Business analyst report: Capitol Health Limited Essay

Capitol Health Ltd.

Business Analysis Report

Group Assignment

Recognition

“The assignment has been carefully researched and created in a group. Puting together the squad attempt we summarized the best information available in the on-line diaries, research documents, company one-year studies & As ; from other beginnings. Every squad member has played its critical function in this assignment. All the related documents’ links have been provided either in commendation or under separate mention heading” .

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Table of Contentss

Executive Summary

Introduction

Background Summary

Industry Environment Review

Rivals Review

Company Review

Share Price Data

Company Fundamentalss

Historical Monetary values

Last 5 Dayss

High Dividend Record

Company Executives

Company Scheme

FY14 Success

Future Scheme

Future Scheme

Stock Price Target CAJ

Fiscal Statement ( Balance Sheet )

Decision

Mentions

Executive Summary

This study reflects all the working and research on“Capitol Health Ltd.” .Capitol Health Limited ( ASX: CAJ ) , an Australian populace company which provides medical diagnostic imagination services. The company is the lone ASX listed company that holds diagnostic imagination services.

The assignment carries all the of import required undertakings which were given to be completed in the specifications papers. All the squad members were allocated some particular undertakings which they performed truly good. The members were given miscellaneous undertakings from the provided specifications. They did truly nice on their specific undertakings.

The assignment carries different headers under which everything has been provided briefly. As per the plagiarism demands, all the citations or anything that has been abstracted from the cyberspace or any other beginning, were provided with the proper commendations and mentions. The mentions were created utilizing Harvard Style Referencing.

The study carries little debut of the selected organisation so that it becomes easier for the viewer/marker to understand what this assignment is all about.

Porters’ Five Forceswere made base in the assignment for the farther analysis and research. The study briefly describes the reappraisals about industry environment, its rivals, fiscal sum-ups, backgrounds, future schemes, and other fiscal information.

This study carries some other information that was considered as of import which is non even required in the assignment specifications.

Introduction

This study has been carefully created after the brief overview of the assignment specifications. Thorough research and analysis were done in the formation of this study. All the information brought by the squad members was decently placed in this study.

Background Summary

Capitol Health Limited ( ASX: CAJ ) , an Australian public company supplying medical diagnostic imagination services. This intervention works entirely merely ASX listed company. The primary end of the company is a prima medical concern for our stockholders and achieves sustainable growing and profitableness of our supply Centres is superior patient experiences. Since get downing operations in 2006, Capital Health medical attention has become Victoria ‘s 2nd largest supplier of diagnostic imagination services. Capital Health imagination processs in wellness attention practicians and their patients is dedicated to supplying first-class attention.

Industry Environment Review

This reappraisal has been created utilizingPorter’s Five Forcesanalysis. Those five forces have been discussed below:

  1. Competition in the industry

Capitol Health Limited( Capital Health )health care concern based in Australia for a community-based( non-hospital ), the supplier of medicaldiagnostic imagination ( DI )services. The company owns about 52 clinics throughout the metropolitan and regional Victoria. Capital wellness services provided by medical clinicians to take on the administrative facets of a pattern seting them on clip bringing, leting you to concentrate on. The organisation providesX-ray diagnostic imagination,magnetic resonance imagination ( MRI ),ultrasound, mammography ; Doppler, Orthopantomogram ( OPG ) , Echocardiography, for computing machine imaging ( CT ) , CT angiography, cone-beam CT, atomic medical specialty, and fluoroscopy include bone Densitomety. The company besides based in Victoria Community Services is a supplier of diagnostic imagination in theradiology MDI, through the services it provides.

Having so many services to be offered, there’s ever a opportunity of competition. The rivals are:

  • Primary Health Care Limited
  • Healthcare Imaging Services
  • Medical Solutions
  • Sonic Healthcare

All the above mentioned sellers provide similar services asCapitol Health Ltdprovides. They may supply same services but inASXindexCapitol Health Ltdis executing better. It is still the loneASXlisted company that providesDiagnostic Imaging Services.

  1. Potential of new entrants into industry

Once new thing comes up in the market its competition starts constructing up. ForCapitol Health Limited,there was and there is still a batch of competition available in the market. But stillCapitol Health Ltdhas its ain market repute. However, to remain in better topographic point they keep presenting new merchandises and services. Such as, late they introduced new MRI machines and 2 more radiology Centres.

  1. Power of providers

Bing a health care service supplier,Capitolhas its ain providers. Chiefly from the medical equipments suppliers. It besides has service suppliers from other sectors such as medical specialties. A provider is the life line of any concern. Whether Non-Profit or profitable organisation, it is indispensable to maintain the supplies in suited measure in order to supply the best services.

  1. Power of clients

As an ASX listed service supplier, Capitol Healthcare Ltd have two types of clients

  • Investors/Share holders
  • Patients

As investors who are besides known as portion holders maintain puting their financess for the purchase of portions they are besides considered as clients. While the normal patients are evidently are proper clients who pay money in exchange of service by the Capitol staff.

