================  =======================  ========================== 
                              1H20     1H19    Change   1H20    1H19    Change    1H20     1H19     Change 
===========================  ======  =======  =======  ======  ======  =======  =======  ========  ======= 
 Revenue 
  (EGP mn)                    506.7   647.1     -22%    442.9   413.9     7%     949.7    1,060.9    -10% 
 % of Revenue                  53%     61%               47%     39%              100%     100% 
 Patients ('000)              1,947   2,716     -28%     943     961     -2%     2,890     3,677     -21% 
 % of Patients                 67%     74%               33%     26%              100%     100% 
 Revenue per Patient (EGP)     260     238       9%      470     431      9%      329       289      14% 
 Tests ('000)                 8,171   12,440    -34%    3,063   3,175    -4%     11,234   15,615     -28% 
 % of Tests                    73%     80%               27%     20%              100%     100% 
 Revenue per Test (EGP)        62       52      19%      145     130     11%       85       68       24% 
 Test per Patient              4.2     4.6      -8%      3.3     3.3     -2%      3.9       4.2      -8% 
---------------------------  ------  -------  -------  ------  ------  -------  -------  --------  ------- 
                           KPIs Adjusted for the Campaign and Reclassifications* 
---------------------------------------------------------------------------------------------------------- 
 Revenue 
  (EGP mn)                    506.7   536.0     -5%     442.9   477.9    -7%     949.7    1,013.9      -6% 
 % of Revenue                  53%     53%       -       47%     47%      -       100%     100% 
 Tests                        8,171   9,374     -13%    3,063   3,798    -19%    11,234   13,172      -15% 
 % of Tests                    73%     71%               27%     29% 
 Revenue per Test (EGP)        62       57       8%      145     126     15%       85       77         10% 
 
 

* Adjustments related to the 100 Million Healthy Lives campaign include subtracting 224 thousand patients, 2.4 million tests and revenue of EGP 47 million for the 1H 2019 contract segment's KPIs. Additionally, reclassification adjustments include the transfer of 623 thousand tests in 1H 2019 and associated revenue of EGP 64 million from the contact segment to walk-ins.

Revenue Analysis: Contribution by Geography

Egypt

Revenue from Egypt declined 12% year-on-year to EGP 805 million in 1H 2020, driven by lower volumes during the months of March, April, and May due to Covid-19 related restrictions. Lower revenue also reflects the high base effect due to the 100 Million Healthy Lives campaign in 1H 2019. Excluding the campaign's effect, revenue from Egypt would have declined by 7% year-on-year in 1H 2020.

All of the Group's Egypt branches remained operational throughout the six-month period albeit with reduced working hours in accordance with the government-imposed curfews beginning late March and lifted on 27 June 2020. IDH partly offset the decline in branch traffic with higher contribution from its ramped-up house call service, which increased from 12% in 1Q 2020 to 30% in June, and 17% in 1H 2020 versus 10% in 1H 2019. Revenue was also supported by increased demand for IDH's bundle of Covid-19 indicative tests, which contributed EGP 67 million in revenue during May and June 2020. Egypt's revenues also include contributions from Al-Borg Scan, IDH new radiology venture, which generated revenue of EGP 8.9 million in 1H 2020, up 47% year-on-year. Al Borg Scan inaugurated its second branch in Cairo in February 2020, with both branches having served a total of 13.5 thousand patients in 1H 2020, up 61% year-on-year, while total tests performed increased 53% year-on-year to 16.9 thousand.

IDH served 2.6 million patients in Egypt and performed 10.1 million tests, down by 23% and 30% year-on-year, respectively. However, as of June 2020 total tests performed recorded a 17% increase versus June 2019 while total patients served increased by 18% during the same period.

Jordan

In Jordan, revenue recorded EGP 117 million in 1H 2020, down 3% year-on-year and constituting 12.4% of total revenue compared to 11.4% in 1H 2019. However, revenue in JOD terms increased 6% during the period despite Covid-19 related disruptions. Government-imposed curfews and lockdowns led to the closure of 17 out of 19 branches in late March 2020 through the end of April. All branches have since reopened and operations have recovered from the lockdown. Biolab had been administering PCR testing for Covid-19 in Jordan since the onset of the outbreak, which helped drive a 10% increase in number of patients served to 160 thousand in 1H 2020. Overall, Covid-19 related testing contributed 18% to Jordan's revenue and 5% to test volumes.

Sudan

Sudan reported revenue of EGP 12 million in 1H 2020, down 19% versus 1H 2019 as operations were impacted by the closure of branches due to Covid-19. In local currency, revenues declined 2% year-on-year in 1H 2020 on account of a 25% decline in number of patients to 59 thousand and a 31% decrease in number of tests to 188 thousand during the same period. Government-imposed curfews and lockdowns saw branches in Sudan operate at reduced hours between late March 2020 and May. Starting May 2020 only six out of the 21 branches were operational due to the imposition of stricter measures by the government. As of June 2020, the number of operational branches increased to nine, operating at reduced hours, while 12 remained closed.

Nigeria

At the Group's Nigerian subsidiary, revenue increased 12% year-on-year to EGP 15 million, with contribution to total revenue increasing to 1.6% compared to 1.3% in 1H 2019 as the Group reaps the rewards of its renovation and branch upgrade works, including the procurement of new state-of-the-art radiology equipment and the offering of higher-value MRI and CT scans. Revenue growth was even more pronounced in local currency terms, increasing by 28% year-on-year on account of an 18% increase in patients served to 60 thousand and a 28% increase in total tests performed. The strong performance came despite Covid-19 related disruptions, including a complete lockdown and limited traffic as people adhered to shelter-in-place orders.

Revenue Contribution by Country

 
                         1H 2020   1H 2019   Change 
======================  ========  ========  ======= 
 Egypt Revenue (EGP 
  '000)                      805       911     -12% 
 Egypt Contribution        84.8%     85.9% 
======================  ========  ========  ======= 
 Jordan Revenue (EGP 
  '000)                      117       121      -3% 
 Jordan Revenue (JOD 
  '000)                      5.3       5.0       6% 
 Jordan Contribution       12.4%     11.4% 
======================  ========  ========  ======= 
 Sudan Revenue (EGP 
  '000)                       12        15     -19% 
 Sudan Revenue (SDG 
  '000)                       41        41      -2% 
 Sudan Contribution         1.3%      1.4% 
======================  ========  ========  ======= 
 Nigeria Revenue (EGP 
  '000)                       15        13      12% 
 Nigeria Revenue (NGN 
  '000)                      359       281      28% 
 Nigeria Contribution       1.6%      1.3% 
 

---

Branches by Country

 
                   30 June   31 December         Change 
                      2020          2019 
================  ========  ============  ============= 
 Egypt                 410           399             11 
================  ========  ============  ============= 
 Jordan                 19            19              - 
================  ========  ============  ============= 
 Sudan                  21            21              - 
================  ========  ============  ============= 
 Nigeria                12            13             -1 
================  ========  ============  ============= 
 Total Branches        462           452             10 
================  ========  ============  ============= 
 

Cost of Goods Sold

IDH's cost of goods sold decreased 11% year-on-year to EGP 503 million in 1H 2020. The Group's gross profit recorded EGP 446 million in the first six months of the year, down 10% year-on-year. Gross profit margin for the period was unchanged at 47%.

