Genolier Swiss Medical Network (GSMN): Large increase in turnover and EBITDA thanks to acquisitions

Genolier Swiss Medical Network (GSMN)  / Key word(s): Final Results/Final Results

29.04.2011 07:20

Release of an ad hoc announcement pursuant to Art. 72 KR

Net results for 2010 adversely affected by the shareholder crisis in the

Genolier Swiss Medical Network (GSMN.SW) today published its 2010 Annual
Report. Turnover increased by 38% to CHF 192.3 million (CHF 139.3m).  Swiss
GAAP EBITDA increased by 45.6% to CHF 15.2 million, reflecting an
improvement in operating profitability and reduced ordinary expenditures.
The bulk of the growth was achieved through the acquisition of Privatklinik
Bethanien in Zurich. At CHF -7.1 million, the net result was adversely
affected by many extraordinary costs linked in particular to last summer's
events and an exceptional tax charge resulting from the lowering of the

GSMN reported a turnover of CHF 192.3 million in 2010, an increase of 38%
compared to 2009. Swiss GAAP EBITDA, up 45.6% to CHF 15.2 million, reflects
an improvement in operating profitability and a reduction in ordinary
costs. At CHF -7.1 million, the negative net result is explained primarily
by the extraordinary costs incurred as a result of the events of last
summer. Operational cash flow increased by 38.8% CHF 13.6 million. The
Group's management structure enabled Privatklinik Bethanien to be
integrated with practically no increased charges, and expenses related to
the general management of the Group therefore represent just 4.12% of
turnover against 5.6% in 2009. The present structure will likewise permit
the integration of several units with no significant increase in resources.
GSMN anticipates turnover of CHF 200 million in 2011 and intends to
continue its strategy of growth and improved profitability.

Regarding the different entities, Clinique de Genolier remains the flagship
of the Group with turnover of CHF 72.7 million or 37.8% of total turnover.
The clinic clearly did not reach its targets in 2010, its activities having
been significantly disturbed during the summer. The secure healthcare
residence 'Les Hauts de Genolier' is having growing success, which has
allowed the capacity of the site to be increased. However, the costs
associated with the opening had a negative impact on GSMN's results in
2010. Consolidated since 1 January 2010, Bethanien contributed CHF 52
million to total Group turnover and CHF 6 million to EBITDA. Major works
have been undertaken to improve the medical and hotel services provided by
this clinic, and an underground car park is now being built. As the
bridgehead of GSMN in German-speaking Switzerland, Bethanien will serve as
a development platform for the Group in the coming years.

With a turnover of almost CHF 19 million (+12%), Clinique de Montchoisi met
its targets in 2010. It posts the best productivity per bed and per m2. The
Lausanne-based clinic has opened a cutting-edge radiology centre and an
underground car park with 45 spaces, which will allow it to continue its
growth. Pressure on prices somewhat eroded the turnover (CHF 27 million)
and EBITDA of Clinique Générale. New private bedrooms were added to the
existing offering at the end of 2010. Clinique Valmont has focused since
the end of 2009 on neurological and orthopaedic rehabilitation. Despite a
decrease in turnover of more than 22% to CHF 10.5 million, EBITDA was
improved, demonstrating the effectiveness of the new focus of activity. The
Centre médico-chirurgical des Eaux-Vives in Geneva has strengthened its
medical team and now offers radiotherapy treatments and multidisciplinary
oncology care for cancer patients.

The Group has substantial capacity for further organic growth, with a
strong accent now placed on the recruitment of new certified physicians and
international agents, as well as on preventive medicine. The problems
experienced in the summer of 2010 following the attempt by some
shareholders to take control of the Group caused the bid to acquire Klinik
Stephanshorn in St. Gallen to fall through, even though GSMN was the
favourite. However, other opportunities have been explored, and some have
materialized or are at the point of completion. For example, a minority
shareholding interest with a purchase option was concluded with Klinik
Lindberg, thereby strengthening the Group's activities in Zurich and
contributing to the implementation of its strategy. Further acquisitions
are currently being explored or are the subject of negotiations.

During the first quarter of 2011, GSMN realised a turnover of CHF 51
million (+5%) and an EBITDA of CHF 5.4 million (+32%), in line with its
forecasts. With an unchanged portfolio, the Group expects to realise a
turnover of CHF 200 million in 2011.

GSMN is holding a press conference at 10 am today at Privatklinik

The Annual Report 2010 can be consulted on the website

Genolier Swiss Medical Network SA (GSMN) is the second largest network of
private clinics in Switzerland. Its growth strategy focuses on the creation
of a national network through the acquisition of clinics and the
restructuring of their operations. GSMN's main aim is to offer first class
hospital care to Swiss and foreign patients. The distinctive features of
GSMN include its high quality services, its brand value, a pleasant working
environment and an experienced management team with an entrepreneurial
approach. GSMN currently operates six private establishments in Switzerland
(Clinique de Genolier, Clinique de Montchoisi, Clinique Valmont, Centre
médico-chirurgical des Eaux-Vives and Privatklinik Bethanien), with more
than 560 practising physicians and 900 employees. The Group is listed on
the Domestic Standard of the SIX Swiss Exchange (GSMN:SW).

GSMN SA Press Service  
Séverine Van der Schueren 
Secretary General
Tel. 022 366 99 87

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