Ad-hoc | 29 April 2011 07:20
Genolier Swiss Medical Network (GSMN) / Key word(s): Final Results/Final Results 29.04.2011 07:20 Release of an ad hoc announcement pursuant to Art. 72 KR --------------------------------------------------------------------------- Net results for 2010 adversely affected by the shareholder crisis in the summer Genolier Swiss Medical Network (GSMN.SW) today published its 2010 Annual Report. Turnover increased by 38% to CHF 192.3 million (CHF 139.3m). Swiss GAAP EBITDA increased by 45.6% to CHF 15.2 million, reflecting an improvement in operating profitability and reduced ordinary expenditures. The bulk of the growth was achieved through the acquisition of Privatklinik Bethanien in Zurich. At CHF -7.1 million, the net result was adversely affected by many extraordinary costs linked in particular to last summer's events and an exceptional tax charge resulting from the lowering of the forecasts. GSMN reported a turnover of CHF 192.3 million in 2010, an increase of 38% compared to 2009. Swiss GAAP EBITDA, up 45.6% to CHF 15.2 million, reflects an improvement in operating profitability and a reduction in ordinary costs. At CHF -7.1 million, the negative net result is explained primarily by the extraordinary costs incurred as a result of the events of last summer. Operational cash flow increased by 38.8% CHF 13.6 million. The Group's management structure enabled Privatklinik Bethanien to be integrated with practically no increased charges, and expenses related to the general management of the Group therefore represent just 4.12% of turnover against 5.6% in 2009. The present structure will likewise permit the integration of several units with no significant increase in resources. GSMN anticipates turnover of CHF 200 million in 2011 and intends to continue its strategy of growth and improved profitability. Regarding the different entities, Clinique de Genolier remains the flagship of the Group with turnover of CHF 72.7 million or 37.8% of total turnover. The clinic clearly did not reach its targets in 2010, its activities having been significantly disturbed during the summer. The secure healthcare residence 'Les Hauts de Genolier' is having growing success, which has allowed the capacity of the site to be increased. However, the costs associated with the opening had a negative impact on GSMN's results in 2010. Consolidated since 1 January 2010, Bethanien contributed CHF 52 million to total Group turnover and CHF 6 million to EBITDA. Major works have been undertaken to improve the medical and hotel services provided by this clinic, and an underground car park is now being built. As the bridgehead of GSMN in German-speaking Switzerland, Bethanien will serve as a development platform for the Group in the coming years. With a turnover of almost CHF 19 million (+12%), Clinique de Montchoisi met its targets in 2010. It posts the best productivity per bed and per m2. The Lausanne-based clinic has opened a cutting-edge radiology centre and an underground car park with 45 spaces, which will allow it to continue its growth. Pressure on prices somewhat eroded the turnover (CHF 27 million) and EBITDA of Clinique Générale. New private bedrooms were added to the existing offering at the end of 2010. Clinique Valmont has focused since the end of 2009 on neurological and orthopaedic rehabilitation. Despite a decrease in turnover of more than 22% to CHF 10.5 million, EBITDA was improved, demonstrating the effectiveness of the new focus of activity. The Centre médico-chirurgical des Eaux-Vives in Geneva has strengthened its medical team and now offers radiotherapy treatments and multidisciplinary oncology care for cancer patients. The Group has substantial capacity for further organic growth, with a strong accent now placed on the recruitment of new certified physicians and international agents, as well as on preventive medicine. The problems experienced in the summer of 2010 following the attempt by some shareholders to take control of the Group caused the bid to acquire Klinik Stephanshorn in St. Gallen to fall through, even though GSMN was the favourite. However, other opportunities have been explored, and some have materialized or are at the point of completion. For example, a minority shareholding interest with a purchase option was concluded with Klinik Lindberg, thereby strengthening the Group's activities in Zurich and contributing to the implementation of its strategy. Further acquisitions are currently being explored or are the subject of negotiations. During the first quarter of 2011, GSMN realised a turnover of CHF 51 million (+5%) and an EBITDA of CHF 5.4 million (+32%), in line with its forecasts. With an unchanged portfolio, the Group expects to realise a turnover of CHF 200 million in 2011. GSMN is holding a press conference at 10 am today at Privatklinik Bethanien. The Annual Report 2010 can be consulted on the website http://ir.gsmn.ch/genolierswiss/pdf/GSMN_AR_2010.pdf Genolier Swiss Medical Network SA (GSMN) is the second largest network of private clinics in Switzerland. Its growth strategy focuses on the creation of a national network through the acquisition of clinics and the restructuring of their operations. GSMN's main aim is to offer first class hospital care to Swiss and foreign patients. The distinctive features of GSMN include its high quality services, its brand value, a pleasant working environment and an experienced management team with an entrepreneurial approach. GSMN currently operates six private establishments in Switzerland (Clinique de Genolier, Clinique de Montchoisi, Clinique Valmont, Centre médico-chirurgical des Eaux-Vives and Privatklinik Bethanien), with more than 560 practising physicians and 900 employees. The Group is listed on the Domestic Standard of the SIX Swiss Exchange (GSMN:SW). GSMN SA Press Service Séverine Van der Schueren Secretary General Tel. 022 366 99 87 svanderschueren@gsmn.ch 29.04.2011 News transmitted by EquityStory AG. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news ---------------------------------------------------------------------------