COGS Breakdown as a Percentage of Revenue

 
                                1H 2020   1H 2019 
=============================  ========  ======== 
 Raw Materials                    15.9%     19.6% 
=============================  ========  ======== 
 Wages & Salaries                 17.0%     17.7% 
=============================  ========  ======== 
 Depreciation & Amortisation       8.4%      6.3% 
=============================  ========  ======== 
 Other Expenses                   11.7%      9.4% 
=============================  ========  ======== 
 Total                            53.0%     53.1% 
=============================  ========  ======== 
 

Raw material costs decreased 27% year-on-year to EGP 151 million in 1H 2020 and made up the second largest share of total consolidated COGS during the period at 30.1%. The average raw material cost per test performed during 1H 2020 stood at EGP 13.5, remaining largely stable compared to EGP 13.3 in 1H 2019. Raw materials as a percentage of sales decreased to 15.9% from last year's 19.6%.

Direct salaries and wages made up the largest share of total COGS in 1H 2020 at 32.1%, reaching EGP 161 million, a 14% year-on-year decline. Salaries and wages also declined as a percentage of sales to 17% in 1H 2020 versus 17.7% in the same period last year, driven by the previous recognition of EGP 20 million in profit shares during 1H 2019, and lower salaries in Nigeria following the restructuring that took place during the second half of 2019. Additionally, IDH incurred lower bonuses, incentive, and overtime payments during the curfew periods.

Direct depreciation and amortisation increased 20% year-on-year to EGP 80 million in 1H 2020 on the back of growth in depreciation due to the addition of new equipment at Al Borg-Scan and Nigeria, as well as the incremental amortisation of additional branches (IFRS 16 right-of-use assets). Direct depreciation and amortization as a percentage of revenues increased to 8.4% in 1H 2020 from 6.3% last year.

EBITDA

IDH's consolidated EBITDA in 1H 2020 reached EGP 367 million, down 17% year-on-year and with an EBITDA margin of 39% compared to 42% in 1H 2019. Lower EBITDA profitability was due to top-line contraction and the consequent increase in SG&A as a percentage of sales to 18% compared to 12% in 1H 2019. IDH recorded a doubtful accounts provision of EGP 28 million for elongated collection cycles; higher operational costs related to the ramp up of the house call service in Egypt totalling EGP 6.9 million; and incremental costs related to IDH's new corporate headquarters of EGP 2 million.

In Egypt, EBITDA recorded EGP 332 million in 1H 2020, down 19% year-on-year. EBITDA margin stood at 41% during the 1H 2020, down 4 percentage points from last year's figure impacted by the Covid-19 outbreak along with establishing the aforementioned doubtful accounts provision.

In Jordan, IDH's operations reported a 12% year-on-year contraction in EBITDA to EGP 38 million in 1H 2020 due to Covid-19 related disruptions and the exchange rate difference between the two reporting periods. The Egyptian pound had appreciated from an average of EGP:JOD of 24.14 in 1H 2019 to 22.12 in 1H 2020. Jordan's EBITDA margin was 33% in 1H 2020 compared 36% in the same period last year, impacted by higher doubtful accounts provision along with higher management remuneration related to performance in 2019.

Sudan's EBITDA declined by 76% year-on-year to EGP 1 million in 1H 2020, with an EBITDA margin of 6% compared to 20% in 1H 2019. EBITDA was impacted by branch closures on account of Covid-19.

Finally, in Nigeria, EBITDA losses narrowed to EGP 4 million in 1H 2020 from the negative EGP 18 million recorded in the same period last year. Losses narrowed due to a 12% year-on-year increase in revenues (28% in NGN terms) and an 18% year-on-year decrease in salaries expense during the period. It is worth noting that Nigeria was poised to turn EBITDA positive in late 2020, however, with the onset of Covid-19 and related disruptions management expects this to be achieved by 2021.

Regional EBITDA in Local Currency

 
 mn                 1H 2020   1H 2019   Change 
-----------------  --------  --------  ------- 
 Egypt        EGP     332       411       -19% 
 Jordan       JOD     1.7       1.8        -4% 
 Sudan        SDG      2         8        -70% 
 Nigeria      NGN    (101)     (372)       73% 
 

Interest Income / Expense

IDH recorded interest income of EGP 34 million in 1H 2020, up 61% year-on-year. Interest income increased on the back of higher cash balances.

Interest expense recorded EGP 37 million in 1H 2020 compared to EGP 31 million in the comparable period of 2019. The increase in interest expenses is due to higher interest of right-of-use assets following the addition of new branches. Interest expense is broken down as EGP 26.4 million related to IFRS 16; EGP 8.1 million (related to medium-terms loans for the Al Borg Scan expansion (EGP 3 million) and the Group's new headquarters in Cairo's Smart Village (EGP 3.8 million); and EGP 1.3 million related to bank charges.

Foreign Exchange

IDH recorded a net foreign exchange loss of EGP 4 million in 1H 2020 compared to EGP 11 million in 1H 2019. The figure is primarily related to FX losses on the back of the SDG devaluation versus the EGP.

Taxation

Tax expenses recorded in 1H 2020 were EGP 95 million compared to EGP 132 million in the same period of last year. The effective tax rate was 35% in 1H 2020, down from 38% in 1H 2019. There is no tax payable for IDH's two companies at the holding level. Tax was paid on profits generated by operating companies in Egypt and Jordan. It is important to note that the provision for doubtful debt is not accounted for in the taxable income, which led to an increase in the effective tax rate by around 1%.

Net Profit

IDH's consolidated net profit was EGP 175 million in 1H 2020, down 19% year-on-year. Net profit margin stood at 18% for the period compared to 20% in 1H 2019.

Net profit margin contraction was driven by lower revenues, higher SG&A expenses along with an increase in provisions for doubtful accounts and a higher effective tax rate.

Balance Sheet

On the assets side of the balance sheet, IDH held gross property, plant and equipment (PPE) of EGP 1,166 million as at 30 June 2020, an increase from EGP 1,140 million as at 31 December 2019. The increase reflects regular CAPEX outlays during the period.

Accounts receivable recorded EGP 210 million as at 30 June 2020 compared to EGP 261 million at year-end 2019. Accounts receivables' days on hand (DOH) stood at 133 days, up from the 129 days as at year-end 2019 due to lower collection in 2Q 2020 following the imposition of Covid-19-related measures. It should be noted that accounts receivables DOH is calculated based on credit revenues amounting to EGP 277 million in 1H 2020, representing 55% of contract revenues for the period.

