Union Diagnostic and Clinical Services Plc. (UDCS), a leading indigenous Nigerian company in the medical diagnostics and healthcare sector, has posted 60 per cent surge in earnings on the strongest revenue growth in three years despite pervasive macroeconomic tempest. This result accentuates opportunities for investors in the country’s health industry valued at over N7 trillion ($18 billion).
The company’s audited financial statement for 2016 made available to The Nigerian Stock Exchange (NSE) shows that UDCS, which has been offering comprehensive services in diagnostic medicine since 1994, savoured a boost in its liquidity position. Net Cash flow for the period gushed 256 per cent to N61 million during the year as profit rose to N317 million.
“The Company attracted patronage in 2016 to reinforce its being the reference point and market leader in the diagnostic sector,” said Directors’ Report contained in the financial statement . “This is due to continuous improvement in our delivery of world class services and the branch expansion programme.”
A Sector Report released in 2015 by the by the PharmAccess Foundation, an organisation that focuses on making healthcare finance and delivery more effective and more inclusivein sub-Saharan Africa, estimated Nigeria’s total health care expenditure at over N7 trillion in 2014. Government’s commitment to improving the sector has been called to question as the bulk of Federal Government spending has been allocated to recurrent expenditure, leading to poor capital expenditure in the healthcare system.
According to the 2016 Health Care Industry Report by Agusto & Co, insufficient spending on healthcare has led to poorly equipped hospitals which are usually unable to treat complex ailments, resulting in dire consequences for patients. The report said that Nigeria’s per capita expenditure on healthcare, estimated at $118, is one of the lowest in the world in 2015.
“Nigeria has one of the highest levels of private expenditure on healthcare compared to other developing countries such as India (69.6%), Brazil (54%), China (44.2%), Ghana (40.1%) and Kenya (38.7%).”
Private healthcare expenditure in the country is estimated at ₦2.5 trillion, 75% of total healthcare expenditure. With rising levels of disposable income among some of the country’s income segment, there is greater demand for private coverage and potential for greater return on investment.
Industry stakeholders agree that greater private sector participation, such as that provided by UDCS, can help resolve some of the inadequacies of the country’s public health system.
INNOCENT UNAH
