REG - Integrated Diag Hdgs - Final Results
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RNS Number : 8399A Integrated Diagnostics Holdings PLC 17 April 2026
Integrated Diagnostics Holdings Plc
FY 2025 Results
Friday, 17 April 2026
Integrated Diagnostics Holdings plc delivers 37% revenue growth in FY 2025
with strong margin expansion and bottom-line performance
(London) - Integrated Diagnostics Holdings ("IDH," "the Group," or "the
Company"), a leading provider of diagnostic services with operations in Egypt,
Jordan, Nigeria, Saudi Arabia, and Sudan, announced today its financial
results for the quarter and year ended 31 December 2025. The Company reported
revenues of EGP 7.9 billion in FY 2025, representing a year-on-year increase
of 37%, driven by an 11% rise in tests performed and a 24% increase in average
revenue per test, reflecting continued improvements in pricing, test mix, and
service offerings across the Group's footprint. IDH's sustained focus on cost
efficiency, operational leverage, and disciplined execution translated into
robust profitability across the income statement. Gross profit increased 54%
year-on-year to EGP 3.4 billion, with the gross margin expanding to 42.7%,
compared with 38.1% in FY 2024. EBITDA grew 61% year-on-year to EGP 2.7
billion, delivering an EBITDA margin of 34.9%, up from 29.7% last year. Net
profit rose 29% year-on-year to EGP 1.3 billion in FY 2025, while adjusted(2)
net profit increased 79% year-on-year, with the associated margin expanding to
16.1%, reflecting strong underlying operational momentum.
On a quarterly basis, Q4 2025 revenues reached EGP 2.1 billion, up 28.6%
year-on-year, while EBITDA for the quarter increased 58% year-on-year to EGP
709 million, with the margin expanding to 34.2%. Net profit reached EGP 338
million, compared with EGP 284 million in Q4 2024. The fourth quarter also
reflected the continued integration of Cairo Ray for Radiotherapy, acquired in
June 2025, marking a strategic step in expanding IDH's radiology and
radiotherapy capabilities and advancing the Group's long-term vision of
building a fully integrated diagnostics platform.
Financial Results (IFRS)
EGP mn Q4 2024 Q4 2025 Change FY 2024 FY 2025 Change
Revenue 1,613 2,074 29% 5,720 7,855 37%
Cost of Sales (1,002) (1,227) 22% (3,538) (4,502) 27%
Gross Profit 611 846 38% 2,182 3,353 54%
Gross Profit Margin 37.9% 41.0% 3.1 pts. 38.1% 42.7% 4.6 pts.
Operating Profit 320 555 73% 1,214 2,173 79%
EBITDA 448 709 58% 1,697 2,738 61%
EBITDA Margin 27.8% 34.2% 6.4 pts. 29.7% 34.9% 5.2 pts.
Adjusted EBITDA(1) 448 669 49% 1,731 2,698 56%
Adjusted EBITDA Margin 27.8% 32.2% 4.4 pts. 30.3% 34.3% 4.1 pts.
Net Profit 284 338 19% 1,008 1,302 29%
Net Profit Margin 17.6% 16.3% -1.3 pts. 17.6% 16.6% -1.0 pts.
Adjusted Net Profit(2) 245 298 22% 705 1,262 79%
Adjusted Net Profit Margin 15.2% 14.4% -0.8 pts. 12.3% 16.1% 3.8 pts.
Cash Balance(3) 1,716 2,090 22% 1,716 2,090 22%
Note: Throughout the document, percentage changes are calculated using the
exact value (as per the Consolidated Financials) and not the corresponding
rounded figure.
Key Operational Indicators(4)
EGP FY 2024 FY 2025 Change
Branches 628 767(5) +139
Patients ('000) 8,947 9,409 5%
Revenue per Patient (EGP) 639 835 31%
Tests ('000) 39,192 43,455 11%
Revenue per Test (EGP) 146 181 24%
Test per Patient 4.4 4.6 5%
1 Adjusted EBITDA is calculated as operating profit before depreciation,
amortisation and other one-off items that are not expected to recur, with
adjusted EBITDA being a measure monitored by management prior to these
non-recurring items.
2 Adjusted net profit excludes non-recurring items in FY 2025 and FX gains in
FY 2024.
3 Cash balance includes time deposits, treasury bills, current accounts, and
cash on hand.
4 Key operational indicators are calculated based on revenue for the periods
of EGP 7,855 million and EGP 5,720 million for FY 2025 and FY 2024,
respectively.
5 IDH rolled out 137 new branches in Egypt, one new branch in Jordan, and one
new branch in KSA. It is important to note that due to the ongoing conflict in
Sudan, only one of IDH's 18 branches in the country is currently operating
(reopened in Q3 2024).
Introduction
i. Financial Highlights
· IDH reported consolidated revenue of EGP 7,855 million in FY
2025, representing a 37% year-on-year increase, driven by an 11% rise in test
volumes and a 24% increase in average revenue per test (ARPT). Growth remained
broad-based across the Group's footprint, with Egypt, Jordan, Nigeria, and
Saudi Arabia all delivering solid contributions during the year. On a
quarterly basis, Q4 2025 revenue reached EGP 2,074 million, up 29%
year-on-year, reflecting continued momentum across both corporate and walk-in
business lines.
