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Integrated Diagnostics Holdings PLC Half-year Report

02/09/2021 7:00am

UK Regulatory (RNS & others)


Integrated Diagnostics (LSE:IDHC)
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From Aug 2021 to Oct 2021

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TIDMIDHC

RNS Number : 4544K

Integrated Diagnostics Holdings PLC

02 September 2021

-Integrated Diagnostics Holdings Plc

1H 2021 Results

Thursday, 2 September 2021

Integrated Diagnostics Holdings Plc delivers exceptional growth on the back of strong demand across its entire service portfolio

(London) Integrated Diagnostics Holdings ("IDH," "the Group," or "the Company"), a leading consumer healthcare company with operations in Egypt, Jordan, Sudan and Nigeria, released today its reviewed financial statements and operational performance for the first half of 2021, recording revenue of EGP 2,293 million, up 141% versus the comparable period of last year. Normalised EBITDA(1) recorded EGP 1,203 million in 1H 2021, representing a 227% year-on-year increase, while net profit expanded 283% year-on-year to reach EGP 668 million for the period. In the second quarter of 2021, revenues reached a new record-high of EGP 1,164 million, up 3% from an already impressive first quarter of the year, with net profit recording EGP 327 million and an associated margin of 28%.

Financial Results

 
  EGP mn                       1H 2020           1H 2021     Change 
======================  ==============  ================  ========= 
 Revenues                          950             2,293       141% 
----------------------  --------------  ----------------  --------- 
 Cost of Sales                   (503)             (988)        96% 
----------------------  --------------  ----------------  --------- 
 Gross Profit                      446             1,305       193% 
----------------------  --------------  ----------------  --------- 
 Gross Profit Margin               47%               57%    9.9 pts 
----------------------  --------------  ----------------  --------- 
 Operating Profit(2)               277             1,094       291% 
----------------------  --------------  ----------------  --------- 
 Normalised EBITDA(1)              367             1,203       227% 
----------------------  --------------  ----------------  --------- 
 EBITDA Margin                     39%               52%   13.8 pts 
----------------------  --------------  ----------------  --------- 
 Net Profit                        175               668       283% 
----------------------  --------------  ----------------  --------- 
 Net Profit Margin                 18%               29%   10.8 pts 
----------------------  --------------  ----------------  --------- 
 Cash Balance                      719            1,587*       121% 
----------------------  --------------  ----------------  --------- 
 

*Cash balance prior to payment of US$ 29.1 million dividend for year ended 31 December 2020, distributed on 29 July 2021.

Key Operational Indicators

 
                              1H 2020   1H 2021   change 
===========================  ========  ========  ======= 
 Branches                         462       495       33 
---------------------------  --------  --------  ------- 
 Patients ('000)                2,890     4,673      62% 
---------------------------  --------  --------  ------- 
 Revenue per Patient (EGP)        329       491      49% 
---------------------------  --------  --------  ------- 
 Tests ('000)                  11,234    16,318      45% 
---------------------------  --------  --------  ------- 
 Revenue per Test (EGP)            85       141      66% 
---------------------------  --------  --------  ------- 
 Test per Patient                 3.9       3.5     -10% 
---------------------------  --------  --------  ------- 
 

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

2 Operating Profit excludes one-off fees incurred in 1H 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.

Introduction

   i.    Financial Highlights 

-- Revenue recorded EGP 2,293 million in 1H 2021, up a remarkable 141% versus the comparable period of last year supported by both IDH's Covid-19-related(3) tests and a sustained recovery in the Group's conventional test offering. Top-line growth for the first half of 2021 was dual-driven, as tests performed and average price per test posted year-on-year expansions of 45% and 66%, respectively. Covid-19-related tests contributed to 48% of IDH's top-line during the first six months of the year compared to the 9% contribution made during 1H 2020. Excluding Covid-19-related tests, the Group witnessed a 38% year-on-year expansion in revenue generated from its conventional test offering. The year-to-date performance was buoyed by an impressive second quarter, which saw IDH build on the strong momentum from the start of the year to record revenues of EGP 1,164 million for 2Q 2021, up 159% versus 2Q 2020 and 3% from 1Q 2021.

-- Consolidated revenues continued to be supported by the Group's house call service in Egypt and Jordan, which in 1H 2021 contributed to 23% of total revenue versus the 18% contribution made this time last year. Through its house call service, IDH served more than 646,000 patients in 1H 2021 (up 88% versus 1H 2020), performing more than 3.4 million tests (up 49% versus 1H 2020). Leveraging an expanded reach, IDH was able to carry out an average of 3,600 house call visits per day in 1H 2021, up significantly from the 1,900 visits per day performed in 1H 2020.

-- Gross Profit grew by 193% year-on-year in 1H 2021 to record EGP 1,305 million with an associated margin of 57% versus 47% in the same period last year. Improved gross profitability came on the back of strong top-line growth and the subsequent dilution of fixed costs for the period such as direct salaries and wages and other expenses. Gross profit for the second quarter of 2021 recorded EGP 667 million, up 4% from the previous quarter and with a gross margin of 57%.

-- Operating Profit recorded EGP 1,094 million, a 295% year-on-year expansion, with an associated margin of 48% versus 29% last year. The remarkable growth in operating profit was supported by strong gross profitability, the dilution of SG&A outlays for the period due to their relatively fixed nature, and a normalisation of provisions booked in 1H 2021, which recorded EGP 10 million versus EGP 28 million in 1H 2020 to account for expected credit losses in accordance with IFRS 9.

-- Normalised EBITDA(4) reached EGP 1,203 million in 1H 2021, an increase of 227% from the comparable period of last year. EBITDA margin expanded to 52% for the period versus 39% in 1H 2020. Solid improvements in EBITDA profitability were driven by strong top-line growth in 1H 2021 and the subsequent dilution of IDH's fixed costs for the period. On a quarterly basis, normalised EBITDA recorded EGP 603 million, up 267% year-on-year and largely in line with last quarter's figure. Normalised EBITDA margin stood at 52% for the quarter, down from the 53% margin recorded in 1Q 2021 as IDH booked higher accounting fees (related to the EGX requirement to publish quarterly reviewed financial statements) and additional bonus payments to senior management during 2Q 2021.

-- Net Profit expanded 283% year-on-year to record EGP 668 million in 1H 2021, with a net profit margin of 29% versus 18% in 1H 2020. Net profit growth was supported by strong EBITDA level profitability and comes despite IDH booking EGP 29 million in one-off fees related to the Company's dual-listing in May 2021. In 2Q 2021, net profit stood at EGP 327 million with an associated margin of 28%.

-- A dividend of US$ 29.1 million (US$ 0.0485 per share) for the year ended 31 December 2020 was distributed to shareholders on 29 July 2021. This represents an increase of 4% compared to a final dividend of US$ 28 million in aggregate in the previous financial year.

3 Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other Covid-19-related tests which include a bundle of routine inflammatory and clotting markers (which witnessed strong demand following the outbreak of Covid-19) such as Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), among others.

4 Normalised EBITDA is calculated as operating profit plus depreciation and amortization and minus one-off fees incurred in 1H 2021 (EGP 29 million) related to the Company's EGX listing completed in May 2021.

ii. Operational Highlights

-- IDH's branch network stood at 495 branches as of 30 June 2021, up from 462 branches and 481 branches as of 30 June 2020 and 31 December 2020, respectively.

-- Total tests performed recorded 16.3 million in 1H 2021, up 45% year-on-year. Higher test volumes were supported by both IDH's Covid-19-related(5) test offering as well as a sustained recovery in the Group's conventional test offering, with the latter up 29% versus the first six months of 2020. In 2Q 2021, IDH performed 8.3 million tests, up 2% from the previous quarter as IDH performed both more Covid-19-related and conventional tests during the second quarter of the year compared to the previous quarter. The quarter-on-quarter expansion is particularly noteworthy as the second quarter included the expected slowdown related to the holy month of Ramadan and Eid vacation.

-- Average revenue per test expanded 66% year-on-year to EGP 141 in 1H 2021. Controlling for the generally higher value Covid-19-related(4) tests, average revenue per test would have increased 7% versus last year.

-- Total patients served reached 4.7 million in 1H 2021, a 62% year-on-year increase. Meanwhile, average test per patient declined to 3.5 in 1H 2021 from 3.9 last year as an increasing number of patients visit the Group's labs for single Covid-19 tests (PCR, Antigen and Antibody).

-- Revenue generated by IDH's Egyptian operations expanded 140% year-on-year on the back of solid growth across both test and patient volumes. On a service basis, top-line growth was supported by both Covid-19-related(5) and conventional tests, and was further bolstered by the Group's house call service which in 1H 2021 made up 25% of Egypt's top-line versus 20% last year. Excluding Covid-19-related contributions in 1H 2021, conventional tests performed and revenue generated in Egypt expanded 29% and 38% year-on-year, respectively.

-- Al-Borg Scan recorded revenue of EGP 20 million in 1H 2021, an increase of 124% compared to last year. The number of radiology tests performed during the first six months of 2021 reached 34,297, more than double the tests performed last year.

-- Wayak turned EBITDA positive during 2Q 2021 on the back of growing revenue and optimised overhead costs. On a year-to-date basis, Wayak's revenue nearly tripled versus last year to reach EGP 4.3 million in 1H2021 supported by a growing customer base.

-- In Jordan, revenue increased 176% year-on-year on the back of strong volume growth for the period. Top-line growth was supported by Biolab's Covid-19-related test offering coupled with solid growth in its conventional test offering, with the latter having made a full recovery from last year's slowdown. In fact, excluding Covid-19-related tests, the number of tests performed and revenue generated would have increased 43% and 41%, respectively.

-- In August, Biolab was selected as the preferred bidder to operate testing stations in Amman's Queen Alia International Airport (QAIA). This landmark partnership will allow IDH to continue playing a frontline role in the fight against Covid-19, while helping to further expand Biolab's volumes and revenue in the coming period.

-- In Nigeria, revenues continued their steady expansion, growing 68% year-on-year (76% in NGN terms) in 1H 2021 supported by a 47% increase in tests performed versus last year.

5 Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other Covid-19-related tests which include a bundle of routine inflammatory and clotting markers (which witnessed strong demand following the outbreak of Covid-19) such as Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), among others.

iii. Management Commentary

Commenting on the Group's performance for the six-month period, IDH Chief Executive Officer Dr. Hend El-Sherbini said: "Halfway through 2021, I am delighted with the Group's operational and financial performance, which has seen us continue to build on an impressive start to the year to deliver another set of record-breaking results. Our revenues expanded an impressive 141% versus last year on the back of growing patient and test volumes, improved pricing and an increasingly optimised service mix. While top-line growth continued to be bolstered by our Covid-19-related(6) tests, I am happy to report that we have continued to witness robust growth in our conventional test offering for the second quarter in a row, signalling a sustained recovery which we expect to continue even as Covid-19-related volumes begin to taper off. It is particularly important to highlight that the Group's conventional test volumes in 1H 2021 surpassed pre-Covid-19 levels, coming in 4% higher than test volumes recorded in the same six months of 2019 after adjusting for the impact of the 100 Million Healthy Lives Campaign(7) . This is further evidence of the robust underlying demand for high quality diagnostic services present across our markets of operation, and of our continued ability to service this growing market."

