GWest Corporation Directors Assuring Shareholders And Investors That They Are Confident That The Company Will Continue As A Going Concern
GWest Corporation Ltd is reporting that the financial year ending March 2019, saw the company suffering an increase in the losses from JA$78M to JA$151M, this as revenue growth continues to be curtailed by delays in the accreditation process of the Ministry of Health.
For the year ending March 31, 2019 revenues increased from JA$66M to JA$130M, with income from Property rental increasing from JA$49M to $53M, and patient fees increasing from JA$17M to $77M.
Commenting on the results Chairman Konrad Kirlew reported that administrative and operating cost, increased significantly over last year moving from JA$166M to $276M, due mainly due to start-up costs of their main medical facilities.
The accreditation of their main facilities he said will allow them provider-status in accepting all the major health cards which is a necessity for their clients.
Presently, they have received accreditation for two of their facilities, namely the General Practice and the Urgent Care facility as at May 15, 2019 and have also obtained provider status in accepting health insurance going forward.
The accreditation of their Laboratory remains outstanding and as such they are not able to accept health cards at this facility.
Nonetheless, working with the Ministry of Health to achieve this milestone is expected to significantly increase the income of the Laboratory.
According to Chairman Kirlew, it is a well-established fact that the majority of health services are paid for by health insurance policies and the inability to accept insurance cards during the last financial year, has hindered the growth in their revenue and expansion plans, significantly.
Despite a slight reduction in total assets from JA$1.65B to JA$1.53B for the financial year, the value of their prime real estate property remains strong and they expect that this will see an increase in rental income and future sales he reported.
The directors have also acknowledged Note 28 of the auditor’s report regarding the going concern of the company, which indicates the existence of an uncertainty, which may cast doubt on the company as a going concern.
Management has carried out a restructuring of operations with the rationalization staff. This and other cost cutting measures are expected to contain the increase in operating and administrative costs.
GWest Corporation recently announced that Ms. Marce Hales resigned from her position of Chief Executive Officer, effective July 5, 2019, which the company said is in keeping with staff rationalization strategy being undertaken by the Company.
GWest has also entered into sale discussions with interested purchasers of office space, which upon closure should provide adequate cash flow to their business operations.
Chairman Kirlew also sought to assure shareholders and investors that they are currently in advanced discussions with their bankers with respect to restructuring existing debt and providing additional financing to carry out projected expansion plans.
Thus far these actions, have already resulted in successes and they are confident that the company will continue as a going concern he said.