New floor on the cards
Asiri Hospital running full, and increasing profitability

Asiri Hospitals Ltd. has completed a very successful year ended March 31, 1998, with group turnover rising 26.6% to Rs. 285.7 million and net profit after tax increasing 79% to Rs. 52.4 million, the company's annual report and accounts said.

The company's chairman, Mr. D.K. Subasinghe, said that their subsidiary, Asiri Diagnostic Services (Pvt) Ltd. had done well posting a turnover of slightly over Rs. 4 million and earning a net profit of Rs. 1.6 million for the year.

The chairman said that plans are going ahead to construct an additional floor over the main hospital building to add 20 more beds which are badly needed. Construction is expected to commence shortly.

The anticipated investment from India for a magnetic resonance imaging (MRI) project had not been forthcoming as General Electric of the USA, the holding company of Wipro GE Medical Systems (India) Ltd. had not been able to come in as previously agreed, he said. But after negotiations, they had agreed to discount US $ 135,000 from the equipment supplied and reduced the capital cost.

The new services started in 1996 with the import of advanced medical equipment such as MRI, CT Scanner, Color Doppler and the Evis Videoendoscopy system was performing well. This was reflected in increased turnover and profitability.

"Your directors are happy that these investments are bearing fruit and resulting in better yields to shareholders,'' Subasinghe said.

During the first five months of the current financial year, turnover was up 29% to Rs. 141.4 million from the comparative period a year earlier. Likewise, during the same period there was a net profit of approximately Rs. 40 million, up 77% from a year earlier.

The hospital has been full with average bed occupancy at 103.4%, up from 94.4% previously. Lab tests too had grown to 2,746 per day from 2,318.

The directors said that a 12.5% interim dividend had been paid in July and a final dividend will be considered later in the year. There had been additions to fixed assets of Rs. 27.5 million during the year. A rights issue of 2.7 million new shares @ Rs. 30 each had been concluded and 1.9 million bonus shares issued during the year.

Dr. J.W. Wickramasinghe, the chairman of the Insurance Corporation of Sri Lanka has joined the board to represent ICSL which is a substantial shareholder of the company.

Asiri Hospitals have an issued share capital of Rs. 151.8 million and a share premium of Rs. 79.1 million in its books.

The directors of the company are Messrs. D.K. Subasinghe, G.H.A. Wimalasena, N.M. Buhardeen, P. Pitipanaarachchi, Dr. (Mrs.) M.D. Wimalasena, T. Weerasinghe, P.P. Subasinghe, H.N. Jayasinghe, Mrs. D. Wimalasundera and Dr. J.W. Wickramasinghe.