The Group's "days inventory outstanding" increased to 130 days at the close of the second quarter of the year compared to 82 days as at 31 December 2019. The increase follows the Group's strategy of increasing its inventory coverage period to mitigate for potential supply disruptions due to Covid-19.

IDH's cash balances increased to EGP 719.4 million as at 30 June 2020 compared to EGP 630 million as at 31 December 2019, indicating the Group's strong liquidity position and its ability to generate cash even during the challenging times due to Covid-19. As at 30 June 2020, IDH recorded a positive net debt position(3) amounting to EGP 615 million.

On the liabilities side, accounts payable stood at EGP 153 million at 30 June 2020 versus EGP 145 million at year end 2019. The Group's days payable outstanding (DPO) stood at 191 days compared to 141 days at 31 December 2019.

(3) Net debt is calculated as cash balance less interest-bearing debt (medium term loans)

Dividend

After consideration of the developments in the global pandemic and given the Group's strong liquidity position and confidence in its financial outlook, the Board of Directors has approved an interim dividend of USD 28.0 million, or USD 0.187 per share, to be paid to shareholders who appear on the register as at 11 September 2020, with an ex-dividend date of 10 September 2020 and a payment date of 2 October 2020.

Going Concern

The uncertainty regarding the impact of a second wave of Covid-19 on the Group has been considered as part of the Group's adoption of the going concern basis. Management has considered the potential impact of a second wave of Covid-19 on the Group's financial position and liquidity and has considered several scenarios and stress tests. One of the stress tests considered the following key assumptions: a complete lockdown with a substantial loss of revenue by 50% for a period of 4 months (from September to December), no fixed costs reductions, forecasted capital expenditure is maintained, and a dividends payment of USD 28 million during September. The reduction of revenues will not affect the Group's ability to meet financial covenants such as Debt Service Coverage Ratio. The conducted stress test displayed the ability of full repayment of the existing loans balances. The downside scenarios showed that the Group's current financial position and cash balance will alleviate any potential downside risk in the Group's cash flow generated from its operational activities, thus the Directors continue to adopt the going concern basis in preparing the financial information.

Principal Risks and Uncertainties

As in any corporation, IDH has exposure to risks and uncertainties that may adversely affect its performance. The Board and senior management agree that the principal risks and uncertainties facing the Group include political and economic risks in Egypt, the Middle East and Nigeria, foreign currency exchange rate variability and associated risks, changes in regulation and regulatory actions, damage to the Group's reputation, failure to maintain the Group's high quality standards and accreditations, failure to maintain good relationships with healthcare professionals and end-users, pricing pressures and business interruption of the Group's testing facilities, among others.

Other short-term risks include operational disruptions related the Covid-19 pandemic; delays in branch openings and renovations in Nigeria and difficulties in growing Echo Lab's customer base; prolonged political unrest in Sudan that can adversely affect patient and test volumes, while further currency devaluation risks will limit the compensatory effect of price increases.

Statement of Directors' Responsibilities

Responsibility statement of the directors in respect of the half-yearly financial report

We confirm that to the best of our knowledge:

-- The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

   --    The interim management report includes a fair review of the information required by: 

(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

For and on behalf of the Board of Directors:

Dr. Hend El Sherbini

Executive Director

1 September 2020

- Ends --

 
 INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH" 
  AND ITS SUBSIDIARIES 
 
 
 
 
 
 
  CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 
 
  FOR THE SIX MONTHSED 
  30 JUNE 2020 
 

Condensed Consolidated Interim Statement of Financial Position as of

 
                                                              30 June                     31 December 
                                     Note                        2020                            2019 
                                                              EGP'000                         EGP'000 
==================================  =====  ==========================  ============================== 
                                                          (Unaudited)                       (Audited) 
 ASSETS 
 Non-current assets 
 Property, plant and equipment        4                       760,715                         785,546 
 Intangible assets and goodwill       5                     1,657,544                       1,660,836 
 Right-Of-Use Asset                  12-a                     288,537                         264,763 
 Other investees                      6                         9,855                           6,391 
 Total non-current assets                                   2,716,651                       2,717,536 
                                           --------------------------  ------------------------------ 
 
 Current assets 
 Inventories                                                  118,202                          84,339 
 Trade and other receivables          7                       276,778                         322,805 
 Restricted cash                      10                            -                             247 
 Other investment                     8                       251,956                         221,617 
 Cash and cash equivalents            9                       467,429                         408,892 
 Total current assets                                       1,114,365                       1,037,900 
                                           --------------------------  ------------------------------ 
 Total assets                                               3,831,016                       3,755,436 
                                           ==========================  ============================== 
 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                                                 46,905                          46,330 
 Put option reserve                                         (209,815)                       (229,164) 
 Translation reserve                                          142,996                         155,823 
 Retained earnings                                            632,790                         456,661 
 Equity attributed to the owners 
  of the Company                                            2,398,772                       2,215,546 
 Non-controlling interest                                     149,766                         144,710 
 Total equity                                               2,548,538                       2,360,256 
                                           --------------------------  ------------------------------ 
 
 
 
 Non-current liabilities 
 Deferred tax liabilities            18-C                     183,500                         174,000 
 Provisions                                                     4,421                           5,273 
 Loans and borrowings                 13                       78,908                          81,305 
 Long-term financial obligations      14                      340,871                         306,384 
 Total non-current liabilities                                607,700                         566,962 
                                           --------------------------  ------------------------------ 
 Current liabilities 
 Trade and other payables             11                      297,004                         320,083 
 Short-term financial obligations     12                      245,268                         260,853 
 Loans and borrowings                 13                       25,417                          25,416 
 Current tax liabilities                                      107,089                         221,866 
 Total current liabilities                                    674,778                         828,218 
                                           --------------------------  ------------------------------ 
 Total liabilities                                          1,282,478                       1,395,180 
                                           --------------------------  ------------------------------ 
 Total equity and liabilities                               3,831,016                       3,755,436 
                                           ==========================  ============================== 
 
 
 These condensed consolidated interim financial statements were approved 
  and authorised for issue by the Board of Directors and signed on their 
  behalf on 01 September 2020 by: 
 
    ____________________ 
                                                                       ------------------------------ 
     Dr. Hend El Sherbini                                                        James Nolan 
     Chief Executive Officer                                          Chairman of the audit committee 
 
 
   The accompanying notes form an integral part of these condensed consolidated 
   interim financial statements. 
 