"On a regional front, both our Egyptian and Jordanian operations continued to report strong revenue growth supported by our conventional and Covid-19-related service offering. Similar to the trend witnessed at the consolidated level, across both geographies we recorded robust growth in our conventional test portfolio supported by a widespread recovery of economic activity coupled with our multi-pronged efforts aimed at stimulating demand across the entirety of our service roster. Top-line growth in both countries was further buoyed by our home call services which continue to grow in popularity especially in our home market of Egypt, where tests performed directly in patient homes made up 25% of the country's top-line in the first half of 2021. Our ability to effectively ramp up the service in step with growing demand is enabling us to perform up to five thousand house visits per day, helping us to tap into new segments of the population while boosting our tests per patient as patients enjoy the added comfort of having the tests administered in their own homes. House call services represent an important driver of future growth for the Company well beyond the end of the Covid-19 crisis, and as such we are continuing our efforts to expand and further streamline the service. In parallel, we are also seeing growing contributions coming from our radiology venture, Al-Borg Scan, which recorded year-on-year revenue growth of 124% as tests performed more than doubled in the first half of the year. To capitalise on the attractive growth opportunities offered by the segment, we are currently aiming to launch at least three new Al-Borg Scan branches over the coming twelve months. Looking ahead, we expect to continue recording growing contributions to consolidated revenue and profitability as Al-Borg Scan's operations ramp up further."

"At our Nigerian operations, we witnessed sustained top-line growth of 68% for the first half of this year. This comes as our investments to revamp Echo-Lab's operations and strategic marketing efforts continue to bear fruit, attracting an increasing number of patients to our branches. This is a particularly noteworthy achievement in light of the multiple political and pandemic-related difficulties faced over the last year. Finally in Sudan, despite recording an impressive 217% year-on-year revenue expansion in local currency, the significant devaluation of the Sudanese Pound in February 2021 continued to weigh on the country's results. Despite this, we remain committed to the country in the long-term, with management hard at work to continue driving sustainable long-term growth beyond the current difficult operating environment."

"Further down the income statement, we reported impressive margin expansions at all levels of profitability supported by strong top-line and the subsequent dilution of IDH's fixed costs. Additionally, starting in the second quarter of this year we recorded a decline in raw material as percentage of revenues to 16.8% compared to 19.3% in the previous quarter. This was partially due to a decline in Jordan's Covid-19-positive cases requiring confirmatory retests, and is also directly attributable to our successful efforts to reduce PCR test kit costs. Overall, strong top-line growth combined with increased cost efficiencies, higher interest income, and lower provisions booked in the first half of 2021, helped drive a nearly fourfold increase in net profit for 1H 2021 which reached EGP 668 million with an associated margin of 29%."

"Heading into the second half of the year, our strategic priorities remain unchanged as we aim to capitalise on the positive momentum witnessed across both our operations and the wider macroeconomic context. In the short-term we will continue to assist governments in Egypt and Jordan in their fight against the Covid-19 pandemic providing our full roster of Covid-19-related services across both our branches and through our expanded house call service. On this front, I am very happy with our efforts to secure multiple new partnerships over the last few months to offer PCR testing to travellers in both Egypt and Jordan. Most importantly, I am pleased to note that Biolab, our Jordanian subsidiary, has been selected as the preferred bidder by Airport International Group (AIG), the operator of Amman's Queen Alia International Airport, to carry out PCR testing for passengers arriving in Jordan. As part of the agreement, Biolab will also offer rapid PCR testing for Covid-19 to departing passengers who were not able to do a PCR test prior to reaching the airport. Through this landmark partnership, we will be able to continue playing a frontline role in the fight against the Covid-19 virus in Jordan while further expanding our reach and patient base in the country. In parallel, we are looking to sign additional strategic deals with international air carriers to perform PCR tests for passengers similar to our existing agreements with National Air Services (NAS) and Pure Health UAE which see us conduct PCR testing for passengers flying from Egypt to Kuwait and the UAE. Our ability to secure such partnerships is proof positive of the strong reputation enjoyed by IDH both locally and internationally, and further strengthens our offering for international travellers which currently sees the Company offer internationally-accredited PCR tests to travellers within and outside the MENA region. Meanwhile, we are working tirelessly to deliver on our post-Covid-19 growth strategy which will see us leverage our expanded patient base, branch network, and service offering to drive new sustainable growth in the years to come. To this end, in the first six months of the year we successfully added 14 new branches in our home market of Egypt, keeping us on track to meet our goal of 30 to 35 new lab rollouts for 2021 and helping us to further cement our leadership position in the country's private sector diagnostics market. In parallel, we continue to assess potential growth opportunities across new African, Middle Eastern, and Asian markets, and have secured a USD 45 million loan from the International Finance Corporation (IFC) to finance our growth plans in the coming period."

"In light of our half-year results and the encouraging recovery witnessed across our markets, I am confident that the Group is on track to deliver a record-breaking performance in 2021, with year-on-year revenue growth surpassing the 70% mark and a normalised EBITDA(8) margin of 47% to 49%. We expect our full-year performance to be supported by both our conventional test offering, which in 1H 2021 continued to witness a robust rebound, coupled with continued strong demand for our Covid-19-related portfolio. Moreover, with Egypt expected to record a new wave of infections later this year, we could see greater than forecasted demand for our Covid-19-related offering in the second half of 2021, with the segment potentially pushing consolidated top-line growth into the 80% range, with an EBITDA margin of around 50%."

6 Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other Covid-19-related tests which include a bundle of routine inflammatory and clotting markers (which witnessed strong demand following the outbreak of Covid-19) such as Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), among others.

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

(8) Normalised EBITDA is calculated as operating profit plus depreciation and amortization and minus one-off fees incurred in 1H 2021 (EGP 29 million) related to the Company's EGX listing completed in May 2021.

- End -

Analyst and Investor Call Details

An analyst and investor call will be hosted at 2pm (UK) | 3pm (Egypt) on Monday, 6 September 2021.

Web conference access details

You can register for the call by clicking on this link , and you may dial in using the conference call details below:

   --      Dial-in Number: 820 8840 0136 
   --      Confirmation Number: 131242 

Regular dial-in details

US dial-in number: +1 (646) 558-8656

UK dial-in number: +44 208 080 6592

Meeting ID: 820 8840 0136

Password: 131242

For more information about the event, please contact: nancy.fahmy@idhcorp.com

About Integrated Diagnostics Holdings (IDH)

IDH is a leading consumer healthcare company in the Middle East and Africa with operations in Egypt, Jordan, Sudan and Nigeria. The Group's core brands include Al Borg, Al Borg Scan and Al Mokhtabar in Egypt, as well as Biolab (Jordan), Ultralab and Al Mokhtabar Sudan (both in Sudan) and Echo-Lab (Nigeria). A long track record for quality and safety has earned the Company a trusted reputation, as well as internationally recognised accreditations for its portfolio of over 2,000 diagnostics tests. From its base of 495 branches as of 30 June 2021, IDH will continue to add laboratories through a Hub, Spoke and Spike business model that provides a scalable platform for efficient expansion. Beyond organic growth, the Group's expansion plans include acquisitions in new Middle Eastern, African, and East Asian markets where its model is well-suited to capitalise on similar healthcare and consumer trends and capture a significant share of fragmented markets. IDH has been a Jersey-registered entity with a Standard Listing on the Main Market of the London Stock Exchange (ticker: IDHC) since May 2015 with a secondary listing on the EGX since May 2021 (ticker: IDHC.CA).

Shareholder Information

LSE: IDHC.L

EGX: IDHC.CA

Bloomberg: IDHC:LN

Listed on LSE: May 2015

Listed on EGX: May 2021

Shares Outstanding: 600 million

Contact

Nancy Fahmy

Investor Relations Director

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

Forward-Looking Statements

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

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

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

Group Operational & Financial Review

   i.    Revenue and Cost Analysis 
 
 Revenue 
  IDH reported revenue of EGP 2,293 million in 1H 2021, 
  up an impressive 141% from the comparable period of 
  last year driven by both its Covid-19-related(9) tests 
  and a sustained recovery in the Group's conventional 
  test offering. Year-on-year top-line growth continued 
  to be dually-driven as tests performed in 1H 2021 expanded 
  45% versus last year and average revenue per test increased 
  66% compared to the same six months of 2020. Although 
  strong and rising demand for IDH's Covid-19-related 
  test offering saw it make up nearly half of IDH's consolidated 
  top-line (48% in 1H 2021 vs 9% in 1H 2020), the Group's 
  conventional test offering also recorded robust year-on-year 
  growth of 38% of the period. Growth in conventional 
  business came on the back of a 29% increase in tests 
  performed and a 7% rise in average revenue per conventional 
  test. 
  Looking at the Group's Covid-19-related offering in 
  more detail, revenues generated from core Covid-19 
  tests (PCR, Antigen and Antibody) amounted to EGP 830 
  million in 1H 2021, making up 36% of consolidated top-line 
  for the period. In parallel, revenue generated by IDH's 
  other Covid-19-related tests reached EGP 275 million 
  in 1H 2021. 
  IDH's consolidated top-line was also supported by its 
  ramped-up house call service in Egypt and Jordan, which 
  contributed to 23% to consolidated revenue for 1H 2021 
  compared to 18% in 1H 2020. Through its house call 
  service, IDH served more than 646,000 patients in 1H 
  2021, up 88% versus 1H 2020, performing more than 3.4 
  million tests, 49% above the figure recorded in 1H 
  2021. Leveraging an expanded reach, IDH was able to 
  carry out an average of 3,600 house call visits per 
  day in 1H 2021, up significantly from the 1,900 visits 
  per day performed in 1H 2020. 
  The Group's year-to-date performance was bolstered 
  by a remarkable second quarter, which saw IDH build 
  an already strong first three months of the year. In 
  2Q 2021, IDH recorded revenue of EGP 1,164 million, 
  up 159% versus the previous year and 3% above revenue 
  recorded in 1Q 2021. As with the year-to-date performance, 
  growth was supported by IDH's full service roster, 
  with the number of conventional tests performed increasing 
  2.3% quarter-on-quarter despite the typical slowdown 
  associated with the holy month of Ramadan and Eid holiday 
  during 2Q 2021. 
  Detailed Consolidated Revenue Breakdown EGP mn                     1Q 2020   1Q 2021   2Q 2020   2Q 2021   1H 2020   1H2021 
  -------------------------  --------  --------  --------  --------  --------  ------- 
   Total revenues                 500     1,130       450     1,164       950    2,293 
   Conventional tests             495       594       367       595       862    1,189 
   Total Covid-19-related 
    tests                           5       536        83       569        88    1,105 
    Core Covid-19 
     tests (PCR, Antigen, 
     Antibody)                      5       399        26       431        31      830 
    Other Covid-19-related 
     tests                          0       137        57       138        57      275 
  -------------------------  --------  --------  --------  --------  --------  ------- 
                          Contribution to consolidated revenue 
  ------------------------------------------------------------------------------------ 
   Conventional tests             99%       53%       82%       51%       91%      52% 
   Total Covid-19-related 
    tests                          1%       47%       18%       49%        9%      48% 
    Core Covid-19 
     tests (PCR, Antigen, 
     Antibody)                     1%       35%        6%       37%        3%      36% 
    Other Covid-19-related 
     tests                         0%       12%       13%       12%        6%      12% 
 
  9 Covid-19-related tests include both core Covid-19 
  tests (Polymerase Chain Reaction (PCR), Antigen, and 
  Antibody) as well as other Covid-19-related tests which 
  include a bundle of routine inflammatory and clotting 
  markers (which witnessed strong demand following the 
  outbreak of Covid-19) such as Complete Blood Picture, 
  Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin 
  and C-reactive Protein (CRP), among others. 
  Revenue Analysis: Contribution by Patient Segment 
 