  1. Menace of replacement merchandises

There is already a replacement merchandise menace available in the market. Capitol Healthcare has ever tried to be the market leader in all facets. There are many other organisations supplying similar services to the general populace. But Capitol has its ain criterion for services and merchandises. But Capitol should maintain presenting new services in order to last in the market.

Rivals Review

There are many organisations supplying similar services. Some of them are given below with their several capital [ 1 ] in the market.

Virtus Health Ltd

AUD 581.13M

Monash IVF Group Ltd

AUD 342.00M

Japara Healthcare Ltd

AUD 707.60M

Vision Eye Institute Ltd

AUD 126.58M

Primary Health Care Ltd

AUD 2.58B

Healthscope Ltd

AUD 4.82B

Sonic Healthcare Ltd

AUD 7.74B

Company Review

Capitol Health Limited ( ASX: CAJ ) medical diagnostic imagination (DI )services of an Australian public company. The biggest community based within Victoria and DI provided entirely working on is merely ASX listed company. Victoria ‘s metropolitan and rural countries are all under company’s presently runing installations which are about 52 installations and it employs over 500 employees and contractors. The company aims to present a superior experience for the patient ‘s implicit in medical status known to bring forth concern for stockholders is to construct sustainable growing and profitableness.

Share Price Data [ 2 ]

Open

High

Low

Change

% Change

0.935

0.945

0.930

0.005

0.53

Company Fundamentalss

Market Capital

AUD 480.76M

EPS Recent Fiscal twelvemonth

AUD 0.02

Dividend Output

1.176 %

Net income Margin

9.313 %

Tax return on Investment ( ROI )

15.483 %

Normalised P/E Ratio

54.762

Historical Monetary values [ 3 ]

Last 5 Dayss

Date

Open

High

Low

Near

Volume

05/13/15

0.92

0.94

0.92

0.94

980,076

05/12/15

0.90

0.92

0.87

0.92

1.50 M

05/11/15

0.92

0.93

0.91

0.91

577,746

05/08/15

0.92

0.94

0.91

0.91

507,991

05/07/15

0.93

0.93

0.91

0.92

769,196

High Dividend Record

Capitol Health Limited a high dividend, which released a record first-half consequence. The market had already been marked as,AU $ 43.3million in December 2012, half of the semiannual grosss increased 52%relation. This is a 110 per centum addition year-on-year to $ 3.0 million half-year NPAT (InternetNet incomeAfter Tax)as a consequence. The company is executing truly outstanding. The easiest manner to demo you the listing of the Capital ‘s gross and net net income is by the growing chart [ 4 ] .

asi20140214a-lgr.jpg

Company Executives [ 5 ]

The below listed managers are presently working.

Mr Andrew Demetriou

Chairman and Non-Executive Director –Appointed 17 November 2014

Mr John Conidi,( BBus, FCPA )

Pull offing DirectorAppointed 30 August 2007

Mr Dominik Kucera, ( BBus [ Acc ] , CPA )

Executive Director and Chief Financial OfficerAppointed 31 July 2008

Mr Andrew Harrison, ( BCom [ Hons ] , MAICD )

Non-Executive Director?Appointed 1 December 2005

Company Secretary

Mr Kim Hogg,( BCom )Company SecretaryAppointed 1 December 2005

Company Scheme

FY14 Success

$ 10.2m ( + 92 % )forFY14 $ 90.3m ( + 44 % )of the gross andPBT,$ 3.3mfor4Q14 PBTindicates inFY15e $ 13.6m PBTand sets a base line. The last figure was published9 per centumequates to net incomes ascents.Capitol’s MRIvolumes reported by wellness continue to surpass the industry norm.Magnetic resonance imagingscans28per machine per twenty-four hours( + 100 % addition over June ’13 )who works as an norm during June ’14,12 per centof group gross. As reported byMedicare, medicalMagnetic resonance imagingvolumesVIC/TASin,FY14by over+47 %which is about dual by+28 % .Development rose about doubled. Importantly, we are clear market portion additions of+ 5 %vs. Industry Development concern( X-ray / CT / ultrasound )of the cardinal constituent within theMagnetic resonance imagingvolume growing of9 %( all organic ) estimates.

Future Scheme

Capital / MDIcapacity continued to surpass industry growing and execution of internal ICT investing, the new call centre and Radiologists advantage of the delegated direction liberty, clearly branded clinics. DuringFY15not MRI scan volume is expected to lift+5 %. Our prognosis is realized that a little sum of cannibalization holdConnecticutandultrasound scans,Magnetic resonance imagingbetweenGeneral practitionerreferral bases to speed up acceptance could be as a consequence.

Future Scheme

We reverse the hazard by 32 per centum in FY15 with EPS, predicted. Assuming the budget is passed as is, the direction of our FY16 EPS growing prognosiss which are progressively vocal +11%, is the possible acquisition. Evaluation of $ 0.54 (from$ 0.52). Following accelerator:accretive acquisitions, the federal authorities proposed GAP accused the intelligence flow.