Condensed Consolidated Interim Income Statement for the Six Months Ended

 
                                             Note                   30 June 2020                   30 June 2019 
                                                                         EGP'000                        EGP'000 
------------------------------------------  -----  -----------------------------  ----------------------------- 
                                                                     (Unaudited)                    (Unaudited) 
 
 Revenue                                      22                         949,687                      1,060,964 
 Cost of sales                                                         (503,490)                      (563,063) 
 Gross profit                                                            446,197                        497,901 
 
 Marketing and advertising expenses                                     (45,675)                       (50,592) 
 Administrative expenses                                               (103,263)                       (83,412) 
 Impairment loss on trade and other receivable                          (28,281)                        (6,035) 
 Other income                                                              7,890                          8,623 
 Operating profit                                                        276,868                        366,485 
 
 Finance income                               17                          33,957                         22,316 
 Finance cost                                 17                        (41,164)                       (41,474) 
 Net finance income                           17                         (7,207)                       (19,158) 
                                                   -----------------------------  ----------------------------- 
 Profit before tax                                                       269,661                        347,328 
 
 Income tax expense                          18-B                       (95,036)                      (131,797) 
 Profit for the period                                                   174,625                        215,531 
                                                   =============================  ============================= 
 
 Profit attributed to: 
 Owners of the Company                                                   178,768                        223,872 
 Non-controlling interest                                                (4,143)                        (8,341) 
                                                                         174,625                        215,531 
                                                   =============================  ============================= 
 
 Earnings per share (expressed in 
  EGP): 
 Basic and diluted earnings per 
  share                                       21                            1.19                           1.49 
                                                   =============================  ============================= 
 
 The accompanying notes form an integral part of these condensed consolidated 
  interim financial statements 
 

Condensed Consolidated Interim Statement of Profit and Loss and Other Comprehensive Income for the Six Months Ended

 
                                                               30 June 2020                30 June 2019 
                                                                    EGP'000                     EGP'000 
=============================================   ===========================  ========================== 
                                                                (Unaudited)                 (Unaudited) 
 
 Net profit                                                         174,625                     215,531 
 
 Other comprehensive income 
 Items that may be subsequently reclassified 
  to profit or loss: 
 Currency translation differences                                  (21,790)                    (47,824) 
 Other comprehensive income for the period 
  net of tax                                                       (21,790)                    (47,824) 
                                                ---------------------------  -------------------------- 
 Total comprehensive income for the period                          152,835                     167,707 
                                                ===========================  ========================== 
 
 Attributed to: 
 Owners of the company                                              (8,684)                    (24,152) 
 Non-controlling interests                                         (13,106)                    (23,672) 
                                                                   (21,790)                    (47,824) 
                                                ===========================  ========================== 
 
 The accompanying notes form an integral part of these condensed consolidated 
  interim financial statements. 
 

Condensed Consolidated Interim Statement of Cash Flows for the Six Months Ended

 
                                                Note                30 June 2020                30 June 2019 
                                                                         EGP'000                     EGP'000 
---------------------------------------------  -----  --------------------------  -------------------------- 
                                                                     (Unaudited)                 (Unaudited) 
 Cash flows from operating activities 
 Profit for the period before tax                                        269,661                     347,328 
 Adjustments                                                                   - 
 Depreciation, property, plant and 
  equipment                                                               87,814                      70,453 
 Amortization                                                              2,672                       3,418 
 Loss on disposal of Property, plant 
  and equipment                                                             (65)                       (750) 
 Impairment in trade and other receivables                                28,281                       6,035 
 Reversal of impairment in trade and 
  other receivables                                                            -                       (926) 
 Interest expense                                17                       36,685                      14,066 
 Interest income                                 17                     (33,765)                    (21,008) 
 Equity settled share-based payment 
  receipt                                                                (3,464)                     (6,656) 
 Hyperinflation                                                            (192)                     (1,308) 
 Unrealised foreign currency exchange 
  loss / (gain)                                                            4,479                      10,528 
 Net cash from operating activities 
  before changes in working capital                                      392,106                     421,180 
 
 Change in Provisions                                                      (852)                       1,126 
 Change in inventory                                                    (35,273)                       8,051 
 Change in trade and other receivables                                    34,429                    (25,264) 
 Change in trade and other payables                                     (77,723)                       (258) 
 Cash generated from operating activities 
  before income tax payment                                              312,687                     404,835 
                                                      --------------------------  -------------------------- 
 
 Income tax paid during period                                         (163,571)                   (180,001) 
 Net cash from operating activities                                      149,116                     224,834 
                                                      --------------------------  -------------------------- 
 
 Cash flows from investing activities 
 Interest received                                                        33,606                      25,841 
 Decrease in restricted cash                                                 247                       (715) 
 Change in other investment "acquisition"                              (251,956)                    (25,540) 
 Change in other investment "sale"                                       221,617                     239,905 
 Acquisition of Property, plant and 
  equipment                                                             (58,600)                   (105,190) 
 Acquisition of intangible assets                                        (1,770)                     (3,247) 
 Proceeds from sale of Property, plant 
  and equipment                                                              193                       1,295 
 Net cash flows used in investing activities                            (56,663)                     132,349 
                                                      --------------------------  -------------------------- 
 
 Cash flows from financing activities 
 Proceeds from borrowings                                                      -                           - 
 Repayments of borrowings                                                (5,612)                    (12,708) 
 Interest paid                                                          (35,743)                     (3,555) 
 Dividends paid                                                                -                   (443,994) 
 Payment of finance lease liabilities                                   (43,869)                    (61,683) 
 Injection of cash by non-controlling 
  interest                                                                17,372                           - 
 Net cash flows used in financing activities                            (67,852)                   (521,940) 
                                                      --------------------------  -------------------------- 
 
 Net decrease in cash and cash equivalent                                 24,601                   (164,757) 
 
 Cash and cash equivalent at the beginning 
  of the period                                                          408,892                     412,607 
 Effect of exchange rate fluctuations 
  on cash held                                                            33,936                    (13,963) 
 Cash and cash equivalent at the end 
  of the period                                  9                       467,429                     233,887 
                                                      ==========================  ========================== 
 
 
 
   The accompanying notes form an integral part of these condensed consolidated 
   interim financial statements 
 

Condensed Consolidated Interim Statement of Changes in Equity for the Six Months Ended

 
                                                                                                                   Total 
                                                                                                                 attributed 
                                                                                                                   to the 
                                                                              Put                                  owners 
                              Share       Share      Capital     Legal      option     Translation   Retained      of the     Non-controlling     Total 
 EGP 000            Note     capital     premium     reserve    reserve*    reserve      reserve      earnings    Company        interests        equity 
=================  ======  ==========  ==========  ==========  =========  ==========  ============  ==========  ===========  ================  =========== 
 