  Contract Segment 
  At the Group's contract segment, revenue increased 
  149% year-on-year as test performed expanded 49% and 
  average revenue per contract test increased 68% in 
  1H 2021. This saw the segment's contribution to total 
  revenues reach 55% for the period versus 53% in the 
  same six months of 2020. Covid-19-related(10) testing 
  contributed 47% of contract revenues in the first half 
  of the year as the Company continued to witness strong 
  demand for its offering in both Egypt and Jordan. Excluding 
  Covid-19-related tests, the contract segment would 
  have recorded an 45% year-on-year increase in revenue 
  supported by a 33% rise in tests performed and a 9% 
  increase in average revenue per test. 
  The contract segment's results continued to include 
  contributions from IDH's agreement with Pure Health 
  UAE (EGP 57 million), which saw IDH become the first 
  lab to conduct PCR testing to screen passengers travelling 
  from Egypt. In 1H 2021, PCR tests for Covid-19 performed 
  as part of the agreement made up 5% of contract segment 
  revenues and 7% of total core Covid-19 tests (PCR, 
  Antigen, and Antibody) performed during the period. 
  Walk-in Segment 
  Revenue from IDH's walk-in segment recorded a 132% 
  year-on-year expansion in 1H 2021, contributing to 
  45% of consolidated revenues for the period versus 
  the 47% contribution in the comparable period of 2020. 
  In the first six months of the year, average revenue 
  per test at the walk-in segment increased 71% year-on-year, 
  while tests performed increased by 36% versus 1H 2020. 
  The walk-in segment's revenue was also bolstered by 
  the Group's Covid-19-related test offering, which in 
  1H 2021 contributed to just under half of the segment's 
  top-line at 49%. Controlling for contributions from 
  Covid-19-related tests in both periods, walk-in revenues 
  for 1H 2021 would have increased a solid 30% versus 
  last year on the back of a 17% rise in tests performed 
  and an 11% increase in average revenue per test. 
  Key Performance Indicators                         Walk-in Segment          Contract Segment                Total 
  ===================  =======================  ========================  ========================= 
                        1H20    1H21    Change   1H20     1H21    Change    1H20     1H21    Change 
  ===================  ======  ======  =======  ======  =======  =======  =======  =======  ======= 
   Revenue^ 
    (EGP mn)              443   1,029     132%     507    1,264     149%      950    2,293     141% 
    Covid-19-related 
     revenue 
     (EGP mn)              41     506               47      598                88    1,105 
   Patients 
    ('000)                943   1,523      62%   1,947    3,150      62%    2,890    4,673      62% 
   % of Patients          33%     33%              67%      67% 
   Revenue 
    per Patient 
    (EGP)                 470     676      44%     260      401      54%      329      491      49% 
  -------------------  ------  ------  -------  ------  -------  -------  -------  -------  ------- 
   Tests ('000)         3,063   4,164      36%   8,171   12,153      49%   11,234   16,318      45% 
   % of Tests             27%     26%              73%      74% 
    Covid-19-related 
     tests ('000)         161     758     372%     417    1,842     342%      577    2,600     350% 
   Revenue 
    per Test 
    (EGP)                 145     247      71%      62      104      68%       85      141      66% 
   Test per 
    Patient               3.3     2.7     -16%     4.2      3.9      -8%      3.9      3.5     -10% 
  -------------------  ------  ------  -------  ------  -------  -------  -------  -------  ------- 
 
  1 (0) Covid-19-related tests include both core Covid-19 
  tests (Polymerase Chain Reaction (PCR), Antigen, and 
  Antibody) as well as other Covid-19-related tests which 
  include a bundle of routine inflammatory and clotting 
  markers (which witnessed strong demand following the 
  outbreak of Covid-19) such as Complete Blood Picture, 
  Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin 
  and C-reactive Protein (CRP), among others. 
 
  Revenue Analysis: Contribution by Geography 
  Egypt 
  In Egypt, revenues recorded EGP 1,935 million in the 
  first half of 2021, a 140% increase versus last year 
  supported by a 44% year-on-year rise in tests performed 
  and a 67% year-on-year rise in average revenue per 
  test. Revenue growth for the period was supported by 
  both Covid-19-related(11) test offering, which in 1H 
  2021 made up 47% of the country's revenue, and conventional 
  test offering. More specifically, when controlling 
  for contributions made by Covid-19-related tests, revenue 
  increased 38% versus 1H 2020 on the back of a solid 
  29% rise in conventional tests performed during the 
  period. 
  On a quarterly basis, Egypt recorded revenue of EGP 
  1,015 million in 2Q 2021, up 166% versus 2Q 2020 and 
  10% from 1Q 2021. During the quarter, IDH saw Covid-19-related 
  revenues in Egypt reach a new all-time high of EGP 
  504 million versus EGP 414 million in 1Q 2021 and EGP 
  273 million in 4Q 2020, as the second quarter coincided 
  with the peak of country's third wave of Covid-19 infections. 
  IDH's house call service, which throughout 2020 and 
  the first half of 2021 has been successfully ramped 
  up to capitalise on the service's growing popularity, 
  continued to make a growing contribution to revenues, 
  constituting 25% of Egypt's top-line in 1H 2021 (20% 
  in 1H 2020). 
  IDH's Al-Borg Scan recorded robust revenue growth during 
  the first half of 2021, with its top-line expanding 
  to EGP 20 million, a 124% year-on-year rise. This came 
  on the back of a 103% increase in the total number 
  of radiology tests performed, coupled with a 10% increase 
  in average revenue per test following the introduction 
  of the higher-priced PET-CT scan in late 2020. 
  Overall, IDH served 4.1 million patients in Egypt and 
  performed 14.6 million tests in 1H 2021, up by 56% 
  and 44% year-on-year, respectively. 
  Detailed Egypt Revenue Breakdown EGP mn                     1Q 2020   1Q 2021   2Q 2020   2Q 2021   1H 2020   1H2021 
  -------------------------  --------  --------  --------  --------  --------  ------- 
   Total revenues                 424       920       381     1,015       805    1,935 
   Conventional tests             424       507       314       510       738    1,017 
   Total Covid-19-related 
    tests                           0       414        67       504        67      918 
    Core Covid-19 
     tests (PCR, Antigen, 
     Antibody)                      0       277        10       366        10      643 
    Other Covid-19-related 
     tests                          0       137        57       138        57      275 
  -------------------------  --------  --------  --------  --------  --------  ------- 
                              Contribution to Egypt revenue 
  ------------------------------------------------------------------------------------ 
   Conventional tests            100%       55%       82%       50%       92%      53% 
   Total Covid-19-related 
    tests                          0%       45%       18%       50%        8%      47% 
    Core Covid-19 
     tests (PCR, Antigen, 
     Antibody)                     0%       30%        3%       36%        1%      33% 
    Other Covid-19-related 
     tests                         0%       15%       15%       14%        7%      14% 
 
  11 Covid-19-related tests include both core Covid-19 
  tests (Polymerase Chain Reaction (PCR), Antigen, and 
  Antibody) as well as other Covid-19-related tests which 
  include a bundle of routine inflammatory and clotting 
  markers (which witnessed strong demand following the 
  outbreak of Covid-19) such as Complete Blood Picture, 
  Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin 
  and C-reactive Protein (CRP), among others. 
  Jordan 
  Revenue generated by IDH's Jordanian operations grew 
  176% year-on-year in 1H 2021 to reach EGP 324 million. 
  Top-line growth was driven by a 79% increase in test 
  performed during the period and a 54% rise in Biolab's 
  average revenue per test. In the first half the year, 
  Covid-19-related tests (PCR, Antigen, and Antibody) 
  contributed to 58% of Jordan's revenue and to 24% of 
  Biolab's total tests performed. Meanwhile, controlling 
  for contributions made by the Group's Covid-19-related 
  offering, revenue grew by a robust 41% year-on-year 
  on the back of a 43% increase in conventional tests 
  performed in 1H 2021. Revenue generated by Biolab's 
  house call service more than doubled versus last year 
  to reach EGP 34 million in 1H 2021, continuing to make 
  a significant contribution to Jordan's top-line at 
  11% versus the 13% contribution made in 1H 2020. House 
  call's contribution to Jordan's top-line decreased 
  versus last year in light of the strong growth recorded 
  by Biolab's conventional business which had been impacted 
  by curfews and other Covid-19-related restrictions 
  during the comparable six months of last year. 
  On a quarterly basis, Jordan's revenue reached EGP 
  134 million, up 125% year-on-year but down 30% versus 
  1Q 2021. The quarter-on-quarter contraction comes as 
  Covid-19-related revenue continued to decline on the 
  back of lower infection rates as the country further 
  ramps up its vaccination campaign. When combined with 
  the strong recovery of Biolab's conventional test offering, 
  this saw the contribution made by Covid-19-related 
  tests to Biolab's top-line continue on its declining 
  trajectory from 71% in 4Q 2020, to 64% in 1Q 2021 and 
  48% in 2Q 2021. 
  It is also worth noting, that in August 2021, Biolab 
  was selected as the preferred bidder by Airport International 
  Group (AIG), the operator of Amman's Queen Alia International 
  Airport (QAIA), to operate testing stations in QAIA's 
  departure and arrival terminals primarily dedicated 
  to PCR testing for Covid-19. The main focus of the 
  testing stations will be to offer PCR testing for Covid-19 
  to passengers arriving in Jordan, as well as additional 
  diagnostic tests to patients including rapid Covid-19 
  testing for departing passengers and other, more generic 
  diagnostic tests. The agreement, which came into effect 
  on 1 August 2021, has a six-month duration with the 
  option to renew for additional six-month periods. 
  Detailed Jordan Revenue Breakdown EGP mn                    1Q 2020   1Q 2021   2Q 2020   2Q 2021   1H 2020   1H2021 
  ------------------------  --------  --------  --------  --------  --------  ------- 
   Total revenues                 58       190        59       134       117      324 
   Conventional revenue           53        68        44        69        97      137 
   Total Covid-19-related 
    revenue (PCR, 
    Antigen, Antibody)             5       122        16        65        21      187 
                             Contribution to Jordan revenue 
  ----------------------------------------------------------------------------------- 
   Conventional revenue          91%       36%       74%       52%       82%      42% 
   Total Covid-19-related 
    revenue (PCR, 
    Antigen, Antibody)            9%       64%       26%       48%       18%      58% 
 
  Nigeria 
  At the Group's Nigerian subsidiary, revenue recorded 
  EGP 25 million in the first half of 2021, up 68% from 
  EGP 15 million in the first six months of last year. 
  In local currency terms, growth was even more pronounced 
  with revenues up 76% year-on-year on the back of a 
  47% year-on-year expansion in tests performed (patients 
  served were up 25%) and a 14% increase in average revenue 
  per test. The steady rise in volumes recorded in the 
  last two years comes as a direct results of management's 
  strategic investments to revamp Echo-Lab's branches 
  coupled with effective marketing campaigns aimed at 
  stimulating demand for the venture's services. Moreover, 
  volumes are also benefitting from a gradual normalisation 
  of traffic following the easing of restrictive measures 
  enforced to curb the spread of Covid-19 throughout 
  2020, and the relative stability following protests 
  in the final weeks of last year. On a quarterly basis, 
  IDH's Nigeria operations reported revenues of EGP 13 
  million, more than double the figure recorded in the 
  second quarter of last year and 3% above revenues reported 
  in the first three months of 2021. 
 
