Chairman, Monash IVF Group
It gives me great pleasure to present the 2016 Annual Report for Monash IVF Group.
Monash IVF Group has delivered a strong financial result for 2016 derived from a business focus on developing and maintaining industry leading science and technology in assisted reproductive services and womens imaging.
Group revenues were up 25.3% to $156.6m. Reported net profit after tax (NPAT) increased 34.6% to $28.8m. The board has declared a fully franked final dividend of 4.5 cents per share. The total fully dividend per share for FY16 is 8.5 cents and represents a dividend payout ratio of 70%.
Revenue growth was driven by total IVF patient treatments up 12.9% on the previous year, well above industry growth rates. Monash IVF Group continues to grow overall market share and has made inroads in the NSW market, growing market share from 5.6% to 8.3%. In the Victorian and South Australian markets – where we are a significant player – we maintained market share.
Our low intervention assisted reproductive services clinics continue to gain momentum and are making an improved contribution to the Group. Patient treatments delivered by these clinics now represent 5% of total patient treatments. These services are complementing our full service clinics.
The combination of Sydney Ultrasound and Monash Ultrasound for Women’s 17 locations now represents almost 17% of Monash IVF Group’s revenues, providing greater diversification of earnings and an opportunity for the cross referral of services.
KL Fertility in Malaysia continues its growth trajectory, with revenues up 10.7% and patient treatments up almost 20%. Our newer fertility specialists in our KL clinic are continuing to build their volumes.
Our science and research investment is also paying dividends as we’ve continued to see a strong uptake by patients using our leading embryo genetic screening technology, with demand for the test up over 70% on the prior period. We have also seen a quadrupling of our non-invasive pre-natal testing (NIPT) to more than 9000 tests in FY16. We are proud to offer our patients such unique and important diagnostic testing services that can make a significant difference to the likelihood of a healthy pregnancy outcome.
We’ve also invested in new reproductive consulting locations in key suburbs to broaden our geographic footprint. We’ve expanded our Gold Coast presence with a new purpose built clinic, and added new ultrasound clinics in Sunshine and Berwick. Our Malaysian clinic will soon relocate to a superior facility over the coming months to assist with future growth.
The strong financial results for 2016 confirm and validate the Group’s strategy. The results also give the company the confidence to continue exploring the right growth opportunities in existing markets, and further afield.
On behalf of the Board and all shareholders, I would like to thank James and the management team for delivering a significant financial result. Thanks also goes to the Group’s dedicated and passionate doctors, nurses, scientists and support staff that make sure every patient is provided superior care.
I also express the Board’s thanks to the company’s shareholders for their continued support. I invite you to join the Board and the senior leadership team at our Annual General Meeting in November.