15th Feb 2017 07:31
LONDON (Alliance News) - Private healthcare provider Georgia Healthcare Group PLC on Wednesday saw both its annual profit and revenue rise by over 70% year-on-year in 2016.
Georgia Healthcare posted pretax profit of GEL40.2 million for the year, up from GEL23.6 million the prior year, after revenue rose to GEL423.8 million from GEL242.4 million.
The group's Healthcare Services arm makes up most of its pretax profit, and almost doubled year-on-year to GEL42.5 million from GEL21.6 million. This improvement was slightly offset by a swing to pretax loss in Georgia Healthcare's Medical Insurance division. The unit posted pretax loss of GEL4.4 million from a profit of GEL2.1 million a year earlier.
The group said this swing to loss came after a "more challenging year", reflecting the loss making impact of one large corporate insurance contract which has now expired and not been renewed.
Georgia Healthcare said it expects its earnings in the unit to stabilise in 2017.
The group said it remains "comfortably on track" to deliver more than a doubling of 2015 Healthcare Services revenue by 2018, after revenue in the division increased by 27% year-on-year in 2016.
Georgia Healthcare said it remains well-positioned to benefit from the combination of its position "as the largest healthcare services provider, pharmaceuticals wholesaler and retailer and medical insurer" in the growing Georgian healthcare market.
By Hannah Boland; [email protected]; @Hannaheboland
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