  Sudan 
  In Sudan, IDH reported a 25% year-on-year decline in 
  revenues to EGP 9 million for 1H 2021. The country's 
  results were significantly impacted by the devaluation 
  of the Sudanese pound in early 2021 with the average 
  SDG/EGP rate in 1H 2021 standing at 0.07 versus 0.30 
  this time last year. Nonetheless, management's success 
  in increasing prices saw revenue in local currency 
  terms expand a remarkable 217% year-on-year in 1H 2021. 
  Revenue Contribution by Country                            1H 2020   1H 2021   Change 
  =========================  ========  ========  ======= 
   Egypt Revenue (EGP 
    mn)                           805     1,935     140% 
     Covid-19-related (EGP 
      mn)                          67       918   1,260% 
   Egypt Contribution             85%       84% 
  =========================  ========  ========  ======= 
   Jordan Revenue (EGP 
    mn)                           117       324     176% 
     Covid-19-related (EGP 
      mn)                          21       187     804% 
   Jordan Revenue (JOD 
    mn)                             5        15     177% 
   Jordan Contribution            12%       14% 
  =========================  ========  ========  ======= 
   Nigeria Revenue (EGP 
    mn)                            15        25      68% 
   Nigeria Revenue (NGN 
    mn)                           359       632      76% 
   Nigeria Contribution            2%        1% 
   Sudan Revenue (EGP 
    mn)                            12         9     -25% 
   Sudan Revenue (SDG 
    mn)                            41       129     217% 
   Sudan Contribution              1%      0.4% 
  =========================  ========  ========  ======= 
 
  --- 
  Patients Served and Tests Performed by Country                                    1H 2020   1H 2021   Change 
  =================================  ========  ========  ======= 
   Egypt Patients Served (mn)             2.6       4.1      56% 
   Egypt Tests Performed (mn)            10.1      14.6      44% 
       Covid-19-related tests (mn)        0.5       2.3     318% 
  =================================  ========  ========  ======= 
   Jordan Patients Served (k)             160       502     214% 
   Jordan Tests Performed (k)             810     1,447      79% 
       Covid-19-related tests (k)          37       342     822% 
   Nigeria Patients Served (k)             60        75      25% 
   Nigeria Tests Performed (k)             92       136      47% 
   Sudan Patients Served (k)               59        33     -44% 
   Sudan Tests Performed (k)              188       104     -45% 
  =================================  ========  ========  ======= 
   Total Patients Served (mn)             2.9       4.7      62% 
   Total Tests Performed (mn)            11.2      16.3      45% 
 
  Branches by Country                   30 June 2020   30 June 2021         Change 
  ================  =============  =============  ============= 
   Egypt                      410            443             33 
  ================  =============  =============  ============= 
   Jordan                      19             21              2 
  ================  =============  =============  ============= 
   Nigeria                     12             12              - 
  ================  =============  =============  ============= 
   Sudan                       21             19             -2 
  ================  =============  =============  ============= 
   Total Branches             462            495             33 
  ================  =============  =============  ============= 
 
  -Cost of Goods Sold 
  IDH's cost of goods sold increased 96% year-on-year 
  to EGP 988 million in 1H 2021, a much slower increase 
  than the 141% growth in revenues. As such, gross profit 
  for the period increased 193% year-on-year to EGP 1,305 
  million in 1H 2021, with an associated margin of 57%, 
  up 10 percentage points from 1H 2020. 
 
  COGS Breakdown as a Percentage of Revenue                                1H 2020   1H 2021 
  =============================  ========  ======== 
   Raw Materials                    15.9%     18.1% 
  =============================  ========  ======== 
   Wages & Salaries                 17.0%     12.9% 
  =============================  ========  ======== 
   Depreciation & Amortisation       8.4%      4.2% 
  =============================  ========  ======== 
   Other Expenses                   11.7%      7.8% 
  =============================  ========  ======== 
   Total                            53.0%     43.1% 
  =============================  ========  ======== 
 
  Raw material costs, which include cost of specialized 
  analysis at other laboratories, recorded EGP 414 million 
  in 1H 2021, and continued to make up the largest share 
  of total COGS at 42%. As a share of revenue, raw material 
  costs increased to 18% in 1H 2021 compared to 16% in 
  the same period of last year. The increase is partially 
  attributable to the retesting of Covid-19 positive 
  cases at IDH's Jordanian subsidiary. Moreover, the 
  year-on-year growth also partially reflects the low 
  base effect resulting from a one-off discount granted 
  by suppliers during the comparable period of last year. 
  It is worth highlighting that in 2Q 2021, raw material 
  costs as a percentage of revenue declined to 16.8% 
  versus the 19.3% share recorded in the previous quarter. 
  The fall comes on the back of lower Covid-19-positive 
  cases in Jordan combined with management's success 
  in driving down PCR test kit costs. It should be noted 
  that Jordan's raw material costs contributed to around 
  26% of the consolidated raw material costs for 1H 2021 
  and to 20% in 2Q 2021. Meanwhile, Egypt's raw materials 
  made up 71% of total raw material costs in the six-month 
  period, with a stable raw material to revenues ratio 
  of 14%. 
  Direct salaries and wages increased 84% year-on-year 
  to EGP 296 million in 1H 2021 and made up the second 
  largest share of total COGS for the six-month period 
  at 30%. The increase is largely attributable to a rise 
  in the share of profits allocated to direct salaries 
  and wages to EGP 87 million in 1H 2021 from EGP 26 
  million 1H 2020 following higher net profit recorded 
  at its Egyptian operations,(12) in addition to higher 
  bonuses/incentives paid during the period. 
  Direct depreciation and amortisation was up 22% year-on-year 
  in 1H 2021 to EGP 97 million, largely due to the incremental 
  amortisation of additional branches (IFRS 16 right-of-use 
  assets). 
  EBITDA 
  IDH's normalised EBITDA(13) grew a remarkable 227% 
  year-on-year to reach EGP 1,203 million in 1H 2021. 
  Normalised EBITDA margin expanded to 52% in 1H 2021 
  versus the 39% margin recorded in 1H 2020, on the back 
  of strong top-line growth and the dilution of fixed 
  costs. EBITDA growth was further bolstered by the normalization 
  of provisions booked during the first six months of 
  the year which in 1H 2021 stood at EGP 10 million versus 
  the EGP 28 million booked in 1H 2020 to account for 
  expected credit losses in accordance with IFRS 9. Normalised 
  EBITDA excludes one-off listing fees of EGP 29 million 
  incurred in 1H 2021 related to the Company's dual listing 
  on the EGX completed in May 2021. 
  On a quarterly basis, normalised EBITDA recorded EGP 
  603 million in 2Q 2021, up 267% year-on-year and largely 
  in line with the figure recorded in 1Q 2021. Normalised 
  EBITDA margin stood at 52% for the quarter, down from 
  the 53% margin recorded in 1Q 2021 as IDH booked higher 
  accounting fees (related to the EGX requirement to 
  publish quarterly reviewed financial statements) and 
  additional bonus payments to senior management during 
  2Q 2021. 
  In Egypt, EBITDA recorded EGP 1,075 million in 1H 2021, 
  up 223% year-on-year on the back of strong top-line 
  growth. EBITDA margin increased to 56% for the first 
  half of the year from 41% in 1H 2020. 
  IDH's Jordanian operations recorded a 240% year-on-year 
  rise in EBITDA to EGP 131 million for 1H 2021 on the 
  back of strong revenue growth for the six-month period. 
  In local currency terms, EBITDA grew 242% compared 
  to last year. EBITDA margin recorded 40% in the first 
  half of 2021, up from the 33% margin recorded in the 
  comparable period of 2020. 
  (12) According to IAS 1, 10% of Egypt's net profit 
  is allocated to direct wages and salaries. 
  (13) Normalised EBITDA is calculated as operating 
  profit plus depreciation and amortization and minus 
  one-off fees incurred in 1H 2021 related to the Company's 
  EGX listing completed in May 2021. 
 
  In Nigeria, EBITDA losses stood largely unchanged at 
  EGP 4.3 million in 1H 2021. However, it is important 
  to note that the figure includes a one-off adjustment 
  related to the previous year of EGP 3.2 million. 
  Finally, Sudan's EBITDA recorded EGP 0.7 million in 
  1H 2021, down 3% year-on-year with an EBITDA margin 
  of 8% compared to 6% last year. EBITDA for the period 
  was weighed down by the sharp SDG devaluation in February 
  of this year. However, in SDG terms, EBITDA more than 
  quadrupled to SDG 10 million supported by management's 
  pricing strategy aimed at mitigating the impacts of 
  the country's hyperinflationary environment. 
  Regional EBITDA in Local Currency Mn                 1H 2020   1H 2021   Change 
  -----------------  --------  --------  ------- 
   Egypt        EGP       332     1,075     223% 
   margin                 41%       56% 
   Jordan       JOD       1.7       5.9     242% 
   margin                 33%       40% 
   Nigeria      NGN      -101      -108       7% 
   margin                -28%      -17% 
   Sudan        SDG         2        10     309% 
   margin                  6%        8% 
 
 
  Interest Income / Expense 
  IDH recorded interest income of EGP 45 million in 1H 
  2021, up 34% year-on-year on the back of higher cash 
  balances during the period. 
 
  Interest expense recorded EGP 54 million in the first 
  half of 2021 versus EGP 37 million in 1H 2020. The 
  year-on-year increase in largely attributable to the 
  loan-related expenses incurred by IDH during the period 
  as the Company secured a new eight-year US$ 45 million 
  facility with the International Finance Corporation 
  (IFC) in May 2021. During 1H 2021, IDH booked loan-related 
  expenses of EGP 12.5 million including a front-end 
  fee, syndication fee, and legal advisory fees. The 
  facility will be used to finance IDH's growth plans 
  across new and existing markets. The loan has a four 
  year grace period and availability period of two years. 
  Higher interest expenses for the period also partially 
  reflect higher interest on lease liabilities related 
  to IFRS 16 following the addition of new branches, 
  as well as higher bank charges resulting from increased 
  penetration of, and reliance on, POS machines and electronic 
  payments during the period. 
  Interest Expense Breakdown EGP Mn                           1H 2020   1H 2021   Change 
  ===============================  ========  ========  ======= 
   Interest on Lease Liabilities 
    (IFRS 16)                          26.4      28.9       9% 
  ===============================  ========  ========  ======= 
   Interest Expenses on 
    Borrowings(14)                      6.9       4.8     -31% 
  ===============================  ========  ========  ======= 
   Loan-related Expenses                  -      12.5      N/A 
    on IFC facility 
  ===============================  ========  ========  ======= 
   Interest Expenses on 
    Leases                              2.2       2.8      30% 
  ===============================  ========  ========  ======= 
   Bank Charges                         1.2       5.4     337% 
  ===============================  ========  ========  ======= 
   Total Interest Expense              36.7      54.4      48% 
  ===============================  ========  ========  ======= 
 
 
  (14) Related to medium-terms loans for the Al Borg 
  Scan expansion (EGP 3.0 million) and the Group's new 
  headquarters in Cairo's Smart Village (EGP 1.7 million). 
  Foreign Exchange 
  IDH recorded a net foreign exchange loss of EGP 19 
  million in 1H 2021 compared to EGP 4 million in the 
  same six months a year ago. The figure largely reflects 
  FX losses on the back of the SDG devaluation versus 
  the EGP in February 2021. 
 
  Taxation 
  Tax expenses recorded in 1H 2021 were EGP 367 million 
  compared to EGP 95 million in the same period of last 
  year. The effective tax rate stood at 35% in the period 
  unchanged versus 1H 2020. It is important to note that 
  there is no tax payable for IDH's two companies at 
  the holding level, while tax was paid on profits generated 
  by operating subsidiaries. 
  Net Profit 
  IDH's consolidated net profit recorded EGP 668 million 
  in the first half of 2021, up an impressive 283% year-on-year. 
  Improving net profitability was supported by strong 
  revenue growth coupled with increased cost efficiencies, 
  higher interest income and normalising provisions for 
  the period. As such, net profit margin stood at 29% 
  in 1H 2021, up from 18% last year. 
 

ii. Balance Sheet Analysis

Assets

Property, Plant and Equipment

IDH held gross property, plant and equipment (PPE) of EGP 1,365 million as at 30 June 2021, up from the EGP 1,247 million as of 31 December 2020. Meanwhile, CAPEX outlays represented around 5% of consolidated revenues in the first half of the year.