· Gross profit reached EGP 3,353 million in FY 2025, representing a
54% year-on-year increase, with the gross profit margin (GPM) expanding to
42.7%, compared with 38.1% in FY 2024. Margin expansion was primarily driven
by tighter cost controls and scale efficiencies across the Group. Raw
materials as a share of revenue declined to 19.3% from 22.0%, while direct
wages and salaries improved modestly to 18.4% from 18.6%, reflecting continued
optimisation of procurement and workforce productivity. On a quarterly basis,
Q4 2025 gross profit stood at EGP 846 million, up 38% year-on-year, with a GPM
of 41.0%, underscoring sustained operational efficiency.
· EBITDA increased 61% year-on-year to EGP 2,738 million in FY
2025, with the EBITDA margin expanding to 34.9% from 29.7% last year.
Similarly, operating profit also recorded strong growth, increasing by a
strong 79% year-on-year to EGP 2.2 billion. The improvement reflects stronger
gross profitability and disciplined SG&A management, supported by
digitalisation initiatives and operating leverage across the Group. SG&A
expenses as a percentage of revenue declined year-on-year, despite continued
investment in growth initiatives, particularly in Saudi Arabia. On an adjusted
basis, EBITDA reached EGP 2,698 million, excluding EGP 40.1 million related to
the contribution of Cairo Ray for Radiotherapy following its acquisition in
June 2025, resulting in an adjusted EBITDA margin of 34.3%. On a quarterly
basis, Q4 2025 EBITDA reached EGP 709 million, up 58% year-on-year, delivering
an EBITDA margin of 34.2%. Adjusted EBITDA for the quarter amounted to EGP 669
million, corresponding to an adjusted margin of 32.3%.
· Net profit rose 29% year-on-year to EGP 1,302 million in FY 2025,
with a net profit margin (NPM) of 16.6%, compared with 17.6% in FY 2024, which
included elevated FX gains. Excluding FX effects in FY 2024 and non-recurring
items in FY 2025, adjusted net profit increased 79% year-on-year to EGP 1,262
million, with the associated margin expanding to 16.1%, highlighting the
strength of the Group's underlying operating performance. On a quarterly
basis, Q4 2025 net profit reached EGP 338 million, compared with EGP 284
million in Q4 2024, with a corresponding NPM of 16.3%. Adjusted net profit
increased 22% year-on-year to EGP 298 million in Q4 2025. Similarly, operating
profit in Q4 2025 recorded a strong 73% year-on-year increase to EGP 555
million.
· IDH's net cash balance recorded EGP 472 million as at 31 December
2025, compared to a net cash of EGP 226 million as at year-end 2024.
· The Board of Directors has declared a dividend of USD 0.0085 per
share for the year ended 31 December 2025, representing a total distribution
of USD 4.9 million. This payout aligns with our commitment to delivering
sustainable shareholder value while maintaining flexibility to fund promising
growth projects. Given the current geopolitical landscape and market
volatility, the Board remains prudent in its capital allocation. We intend to
re-evaluate as market conditions and capital requirements evolve.
ii. Operational Highlights
· As at 31 December 2025, IDH's branch network stood at 767
branches, up 139 branches year-on-year from 628 branches at year-end 2024.
Over the past twelve months, the Group inaugurated 137 new branches in Egypt,
alongside one new location in Jordan and one additional branch in Saudi
Arabia, while operations in Sudan remained largely suspended except for a
single partially operational branch. This expansion reflects IDH's continued
commitment to enhancing accessibility and deepening market coverage across its
operating geographies.
· During FY 2025, IDH conducted 43.5 million tests, representing an
11% year-on-year increase, supported by higher patient throughput across both
corporate and walk-in channels. Test volumes continued to grow across Egypt
and Jordan despite the price adjustments implemented earlier in the year,
underscoring the strength of the Group's brands and the resilience of
underlying demand.
· Average revenue per test (ARPT) increased 24% year-on-year to EGP
181 in FY 2025, reflecting the combined impact of pricing actions and a richer
test mix driven by expanded radiology, radiotherapy, and specialised
diagnostics. Average revenue per patient rose 31% year-on-year to EGP 835,
highlighting IDH's continued success in enhancing value capture per patient
through cross-selling and broader service offerings.
· IDH served 9.4 million patients during FY 2025, up 5%
year-on-year. In parallel, the Group further improved its average tests per
patient metric to 4.6, compared with 4.4 in FY 2024. This improvement reflects
the effectiveness of IDH's long-term initiatives aimed at deepening patient
engagement, including loyalty programmes and digital outreach initiatives
rolled out over recent years.
iii. Updates by Geography
· In Egypt (84.6% of total revenue in FY 2025), IDH recorded
revenues of EGP 6,642 million during the year, representing 41% year-on-year
growth compared to FY 2024. Growth was driven by a 10% increase in test
volumes alongside a 28% rise in average revenue per test, reflecting the
combined impact of pricing adjustments and a richer test mix.
· IDH's Jordanian subsidiary, Biolab (13.1% of total revenues in FY
2025), reported revenues of JOD 15.0 million, up 7% year-on-year from JOD 14.0
million in FY 2024. In Egyptian pound terms, revenues increased 14%
year-on-year to EGP 1,026 million. Performance during the year was supported
by a 21% increase in test volumes and a 4% rise in patients served, reflecting
continued recovery in patient activity and the sustained effectiveness of
Biolab's promotional, digital outreach, and loyalty initiatives.
· In Nigeria (1.5% of total revenues in FY 2025), Echo-Lab recorded
revenues of NGN 3,712 million, representing 37% year-on-year growth in local
currency terms. In EGP terms, revenue increased 47% year-on-year to EGP 121
million. Growth was supported by continued pricing adjustments to offset local
inflation, driving higher average revenue per test, alongside a 6% increase in
test volumes. Importantly, Echo-Lab delivered a full year of positive EBITDA
in FY 2025 following its turnaround.
