GSMN (ex AGEN Holding): First results focused on the Healthcare division
30 September 2008 | 7:12 AM Ad hoc
Genolier Swiss Medical Network (GSMN) / Half Year Results
Genolier Swiss Medical Network (ex AGEN Holding)
First results focused on the Healthcare division
Half year results in strong progression, cautious 2008-2009 forecasts
Genolier Swiss Medical Network, (SWX : GSMN), today presents its first half year results only including the Healthcare activities. Turnover (63.4m +18%) and EBITDA (3.6m +365%) are clearly progressing compared to 2007. Several offers of total or partial repurchase of the Publishing division are being reviewed. A final decision should be made by the end of 2008.
Genolier, 30 September 2008 - The 2008 half year results are showing a clear progression compared to the same period in 2007, confirming GSMN’s ability to restructure and manage hospitals. The 1H 2008 turnover amounts to CHF 63.4 million, representing an increase of 18% compared to the same period of 2007 (CHF 53.7 m), for an EBITDA of CHF 3.6 million (CHF 0.98 m, + 365%). GSMN has realised an operational profit of CHF 0.34 million (CHF -2.4 m as at 30 June 2007) and an operational cash flow of CHF 4.9 million, which is 20 times superior to the 1st semester of 2007 (CHF 253,000). The net loss including the Publishing division (discontinued activity) is divided by 4.5 to reach CHF 0.78 million (CHF 3.4 m as at 30 June 2007).
Since the renovation of Clinique Générale in Fribourg, all 4 entities of the Healthcare division (Clinique de Genolier, Clinique Valmont-Genolier, Clinique de Montchoisi and Clinique Générale) are generating cash flow. As the turnaround of the operational units is achieved, the Group has started a cost savings plan in 2007, including the decentralisation of certain administrative functions. This plan will allow a reduction of overhead costs by CHF 2 million per year as of 2009.
The 2008 objectives have been reviewed due to the ongoing financial crisis. One of the consequences of this crisis is a less important increase of foreign clients than expected. On the contrary, the regional client base has strongly augmented. The 2008 turnover objective of the Healthcare division has been maintained at CHF 130 million but the EBITDA has been slightly reduced from CHF 15 million to CHF 12.5 million.
The growth strategy, both organic and through new co-operations and acquisitions, remains confirmed. As such, the integration to the GSMN network of the CMEV (Centre Médico-Chirurgical des Eaux-Vives), an out-patient consult and oncology centre, will be finalised during the 4th quarter of 2008.
Regarding Corporate Governance, the Board of Directors has decided to postpone the departure of the CEO Antoine Hubert, considering the ongoing projects and a certain number of development projects in gestation which require continuity. In the interest of the company, Antoine Hubert agreed to prolong his mandate until the Ordinary General Meeting of June 10th, 2009. Antoine Hubert has announced his intention to present his candidacy to the Board of Directors of GSMN SA during the next General Meeting.
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A press conference will take place today at 10 am at the Royal Manotel, 41 rue de Lausanne, in Geneva. The half year report is available on the website www.gsmn.ch.
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Information and Explaination of the Issuer to this News:
GSMN (Genolier Swiss Medical Network) AG - formerly called AGEN Holding AG - is the leading hospital network in the French speaking region of Switzerland (Romandie), specialized in operating private clinics. Its growth strategy is focused on building a national network by acquiring clinics and restructuring their operations. GSMN’s main goal is on providing premium hospital care to Swiss and foreign patients. GSMN distinguishes itself over other healthcare providers on the basis of its quality of services, high brand value, congenial working environment and an experienced and entrepreneurial management team. Presently, GSMN has 4 fully owned private hospitals in its portfolio with 277 operating beds and more than 200 additional licensed beds for organic growth. Additionally, GSMN has a management contract with Centre Médico-Chirurgical des Eaux-Vives (CMEV), an out-patient consult and oncology centre in Geneva. In 2007, GSMN achieved a turnover of CHF 116.7 million and an EBITDA of 5.5 million. The Group is listed on the Main Segment of the SWX Swiss Exchange (GSMN.SW).
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