Accounts Receivable and Provisions

As at 30 June 2021, accounts receivables' Days on Hand (DOH) stood at 97 days compared to 144 days at year-end 2020, displaying a sustained improvement in collections during the first six months of the year versus 2020. Accounts receivables' DOH is calculated based on credit revenues amounting to EGP 637.9 million during 1H 2021.

Provision for doubtful accounts established during the first six months of 2021 amounted to EGP 10 million, down from the EGP 28 million booked in provisions in the comparable period of last year. This comes as collection cycles continue to normalise following a period of heightened uncertainty in the first stages of the Covid-19 crisis.

Inventory

As at 30 June 2021, the Group's inventory balance reached EGP 142 million, up from EGP 100 million as at year-end 2020. Days Inventory Outstanding (DIO) decreased to 54 days as at 30 June 2021 from 72 days as at year-end 2020. The decline is largely attributable the high turnover of PCR testing for Covid-19.

Cash and Net Debt/Cash

IDH's cash balances increased to EGP 1,587(15) million as at 30 June 2021 compared to EGP 877 million as at 31 December 2020.

Net cash balance(16) amounted to EGP 904(17) million as at 30 June 2021, an increase of 181% compared to EGP 321 million as at 31 December 2020.

(15) The figure does not include dividend payments of US$ 29.1 million distributed to shareholders on 29 July 2021.

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

(17) Pre-dividend distribution.

 
 EGP million                          FY 2020    1H 2021 
===================================  ========  ========= 
 Cash and Investments at Amortised 
  Cost                                  876.8    1,587.0 
===================================  ========  ========= 
 Interest Bearing Debt ("Medium 
  Term Loans")(18)                       96.5       86.0 
===================================  ========  ========= 
 Lease Liabilities Property             389.9      468.0 
===================================  ========  ========= 
 Lease Liabilities Equipment             69.1      128.8 
===================================  ========  ========= 
 Net Cash Balance                       321.3      904.2 
===================================  ========  ========= 
 

(18) IDH's interest bearing debt as at 30 June 2021 is split as EGP 26 million related to its medium term facility with the Commercial International Bank (CIB) and EGP 57 million to its facility Ahli United Bank Egypt (AUBE).

Lease liabilities on property stood at EGP 468.0 million as at 1H 2021 versus the EGP 389.9 million booked in FY 2020. The increase is attributable to the addition of new branches during the first six months of 2021 as well as Al-Borg Scan's third branch which is expected to come online in September of this year. Meanwhile, financial obligations related to equipment recorded EGP 128.8 million as at 30 June 2021, up from EGP 69.1 million as at year-end 2020. The increase comes following the renewal of the Company's contracts and the addition of new equipment.

Liabilities

Accounts Payable

As at 30 June 2021, accounts payable balance stood at EGP 225 million up from EGP 178 million as at year-end 2020. However, the Group's days payable outstanding (DPO) stood at 91 days as at 30 June 2021 down from 127 days as year-end 2020. The decline primarily reflects the fact that PCR testing kit suppliers are paid within a period of 15 days.

iii. Cash Flow Analysis

Net cash flow from operating activities recorded EGP 866 million in the first half of 2021 compared to EGP 149 million in 1H 2020, demonstrating the company's continued strong cash generation ability.

iv. Dividend

A dividend of US$ 29.1 million (US$ 0.0485 per share) for the year ended 31 December 2020 was distributed to shareholders on 29 July 2021. This represents an increase of 4% compared to a final dividend of US$ 28 million in aggregate in the previous financial year.

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 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 2021

- Ends --

 
 INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH" 
  AND ITS SUBSIDIARIES 
 
 
 
 
 
 
  CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 
 
  FOR THE SIX MONTHSED 
  30 JUNE 2021 
 
 
 Index to the condensed consolidated interim financial statements               Pages 
-----------------------------------------------------------------------------  ------ 
 
 Condensed consolidated interim statement of financial position                  20 
 Condensed consolidated interim statement of profit or loss                      21 
 Condensed consolidated interim statement of comprehensive income                22 
 Condensed consolidated interim statement of changes in equity                   23 
 Condensed consolidated interim statement of cash flows                          24 
 Report on review of the condensed consolidated interim financial statements     25 
 Notes to the condensed consolidated interim financial statements               26-43 
 

Condensed Consolidated Interim Statement of Financial Position as of 30 June 2021

 
 (All amounts in Egyptian Pounds "EGP'000")                    30 June     31 December 
                                                Notes             2021            2020 
--------------------------------------------  --------  --------------  -------------- 
                                                               EGP'000         EGP'000 
                                                            (Reviewed)       (Audited) 
 ASSETS 
 Non-current assets 
 Property, plant and equipment                    4            848,419         787,590 
 Intangible assets and goodwill                   5          1,654,098       1,659,755 
 Right of use assets                              6            415,717         354,688 
 Financial investments                            7             10,282           9,604 
 Total non-current assets                                    2,928,516       2,811,637 
                                                        --------------  -------------- 
 
 Current assets 
 Inventories                                                   141,559         100,115 
 Trade and other receivables                      8            477,432         388,903 
 Investments at amortized cost                    9            329,056         276,625 
 Cash and cash equivalents                       10          1,257,983         600,130 
 Total current assets                                        2,206,030       1,365,773 
                                                        --------------  -------------- 
 Total assets                                                5,134,546       4,177,410 
                                                        ==============  ============== 
 
 LIABILITIES AND EQUITY 
 Equity 
 Share Capital                                               1,072,500       1,072,500 
 Share premium reserve                                       1,027,706       1,027,706 
 Capital reserve                                             (314,310)       (314,310) 
 Legal reserve                                                  51,641          49,218 
 Put option reserve                                          (618,047)       (314,057) 
 Translation reserve                                           155,760         145,617 
 Retained earnings                                             777,068         603,317 
 Equity attributable to the equity holders 
  of the parent                                              2,152,318       2,269,991 
 Non-controlling interest                                      152,110         156,383 
 Total equity                                                2,304,428       2,426,374 
                                                        --------------  -------------- 
 
 Non-current liabilities 
 Deferred tax liabilities                       19-C           324,800         240,333 
 Provisions                                                      3,479           3,408 
 Loans and borrowings                            13             56,996          67,617 
 Long-term financial obligations                 15            512,235         398,525 
 Long-term financial liability at fair 
  value                                          14             32,168          31,790 
 Total non-current liabilities                                 929,678         741,673 
                                                        --------------  -------------- 
 
 Current liabilities 
 Trade and other payables                        11            473,515         383,623 
 Shareholders dividend                                         454,472               - 
 Short-term financial obligations                15             84,554          60,517 
 Short-term financial liability at fair 
  value                                          12            585,880         282,267 
 Loans and borrowings                            13             25,946          25,416 
 Current tax liabilities                                       276,073         257,540 
 Total current liabilities                                   1,900,440       1,009,363 
                                                        --------------  -------------- 
 Total liabilities                                           2,830,118       1,751,036 
                                                        --------------  -------------- 
 Total equity and liabilities                                5,134,546       4,177,410 
                                                        ==============  ============== 
 
 
 These condensed consolidated interim financial statements were approved 
  and authorised for issue by the Board of Directors and signed on their 
  behalf on 1 September 2021 by: 
 ____________________                           ________________________________ 
 Dr. Hend El Sherbini                          Hussein Choucri 
 Chief Executive Officer                       Board member of the audit committee 
 
 
   The accompanying notes on pages 26-43 form an integral part of these 
   condensed consolidated interim financial statements. 
 

Condensed Consolidated Interim Statement of Profit or Loss for the Three and Six Months Period Ended 30 June 2021

 
 (All amounts in Egyptian 
  Pounds "EGP'000") 
 
                            For the three months                        For the six months period 
                             period ended 30 June                        ended 30 June 
                    Notes             2021                       2020             2021                       2020 
                   ------ 
                                   EGP'000                    EGP'000          EGP'000                    EGP'000 
-----------------  ------  ---------------  -------------------------  ---------------  ------------------------- 
                                (Reviewed)   (Unaudited)/(Unreviewed)       (Reviewed)   (Unaudited)/(Unreviewed) 
 
 Revenue            23           1,163,632                    449,931        2,293,170                    949,687 
 Cost of sales                   (496,742)                  (246,969)        (987,873)                  (503,490) 
 Gross profit                      666,890                    202,962        1,305,297                    446,197 
 
 Marketing 
  and advertising 
  expenses                        (37,848)                   (20,677)         (66,655)                   (45,675) 
 General and 
  administrative 
  expenses          17           (105,212)                   (53,654)        (176,132)                  (103,263) 
 Impairment 
  loss on trade 
  and other 
  receivable                       (5,181)                   (28,281)         (10,265)                   (28,281) 
 Other income                        8,346                     17,527           12,431                      7,890 
 Operating 
  profit                           526,995                    117,877        1,064,676                    276,868 
                           ---------------  -------------------------  ---------------  ------------------------- 
 
 Finance income     18              24,975                     15,421           45,248                     33,765 
 Finance cost       18            (39,212)                   (17,167)         (74,900)                   (40,972) 
 Net finance 
  cost                            (14,237)                    (1,746)         (29,652)                    (7,207) 
                           ---------------  -------------------------  ---------------  ------------------------- 
 Profit before 
  tax                              512,758                    116,131        1,035,024                    269,661 
                           ===============  =========================  ===============  ========================= 
 
 Income tax 
  expense           19-B         (186,142)                   (44,003)        (366,814)                   (95,036) 
 Profit for 
  the period                       326,616                     72,128          668,210                    174,625 
                           ===============  =========================  ===============  ========================= 
 
 Profit 
 attributed 
 to: 
 Equity holders 
  of the parent                    320,410                     74,856          646,440                    178,768 
 Non-controlling 
  interests                          6,206                    (2,728)           21,770                    (4,143) 
                                   326,616                     72,128          668,210                    174,625 
                           ===============  =========================  ===============  ========================= 
 Earnings per share (expressed 
  in EGP): 
 Basic and 
  diluted 
  earnings 
  per share         21 
                                      0.53                       0.12             1.08                       0.30 
                           ===============  =========================  ===============  ========================= 
 
 The accompanying notes on pages 26-43 form an integral part of 
  these condensed consolidated interim financial statements. 
 

Condensed Consolidated Interim Statement of Comprehensive Income for the Three and Six Month Period Ended 30 June 2021

 
 (All amounts in Egyptian Pounds 
  "EGP'000") 
 
                           For the three months                          For the six months 
                            period ended 30 June                          period ended 30 June 
                                       2021                       2020           2021                       2020 
                                    EGP'000                    EGP'000        EGP'000                    EGP'000 
------------------------  -----------------  -------------------------  -------------  ------------------------- 
                                 (Reviewed)   (Unaudited)/(Unreviewed)     (Reviewed)   (Unaudited)/(Unreviewed) 
 
 Net profit                         326,616                     72,128        668,210                    174,625 
 Items that may be 
 reclassified 
 to profit or loss: 
 Currency translation 
  differences                       (2,062)                    (6,074)         12,375                   (21,790) 
 Other comprehensive 
  income 
  for the period net of 
  tax                               (2,062)                    (6,074)         12,375                   (21,790) 
                          -----------------  -------------------------  -------------  ------------------------- 
 Total comprehensive 
  income 
  for the period                    324,554                     66,054        680,585                    152,835 
                          =================  =========================  =============  ========================= 
 
 Attributed to: 
 Equity holders of the 
  parent                            320,692                     67,080        656,583                    165,941 
 Non-controlling 
  interests                           3,862                    (1,026)         24,002                   (13,106) 
                                    324,554                     66,054        680,585                    152,835 
                          =================  =========================  =============  ========================= 
 The accompanying notes on pages 26-43 form an integral part of these 
  condensed consolidated interim financial statements. 
 