· Biolab KSA, IDH's newest venture in Saudi Arabia (0.8% of total
revenues in FY 2025), reported revenues of SAR 5.0 million, representing 252%
year-on-year growth compared to FY 2024. In Egyptian pound terms, revenues
rose to EGP 65 million, reflecting the continued ramp-up in patient activity
and growing brand awareness as the network expanded. During the year, Biolab
KSA increased its operational footprint to three branches, supporting a sharp
increase in both patients served and tests performed. The strong momentum
achieved during FY 2025 positions the venture well for further growth as
additional locations are launched, with the Group aiming to launch three
additional branches in the country (taking the total up to six) in the coming
months, and leverage its expanded ownership stake(6) to further accelerate
growth at its newest geography.
· In Sudan, one branch remained partially operational throughout
the year, while the remaining 17 branches continued to be closed indefinitely
pending stabilisation of conditions in the country. The Group generated SDG
109 million in revenues in FY 2025, compared with SDG 85.3 million in FY 2024.
In EGP terms, revenues amounted to EGP 2.3 million, versus EGP 2.6 million
last year.
6 In December 2024, IDH announced the purchase of Izhoor's entire 49% stake in
the venture for USD 3.2 million, bringing IDH's effective stake in Biolab KSA
to 100% (79% controlled by IDH and 21% by its Jordanian subsidiary Biolab). It
is worth noting that Biolab KSA was originally launched as a joint venture
between IDH (30%), Biolab (21%), and Izhoor Holding Medical Company (49%) in
January 2024.
iv. Management Commentary
Commenting on the Group's FY 2025 performance, IDH Chief Executive Officer,
Dr. Hend El-Sherbini, said: "2025 marked another important year in IDH's
journey, as we continued to expand access to high-quality diagnostics while
strengthening the scale, efficiency, and resilience of our platform. Against a
backdrop of improving macroeconomic stability across several of our core
markets, the Group delivered strong operational and financial performance,
reflecting the success of our disciplined execution, enhanced operating
leverage, and long-term strategy focused on value-led growth.
During the year, IDH reported consolidated revenues of EGP 7.9 billion,
representing a year-on-year increase of 37%, driven by an 11% rise in tests
performed and a 24% increase in average revenue per test. The Group performed
43.5 million tests during the year and served 9.4 million patients, with
average tests per patient increasing to 4.6, reflecting deeper engagement and
improved cross-selling across our expanding service portfolio. Growth was
supported by continued expansion of our branch network and a progressively
richer service mix, including radiology, radiotherapy, and specialised
diagnostics. Importantly, this top-line momentum translated into meaningful
profitability expansion. Operating profit also recorded strong growth,
increasing by a strong 79% year-on-year to EGP 2.2 billion, reflecting
improved cost control and operating leverage across the business. Similarly,
EBITDA increased 61% year-on-year to EGP 2.7 billion, with the margin
improving to 34.9% versus 29.7% in the previous year, while net profit after
tax rose 29% year-on-year to EGP 1.3 billion. When adjusting for non-recurring
items and foreign exchange effects, adjusted net profit increased 79%, with
the associated margin expanding to 16.1%, highlighting the strength of our
underlying operating performance and the structural improvements achieved
across our cost base. These results demonstrate the scalability of our
business model and our ability to generate sustainable growth while enhancing
profitability, even as we continue investing in new markets and specialised
capabilities.
As we look ahead, IDH is well positioned to build on the progress achieved
during the year. Our expanded network, strengthened service offering, improved
cost structure, and enhanced profitability profile provide a solid foundation
for continued growth. With a platform that combines scale and an increasingly
diversified service mix, we enter the coming period with both momentum and
clarity of purpose.
At the same time, management continues to closely monitor evolving
macroeconomic conditions and regional developments, including the escalation
of the U.S.-Israel conflict with Iran in early 2026, which may introduce
heightened uncertainty across the region, particularly in markets such as
Jordan and Saudi Arabia.
Overall, the progress achieved during 2025 reflects the strength of our
strategy, the dedication of our teams, and the trust placed in us by millions
of patients across our markets. With clear market-specific action plans,
continued operational discipline, and a scalable platform, we are confident in
our ability to sustain this momentum and deliver long-term value for our
stakeholders while contributing meaningfully to the development of healthcare
systems across the region."
v. Post Balance Sheet Events
As announced on 13 November 2025 by the Company, Actis GP LLP and Actis
Guernsey GP Limited, each, a subsidiary of Actis LLP and which through funds
under their management control shares representing 21.67% of the Company (the
"Actis Shareholding"), have agreed to dispose, by way of an indirect share
sale of Actis IDH Limited, of the entire Actis Shareholding to a special
purpose vehicle, the majority of which is controlled by funds managed by
Elliott Investment Management L.P. (the "Transaction"), of whom the ultimate
beneficial owner is Paul Singer.
The Transaction was conditional on the receipt of regulatory clearance, which
was received on 31 March 2026, at which point the transfer became
unconditional, and was completed on Thursday 9 April 2026.
- End -
Analyst and Investor Call Details
An analyst and investor call will be hosted at 14:00 pm (UK) | 15:00 (Egypt)
on Tuesday, 21 April 2026. You can learn more details and register for the
call by clicking on the link
(https://irfiles.technologyverse.com/idh/IDH-2025-results-conference-call.pdf)
.
