'Other income' beefs up medical profit of Ibn al-Haytham Hospital

AMMAN — Medical services accounted for JD0.5 million of the JD1.1 million after tax profit generated by Ibn al-Haytham Hospital during the first half of this year.

According to the independent auditor's review of the interim summary of financial statements, the remaining JD0.6 million was related to investments and other income.

During the same period of last year, the after tax profit stood at JD0.7 million, of which JD0.6 million were related to investments and other income and the remaining JD0.1 million was generated from medical services. 

In a disclosure to the Jordan Securities Commission, the company announced that the hospital's overall earnings during January-June 2015 amounted to JD10.3 million, 14.4 per cent higher than the JD9 million posted in the same period of 2014.

When operational costs were taken into account, gross profit at the end of June 2015 stood at JD3.6 million, a 24.1 per cent increase over the JD2.9 million recorded on June 30, 2014.

Taking into consideration other income, and deducting administrative expenses, provisions for lawsuits and for doubtful assets, and bank commissions and interest, pretax profit went up by 85.7 per cent as it surged to JD1.3 million as of June 30, 2015, from JD0.7 million during the first half of last year.

In 2014, earnings from non-medical business amounted to JD0.7 million which, when added to the JD0.6 million operational yield from medical services, brought the pretax profit to JD1.3 million compared to JD1.1 million in 2013.

A breakdown of operational earnings as of December 31, 2014, showed a JD10.3 million income from admission, surgical treatment and clinics, JD2.6 million from the pharmacy, JD2.4 million from the laboratory and JD2.2 million from radiology treatment for a total of JD17.5 million. 

The company was left with a JD5.7 million operational profit after deducting JD11.8 million in operational costs.

A breakdown of the aforementioned operational profit showed a JD2.8 million yield from admission, surgical treatment and clinics (JD3.7 million in 2013), JD1.8 million from the laboratory, JD1.4 million from radiology treatment and JD0.5 million from the pharmacy, without taking into account depreciation costs.

The 2013 operational profit was higher at JD6.2 million.

Ibn al-Haytham's 2015 mid-year interim summary of accounts listed the investments in affiliates and the financial assets at fair value.

Investments in affiliated companies amounted to JD1.2 million and comprised a 2.2 per cent stake in the International Company for Medical Investments and a 7.4 per cent share  in Al Omana'a Portfolio and Investment Company, both listed on the Amman Stock Exchange.

The financial assets at fair value amounted to JD6.1 million and comprised a 3.4 per cent stake in the Arab International for Education and Investment Company, a 0.3 per cent equity in First Finance Company,  and a minimal investment in the Arab International Food Factories and Investment Company, all listed on the Amman Bourse.

Besides the investments in affiliates and the financial assets at fair value, the balance sheet as of June 30, 2015, showed that property and equipment amounted to JD39.8 million, and that additions were valued at JD1.8 million (JD3.9 million in 2014).    

With JD10.9 million in current assets, mostly receivables and cheques under collection, the total assets of Ibn al-Haytham Hospital Company reached JD40.7 million. 

Capitalised at JD20 million, shareholders equity included JD2.1 million of retained earnings and JD1.9 million of issuance premium and JD1.3 million of fair value reserve. 

Of the JD14.4 million in total liabilities, JD3 million was a short-term credit from Al Rajhi Bank and JD6 million were bank debts from Arab Bank and Union Bank.

According to the 9th annual report covering 2014 activities, 750 employees worked at Ibn al-Haytham Hospital Company at the end of last year.

Arab International for Education and Investment Company held a 58.7 per cent equity in the hospital as of December 31, 2014, besides Abdul Mune'm Bin Rashed Bin Abdul Rahman Al Rashed (11.8 per cent), Arab International Food Factories and Investment (8.6 per cent), and International Company for Medical Investments (6 per cent).

A meticulous scrutiny of  Ibn al-Haytham Hospital Company and all affiliates, subsidiaries and sister entities reveals significant  investments by Abdullah Abdul Halim Mahmoud Abu Khadija and several family associates who chair or are board members of a number of corporations in their personal capacities or as representatives of different firms.