Condensed Consolidated Interim Statement of Change in Equity for the Six Month Period Ended 30 June 2021

 
                                                                                                         Attributable to owners of the Parent 
                            ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 
                                           Share                                                                                                             Total attributable 
(All amounts in Egyptian        Share    premium              Capital             Legal            Put option          Translation              Retained          to the owners     Non-controlling                   Total 
 Pounds "EGP'000")            capital    reserve              reserve          reserve*               reserve              reserve              earnings          of the Parent           interests                  equity 
-------------------------   ---------  ---------  -------------------  ----------------  --------------------  -------------------  --------------------  ---------------------  ------------------  ---------------------- 
 
At 1 January 2021           1,072,500  1,027,706            (314,310)            49,218             (314,057)              145,617               603,317              2,269,991             156,383               2,426,374 
                            ---------  ---------  -------------------  ----------------  --------------------  -------------------  --------------------  ---------------------  ------------------  ---------------------- 
Profit for the period               -          -                    -                 -                     -                    -               646,440                646,440              21,770                 668,210 
Other comprehensive 
 income for the period              -          -                    -                 -                     -               10,143                     -                 10,143               2,232                  12,375 
Total comprehensive 
 income                             -          -                    -                 -                     -               10,143               646,440                656,583              24,002                 680,585 
                            ---------  ---------  -------------------  ----------------  --------------------  -------------------  --------------------  ---------------------  ------------------  ---------------------- 
Transactions with owners 
 of the Company 
Contributions and 
distributions 
Dividends                           -          -                    -                 -                     -                    -             (454,472)              (454,472)            (21,998)               (476,470) 
Legal reserve formed 
 during the period                  -          -                    -             2,423                     -                    -               (2,423)                      -                   -                       - 
Movement in put option 
 liability                          -          -                    -                 -             (303,990)                    -                     -              (303,990)                   -               (303,990) 
Restatement for impact 
 of hyperinflation                  -          -                    -                 -                     -                    -              (15,794)               (15,794)             (6,277)                (22,071) 
Total contributions 
 and distributions                  -          -                    -             2,423             (303,990)                    -             (472,689)              (774,256)            (28,275)               (802,531) 
                            ---------  ---------  -------------------  ----------------  --------------------  -------------------  --------------------  ---------------------  ------------------  ---------------------- 
Balance at 30 June 2021 
 (Reviewed)                 1,072,500  1,027,706            (314,310)            51,641             (618,047)              155,760               777,068              2,152,318             152,110               2,304,428 
                            =========  =========  ===================  ================  ====================  ===================  ====================  =====================  ==================  ====================== 
 
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 
 loss 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 
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 period                         -          -                    -                 -                     -                    -                     -                      -              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)/(Unreviewed)   1,072,500  1,027,706            (314,310)            46,905             (209,815)              142,996               632,790              2,398,772             149,766               2,548,538 
                            =========  =========  ===================  ================  ====================  ===================  ====================  =====================  ==================  ====================== 
 

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

The accompanying notes on pages 26-43 form an integral part of these condensed consolidate interim financial statements.

Condensed Consolidated Interim Statement of Cash Flow For the Six Month Period Ended 30 June 2021

 
 (All amounts in Egyptian Pounds                                 30 June 
  "EGP'000")                                  Note                  2021               30 June 2020 
 
                                                                 EGP'000                       EGP'000 
                                                              (Reviewed)      (Unaudited)/(Unreviewed) 
 Cash flows from operating activities 
 Profit for the period before tax                              1,035,024                       269,661 
 Adjustments                                                           -                             - 
 Depreciation, property, plant 
  and equipment and right of use                                 105,745                        87,814 
 Amortization                                                      3,049                         2,672 
 Gain on disposal of Property, 
  plant and equipment                                               (45)                          (65) 
 Impairment in trade receivables                                  10,265                        28,281 
 Interest expense                         18                      49,011                        36,685 
 Interest income                          18                    (45,248)                      (33,765) 
 Equity settled shares financial 
  investments                                                      (678)                       (3,464) 
 ROU Asset/Lease Termination                                       (464)                             - 
 Loss in hyperinflationary net 
  monetary position                       18                       1,204                         (192) 
 Unrealised foreign currency exchange 
  loss                                    18                      19,321                         4,479 
 Net cash from operating activities 
  before changes in working capital                            1,177,184                       392,106 
 
 Change in Provisions                                                 72                         (851) 
 Change in inventory                                            (41,444)                      (35,273) 
 Change in trade and other receivables                         (103,537)                        34,429 
 Change in trade and other payables                               74,710                      (77,723) 
 Cash generated from operating 
  activities before income tax payment                         1,106,985                       312,688 
                                               -------------------------   --------------------------- 
 Income tax paid during period                                 (240,624)                     (163,571) 
 Net cash from operating activities                              866,361                       149,117 
                                               -------------------------   --------------------------- 
 
 Cash flows from investing activities 
 Interest received                                                44,866                        33,606 
 Decrease in restricted cash                                           -                           247 
 Payments for the purchase of short 
  term investments                                             (309,835)                     (251,956) 
 Proceeds for the sale of short 
  term investments                                               257,404                       221,617 
 Acquisition of Property, plant 
  and equipment                           4                     (86,530)                      (58,600) 
 Acquisition of intangible assets         5                      (1,104)                       (1,770) 
 Proceeds from sale of Property, 
  plant and equipment                                              3,036                           193 
 Net cash flows used in investing 
  activities                                                    (92,163)                      (56,663) 
                                               -------------------------   --------------------------- 
 
 Cash flows from financing activities 
 Proceeds from borrowings                                          2,617                             - 
 Repayments of borrowings                                       (12,708)                       (5,612) 
 Interest paid                                                  (48,640)                      (35,743) 
 Dividends paid                                                 (21,998)                             - 
 Payment of finance lease liabilities                           (32,401)                      (43,869) 
 Injection of cash by non controlling 
  interest                                                             -                        17,372 
 Net cash flows used in financing 
  activities                                                   (113,130)                      (67,852) 
                                               -------------------------   --------------------------- 
 
 Net increase in cash and cash 
  equivalent                                                     661,068                        24,602 
 Cash and cash equivalent at the 
  beginning of the period                                        600,130                       408,892 
 Effect of exchange rate fluctuations 
  on cash held                                                   (3,215)                        33,935 
 Cash and cash equivalent at the 
  end of the period                       10                   1,257,983                       467,429 
                                               =========================   =========================== 
 
 

The accompanying notes on pages 26-43 form an integral part of these condensed consolidated interim financial statements.

Review report on the condensed consolidated interim financial statements

To: The board of directors of Integrated Diagnostics Holdings PLC "IDH"

Introduction

We have reviewed the accompanying condensed consolidated interim statement of financial position of Integrated Diagnostics Holdings plc "IDH" (the "Company") and its subsidiaries (together the "Group") as at 30 June 2021, and the related condensed consolidated statements of profit or loss and comprehensive income for the three-month and six-month periods then ended, and condensed consolidated statements of changes in equity and cash flows for the six-month period then ended, and explanatory notes. Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Accounting Standard 34, 'Interim financial reporting' ("IAS 34") as issued by the International Accounting Standards Board (IASB). Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information are not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting".

Other matter

As Integrated Diagnostics Holdings plc "IDH" was listed in the Egyptian stock exchange for the first time on May 5,2021, the Company did not prepare and publish the condensed consolidated interim financial statements for the three month period ended 31 March 2021. The comparative information for the condensed consolidated interim statement of financial position is based on the audited consolidated financial statements as at 31 December 2020. The comparative information for the condensed consolidated interim statements of profit or loss, comprehensive income for the three-month s and six-month s periods then ended 30 June 2020 , and condensed consolidated statements of changes in equity and cash flows for the six-month period then ended 30 June 2020 , and related explanatory notes, have not been audited or reviewed.

Ashraf Mamdouh

R.A.A. 26231

F.R.A. 383

1 September 2021

Cairo

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

   1.    Reporting entity 

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

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

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

These condensed consolidated interim financial statements were approved for issue by the Directors of the Company on 01 September 2021.

   2.    Basis of preparation 
   A)    Statement of compliance 

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

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

   B)    Basis of measurement 

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

   C)    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).

   D)    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 2020.

   3.    Significant accounting policies 

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

   4.    Property, plant and equipment 
 
                                              Medical,                                          Building & 
                                              electric                                           Leasehold 
                                         & information                         Fixtures,     Assets in the 
                                                system       Leasehold          fittings         course of 
                    Land & Buildings        equipment*    improvements         &vehicles      construction       Total 
-----------------  -----------------  ----------------  --------------  ----------------  ----------------  ---------- 
 Cost 
 At 1 January 
  2021                       332,345           565,697         254,474            73,261            21,207   1,246,984 
 Additions                         -           112,970          24,395             9,297             2,654     149,316 
 Hyperinflation 
  effect                           -          (13,330)               -                 -                 -    (13,330) 
 Disposals                         -           (1,417)           (749)             (591)                 -     (2,757) 
 Transfers                         -                 -           2,594                 -           (2,594)           - 
 Translation 
  differences                  (351)           (9,891)         (2,379)           (1,682)           (1,084)    (15,387) 
                   -----------------  ----------------  --------------  ----------------  ----------------  ---------- 
 At 30 June 2021 
  (Reviewed)                 331,994           654,029         278,335            80,285            20,183   1,364,826 
                   -----------------  ----------------  --------------  ----------------  ----------------  ---------- 
 
 Depreciation 
 At 1 January 
  2021                        47,724           245,929         138,511            27,230                 -     459,394 
 Charge for the 
  period                       2,688            43,211          17,348             3,249                 -      66,496 
 On disposals                      -           (1,282)           (612)             (466)                 -     (2,360) 
 Translation 
  differences                   (33)           (4,950)           (910)           (1,230)                 -     (7,123) 
                   -----------------  ----------------  --------------  ----------------  ----------------  ---------- 
 At 30 June 2021 
  (Reviewed)                  50,379           282,908         154,337            28,783                 -     516,407 
                   -----------------  ----------------  --------------  ----------------  ----------------  ---------- 
 
 Net book value              281,615           371,121         123,998            51,502            20,183     848,419 
                   =================  ================  ==============  ================  ================  ========== 
 
 At 31 December 
  2020 (Audited)             284,621           319,768         115,963            46,031            21,207     787,590 
                   =================  ================  ==============  ================  ================  ========== 
 

Property, plant and equipment (continued)

   *      Laboratory equipment 

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

   5.    Intangible assets and goodwill 

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

 
                                           Goodwill   Brand Name   Software       Total 
---------------------------------------  ----------  -----------  ---------  ---------- 
                                            EGP'000      EGP'000    EGP'000     EGP'000 
 Cost 
 Balance at 1 January 2021                1,261,808      383,922     67,157   1,712,887 
 Additions                                        -            -      1,104       1,104 
 Effect of movements in exchange rates      (3,274)        (388)       (57)     (3,719) 
                                         ----------  -----------  ---------  ---------- 
 Balance at 30 June 2021 (Reviewed)       1,258,534      383,534     68,204   1,710,272 
                                         ----------  -----------  ---------  ---------- 
 
 Amortisation and impairment 
 Balance at 1 January 2021                    1,849            -     51,283      53,132 
 Amortisation                                     -            -      3,049       3,049 
 Effect of movements in exchange rates            -            -        (7)         (7) 
                                         ----------  -----------  ---------  ---------- 
 Balance at 30 June 2021 (Reviewed)           1,849            -     54,325      56,174 
                                         ----------  -----------  ---------  ---------- 
 
 Carrying amount 
 Balance at 31 December 2020 (Audited)    1,259,959      383,922     15,874   1,659,755 
                                         ==========  ===========  =========  ========== 
 
 Balance at 30 June 2021 (Reviewed)       1,256,685      383,534     13,879   1,654,098 
                                         ==========  ===========  =========  ========== 
 

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 2021.

