Join our daily newsletter At The Bell to receive exclusive market insights
- Medical billing service ICSGlobal (ICS) has continued trading profitably during the last quarter of the 2020 financial year, despite COVID-19
- In late April, the company withdrew its guidance for the 2020 financial year, citing uncertainty caused by the pandemic
- ICSGlobal now expects the net profit after tax for the 2020 financial year to be approximately $1.2 million
- While revenue levels have begun to improve, the company can not yet provide guidance of the 2021 financial year
- ICSGlobal shares are steady today, trading for just under $2 each at market open
Medical billing service ICSGlobal (ICS) has continued trading profitably during the last quarter of the 2020 financial year, despite COVID-19.
On April 21, the company withdrew its guidance for the 2020 financial year, which ended on June 30, 2020. ICSGlobal attributed the withdrawal to increasing uncertainty and market volatility caused by the pandemic.
This unpredictable environment led to a lower overall revenue for the company. However, ICSGlobal’s MBC business has maintained profitable trading during the last quarter of the financial year.
The company claims that this was the result of a prompt management response, including appropriate control of expenses. In its announcement, ICSGlobal explained its response to the global health crisis.
“The board wishes to acknowledge the efforts of MBC’s leadership and staff during this unprecedented period. They have responded quickly and constructively to the changing conditions,” the company stated.
“ICS’s priority has, at all times, been the safety of the team and to date this objective has been achieved. All staff were transitioned to secure ‘working from home’ arrangements,” it continued.
“Where the staff qualified for the UK government furlough assistance, MBC put furloughs in place. The staff are now being brought back to the office on a carefully controlled basis with a continuing focus on safety,” the announcement said.
As a result of the company’s response, MBC has continued to add new customers to its book during the difficult trading period. The company is also hiring additional staff.
ICSGlobal has continued to maintain a strong balance sheet and cash position. Now, the company expects that the net profit after tax (NPAT) for the 2020 financial year will be approximately $1.2 million. This represents a 22 per cent increase on the NPAT for the 2019 financial year.
This estimate is still subject to review and audit. The company intends to release it audited accounts for the 2020 financial year at the end of August.
ICSGlobal has also reported that revenue levels for the company started showing signs of improvement during the month of June. However, the company can not yet provide guidance for the 2021 financial year, due to ongoing uncertainty.
ICSGlobal shares are steady today, trading for $1.96 each at 10:28 am AEST.