 At 1 January 2020          1,072,500   1,027,706   (314,310)    46,330    (229,163)     155,823      456,661    2,215,547        144,710       2,360,257 
                           ----------  ----------  ----------  ---------  ----------  ------------  ----------  -----------  ----------------  ----------- 
 Profit for the period                                                                                178,768     178,768         (4,143)        174,625 
 Other comprehensive 
  income 
  for the period                                                                        (12,827)                  (12,827)        (8,963)        (21,790) 
 Total comprehensive 
  income                        -           -           -          -           -        (12,827)      178,768     165,941        (13,106)        152,835 
                           ----------  ----------  ----------  ---------  ----------  ------------  ----------  -----------  ----------------  ----------- 
 Transactions 
 with owners 
 of the Company 
 Contributions 
 and 
 distributions 
 Dividends                      -           -           -          -           -            -            -           -               -              - 
 Legal reserve formed 
  during 
  the period                    -           -           -         575          -            -          (575)         -               -              - 
 Movement in put option 
  liability                                                                 19,348                                 19,348            -            19,348 
 Restatement for impact 
  of 
  hyperinflation                -           -           -          -           -            -         (2,064)     (2,064)           790          (1,274) 
 Non-controlling interest 
  cash injection in 
  subsidiaries 
  during the year               -           -           -          -           -            -            -           -            17,372          17,372 
 Total contributions and 
  distributions                 -           -           -         575       19,348          -         (2,639)      17,284         18,162          35,446 
                           ----------  ----------  ----------  ---------  ----------  ------------  ----------  -----------  ----------------  ----------- 
 Balance at 30 June 2020 
  (Unaudited)               1,072,500   1,027,706   (314,310)    46,905    (209,815)     142,996      632,790    2,398,772        149,766       2,548,538 
                           ==========  ==========  ==========  =========  ==========  ============  ==========  ===========  ================  =========== 
 
 At 1 January 2019          1,072,500   1,027,706   (314,310)    37,959    (145,275)     194,764      396,706    2,270,050        130,588       2,400,638 
                           ----------  ----------  ----------  ---------  ----------  ------------  ----------  -----------  ----------------  ----------- 
 Profit for the period          -           -           -          -           -            -         223,872     223,872         (8,341)        215,531 
 Other comprehensive 
  income 
  for the period                -           -           -          -           -        (32,493)                  (32,493)       (15,331)        (47,824) 
                           ----------  ----------  ----------  ---------  ---------- 
 Total comprehensive 
  income                        -           -           -          -           -        (32,493)      223,872     191,379        (23,672)        167,707 
                           ----------  ----------  ----------  ---------  ----------  ------------  ----------  -----------  ----------------  ----------- 
 Transactions 
 with owners 
 of the Company 
 Contributions 
 and 
 distributions 
 Dividends                      -           -           -          -           -            -        (442,116)   (442,116)        (1,879)       (443,995) 
 Legal reserve formed 
  during 
  the period                    -           -           -        5,834         -            -         (5,834)        -               -              - 
 Movement in put option 
  liability                     -           -           -          -       (21,277)                               (21,277)           -           (21,277) 
 Restatement for impact 
  of 
  hyperinflation                -           -           -          -           -            -          (25)         (25)            (8)            (33) 
 Non-controlling 
  interests 
  resulting from 
  consolidating 
  subsidiaries 
  during the period             -           -           -          -           -            -            -           -            33,357          33,357 
 Total contributions and 
  distributions                 -           -           -        5,834      (21,277)        -        (447,975)    (463,418)       31,470         (431,948) 
                           ----------  ----------  ----------  ---------  ----------  ------------  ----------  -----------  ----------------  ----------- 
 Balance at 30 June 2019 
  (Unaudited)               1,072,500   1,027,706   (314,310)    43,793    (166,552)     162,271      172,603    1,998,011        138,386       2,136,397 
                           ==========  ==========  ==========  =========  ==========  ============  ==========  ===========  ================  =========== 
 * Under Egyptian Law each subsidiary 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. 
 

Notes to the Condensed Consolidated Interim Financial Statements - For the Six Months Ended 30 June 2020

(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 2015 and established according to the provisions of the Companies (Jersey) Law 1991 under Registered No. 117257. These condensed consolidated interim financial statements as at and for the six months ended 30 JUNE 2020 comprise the Company and its subsidiaries (together referred as the 'Group').

The Group's main activity is concentrated in the field of medical diagnostics.

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

These condensed consolidated interim financial statements were approved for issue by the Directors of the Company on 1 September 2020.

2. Basis of preparation

   A.    Statement of compliance 

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' (as adopted by the EU).

They do not include all the information required for a complete set of IFRS financial statements as adopted by European Union ("IFRS-EU"), and should be read in conjunction with the financial statements published as at and for the year ended 31 December 2019 which is available at www.idhcorp.com

   B.    Going concern 

The uncertainty regarding the impact of a second wave of Covid-19 on the Group has been considered as part of the Group's adoption of the going concern basis. Management has considered the potential impact of a second wave of Covid-19 on the Group's financial position and liquidity, and has considered several scenarios and stress tests. One of the stress tests considered the following key assumptions: a complete lockdown with a substantial loss of revenue by 50% for a period of 4 months (from September to December), no fixed costs reductions, forecasted capital expenditure is maintained, and a dividends payment of USD 28 million during September. The reduction of revenues will not affect the Group's ability to meet financial covenants such as Debt service Coverage Ratio. The conducted stress test displayed the ability of full repayment of the existing loans balances. The downside scenarios showed that the Group's current financial position and cash balance will alleviate any potential downside risk in the Group's cash flow generated from its operational activities, thus the Directors continue to adopt the going concern basis in preparing the financial information

These consolidated financial statements have been prepared on the going concern basis. At 30 June 2020, the Group had net assets amounting to EGP 2,548,538K. The Group is profitable and cash generative and the Directors have considered the Group's cash forecasts for a period of 12 months from the signing of the balance sheet. The Directors have a reasonable expectation that the Group has adequate resources to meet its liabilities as they fall due for at least 15 months from the date of approval of these consolidated annual financial statements. Thus, they continue to adopt the going concern basis in preparing the financial information.

   C.    Basis of measurement 

The condensed consolidated interim financial statements have been prepared on the historical cost basis except where adopted IFRS mandates that fair value accounting is required.

   D.    Functional and presentation currency 

These condensed consolidated interim financial statements and financial information are 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).

   E.    Use of estimates and judgements 

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgments made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those described in the last consolidated financial statements published as at and for the year ended 31 December 2019.

3. Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated interim financial statements are consistent with those applied in the audited consolidated financial statements published as at and for the year ended 31 December 2019.

These audited consolidated financial statements were prepared in accordance with IFRS as adopted by the European Union.