   6.    Right of use assets 
 
                                              30 June 2021   31 December 2020 
                                                EGP'000          EGP'000 
-------------------------------------------  -------------  ----------------- 
                                               (Reviewed)       (Audited) 
 Balance at 1 January                           354,688          264,763 
 Addition for the period / year                 105,914          152,030 
 Depreciation charge for the period / year      (39,249)         (60,803) 
 Terminated contracts                           (1,952)          (1,302) 
 Translation                                    (3,684)             - 
 Balance at 31 December                         415,717          354,688 
                                             =============  ================= 
 
   7.    Financial investments 
 
                             30 June   31 December 2020 
                                2021 
-----------------------  -----------  ----------------- 
                             EGP'000            EGP'000 
                          (Reviewed)          (Audited) 
 
 Equity i nvestments *        10,282              9,604 
                         ----------- 
                              10,282              9,604 
                         ===========  ================= 
 

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

- Ownership percentage in JSC Mega Labat the transaction date on April 8, 2019, and as of December 31, 2020, was 8.25%

- On April 8,2019 Almakhbariyoun AL Arab (Biolab) has signed a shareholders Agreement with JSC Mega Lab (the company) and JSC Georgia healthcare group (GHG), whereas Biolab shall have a put option, exercisable within 12 months immediately after the expiration of (5) year period from the signing date, which allows Biolab's all shares at a price of equity value of biolab's stake (have value of USD 400,000) plus higher of 20 % annual IRR or 6X EV/EBITDA (of the financial year immediately preceding the call option exercise date. In case the Management Agreement or the purchase Agreement and /or the SLA is terminated /cancelled within 6 months period from the date of such termination /cancellation, GHG shall have a call option , which allows the GHG to purchase Biolab's all Share at a price of the equity value of Biolab's stake in the company (have value of USD 400,000)plus 20% annual IRR, if JCI accreditation is not obtained, immediately after the expiration of the addition 12 months period the GHG shall have a call option ( the Accelerated Call Option ) exercisable within 6 months period the GHG to purchase Biolab's all shares at price of the equity value of biolab's stake in the company ( having value of USD 400,000) plus 20% annual IRR.

   8.    Trade and other receivables 
 
                               30 June 2021   31 December 2020 
--------------------------  ---------------  ----------------- 
                                    EGP'000            EGP'000 
                                 (Reviewed)          (Audited) 
 
 Trade receivables - net            342,505            325,770 
 Prepayments                         29,202             19,363 
 Due from related parties             3,083              2,910 
 Other receivables*                 101,255             39,854 
 Accrued revenue                      1,387              1,006 
                                    477,432            388,903 
                            ===============  ================= 
 

* Other receivables during the period ended 30 June 2021, including EGP 26m related to advance to suppliers for purchasing fixed assets and leasehold improvement the new and existing pathology branches.

Capital commitment

The Group has capital commitments (off balance sheet) as of 30 June 2021 of EGP56M.

   9.    Investments at amortised cost 
 
                        30 June 2021   31 December 2020 
---------------------  -------------  ----------------- 
                             EGP'000            EGP'000 
                          (Reviewed)          (Audited) 
 
 Fixed-term deposits          27,970                  - 
 Treasury bills              301,086            276,625 
                             329,056            276,625 
                       =============  ================= 
 

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

10. Cash and cash equivalents

 
                                            30 June 2021   31 December 2020 
-----------------------------------------  -------------  ----------------- 
                                                 EGP'000            EGP'000 
                                              (Reviewed)          (Audited) 
 
 Short-term deposits (less than 90 days)          30,220            162,380 
 Treasury bills (less than 90 days)                    -            184,525 
 Cash at banks and on hand                     1,227,763            253,225 
                                               1,257,983            600,130 
                                           =============  ================= 
 

11. Trade and other payables

 
                           30 June 2021   31 December 2020 
                          -------------  ----------------- 
                                EGP'000            EGP'000 
                             (Reviewed)          (Audited) 
 
 Trade payable                  221,994            177,602 
 Accrued expenses               190,919            151,201 
 Due to related parties           2,715                439 
 Other payables                  54,800             50,959 
 Accrued finance cost             3,087              3,422 
                                473,515            383,623 
                          =============  ================= 
 

12. Short-term financial liability at fair value

 
                         30 June 2021   31 December 2020 
----------------------  -------------  ----------------- 
                              EGP'000            EGP'000 
                           (Reviewed)          (Audited) 
 
 Put option liability         585,880            282,267 
                              585,880            282,267 
                        =============  ================= 
 

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

During the historic acquisitions of Makhbariyoun Al Arab (Biolabs) which took place at 31 December 2011, the Group entered into separate put option arrangements to purchase the remaining equity interests 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 the completion of the original purchase agreement, which fell due in June 2016. The vendor has not exercised this right at 30 June 2021.

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 2021, loan amount EGP 110m had been drawn down in full. The loan contains the following financial covenants which if breached will mean the loan is repayable on demand:

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

" Financial leverage ": total liabilities divided by net equity

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

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

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

" Current ratios ": Current assets divided current liabilities.

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

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

B) In July 2018, AL-Borg lab, one of IDH subsidiaries, was granted a medium term loan amounting to EGP 130.5m from Ahli united bank "AUB Egypt" to finance the investment cost related to the expansion into the radiology segment. As at 30 June 2021 only EGP 57m had been drawn down from the total facility available. The loan contains the following financial covenants which if breached will mean the loan is repayable on demand:

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

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

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

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

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

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

Loan and borrowings (continued)

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

"Current ratios": Current assets divided current liabilities.

The terms and conditions of outstanding loans are as follows:

 
                      Currency    Nominal interest rate     Maturity     30 June 2021      31 December 2020 
------------------  -----------  ----------------------  -------------  -------------    ------------------- 
                                                                           EGP'000             EGP'000 
 
 CIB - Bank            EGP       Secured rate 9.5%     5 April 2022            25,946               38,654 
                                   CBE corridor 
 AUB - Bank            EGP            rate+1%          26 April 2026           56,996               54,379 
                                                                               82,942               93,033 
 Amount held as: 
 Current liability                                                             25,946               25,416 
 Non- current liability                                                        56,996               67,617 
                                                                               82,942               93,033 
                                                                        =============   ================== 
 
 
   *      As at 30-June-21 corridor rate 9.25% (2020: 9.25%) 

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

C) On 25 May 2021, IDH has secured an 8 years USD 45 million debt financing package from the International Finance Corporation (IFC). The eight-year loan will be used to finance IDH's growth plans across new and existing markets and help expand access to high-quality diagnostic services in high growth emerging markets, in addition to its current presence in Egypt, Jordan, Nigeria and Sudan. The loan has an availability period of two years. As of June 30, 2021, the USD 45 million debt has not been withdrawn by IDH .

14. Long-term financial liability at fair value

 
                          30 June 2021   31 December 2020 
-----------------------  -------------  ----------------- 
                               EGP'000            EGP'000 
                            (Reviewed)          (Audited) 
 
 Put option liability*          32,168             31,790 
                                32,168             31,790 
                         =============  ================= 
 

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

There are multiple ways to calculate the put option including Discounted Cash Flow, Multiples, Net assets. Multiple valuation was applied and EGP 32.1 million was calculated as the valuation as at 30 June 2021 EGP 32m (2020; EGP 31.7m).

15. Financial obligations

 
                                                30 June 2021   31 December 2020 
---------------------------------------------  -------------  ----------------- 
                                                     EGP'000            EGP'000 
                                                  (Reviewed)          (Audited) 
 
 Lease liabilities building                          467,954            389,920 
 Financial obligations- laboratory equipment         128,835             69,122 
                                                     596,789            459,042 
                                               =============  ================= 
 

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

 
                                           30 June 2021 
                                  Minimum 
                                 payments     Interest    Principal 
----------------------------  -----------  -----------  ----------- 
                                  EGP'000      EGP'000      EGP'000 
                               (Reviewed)   (Reviewed)   (Reviewed) 
 
 Less than one year               150,979       66,425       84,554 
 Between one and five years       551,972      218,691      333,281 
 More than five years             215,944       36,990      178,954 
                                  918,895      322,106      596,789 
                              ===========  ===========  =========== 
 

Financial obligations (continued)

 
                                           31 December 2020 
                               Minimum payments    Interest   Principal 
----------------------------  -----------------  ----------  ---------- 
                                        EGP'000     EGP'000     EGP'000 
                                      (Audited)   (Audited)   (Audited) 
 
 Less than one year                     126,998      66,481      60,517 
 Between one and five years             463,646     176,312     287,334 
 More than 5 years                      131,605      20,414     111,191 
                                        722,249     263,207     459,042 
                              =================  ==========  ========== 
 

Amounts recognised in profit or loss:

 
                             For the three months                     For the six months 
                                 ended 30 June                           ended 30 June 
                                               2021          2020                                   2021          2020 
-------------------------  ------------------------  ------------  ------------------------  -----------  ------------ 
                                            EGP'000       EGP'000                                EGP'000       EGP'000 
                                         (Reviewed)   (Unaudited)                             (Reviewed)   (Unaudited) 
 
 Interest on lease 
  liabilities                                14,597        14,131                                 28,872        26,388 
 Expenses related to 
  short-term lease                            3,420         3,148                                  8,639         4,294 
 

16. Related party transactions

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

 
                                                                                    30 June 2021 
                                                                             Transaction 
                              Nature of               Nature of             amount of the 
 Related Party               transaction             relationship              period           Balance 
-------------------      -------------------      -----------------  ---  ----------------   ------------ 
                                                                               EGP'000          EGP'000 
 
                              Expenses paid on 
 Life Scan (S.A.E.)*               behalf               Affiliate                   -               350 
 
 International                Expenses paid on 
  Fertility (IVF)**                behalf               Affiliate                   -              1,767 
 
                                                     Entity owned by 
                                                      Company's board 
 H.C Security                 Provide service             member                   132             (231) 
 
 Life Health Care            Medical Test          Entity owned by               371               - 
                               analysis             Company's CEO 
 
        Provide service "Medical insurance"                                    (8,136)          (2,484) 
 
 
                                                      Bio. Lab C.E.O 
 Dr. Amid Abd Elnour        Put option liability      and shareholder           (303,612)        (585,879) 
 
 
      Related party transactions (continued) 
 Integrated                 Rental income          Entity owned by                    (17)              - 
 Treatment for                                      Company's CEO 
 Kidney Diseases 
 (S.A.E.) 
               Medical Test analysis                                                   155            966 
 Total                                                                                          (585,511) 
                                                                                             ============ 
 
 
 
                                                                                                31 December 2020 
                                                                                         Transaction 
                                                                                       amount of the 
 Related Party         Nature of transaction        Nature of relationship                      year      Balance 
----------------      ----------------------      --------------------------      ------------------   ---------- 
                                                                                             EGP'000      EGP'000 
                          Expenses paid on 
 Life Scan (S.A.E) *            behalf                   Affiliate                                 6          350 
 
 International            Expenses paid on 
  Fertility (IVF)**             behalf                   Affiliate                           (3,449)        1,767 
 
                                                 Entity owned by Company's 
 H.C Security              Provide service              board member                           (412)         (76) 
 
                                                 Entity owned by Company's 
 Life Health Care          Provide service                  CEO                             (11,058)        (363) 
 
                                                    Bio. Lab C.E.O and 
 Dr. Amid Abd Elnour    Put option liability            shareholder                         (83,126)    (282,267) 
 
 
 Integrated                Rental income           Entity owned by Company's                     344            - 
 Treatment for                                                CEO 
 Kidney Diseases 
 (S.A.E) 
   Medical Test analysis                                                                         377          793 
                                                                                                        (279,796) 
                                                                                                       ========== 
 
 

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

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

Compensation of key management personnel of the Group

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

 
                                                                        30-Jun                  30-Jun 
                                                                          2021                    2020 
                                                       -----------------------  ---------------------- 
                                                                       EGP'000                 EGP'000 
                                                                    (Reviewed)             (Unaudited) 
                                                                                          (Unreviewed) 
 
 Short-term employee benefits                                           35,617                  29,196 
                                                       -----------------------  ---------------------- 
 Total compensation paid to key management personnel                    35,617                  29,196 
                                                       =======================  ====================== 
 

17. General and administrative expenses

 
                        For the three months ended 30 June     For the six months ended 30 June 
                             2021               2020               2021               2020 
--------------------  -----------------  ------------------  ----------------  ----------------- 
                           EGP'000             EGP'000            EGP'000           EGP'000 
                             (Reviewed)         (Unaudited)        (Reviewed)        (Unaudited) 
                                               (Unreviewed)                         (Unreviewed) 
 Wages and Salaries              34,623              25,272            61,636             49,383 
 Depreciation                     5,659               5,271            11,187             10,414 
 Other expenses*                 64,930              23,111           103,309             43,466 
                      -----------------  ------------------  ----------------  ----------------- 
 Total                          105,212              53,654           176,132            103,263 
                      =================  ==================  ================  ================= 
 
   *      Other expenses included EGP 29m related to dual listing expenses in Egyptian Exchange. 