Stock Price Target CAJ

High

$ 1.15

Median

$ 1.05

Low

$ 1.04

Average

$ 1.08

Current Monetary value

$ 0.94

Fiscal Statement ( Balance Sheet )

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Previous 3 Old ages CLOSED 30 JUNE 2014

2014

2013

2012

$

$

$

CURRENT ASSETS

Cash and hard currency equivalents

9,119,541

6,126,610

1,702,104

Trade and other receivables

2,264,082

2,196,480

1,300,823

Fiscal asset-held to adulthood

136,103

487,860

476,876

Other assets

612,624

493,270

362,272

Entire Current Assets

12,132,350

9,304,220

3,842,075

NON-CURRENT ASSETS

Other fiscal assets

276,833

Plant & A ; equipment

17,578,663

15,385,769

8,749,302

Intangible assets

30,223,473

30,828,529

23,431,630

Deferred revenue enhancement assets

1,956,831

1,701,149

990,821

Entire Non – Current Assets

50,035,800

47,915,447

33,171,753

TOTAL ASSETS

62,168,150

57,219,667

37,013,828

CURRENT LIABILITIES

Loans and adoptions

3,094,899

2,722,369

2,127,356

Trade and other payables

4,399,863

6,654,807

4,596,953

Employee benefits

4,927,326

1,769,498

926,534

Income revenue enhancement liability

1,002,952

1,112,325

844,722

Entire Current Liabilitiess

13,425,040

12,258,999

8,495,565

NON-CURRENT LIABILITIES

Loans and adoptions

8,399,027

9,523,618

3,512,606

Employee benefits

941,584

644,509

291,760

Deferred revenue enhancement liabilities

737,728

687,255

248,924

Entire Non-Current Liabilitiess

10,078,339

10,855,382

4,053,290

Entire LIABILITIES

23,503,379

23,114,381

12,548,855

Net Assets

38,664,771

34,105,286

24,464,973

Equity

Issued capital

31,541,850

31,200,739

23,369,779

Retained net incomes

7,122,921

2,904,547

1,095,194

Equity attributable to proprietors of the parent

38,664,771

34,105,286

24,464,973

TOTAL EQUITY

38,664,771

34,105,286

24,464,973

Decision

Improve operational efficiency, and achieve high border last twelvemonthMDI radiology clinica solid concern partnership: Capital of the factors behind the crisp rise in net incomes.Management, merely as we expected they decided to increase the interim dividend per portion of0.4 centsthat capital is so confident about the mentality. That ‘s0.25 centsper portion, compared with last twelvemonth ‘s interim dividend is60 % higher. Rising net incomes and increased net incomesCapitol Healthis a true ‘Turbo cap ‘ make stock. That said, we continue to purchase up to53 centspurchasing instructions.Capitol Healthis trading at53 centsto purchase.

Mentions

Fiscal Reports | Capitol Health Limited. 2015. Fiscal Reports | Capitol Health Limited. [ ONLINE ] Available at: hypertext transfer protocol: //capitolhealth.com.au/financial-reports/ .

CAJ.AU Analyst Estimates & A ; Rating – Capitol Health Ltd. – Wall Street Journal. 2015. CAJ.AU Analyst Estimates & A ; Rating – Capitol Health Ltd. – Wall Street Journal. [ ONLINE ] Available at: hypertext transfer protocol: //quotes.wsj.com/AU/XASX/CAJ/research-ratings.

Dividend encouragement for ‘Turbo Cap’ Capitol Health | Port Phillip Publishing. 2015. Dividend encouragement for ‘Turbo Cap’ Capitol Health | Port Phillip Publishing. [ ONLINE ] Available at: hypertext transfer protocol: //www.portphillippublishing.com.au/2014/02/dividend-boost-turbo-cap-capitol-health/ .

Capitol Health Limited | Morgans. 2015. Capitol Health Limited | Morgans. [ ONLINE ] Available at: hypertext transfer protocol: //www.morgans.com.au/Blog/2014/June/Capitol-Health-Limited.aspx.

Capitol Health Ltd posts record net income: Should you leap in? | Motley Fool Australia. 2015. Capitol Health Ltd posts record net income: Should you leap in? | Motley Fool Australia. [ ONLINE ] Available at: hypertext transfer protocol: //www.fool.com.au/2015/02/12/capitol-health-ltd-posts-record-profit-should-you-jump-in/ .

Is Primary Health Care a bargain? | Motley Fool Australia. 2015. Is Primary Health Care a bargain? | Motley Fool Australia. [ ONLINE ] Available at: hypertext transfer protocol: //www.fool.com.au/2013/05/10/is-primary-health-care-a-buy/ .

Primary Health Care – Servicess: Diagnostic Imagination: Servicess. 2015. Primary Health Care – Servicess: Diagnostic Imagination: Servicess. [ ONLINE ] Available at: hypertext transfer protocol: //www.primaryhealthcare.com.au/IRM/content/services_diagnosticimaging.html.

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