4. Property, plant and equipment

 
                     Land &         Medical,        Leasehold      Fixtures,      Building &    Payment on     Total 
                    Buildings       electric       improvements     fittings      Leasehold      account* 
                                  & information                    &vehicles      Assets in 
                                     system                                       the course 
                                    equipment                                         of 
                                                                                 construction 
 Cost 
 At 1 January 
  2020               332,353         483,370         225,281         66,461         19,924        4,099      1,131,488 
 Additions             558           39,788          11,714          3,657          1,020          584        57,321 
 Disposals              -             (546)           (493)          (233)                                    (1,272) 
 Translation 
  differences         (608)         (21,709)         (3,242)        (2,419)        (2,530)                   (30,508) 
                 --------------  --------------  --------------  -------------  -------------  -----------  ---------- 
 At 30 JUNE 
  2020 
  (unaudited)        332,303         500,903         233,260         67,466         18,414        4,683      1,157,030 
                 ==============  ==============  ==============  =============  =============  ===========  ========== 
 
 Depreciation 
 At 1 January 
  2020               39,718          180,046         105,108         21,070           -             -         345,942 
 Charge for the 
  period              4,071          34,875          16,502          2,911            -             -         58,359 
 On disposals           -             (475)           (485)          (184)            -             -         (1,144) 
 Translation 
  differences         (72)           (4,534)          (558)         (1,679)           -             -         (6,843) 
 At 30 JUNE 
  2020 
  (unaudited)        43,717          209,912         120,567         22,118           -             -         396,316 
                 ==============  ==============  ==============  =============  =============  ===========  ========== 
 
 Net book value                                                                                   4,683 
 At 30 JUNE 
  2020 
  (unaudited)        288,586         290,991         112,693         45,348         18,414                    760,715 
 At 31 December 
  201 9              292,635         303,324         120,173         45,391         19,924        4,099       785,546 
 

*Payment on account this relates to payments made as a with respect to branches that IDH will receive and own in 2021 and are paying off via a payment schedule

Leased equipment

The Group leases medical and electric equipment under finance lease arrangements. This equipment is supplied to service the Group's new state-of-the-art Mega Lab. The equipment secures lease obligations, see note 15 for further details. At 30 JUNE 2020, the net carrying amount of leased equipment was EGP 26m (31 Dec 2019: EGP 31m).

5. Intangible assets and goodwill

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

 
                             Goodwill                   Brand Name                 Software                Total 
                             EGP'000                     EGP'000                    EGP'000               EGP'000 
                    ------------------------  ----------------------------  ---------------------  ------------------- 
  Cost 
  Balance at 1 
   January 2020                    1,264,086                       384,414                 59,558            1,708,058 
  Additions                                -                             -                  1,928                1,928 
 Effect of 
  movements in 
  exchange rates                     (2,390)                            40                   (32)              (2,382) 
  Balance at 30 
   JUNE 2020 
   (unaudited)                     1,261,696                       384,454                 61,454            1,707,604 
------------------  ------------------------  ----------------------------  ---------------------  ------------------- 
 
  Amortisation and 
  impairment 
  Balance at 1 
   January 2020                        1,849                             -                 45,373               47,222 
  Amortisation                             -                             -                  2,830                2,830 
 Effect of 
  movements in 
  exchange rates                           -                             -                      8                    8 
  Balance at 30 
   JUNE 2020 
   (unaudited)                         1,849                             -                 48,211               50,060 
------------------  ------------------------  ----------------------------  ---------------------  ------------------- 
 
  Carrying amount                                                                                                    - 
  Balance at 1 
   January 2020                    1,262,237                       384,414                 14,185            1,660,836 
==================  ========================  ============================  =====================  =================== 
  Balance at 30 
   JUNE 2020 
   (unaudited)                     1,259,847                       384,454                 13,243            1,657,544 
==================  ========================  ============================  =====================  =================== 
 

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 six months ended 30 JUNE 2020.

6. Other investees

 
                       30-June-20     31-Dec-19 
                          EGP'000       EGP'000 
                     ------------  ------------ 
                      (unaudited) 
 Equity investees*          9,855         6,391 
                            9,855         6,391 
                     ============  ============ 
 

*Biolab has signed an agreement with EVEX Medical Corporation to establish the biggest laboratory among the West Asia countries located in Tbilisi. This 4000-square-meters diagnostic medical laboratory will connect more than 40 hospitals, and diagnostic centers that are part of EVEX group, utilizing the advanced technological systems that Biolab created in Jordan. EVEX Medical Corporation is the largest chain of hospitals in Georgia, currently represented with 78 clinics in 6 regions of Georgia.

The agreement is based on two elements:

   1.    Implementation of the technological platforms and biolab LIMS at Evex labs. 

2. Taking the Mega Lab through the journey of Joint Commission International accreditation (JCI), within two years from the expected launch date of the central laboratory.

7. Trade and other receivables

 
 
                                                 30-June-20             31-Dec-19 
                                                    EGP'000               EGP'000 
                                        -------------------  -------------------- 
                                                (unaudited) 
 Trade receivables                                  209,632               260,746 
 Prepaid expenses                                    18,983                32,972 
 Receivables due from related parties                 6,236                 6,191 
 Other receivables                                   41,587                21,969 
 Accrued revenue                                        340                   927 
                                                    276,778               322,805 
                                        ===================  ==================== 
 

8. Other investment

 
 
                            30-June-20                    31-Dec-19 
                               EGP'000                      EGP'000 
                 ---------------------  --------------------------- 
                           (unaudited) 
 Treasury bill                 251,956                      221,617 
                               251,956                      221,617 
                 =====================  =========================== 
 

The maturity date of the treasury bills is between 3-9 months and have settled average interest rate of 13.22%. Treasury bills are classified as held to maturity.

9. Cash and cash equivalents

 
 
                                   30-June-20             31-Dec-19 
                                      EGP'000               EGP'000 
                             ----------------  -------------------- 
                                  (unaudited) 
 Short-term deposits*                 216,814               121,119 
 Treasury bill                         68,414               194,302 
 Cash at banks and on hand            182,201                93,471 
 Cash and cash equivalents            467,429               408,892 
                             ================  ==================== 
 

*The maturity date of these time deposits and treasury bills is less than or equal to 3 months.

10. Restricted cash

 
                      30-June-20    31-Dec-1 8 
                         EGP'000       EGP'000 
                   -------------   ----------- 
                     (unaudited) 
 Restricted cash                -          247 
              -                            247 
 ==============                    =========== 
 

11. Trade and other payables

 
 
                          30-June-20   31-Dec-19 
                             EGP'000     EGP'000 
                    ----------------  ---------- 
                         (unaudited) 
 Trade payable               152,790     145,195 
 Accrued expenses             97,575     129,357 
 Other payables               42,672      40,502 
 Accrued interest              3,967       5,029 
                             297,004     320,083 
                    ================  ========== 
 

12. Short-term financial obligations

 
 
                               30-June-20   31-Dec-19 
                                  EGP'000     EGP'000 
                             ------------  ---------- 
                              (unaudited) 
 Put option liability             189,871     199,141 
 Finance lease liabilities         55,397      61,712 
                                  245,268     260,853 
                             ============  ========== 
 

The accounting policy for put options after initial recognition is to recognise all changes in the carrying value of the put liability within equity.

