Integrated Diagnostics Holdings PLC Launch of radiology business in Egyptian market (7448X)
14 August 2018 - 6:46PM
UK Regulatory
TIDMIDHC
RNS Number : 7448X
Integrated Diagnostics Holdings PLC
14 August 2018
IDH launches radiology business in fast-growing Egyptian
market
A strategic expansion that is set to transform IDH's Egyptian
operation into a one-stop-shop diagnostics service provider; the
investment is planned to have limited impact on cashflows
14 August 2018
(Cairo and London) - Integrated Diagnostics Holdings ("IDH,"
"the Company" or "the Group," IDHC on the London Stock Exchange), a
leading consumer healthcare company with operations in Egypt,
Jordan, Sudan, and Nigeria, is set to launch a radiology business
in Egypt.
IDH is building a national brand in Egypt with a service
offering highly complementary to its existing pathology-focused
medical diagnostics services.
"Our expansion into a high-value, adjacent segment of our
industry is a milestone in the development of IDH on par with the
expansion into Africa that now sees operations in three countries
outside Egypt contributing double-digit percentages to our top
line," said Dr. Hend El Sherbini, Chief Executive Officer of
IDH.
"Our market in Egypt is growing in the double digits, and so is
our top line. Today, more than 75% of customers surveyed by a
third-party research provider indicate a preference for
consolidated service offerings that feature both pathology and
radiology - and there is significant existing demand for us to
capture. Our expectation is that our pathology business will
deliver new patients to our radiology business and that, in the
fullness of time, having both services under one roof will also
drive growth in our pathology test volumes."
"Importantly, our expansion into the fragmented radiology market
will be powered by the strong relationships between our brands and
our millions of customers as well as the physicians who trust us to
be part of their diagnostic and treatment plans," El Sherbini
noted.
Al Borg Scan will offer a full range of radiology services,
including but not limited to magnetic resonance imaging (MRI),
computed tomography (CT), ultrasound, x-ray, mammograms and cath
lab facilities. It will draw on Al Borg's brand equity to position
itself as a premium service provider offering the full range of
imaging services using the latest technology and highly trained
staff. Medical equipment suppliers for the new venture are global
brand names including Siemens, Hitachi, GE Healthcare, and
Fujifilm. The company will emphasize convenience with the rollout
of its mobile app and website and reinforce its high-end brand
positioning with a premium facility and atmosphere at each of its
branches. The business will be led by a group of the nation's most
prominent radiologists with a track record at Egypt's leading
hospitals and radiology centers.
Up to 70% of the cost of the expansion into radiology is now in
place through an EGP 130.5 million, eight-year facility from the
Ahli United Bank of Egypt. The facility is ring-fenced to Al Borg
with no guarantees from, or recourse on, IDH or any of its other
subsidiaries. The balance of the investment is planned to be
financed from the operating cashflows of Al Borg.
IDH delivered 29% top-line growth in the first quarter of 2018,
performing 6.6 million tests (+8% compared to 1Q2017) for 1.7
million patients (+13% year-on-year), underscoring the health of
its core business as Egypt recovers from a period of devaluation
and high inflation. Nigeria is the company's newest expansion
market, making its first contribution to the Group's consolidated
revenues in 1Q2018. IDH is expected to announce 1H2018 results on
16 August 2018.
-Ends-
About Integrated Diagnostics Holdings
IDH is the largest fully integrated private-sector medical
diagnostics services provider in Egypt, Jordan, Sudan, and Nigeria,
comprehensively offering pathology and molecular diagnostics,
genetics testing and basic radiology. IDH's core brands include Al
Borg and Al Mokhtabar in Egypt, as well as Biolab (Jordan),
Ultralab and Al Mokhtabar Sudan (both in Sudan), and Echo-Scan
(Nigeria). IDH is listed on the London Stock Exchange (ticker:
IDHC) and was founded in 2012 by the merger of Al Borg and Al
Mokhtabar, the most established diagnostics services brands in
Egypt.
Contact
Mr. Sherif El-Ghamrawi
Investor Relations Director
T: +20 (0)2 3345 5530 | M: +20 (0)10 0447 8699 |
sherif.elghamrawi@idhcorp.com
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END
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