UNION DIAGNOSTIC's ONE BATTLE AT A TIME.

Surely, in these times in Nigeria, making profit is akin to fighting a war but then, for Union Diagnostic & Clinical Services PLC, wars are won by winning one battle at a time.

In the first half to June, Union Diagnostic's core revenue grew by only 5.07 % to N655m but it won a great battle when accompanying direct cost dropped by 1.73% to N288.9m thus topping gross profit by 11.2% to N366m.

Then more square ups came from 48.4% increase in rent to N18.4m; 41.8% rise in transportation cost to N13.5m; 31.1% increase in repairs and maintenance bill to N19.4m and 19.3% spring in other operating expenses to N63.1m. All threatening to tear the 11% increase in gross profit apart.

Well, it did not happen because 0.11% drop in staff expenses to N88.5m; 32.2% cut in professional fees  to N2.44m; 4.1% decrease in communication expenses to N2.57m and N2.27m bonus from finance income, absorbed the blows.

Hence, even as finance charges increased by 10.5% to N3.36m, Union Diagnostic cruised home with 17% increase in profit before tax to N132.5m.

It not only thus gained N20.2 on each N100 income compared to N18.2m previously but equally important, its working capital surplus rose from N697.5m to N800.2m.

All of that from only 5.44% increase in total income to N657.3m within the period. No doubt, this was good enough to remain in good spirits into the second half.

UNION DIAGNOSTIC & CLINICAL SERVICES PLC:
         Nm Half year.
                     2016     2015
Total income 657.3 623.4
Core income 655.0 623.4
Cost of sale  288.9 294.0
Gross profit  366.0 329.2
Staff costs.    88.5.    88.6
Rent.               18.4.    12.4
Transportation 13.5.  9.52
Communication 2.57  2.68
Repairs.             19.4. 14.8
Fees                   2.44   3.60
Other costs.     63.1.   52.9
Finance inc.      2.27.    -
" Expenses      3.36.   3.04
Profit b4 tax   132.5.  113.2
Margin %.         20.2.     18.2
Working cap.  800.2.  697.5

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