For more information about the event, please contact: amoataz@EFG-HERMES.com
(mailto:amoataz@EFG-HERMES.com)
About Integrated Diagnostics Holdings (IDH)
IDH is a leading diagnostics services provider in the Middle East and Africa
offering a broad range of clinical pathology and radiology tests to patients
in Egypt, Jordan, Nigeria, Saudi Arabia, and Sudan. The Group's core brands
include Al Borg, Al Borg Scan and Al Mokhtabar in Egypt, as well as Biolab
(Jordan), Echo-Lab (Nigeria), Ultralab and Al Mokhtabar Sudan (both in Sudan),
and Biolab KSA (Saudi Arabia). With over 40 years of experience, a long track
record for quality and safety has earned the Company a trusted reputation, as
well as internationally recognised accreditations for its portfolio of over
3,000 diagnostics tests. From its base of 767 branches as of 31 December 2025,
IDH served over 9.4 million patients and performed more than 43.5 million
tests in 2025. IDH will continue to add laboratories through a Hub, Spoke and
Spike business model that provides a scalable platform for efficient
expansion. Beyond organic growth, the Group targets expansion in appealing
markets, including acquisitions in the Middle Eastern, African, and East Asian
markets where its model is well-suited to capitalise on similar healthcare and
consumer trends and capture a significant share of fragmented markets. IDH has
been a Jersey-registered entity (i) whose shares are admitted to the equity
shares (transition) category (previously, the standard listing segment) of the
Official List of the UK Financial Conduct Authority and admitted to trading on
the main market for listed securities of the London Stock Exchange (ticker:
IDHC) since May 2015.
Shareholder Information
LSE: IDHC.L
Bloomberg: IDHC:LN
Listed on LSE: May 2015
Shares Outstanding: 581,326,272
Contact
Tarek Yehia
Investor Relations Director
T: +20 (0)2 3332 1126 | M: +20 10 6882 6678 | tarek.yehia@idhcorp.com
(mailto:tarek.yehia@idhcorp.com)
Forward-Looking Statements
These results for the year ended 31 December 2025 have been prepared solely to
provide additional information to shareholders to assess the group's
performance in relation to its operations and growth potential. These results
should not be relied upon by any other party or for any other reason. This
communication contains certain forward-looking statements. A forward-looking
statement is any statement that does not relate to historical facts and
events, and can be identified by the use of such words and phrases as
"according to estimates", "aims", "anticipates", "assumes", "believes",
"could", "estimates", "expects", "forecasts", "intends", "is of the opinion",
"may", "plans", "potential", "predicts", "projects", "should", "to the
knowledge of", "will", "would" or, in each case their negatives or other
similar expressions, which are intended to identify a statement as
forward-looking. This applies, in particular, to statements containing
information on future financial results, plans, or expectations regarding
business and management, future growth or profitability and general economic
and regulatory conditions and other matters affecting the Group.
Forward-looking statements reflect the current views of the Group's management
("Management") on future events, which are based on the assumptions of the
Management and involve known and unknown risks, uncertainties and other
factors that may cause the Group's actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements. The
occurrence or non-occurrence of an assumption could cause the Group's actual
financial condition and results of operations to differ materially from, or
fail to meet expectations expressed or implied by, such forward-looking
statements.
The Group's business is subject to a number of risks and uncertainties that
could also cause a forward-looking statement, estimate or prediction to differ
materially from those expressed or implied by the forward-looking statements
contained in this communication. The information, opinions and forward-looking
statements contained in this communication speak only as at its date and are
subject to change without notice. The Group does not undertake any obligation
to review, update, confirm or to release publicly any revisions to any
forward-looking statements to reflect events that occur or circumstances that
arise in relation to the content of this communication.
A message from the Chair of your Board of Directors
I am pleased to report that 2025 has been a year of strong performance and
meaningful progress for your Company.
Building on the resilience demonstrated in prior years, IDH has delivered
robust growth, strengthened its regional platform, and enhanced the quality
and breadth of its service offering, all while navigating a complex global and
regional environment.
Sustained Growth and Expanding Profitability
During the year, IDH recorded revenues of EGP 7.9 billion, representing a 37%
year-on-year increase. This performance was driven by an 11% rise in test
volumes and a 24% increase in average revenue per test, reflecting both
strategic pricing actions and a richer diagnostic mix.
Importantly, growth was not only top-line in nature. EBITDA increased 61%
year-on-year to EGP 2.7 billion, with margins expanding to 34.9%, underscoring
the strength of the Group's underlying operating momentum, while net profit
increased 29% to EGP 1.3 billion with a 17% margin.
These results reflect not only the scalability of our model, but also the
strength, depth, and experience of our management team, whose disciplined
execution and strategic clarity continue to underpin the Company's success.
Egypt remains the cornerstone of our platform and has continued to deliver
strong and resilient operational performance over recent years.
Encouragingly, we saw signs of improving macroeconomic stability throughout
2025, with moderating inflation and greater foreign exchange availability
supporting a more constructive business environment.
However, it is important to acknowledge that the weakness and volatility of
the Egyptian pound has, in recent years, represented the principal challenge,
and in many respects the Achilles' heel of an otherwise strong performance
story.
Currency depreciation has impacted reported results and investor sentiment,
despite the underlying robustness of the business.
We are cautiously optimistic that increasing economic stability in Egypt,
particularly in relation to the Egyptian pound, will provide a more supportive
backdrop going forward, although recent geopolitical developments - including
the escalation of the U.S.-Israel conflict with Iran in early 2026 - may
introduce renewed pressure on regional markets and external balances.