18. Net finance income

 
                                            For the three months ended 30 June     For the six months ended 30 June 
                                                 2021               2020               2021               2020 
----------------------------------------  -----------------  ------------------  ----------------  ----------------- 
                                               EGP'000             EGP'000            EGP'000           EGP'000 
                                                 (Reviewed)         (Unaudited)        (Reviewed)        (Unaudited) 
                                                                   (Unreviewed)                         (Unreviewed) 
 Finance income 
 Interest income                                     24,975              15,421            45,248             33,765 
                                          -----------------  ------------------  ----------------  ----------------- 
 Total finance income                                24,975              15,421            45,248             33,765 
 
 Finance cost 
 (Loss) / gain on hyperinflationary net 
  monetary position                                 (1,204)                 192           (1,204)                192 
 Bank charges                                       (2,848)               (414)           (5,364)            (1,228) 
 Interest expense                                  (30,574)            (18,193)          (49,011)           (35,457) 
 Net foreign exchange (loss) / gain                 (4,586)               1,248          (19,321)            (4,479) 
                                          -----------------  ------------------  ----------------  ----------------- 
 Total finance cost                                (39,212)            (17,167)          (74,900)           (40,972) 
 
 Net finance cost                                  (14,237)             (1,746)          (29,652)            (7,207) 
                                          =================  ==================  ================  ================= 
 

19. Tax

   A)    Tax expense 

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

Tax (Continued)

   B)    Income tax 

Amounts recognised in profit or loss as follow:

 
                              For the three                                              For the six months 
                              months ended 30                                               ended 30 June 
                                   June 
                               2021                 2020                                      2021                 2020 
---------------  ------------------  -------------------  ----------------  ----------------------  ------------------- 
                            EGP'000              EGP'000                                   EGP'000              EGP'000 
                         (Reviewed)          (Unaudited)                                (Reviewed)          (Unaudited) 
                                            (Unreviewed)                                                   (Unreviewed) 
 Current tax: 
 Current year             (143,535)             (40,637)                                 (282,345)             (86,209) 
 Deferred tax: 
 Deferred tax 
  arising on 
  undistributed 
  reserves in 
  subsidiaries             (43,068)              (4,058)                                  (83,780)             (10,390) 
 Relating to 
  origination 
  and reversal 
  of temporary 
  differences                   461                  692                                     (689)                1,563 
                 ------------------  -------------------                    ----------------------  ------------------- 
 Total Deferred 
  tax expense)             (42,607)              (3,366)                 -                (84,469)              (8,827) 
 
 Tax expense 
  recognised in 
  profit 
  or loss                 (186,142)             (44,003)                                 (366,814)             (95,036) 
                 ==================  ===================                    ======================  =================== 
 
   C)    Deferred tax liabilities 

Deferred tax relates to the following:

 
                                                         30-Jun-21       31-Dec-20 
------------------------------------------------  ----------------  -------------- 
                                                       Liabilities     Liabilities 
                                                           EGP'000         EGP'000 
                                                        (Reviewed)       (Audited) 
 
 Property, plant and equipment                            (18,697)        (18,334) 
 Intangible assets                                       (105,840)       (106,702) 
 Undistributed reserves from group subsidiaries          (200,336)       (116,657) 
 Provisions and finance lease liabilities                       73           1,360 
                                                  ---------------- 
 Net deferred tax assets (liabilities)                   (324,800)       (240,333) 
                                                  ================  ============== 
 

20. Financial Instruments

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

Contingent liabilities

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

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

21. Distributions made and proposed

 
                                                                                         30 June    31 December 2020 
                                                                                            2021 
----------------------------------------------------------------------------------  ------------   ----------------- 
                                                                                         EGP'000             EGP'000 
                                                                                      (Reviewed)         (Unaudited) 
 Cash dividends on ordinary shares declared and paid:                                                   (Unreviewed) 
 US$ 0.0485 per share (2020 nil)                                                         454,472                   - 
                                                                                    ------------   ----------------- 
                                                                                         454,472                   - 
                                                                                    ============   ================= 
 After the balance sheet date, the following dividends were proposed by the 
  directors (the 
  dividends have not been provided for):                                                        -            450,024 
 Nil per qualifying ordinary share (2020: 0.187) per share                                      -            450,024 
                                                                                    =============  ================= 
 

22. Earnings per share

 
                                            For the three months ended 30 June     For the six months ended 30 June 
                                                       2021                2020              2021               2020 
----------------------------------------  -----------------  ------------------  ----------------  ----------------- 
                                                    EGP'000             EGP'000           EGP'000            EGP'000 
                                                 (Reviewed)         (Unaudited)        (Reviewed)        (Unaudited) 
                                                                   (Unreviewed)                         (Unreviewed) 
 Profit attributed to owners of the 
  parent                                            320,410              74,856           646,440            178,768 
 Weighted average number of ordinary 
  shares in issue                                   600,000             600,000           600,000            600,000 
                                          -----------------  ------------------  ----------------  ----------------- 
 Basic and diluted earnings per share                  0.53                0.12              1.08               0.30 
                                          =================  ==================  ================  ================= 
 

There is no dilutive effect from equity.

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

23. Segment reporting

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

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

 
                                                              Revenue by geographic location 
--------------------------------------  ------------------------------------------------------------------------- 
 For the three months ended              Egypt region   Sudan region   Jordan region   Nigeria region       Total 
--------------------------------------  -------------  -------------  --------------  ---------------  ---------- 
                                              EGP'000        EGP'000         EGP'000          EGP'000     EGP'000 
 
 30 June 2021 (Reviewed)                    1,014,597          2,514         133,648           12,873   1,163,632 
 30 June 2020 (Unaudited)/ (Reviewed)         381,473          2,571          59,495            6,392     449,931 
 
 
                                                              Revenue by geographic location 
--------------------------------------  ------------------------------------------------------------------------- 
 For six months period ended             Egypt region   Sudan region   Jordan region   Nigeria region       Total 
--------------------------------------  -------------  -------------  --------------  ---------------  ---------- 
                                              EGP'000        EGP'000         EGP'000          EGP'000     EGP'000 
 
 30 June 2021 (Reviewed)                    1,935,059          9,267         323,518           25,326   2,293,170 
 30 June 2020 (Unaudited)/ (Reviewed)         804,994         12,291         117,343           15,059     949,687 
 
 
                                                      Net profit / (loss) by geographic location 
----------------------------------  ----------------------------------------------------------------------------- 
 For the three months ended              Egypt region   Sudan region   Jordan region   Nigeria region       Total 
--------------------------------------  -------------  -------------  --------------  ---------------  ---------- 
                                              EGP'000        EGP'000         EGP'000          EGP'000     EGP'000 
 
30 June 2021 (Reviewed)                       324,939        (4,487)          31,731         (10,790)     341,393 
30 June 20 (Unaudited)/ (Reviewed)             76,098        (3,832)           8,644          (8,782)      72,128 
 
 
 
                                                   Net profit / (loss) by geographic location 
 
For six month period ended              Egypt region  Sudan region  Jordan region  Nigeria region        Total 
                                             EGP'000       EGP'000        EGP'000         EGP'000      EGP'000 
 
30 June 2021 (Reviewed)                      628,033      (14,801)         83,247        (16,449)      680,030 
30 June 20 (Unaudited)/ (Reviewed)           179,204       (4,537)         15,062        (15,104)      174,625 
 
 

Segment reporting (continued)

 
                      Revenue by type                      Net profit by type 
             For the three months ended 30 June    For the three months ended 30 June 
                        2021                2020              2021                2020 
                     EGP'000             EGP'000           EGP'000             EGP'000 
                  (Reviewed)         (Unaudited)        (Reviewed)         (Unaudited) 
                                    (Unreviewed)                          (Unreviewed) 
Pathology          1,140,057             436,522           353,703              80,811 
Radiology             23,575              13,409          (12,310)             (8,683) 
                   1,163,632             449,931           341,393              72,128 
 
 
                      Revenue by type                    Net profit by type 
              For the six months ended 30 June    For the six months ended 30 June 
                        2021               2020             2021               2020 
                     EGP'000            EGP'000          EGP'000            EGP'000 
                  (Reviewed)        (Unaudited)       (Reviewed)        (Unaudited) 
                                   (Unreviewed)                        (Unreviewed) 
Pathology*         2,247,984            925,757          701,395            194,864 
Radiology             45,186             23,930         (21,365)           (20,239) 
                   2,293,170            949,687          680,030            174,625 
 
 
                   Revenue by categories                Revenue by categories 
             For the three months ended 30 June    For the six months ended 30 June 
                        2021                2020             2021               2020 
                     EGP'000             EGP'000          EGP'000            EGP'000 
                  (Reviewed)         (Unaudited)       (Reviewed)        (Unaudited) 
                                    (Unreviewed)                        (Unreviewed) 
Walk-in              499,678             215,753        1,029,039            442,987 
Corporate            663,954             234,178        1,264,131            506,700 
                   1,163,632             449,931        2,293,170            949,687 
 

* On 30 June 2021 includes Covid-19 related Pathology tests amounted to EGP 1,104m (30 June 2020: EGP 88m).

 
                                     Non-current assets by geographic location 
                        Egypt region  Sudan region  Jordan region  Nigeria region      Total 
                             EGP'000       EGP'000        EGP'000         EGP'000    EGP'000 
 
30 June 21 (Reviewed)      2,598,967         2,850        286,419          98,443  2,986,679 
31 December 2020           2,415,220        24,132        263,767         113,941  2,817,060 
 

Segment reporting (continued)

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

 
                        For the three months period ended 30 June     For the six months period ended 30 June 
                                     2021                     2020                 2021                     2020 
                                  EGP'000                  EGP'000              EGP'000                  EGP'000 
                               (Reviewed)              (Unaudited)           (Reviewed)              (Unaudited) 
                                                      (Unreviewed)                                  (Unreviewed) 
Profit from operations            526,995                  117,877            1,064,676                  276,868 
Property, plant and 
 equipment 
 depreciation                      26,608                   35,064               59,068                   58,359 
Amortisation of right 
 of use                            28,711                   15,673               46,677                   29,455 
Amortisation of 
 Intangible assets                  1,528                  (2,003)                3,049                    2,672 
EBITDA                            583,842                  166,611            1,173,470                  367,354 
Non-recurring expenses             18,797                        -               29,034                        - 
Normalised EBITDA                 602,639                  166,611            1,202,504                  367,354 
 

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