GOTHENBURG, Sweden, April 25, 2002 (PRIMEZONE) -- Capio:
Strong growth and a first step into Finland
- Net sales rose by 86 per cent to SEK 1,830 M (985). Organic
growth amounted to 12 per cent in local currencies.
- Operating earnings before goodwill amortisation (EBITA), and
excluding items affecting comparability, amounted to SEK 172 M
(54), corresponding to an operating margin of 9.4 per cent (5.5).
- Earnings after financial items rose by 85 per cent to SEK 87 M
(47), including items affecting comparability.
- Capio took its first step into Finland through the acquisition
of radiology company, Mediscan.
- Two expansion projects in the Group's U.K. healthcare sector were
completed and placed in operation during the period.
- In January, geriatric operations at Lowenstromska Hospital in
Stockholm were taken over by St. Goran's Hospital. The start-up
progressed according to plan.
INVITATION TO ATTEND A TELEPHONE CONFERENCE
On Thursday, 25 April 2002, Capio will present their three-months 2002 Interim Report. In conjunction with this, we will be arranging a telephone conference in English at 14:00 CET, 13:00 GMT. The meeting will include a presentation of Capio's Report by President and CEO Per Batelson and Executive Vice President and CFO Martin Svalstedt. An overhead-slide presentation will also be available via www.capio.se
This invitation is extended to journalists and professionals active in the capital market. To connect to the conference, please dial +44 (0)20 8240 8240 just before the conference, and specify "Capio." You may listen to an Instant Replay directly after the conference and until May 2, please dial +44 (0)20 8288 4459 access code 671812.
January-March 2002
Capio expanded strongly during the period, compared with the corresponding quarter last year, primarily due to the acquisition in June 2001 of the Community Hospitals Group (renamed Capio Healthcare U.K.). The Group has also maintained a healthy rate of organic growth, corresponding to 12 per cent in local currencies.
Consolidated net sales increased by 86 per cent compared with the first three months of 2001 and amounted to SEK 1,830 M (985). EBITA, excluding items affecting comparability, amounted to SEK 172 M (54). The Group's operating margin, before items affecting comparability, was 9.4 per cent (5.5). Earnings after financial items totalled SEK 87 M (47), including items affecting comparability of SEK 0 M (2).
The integration of Capio Healthcare U.K. has now been completed and operations are functioning very efficiently. Work to refinance and build a partnership based on the U.K. property portfolio is underway and is expected to be completed by mid-year.
Capio's Research Foundation has conducted its first review of the applications submitted for research grants, in which major interest has been shown.
Healthcare Services
Net sales rose by 102 per cent to SEK 1,482 M (732). The sharp increase was due to the acquisition of Capio Healthcare U.K. in June last year. Organic growth during the period amounted to 12 per cent in local currencies.
EBITA totalled SEK 124.7 M (46.6) generating an operating margin of 8.4 per cent (6.4).
The Group's U.K. healthcare operations continued to develop favourably and a number of expansion projects are underway. There is major demand within the psychiatry area.
Demand remained strong in the Swedish market. The recently introduced healthcare guarantee system also led to increased patient mobility.
To improve the trend of productivity at St. Goran's Hospital a minor injuries unit was opened and the decision taken to rebuild the main emergency department.
As of January, the geriatric clinic at Lowenstromska Hospital in Stockholm is operated as part of St. Goran's Hospital.
Linkoping Medical Center has signed an agreement based on providing care services, primarily orthopaedic surgery, for patients from Norway.
In January, Svenska Cityklinikerna opened a Heart Clinic in Lund. Another Heart Clinic will be opened in Angelholm in April.
Demand for occupational healthcare in the Swedish market continues to be good. Previa signed a number of large contracts during the period, including contracts with the University of Gothenburg and the Municipality of Boras.
Healthcare Services has sales of about SEK 5,600 M on an annual basis.
Diagnostic Services
Net sales for this operating sector amounted to SEK 244 M (224). EBITA totalled SEK 12.1 M (17.0). In local currencies, organic growth was 6 per cent. In January, the Laboratory Medicine and Radiology business areas were merged to form Capio Diagnostics.
Of the three radiology units started in 2001, Sandefjord and Solna are now showing positive results. Although Globen Rontgen has an increased flow of patients, the level remains unsatisfactory. The operation has a positive cash flow, however. St. Goran X-ray is still showing problems in achieving a satisfactory level of productivity.
The pricing system introduced for radiology services in Norway on January 1, 2002 proved slightly better than expected.
The level of orders received for clinical testing has declined, which had an adverse effect on the volume trend for Capio's Danish laboratory medicine operations.
The radiology company Mediscan OY was acquired in February, representing an important first move into the Finnish market. Mediscan is Capio's first operation in Finland.
During the period, Diagnostics renewed its agreement with Sormland County Council for the provision of laboratory services. The agreement is also a partnership for the supply and development of a model for near- patient testing operations.
Capio Diagnostics has signed an agreement to take over mammography screening and clinical mammography operations in Sodra Alvsborg as of April 1. These operations will be conducted at hospitals in Boras, Skene and Alingsas.
The Diagnostic Services business sector has sales of about SEK 900 M on an annual basis.
Elderly Care Services
Net sales for elderly care operations amounted to SEK 146 M (64), reflecting organic growth of 33 per cent, expressed in local currencies. EBITA totalled SEK 0 M (4). A major proportion of the business sector's Q1 earnings in 2001 derived from the now divested properties for elderly care. To meet the strong expansion, the organisation has been strengthened, which has temporarily had an adverse effect on the sector's profitability.
Actica Omsorg signed an agreement to take over the operation of Madserud Sykehjem in Oslo, effective June 1.
In Lerum, a contract was signed for the operation of a completely new residential unit for the elderly, commencing in 2003.
The Elderly Care Services operating sector now has sales of about SEK 600 M on an annual basis, in addition to contracts that will gradually become effective and which will bring annual sales up to SEK 800 M by the end of 2003.
Parent Company sales and earnings
The Group's Parent Company, Capio AB, reported net sales of SEK 1.5 M (5.9) for the quarter and an operating loss of SEK 17.6 M (loss: 16.3) before goodwill amortisation and excluding items affecting comparability. The loss before appropriations and taxes amounted to SEK 2.3 M (loss: 15.9). The Parent Company reported net investments of SEK 0.1 (0.0) for the period.
Financial position
The Capio Group's financing situation has changed significantly following the acquisition of CHG (now Capio Healthcare U.K.) in June 2001. The acquisition was financed through a new share issue and through the raising of a long-term loan of GBP 223 M (SEK 3,300 M). The loan was placed in a consortium of Swedish and British banks.
The Group has pledged assets and contingent liabilities totalling SEK 5,471 M. On March 31, the equity/assets ratio was 31 per cent.
At the end of the first quarter, interest-bearing net indebtedness was SEK 3,059 M and the Group had liquid funds of SEK 236 M.
Personnel
At the end of the period, the number of full-time Group employees was 8,591 (4,793). The average number of employees during the period totalled 8,425 (4,754).
Per Batelson
President and Chief Executive Officer
Gothenburg, April 25, 2002 Capio AB (publ)
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/04/25/20020424BIT01620/wkr0001.doc The Full Report www.waymaker.net/bitonline/2002/04/25/20020424BIT01620/wkr0002.pdf The Full Report