Strategic Progress and Regional Expansion
During the year, we continued to make important strategic progress across our
footprint.
In Egypt, we strengthened our leadership position and expanded access to
high-quality diagnostic services.
The acquisition of Cairo Ray for Radiotherapy marks a significant milestone,
enhancing Al Borg Scan's capabilities and positioning the Group more firmly in
higher-value, specialised services.
Beyond Egypt, our strategy remains under constant review, with a clear focus
on geographic diversification.
The Middle East, and Saudi Arabia in particular, represents a key pillar of
our future growth. We are encouraged by the strong momentum of Biolab KSA,
where revenues grew significantly and our footprint continues to expand.
Nigeria also delivered encouraging progress, with Echo-Lab achieving full year
positive EBITDA, demonstrating the potential of this high growth market
following a period of restructuring.
A core strategic priority for the Group is the continued evolution of our
revenue mix towards higher-value, more specialised services.
Through investments in radiology, radiotherapy, and advanced diagnostics, we
are increasingly focused on driving value-added revenue streams that enhance
margins, improve patient outcomes, and strengthen our competitive positioning.
This shift not only supports profitability but also reinforces our long-term
ambition to build a fully integrated diagnostics platform across our markets.
The global operating environment during 2025 remained uncertain, shaped by
geopolitical tensions, supply chain disruptions, and evolving trade dynamics.
Against this backdrop, management acted proactively, implementing prudent
inventory strategies and maintaining close supplier relationships.
As a result, the Group experienced no material disruptions and maintained
uninterrupted service delivery.
Across our markets, management continues to closely monitor evolving
macroeconomic conditions and regional developments, including the escalation
of the U.S.-Israel conflict with Iran in early 2026, which may introduce
heightened economic uncertainty across the region, particularly in markets
such as Jordan and Saudi Arabia.
Innovation remains central to our strategy. We continue to invest in digital
transformation to enhance operational efficiency, improve patient experience,
and unlock greater value from our data capabilities.
We also remain committed to responsible growth, as demonstrated by our
continued progress on sustainability and governance.
Strong oversight, a balanced Board, and a robust risk framework remain
fundamental to the way we operate.
The recovery in the Company's share price over the past six months has been
both encouraging and, in our view, long overdue. It reflects a growing
recognition of the strength of our underlying business, the resilience of our
operating model, and the significant progress made across our key markets.
We remain focused on delivering sustainable long-term value for our
shareholders through disciplined execution, strategic expansion, and continued
operational excellence.
The Board of Directors has declared a dividend of USD 0.0085 per share for the
year ended 31 December 2025, representing a total distribution of USD 4.9
million. This payout aligns with our commitment to delivering sustainable
shareholder value while maintaining flexibility to fund promising growth
projects. Given the current geopolitical landscape and market volatility, the
Board remains prudent in its capital allocation. We intend to re-evaluate as
market conditions and capital requirements evolve.
On behalf of the Board, I would like to thank our management team and
employees for their continued dedication and professionalism, as well as our
shareholders for their ongoing support.
IDH enters 2026 from a position of strength. With an experienced management
team, a clear strategic direction, improving macroeconomic conditions, and a
renewed focus on value creation, we are confident in our ability to deliver
sustainable growth in the years ahead.
Lord St John of Bletso
Chairman
Chief Executive's Review
2025 marked another important year in IDH's journey, as we continued to expand
access to high-quality diagnostics while strengthening the scale, efficiency,
and resilience of our platform. Against a backdrop of improving macroeconomic
stability across several of our core markets, the Group delivered strong
operational and financial performance, reflecting the success of our
disciplined execution, enhanced operating leverage, and long-term strategy
focused on value-led growth.
During the year, IDH reported consolidated revenues of EGP 7.9 billion,
representing a year-on-year increase of 37%, driven by an 11% rise in tests
performed and a 24% increase in average revenue per test. The Group performed
43.5 million tests during the year and served 9.4 million patients, with
average tests per patient increasing to 4.6, reflecting deeper engagement and
improved cross-selling across our expanding service portfolio. Growth was
supported by continued expansion of our branch network and a progressively
richer service mix, including radiology, radiotherapy, and specialised
diagnostics. Importantly, this top-line momentum translated into meaningful
profitability expansion. Operating profit also recorded strong growth,
increasing by a strong 79% year-on-year to EGP 2.2 billion, reflecting
improved cost control and operating leverage across the business. Similarly,
EBITDA increased 61% year-on-year to EGP 2.7 billion, with the margin
improving to 34.9% versus 29.7% in the previous year, while net profit after
tax rose 29% year-on-year to EGP 1.3 billion. When adjusting for non-recurring
items and foreign exchange effects, adjusted net profit increased 79%, with
the associated margin expanding to 16.1%, highlighting the strength of our
underlying operating performance and the structural improvements achieved
across our cost base.
These results demonstrate the scalability of our business model and our
ability to generate sustainable growth while enhancing profitability, even as
we continue investing in new markets and specialised capabilities.
Building healthcare access in structurally attractive markets
At the heart of IDH's strategy is a clear conviction: the most compelling
long-term healthcare opportunities lie in markets where demand is structurally
expanding and access to high-quality services still has room to deepen. Across
our footprint, rising prevalence of chronic and lifestyle-related diseases and
expanding insurance coverage continue to underpin sustained demand for
diagnostic services. Diagnostics increasingly sit at the centre of modern care
pathways, acting as both a gatekeeper and an enabler of treatment decisions,
which structurally supports utilisation growth over time.