Through the historic acquisitions of Makhbariyoun Al Arab the Group entered into separate put option arrangements to purchase the remaining equity interests from the vendors 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 completion of the original purchase agreement, which fell due in June 2016. The vendor has not exercised this right at 30 JUNE 2020.

13. Loan 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 Commercial international bank "CIB Egypt" to finance the purchase of the new administrative building for the group. As at 30 June 2020, 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 Ahli united bank "AUB Egypt" to finance the investment cost related to the expansion into the radiology segment. As at 30 June 2020 only EGP 53m 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 amortization, 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       Maturity          30-June-20           31-Dec-19 
-------------------  ----------                   ----------  ------------------------  ------------- 
         interest rate 
  ---------------------------  -----------------------------  ------------------------  ------------- 
 
                                   CBE corridor 
      CIB BANK           EGP          rate+1%       22-Apr                      51,363         64,070 
                                   CBE corridor 
      AUB BANK           EGP          rate+1%       26-Apr                      52,962         42,651 
                                                                               104,325        106,721 
 Amount held 
  as: 
 Current liability                                                              25,417         25,416 
 Non- current 
  liability                                                                     78,908         81,305 
                                                                               104,325        106,721 
                                                              ========================  ============= 
 

*As at 30-June-20 corridor rate 10.25% (2019: 13.25%)

14. Long- term financial obligation

 
                                         30-June-20   31-Dec-19 
                                            EGP'000     EGP'000 
                                       ------------  ---------- 
                                        (unaudited) 
 Lease liabilities building                 281,840      232075 
 Lease liabilities Medical equipment         39,087      44,287 
 Put option liability*                       19,944      30,022 
                                       ------------  ---------- 
                                            340,871     306,384 
                                       ============  ========== 
 

*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 (one of the big four accounting firms).

According to the International Private Equity and Venture Capital Valuation Guidelines, there are multiple ways to calculate the put option including Discounted Cash Flow, Multiples, Net assets. Multiple valuation was applied and EGP 19.9 million was calculated as the valuation as at 30 June 2020 (2019; EGP 30.0m).

15. Leases as lessee (IFRS 16)

   a)    Right-of-use assets 
 
                                                  30-Jun-20                31-Dec-19 
                                                    EGP'000                  EGP'000 
                                    -----------------------  ----------------------- 
                                                (unaudited) 
 Balance at 1 January                               264,763                  213,870 
 Addition for the year                               53,228                   98,609 
 Depreciation charge for the year                  (29,454)                 (47,716) 
                                                    288,537                  264,763 
                                    =======================  ======================= 
 
   b)    Leases liabilities 

Future minimum lease payments under leases and hire purchase contracts, together with the present value of the net minimum lease payments are, as follows:

 
                                                     30-Jun-20   31-Dec-19 
                                                       EGP'000     EGP'000 
                                           -------------------  ---------- 
                                                   (unaudited) 
 *Lease liabilities building                           315,986     269,401 
 *Lease liability - laboratory equipment                60,338      67,690 
 Lease liability - other                                     -         983 
                                           ------------------- 
                                                       376,324     338,074 
                                           ===================  ========== 
 
   *The lease liabilities for   the laboratory equipment and building are payable as follows: 
 
                                         Minimum            Interest           Principal 
                                  lease payments 
                                      30-June-20          30-June-20          30-June-20 
                                         EGP'000             EGP'000             EGP'000 
                              ------------------  ------------------  ------------------ 
                                     (unaudited)         (unaudited)         (unaudited) 
 Less than one year                      111,246              55,858              55,388 
 Between one and five years              399,450             153,756             245,694 
 More than five years                     92,663              17,421              75,242 
                                         603,359             227,035             376,324 
                              ==================  ==================  ================== 
 
 
                               Minimum lease payments    Interest   Principal 
                                            31-Dec-19   31-Dec-19   31-Dec-19 
                                              EGP'000     EGP'000     EGP'000 
                              -----------------------  ----------  ---------- 
 
 Less than one year                           106,436      45,706      60,730 
 Between one and five years                   381,378     169,803     211,575 
 More than 5 years                             87,972      23,186      64,786 
                              -----------------------  ----------  ---------- 
                                              575,786     238,695     337,091 
                              =======================  ==========  ========== 
 
   c)    Amounts recognised in profit or loss 
 
                                           30-Jun-20     30-Jun-19 
                                             EGP'000       EGP'000 
                                        ------------  ------------ 
                                         (unaudited)   (unaudited) 
 Interest on lease liabilities                28,556        19,944 
 Expenses related to short-term lease          4,294         3,045 
 

16. Related party transactions

The significant transactions with related parties, their nature volumes and balance during the period 30 JUNE 2020 are as follows:

 
                                                                                    30-June-20 
                                                                  ---------------------------------------------- 
 Related Party      Nature of transaction         Nature of        Transaction amount of      Amount due from 
                                                 relationship             the year                 EGP'000 
                                                                          EGP'000 
----------------  -------------------------   -----------------   -----------------------  --------------------- 
 
 
 Life Scan 
  (S.A.E)          Expenses paid on behalf      Affiliate                                6                    350 
 
 International 
  Fertility 
  (IVF)*           Expenses paid on behalf      Affiliate                               78                  5,294 
 
                                                Entity owned by 
                                                 Company's board 
 H.C Security      Provide service               member                                239                  (126) 
 
 Integrated 
  Treatment for 
  Kidney                                                                               180 
  Diseases          Rental income               Entity owned by 
  (S.A.E)            Medical Test analysis       Company's CEO                         130                    593 
 
 Total                                                                                                    6 ,111 
                                                                                           ===================== 
 

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

17. Net finance income

 
 
                                                              30-June-20       30-June-19 
                                                                 EGP'000          EGP'000 
                                                   ---------------------  --------------- 
 Finance income                                              (unaudited)      (unaudited) 
 Interest income on - time deposits                               33,765           21,008 
 Gain on hyperinflationary net monetary position                     192            1,308 
 Total finance income                                             33,957           22,316 
                                                   =====================  =============== 
 
 Finance cost 
 Bank charges                                                    (1,228)          (1,437) 
 Interest expense                                               (35,457)         (29,508) 
 Net foreign exchange loss                                       (4,479)         (10,528) 
 Total finance cost                                             (41,164)         (41,473) 
                                                   ---------------------  --------------- 
 Net finance income                                              (7,207)         (19,157) 
                                                   =====================  =============== 
 

18. 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:

 
 
                                                                           30-June-20                  30-June-19 
                                                                              EGP'000                     EGP'000 
                                                                  -------------------          ------------------ 
 Current tax: 
 Current period                                                              (86,209)                   (120,574) 
 Deferred tax: 
 Deferred tax arising on undistributed reserves in subsidiaries               (8,827)                    (15,379) 
 Relating to origination and reversal of temporary differences                      -                       4,156 
                                                                  -------------------      ---------------------- 
 Total Deferred tax expense                                                   (8,827)                    (11,223) 
 
