African Medical Investments plc ('AMI') is an AIM listed company (AIM:AMEI) focussed on becoming a leading supplier of private specialist hospitals across Africa offering quality in and outpatient services. Its hospitals fill a crucial role for international standard healthcare demand from the burgeoning middle classes, overseas visitors and multinational corporations, embassies and NGOs designing contingency plans for their executive, workers and expatriate families. The Company currently has three operational private specialist hospitals in: Maputo, Mozambique; Dar es Salaam, Tanzania; and Harare, Zimbabwe. The Board of AMI is also evaluating additional opportunities to develop new services in existing markets and expand through construction, acquisition or investment in private hospitals in new markets.
African Medical Investments more than doubles revenue in first half
The restructuring initiatives African Medical Investments (LON:AMEI) put in place last year appear to be paying off as the healthcare firm this morning revealed it more than doubled revenues in the first six months of the year.
Revenues increased 124 per cent to US$12.1 million. The improvement helped reduce first half losses to US$15 million from US$18.8 million.
Operationally, the company said it has continued to make progress in the consolidation of its existing specialist hospital facilities in Maputo, Dar es Salaam and Harare.
It is also pursuing an expansion strategy in the Mozambique and Zambia to capitalise on growing demand for quality healthcare services.
“The group remains in a period of transition, but the board is confident that case mix optimisation and finalisation of its cost reduction programme will position the group to significantly improve its financial results,” the company said.
Earlier this year it struck a deal to sell its aviation services business for US£1.3 million. And yesterday it announced a new US$1 million funding through the issue of new loan notes to its largest shareholder Harbinger Capital.
The funds will be used to provide additional working capital, which AMEI says is now required following the illegal occupation of its hospital in Harare and the one-off costs associated with the group’s turnaround strategy.
Yesterday AMI said that the cash injection can create the necessary conditions so that future working capital requirements can be met through independent and external means. It did concede however that this would be subject to a prompt resolution to the Harare legal process.
Legal proceedings are currently taking place restore AMI's occupancy and control of the Harare facility following the forcible occupation of the hospital by the former management company led by the previous chief executive, Dr. Vivek Solanki.
It says it is confident in its legal position and that it will be reinstated to the facility.