Egypt remains central to this thesis. The diagnostics market is split between
public and private providers, with the private segment still concentrated in
major urban centres, leaving significant potential in underserved regions.
Ongoing expansion of corporate health coverage and the rollout of mandatory
health insurance further reinforce long-term growth prospects for private
diagnostics. These structural tailwinds are supported by favourable
demographics, including a large and growing population and an increasing
proportion of older citizens, which together continue to drive healthcare
utilisation and more frequent diagnostic testing. Within this landscape, IDH
maintains a leading position, supported by its nationwide footprint, strong
brand recognition, international accreditations, and long-standing market
presence, all of which provide competitive insulation and procurement
advantages at scale.
During 2025, the broader macroeconomic environment across parts of our
footprint became more stable following a period of volatility in prior years.
In Egypt, structural reforms, improved foreign exchange availability,
moderating inflation, and renewed investor confidence contributed to a more
predictable operating environment. In Jordan, a stable, insurance-led
healthcare system continued to support consistent demand. In Nigeria, ongoing
economic reforms and currency stabilisation efforts helped foster a gradual
recovery in patient activity, while in Saudi Arabia, continued progress under
Vision 2030 and growing private-sector participation in healthcare reinforced
long-term demand for high-quality diagnostics infrastructure.
Together, these structural and macroeconomic trends provide a supportive
backdrop for IDH's continued expansion and position the Group to capture
sustainable growth across its markets.
Egypt: scale leadership, mix enhancement, and platform expansion
Egypt delivered another year of exceptional performance, with revenues
increasing 41% to EGP 6.6 billion, supported by 10% growth in tests performed
and a 28% increase in revenue per test. Growth was broad-based across both
contract and walk-in segments, with contract revenues reaching EGP 4.7 billion
and walk-in revenues approaching EGP 1.9 billion. The strength of both
channels reflects the balance in our model between institutional relationships
and direct patient engagement.
We continued to grow our footprint meaningfully, inaugurating 137 new branches
during the year and ending 2025 with 724 branches in Egypt. This expansion
reinforces our ability to reach patients beyond major city centres, further
strengthening our competitive position and referral network density.
Alongside expansion, we continued to enhance the value of our service mix.
Radiology and radiotherapy remain central to our long-term platform thesis,
both as growth drivers and as natural extensions of the role diagnostics plays
in care pathways. During 2025, the acquisition of Cairo Ray for Radiotherapy
represented a strategic step forward in broadening our capabilities and
advancing our vision of a more integrated diagnostics platform. Radiology and
radiotherapy revenues reached EGP 310 million during the year, reflecting the
growing importance of higher-value specialised services within our portfolio.
Our house-call service remained a core pillar of our offering, accounting for
approximately 20% of Egypt's revenues, significantly above pre-pandemic
levels. This channel reflects shifting patient preferences toward convenience
and accessibility while reinforcing IDH's ability to deliver high-quality care
beyond the clinic setting. In parallel, Wayak continued to expand, generating
EGP 34 million in revenues and fulfilling approximately 260 thousand orders,
contributing to our broader digital ecosystem and strengthening patient
engagement across both physical and digital touchpoints.
Jordan: stability, volume-led strategy, and quality advantage
Jordan remains a stable, insurance-led healthcare market where regulated
pricing creates a clear imperative: operators win through service quality and
efficiency. Biolab is well positioned in this environment, supported by its
internationally accredited platform, long-standing relationships with
healthcare providers, and strong brand equity in Amman and surrounding areas.
In 2025, Biolab delivered 7% revenue growth in local currency to JOD 15.0
million, supported by 21% growth in tests performed and a 4% increase in
patients served. In Egyptian pound terms, revenues reached EGP 1.0 billion.
The strong volume performance, alongside a deliberate pricing strategy aimed
at defending market share, reflects the effectiveness of promotional, digital
outreach, and loyalty initiatives in supporting patient acquisition and
retention. EBITDA remained stable in margin terms at 27.8%, underscoring
disciplined cost management in a regulated pricing environment.
Nigeria: a high-growth frontier and a turnaround milestone
Nigeria remains one of the most attractive long-term healthcare markets in
Africa: a large and youthful population, rising chronic disease burden, and a
fragmented diagnostics landscape that remains underpenetrated. It is a market
where scale and quality standards can unlock meaningful share gains over time.
2025 marked an operational milestone for IDH in Nigeria, where Echo-Lab
delivered a full year of positive EBITDA following its turnaround. Revenue
increased to NGN 3.7 billion (EGP 121 million), supported by pricing actions
aligned with local inflation and a 6% increase in volumes. EBITDA reached NGN
193 million, compared with an EBITDA loss of NGN 846 million in the prior
year, reflecting improved cost control, better asset utilisation, and
disciplined management of working capital. While macro conditions remain
complex, our focus in Nigeria is clear: continue modernising the network,
expand the service portfolio, and build a scalable platform that can
consolidate demand away from informal providers toward higher-quality
diagnostic standards.
Saudi Arabia: early scale-up with a long runway ahead
Saudi Arabia continues to be a compelling market, underpinned by lifestyle
shifts and a healthcare transformation agenda accelerating private-sector
participation. The diagnostics sector remains fragmented, and the long-term
runway for professionally run providers is significant.
