Gwest reduces loss following surgery centre opening Loop Jamaica
Black Immigrant Daily News
Montego Bay-based medical facility Gwest Corporation has reported a reduction in net losses for its quarter ended June 2022.
The performance comes even as Gwest recorded revenues of $43.40 million for the three months ended June 30, 2022, a 33 per cent increase over the corresponding quarter.
The company, which provides medical services and leases space at the GWest Centre in Fairview, reported losses as its revenue from rentals underperformed the costs associated with operations.
The results for the quarter showed a net loss of $10.69 million compared to $10.75 million for the corresponding quarter ending June 30, 2021.
Gwest’s revenue improvement came following a 77 per cent increase in patient fees during the quarter following the opening of the surgery centre facilities and an increase in business activity.
The new surgery centre consists of two major operating rooms, a minor operating room, recovery rooms and an observation in-patient facility.
Management said it would continue to pursue a strategy of revenue enhancement and cost containment, including the review of offerings.
It will also seek opportunities to increase revenue and widen service offerings.
“We continue to remain positive in our outlook as we expect an improvement in our business environment going forward with the opening of the new surgery and the gradual return to some level of normalcy post-COVID. It is also expected that the patient numbers will continue to increase.”
During the review quarter, Gwest saw its rental and income increase by 21 per cent over the corresponding quarter in the prior year due to an increased lease of space.
Its earnings were, however, impacted by an increase in operating and administrative expenses.
For the quarter ending June 30, 2022, total expenses stood at $54 million compared to $48 million in the comparative quarter, representing an increase of $6 million or a 12.5 per cent increase year-over-year.
This increase was due to a $5.5 million or 30 per cent increase in operating expenses. Administrative expenses also increased due to start-up operating costs of the newly opened surgery centre.
Meanwhile, total assets as at June 30, 2022, stood at $1.67 billion and current assets remain relatively stable at $187 million, the company said.
“Our borrowing inclusive of loans and lease commitment reduced by $17.32 million over the corresponding quarter in the prior year. Our cash balances and deposits decreased from $77.95 million in the previous quarter to $39.39 million this quarter,” Gwest said.
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