  Tax expense recognised in profit or loss                                   (95,036)                   (131,797) 
                                                                  ===================      ====================== 
 
 
   C)    Deferred tax liabilities 

Deferred tax relates to the following:

 
                                                                  30-June-20                      31-Dec-19 
                                                    -------------------------------------  ---------------------- 
                                                       Assets      Liabilities              Assets    Liabilities 
                                                       EGP'000     EGP'000                  EGP'000   EGP'000 
                                                    ------------  -----------------------  --------  ------------ 
 Property, plant and equipment                                 -                 (17,619)         -      (17,460) 
 Intangible assets                                             -                (107,114)         -     (108,365) 
 Undistributed reserves from group subsidiaries                -                 (60,127)         -      (49,535) 
 Provisions and finance lease liabilities                  1,360                        -     1,360             - 
                                                    ------------  -----------------------  --------  ------------ 
 Deferred tax assets (liabilities) before set-off          1,360                (184,860)     1,360     (175,360) 
                                                    ------------  -----------------------  --------  ------------ 
 Net deferred tax assets (liabilities)                         -                (183,500)         -     (174,000) 
                                                    ============  =======================  ========  ============ 
 

19. Financial Instruments

The Group has reviewed the financial assets and liabilities held at 30 JUNE 2020 and 31 December 2019. 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 2.

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 16.0m to EGP 36.1m could become payable, however this is not considered probable.

20. Distributions made and proposed

 
 
                                                                                 30-Jun-20               30-Jun-18 
                                                                                   EGP'000                 EGP'000 
                                                                   -----------------------   --------------------- 
 Cash dividends on ordinary shares declared and paid: 
 Nil per qualifying ordinary share (2019: 0.18)                                           -                442,116 
                        -                                                                                  442,116 
 ========================                                                                    ===================== 
 After the balance sheet date, the following dividends were 
  proposed by the directors (the 
  dividends have not been provided for):                                            450,024                      - 
 USD 0.187 per share (2019: nil) per share                                          450,024                      - 
                                                                   ========================  ===================== 
 

The proposed 2020 dividend on ordinary shares are subject to approval at the annual general meeting and is not recognised as a liability as at 30 Jun 2020.

21. Earnings per share

 
 
                                                    30-June-20        30-June-19 
                                                       EGP'000           EGP'000 
                                              ----------------  ---------------- 
                                                   (unaudited)       (unaudited) 
 Profit attributed to owners of the parent             178,768           223,872 
 Weighted average number of ordinary shares 
  in issue                                             150,000           150,000 
                                              ----------------  ---------------- 
 Basic and diluted earnings per share                     1.19              1.49 
                                              ================  ================ 
 

The Company has no potential diluted shares as of the 30 June 2020 and 30 June 201 8 therefore the earning per diluted share are equivalent to basic earnings per share.

22. 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 
             ---------------------------------------------------------------------------------------------------------------------------------------- 
                                                                            (unaudited) 
             ---------------------------------------------------------------------------------------------------------------------------------------- 
 For                Egypt region                Sudan region                   Jordan                    Nigeria                      Total 
 six-month                                                                     region                     region 
 period 
 ended 
             --------------------------  --------------------------  -------------------------  -------------------------  -------------------------- 
                       EGP'000                     EGP'000                    EGP'000                    EGP'000                     EGP'000 
 
 30-Jun-20                      804,994                      12,292                    117,343                     15,059                     949,688 
 30-Jun-19                      911,246                      15,188                    121,141                     13,389                   1,060,964 
 
 
                                                                 Net profit by geographic location 
             ---------------------------------------------------------------------------------------------------------------------------------------- 
                                                                            (unaudited) 
             ---------------------------------------------------------------------------------------------------------------------------------------- 
 For                Egypt region                Sudan region                   Jordan                    Nigeria                      Total 
 six-month                                                                     region                     region 
 period 
 ended 
             --------------------------  --------------------------  -------------------------  -------------------------  -------------------------- 
                       EGP'000                     EGP'000                    EGP'000                    EGP'000                     EGP'000 
 
 30-Jun-20                      179,204                     (4,537)                     15,062                   (15,104)                     174,625 
 30-Jun-19                      216,993                       1,229                     20,370                   (23,061)                     215,531 
 
              Revenue by type                                         Net profit by type 
 
                      30-Jun-20                   30-Jun-19                  30-Jun-20                                30-Jun-19 
                       EGP'000                     EGP'000                    EGP'000                                  EGP'000 
             --------------------------  --------------------------  -------------------------  ----------------------------------------------------- 
                     (unaudited)                 (unaudited)                (unaudited)                              (unaudited) 
 Pathology                      925,757                   1,041,522                    194,864                                                244,208 
 Radiology                       23,930                      20,442                   (20,239)                                               (28,677) 
                                         --------------------------                             ----------------------------------------------------- 
                                949,687                   1,061,964                    174,625                                                215,531 
             ==========================  ==========================  =========================  ===================================================== 
 
 
 
 
                Revenue by categories 
               30-Jun-20     30-Jun-19 
                EGP'000       EGP'000 
             ------------  ------------ 
              (unaudited)   (unaudited) 
 Walk-in        442,987       413,914 
 Corporate      506,700       647,050 
                           ------------ 
                949,687      1,060,964 
             ============  ============ 
 

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

 
                                                    30 -Jun-2020       30 -Jun-2019 
                                                         EGP'000            EGP'000 
                                              ------------------  ----------------- 
                                                     (unaudited)        (unaudited) 
 Profit from operations                                  276,868            366,485 
 Property, plant and equipment depreciation               87,814             70,453 
 Amortization of Intangible assets                         2,672              3,418 
 EBITDA                                                  367,354            440,356 
                                              ==================  ================= 
 
 
                                                   Non-current assets by geographic location 
                        ---------------------------------------------------------------------------------------------- 
 For the year ended        Egypt region       Sudan region        Jordan region       Nigeria region        Total 
                        ------------------  ----------------  ---------------------  ---------------  ---------------- 
 30-Jun-20 (Unaudited)           2,345,284            10,518                254,450          106,399         2,716,651 
 31-Dec-19                       2,334,043            17,518                237,155          128,820         2,717,536 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR BLGDCIUGDGGB

(END) Dow Jones Newswires

September 02, 2020 02:02 ET (06:02 GMT)

1 Year Integrated Diagnostics Chart

1 Year Integrated Diagnostics Chart

1 Month Integrated Diagnostics Chart

1 Month Integrated Diagnostics Chart
ADVFN Advertorial
Your Recent History
LSE
IDHC
Integrated..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20201125 00:29:17