In 2025, Biolab KSA generated SAR 5.0 million in revenues, up 252%
year-on-year, equivalent to EGP 65 million. The network expanded to three
branches, supporting sharp growth in patient and test volumes. While the
business remains in its investment and ramp-up phase, EBITDA losses narrowed
meaningfully year-on-year, reflecting improved utilisation of fixed costs and
early operating leverage. Progress during the year reinforces our confidence
in the market's potential and in our ability to scale in a disciplined,
value-accretive manner.
Sudan: cautious engagement, safety-first, and long-term optionality
Sudan continued to face severe disruption from ongoing conflict, constraining
normal operations and access to care. IDH maintained a cautious presence, with
one branch partially operational and the remaining network closed indefinitely
pending stabilisation. 2025 revenues were SDG 109 million (EGP 2.3 million).
Our posture remains safety-first - protecting our people and patients - while
maintaining the optionality to participate in recovery when conditions allow.
Investing in scale, efficiency, and long-term value
Beyond geographic expansion, we continued to strengthen the foundations of our
platform. During the year, our branch network grew to 767 branches across our
markets. This expansion enabled us to serve 9.4 million patients and perform
43.5 million tests, while increasing average tests per patient to 4.6,
reflecting deeper patient relationships and improved monetisation.
At the same time, we advanced our digitalisation agenda and implemented
targeted operational improvements to enhance efficiency and strengthen our
cost base. Cost of goods sold declined to 57.3% of revenue from 61.9% in the
prior year, driven by procurement optimisation and scale efficiencies. Raw
materials as a percentage of revenue declined to 19.3%, while direct wages
remained well controlled at 18.4% of revenue. SG&A expenses decreased to
15.0% of revenue from 16.9%, despite continued investment in growth
initiatives, reflecting strong operating leverage and the tangible impact of
digitalisation initiatives.
Collectively, these developments reinforce the strength of IDH's operating
model, which combines scale, operational efficiency, service excellence, and
disciplined capital allocation to deliver sustainable, long-term growth.
Responsible operations and sustainable value creation
As a leading diagnostics platform operating across multiple jurisdictions, we
recognise that long-term value creation must be anchored in responsible
governance, environmental stewardship, and measurable social impact.
Sustainability at IDH is not treated as a parallel initiative, but rather as
an integrated component of our operating model.
During 2025, we published our fourth TCFD-aligned disclosure, reinforcing our
commitment to transparency in climate-related governance, strategy, and risk
management. This year marked a meaningful step forward in the maturity of our
climate reporting, most notably through the expansion of our Scope 1 and Scope
2 greenhouse gas inventory. Our emissions assessment now covers 726 locations
in Egypt and 37 in Jordan, reflecting full operational boundary coverage in
these markets. This represents a significant broadening of data capture
compared to prior reporting cycles and strengthens the integrity of our carbon
accounting framework.
We continue to advance our Decarbonisation Plan, focusing on practical,
operationally grounded initiatives. These include energy efficiency upgrades
such as LED lighting rollouts, smart building management systems, enhanced
refrigeration management with leak detection controls, progressive replacement
of legacy air conditioning systems, and structured water management practices
aligned with ISO standards. Sustainable mobility is another priority area,
with forward-looking evaluations of alternative fleet solutions and
initiatives to encourage lower-carbon commuting practices among employees.
Importantly, our approach to sustainability extends beyond emissions. We are
strengthening our supply chain governance through the development of a
Sustainable Procurement Policy, building on our existing Supplier Code of
Conduct, which embeds minimum environmental and social standards into
contractual relationships. All direct material expenditure remains subject to
defined ESG obligations, and we maintain zero tolerance for unethical labour
or environmental practices. Over time, this structured supplier engagement
framework will allow us to expand our emissions inventory to include relevant
Scope 3 categories, with reporting expected to commence in 2026.
Governance remains central to our responsible operations agenda. ESG oversight
continues to sit with the Board Audit Committee, supported by the
Sustainability Steering Committee at the executive level. Day-to-day
coordination is managed through the Investment Relations function under direct
Board oversight, ensuring that sustainability considerations remain closely
linked to disclosure standards and capital market expectations.
Beyond environmental considerations, our responsible operations agenda
continues to prioritise patient accessibility, data confidentiality, clinical
quality, and employee wellbeing. We continue to invest in training programmes
and quality assurance systems across our expanding branch network. Through
structured awareness initiatives and internal innovation platforms, we are
also embedding a culture of environmental responsibility and continuous
improvement across the organisation.
As we scale across structurally attractive healthcare markets, responsible
operations remain fundamental to how we grow. By strengthening governance and
embedding sustainability into procurement and operational processes, we are
reinforcing the resilience of our platform while safeguarding long-term
stakeholder value.
Positioning IDH for continued long-term growth
As we look ahead, IDH is well positioned to build on the progress achieved
during the year. Our expanded network, strengthened service offering, improved
cost structure, and enhanced profitability profile provide a solid foundation
for continued growth. With a platform that combines scale and an increasingly
diversified service mix, we enter the coming period with both momentum and
clarity of purpose.
At the same time, management continues to closely monitor evolving
macroeconomic conditions and regional developments, including the escalation
of the U.S.-Israel conflict with Iran in early 2026, which may introduce
heightened uncertainty across the region, particularly in markets such as
Jordan and Saudi Arabia.
In Egypt, our priority remains deepening penetration in underserved
geographies while enhancing value per patient. We intend to continue rolling
out new branches in targeted locations that strengthen network density and
referral capture, particularly outside major urban centres. At the same time,
we will further expand higher-value verticals, including radiology and
radiotherapy, building on the successful integration of Cairo Ray. We also
plan to continue strengthening our house-call and digital booking ecosystem,
enhancing convenience and reinforcing patient loyalty. Operationally, we will
focus on sustaining margin resilience through procurement optimisation,
workforce productivity initiatives, and further integration of data analytics
into decision-making.
In Jordan, our strategy centres on defending and expanding market share
through volume-led growth and service excellence within a regulated pricing
environment. We will continue investing in patient acquisition initiatives and
loyalty programmes while broadening our specialised test portfolio to deepen
relationships with referring physicians and institutional clients. Maintaining
operational efficiency and disciplined cost control will remain critical to
protecting margins in this market.
In Nigeria, the focus shifts from turnaround to structured expansion. Having
delivered EBITDA positivity, our next phase involves modernising additional
facilities, selectively expanding the branch footprint, and strengthening the
corporate and insurance client base. We will continue aligning pricing with
inflationary dynamics while driving operational efficiency and quality
standards that differentiate us from smaller, informal operators. Over time,
we see meaningful consolidation opportunities in this fragmented market.
Saudi Arabia remains a strategic growth engine with a long runway ahead. In
the near term, our emphasis is on disciplined ramp-up and operational scale.
We plan to expand the network further, with additional branch openings
designed to increase market coverage in Riyadh and other high-density areas.
Alongside physical expansion, we will continue investing in brand building,
physician engagement, and service portfolio enhancement to accelerate patient
growth. As volumes increase, our objective is to progressively narrow losses
and move toward operational breakeven, supported by improved utilisation and
cost absorption.
Across the Group, digitalisation remains a central pillar of our growth
strategy. We are working to enhance our digital patient interface, expand
data-driven cross-selling capabilities, and deploy more advanced analytics to
optimise pricing and resource allocation. We will also continue advancing
automation within laboratory processes to improve turnaround times and
operational consistency while protecting margins.
From a capital allocation perspective, we remain disciplined. Our asset-light
model enables us to pursue expansion without excessive capital intensity,
while preserving flexibility for selective bolt-on acquisitions or strategic
partnerships that enhance capabilities or accelerate entry into adjacent
segments.
The progress achieved during 2025 reflects the strength of our strategy, the
dedication of our teams, and the trust placed in us by millions of patients
across our markets. With clear market-specific action plans, continued
operational discipline, and a scalable platform, we are confident in our
ability to sustain this momentum and deliver long-term value for our
stakeholders while contributing meaningfully to the development of healthcare
systems across the region.
Dr. Hend El-Sherbini
Chief Executive Officer
Group Operational & Financial Review
i. Revenue and Cost Analysis
Consolidated Revenue
IDH continued to deliver strong top-line momentum through the full year,
reporting revenue growth of 37% year-on-year in FY 2025, with revenues
reaching EGP 7,855 million. Growth was driven by a combination of higher test
volumes, which increased 11% year-on-year, and a 24% increase in average
revenue per test (ARPT), reflecting the full-year impact of strategic price
adjustments alongside a richer diagnostic mix. The continued expansion of
higher-value radiology and specialised testing further supported value-led
growth across the Group's core markets.
On a quarterly basis, Q4 2025 revenues reached EGP 2,074 million, up 29%
year-on-year, while moderating sequentially compared with Q3 2025, reflecting
a normalisation in growth following a particularly strong third quarter.
Q4 2024 Q4 2025 Change FY 2024 FY 2025 Change
Revenue (EGP mn) 1,613 2,074 29% 5,720 7,855 37%
Tests performed (mn) 10.4 11.8 13% 39.2 43.5 11%
Revenue per test (EGP) 155 176 14% 146 181 24%
Revenue Analysis: Contribution by Patient Segment
Contract Segment (67% of Group revenue in FY 2025)
Revenues from the contract segment reached EGP 5,257 million in FY 2025,
representing 42% year-on-year growth compared to EGP 3,714 million in FY 2024.
Growth remained broad-based, supported by a 28% increase in average revenue
per test and an 11% rise in test volumes, as IDH continued to benefit from its
long-standing relationships with corporate clients, insurers, and referral
networks.
Average tests per patient in the contract segment continued to trend upward,
reaching 4.8 tests per patient in FY 2025, compared with 4.6 in FY 2024,
reflecting the effectiveness of IDH's loyalty programmes and cross-selling
initiatives in driving deeper patient engagement and multi-test utilisation.
Walk-in Segment (33% of Group revenue in FY 2025)
At the walk-in segment, revenues reached EGP 2,599 million in FY 2025, up 30%
year-on-year. Performance was driven by a 12% increase in test volumes
alongside a 16% rise in average revenue per test, supported by higher patient
spend per visit and continued uptake of radiology services.
Average tests per patient also improved, reaching 3.9 tests in FY 2025,
compared with 3.6 in FY 2024, highlighting the ongoing success of IDH's
strategy to enhance the patient journey, expand service offerings, and promote
comprehensive diagnostic testing across its growing network.
Detailed Segment Performance Breakdown
Walk-in Segment Contract Segment Total
FY24 FY25 Change FY24 FY25 Change FY24 FY25 Change
Revenue (EGP mn) 2,005 2,599 30% 3,714 5,257 42% 5,720 7,855 37%
Patients ('000) 1,791 1,852 3% 7,156 7,557 6% 8,947 9,409 5%
% of patients 20% 20% 80% 80%
Revenue per Patient (EGP) 1,120 1,403 25% 519 696 34% 639 835 31%
Tests ('000) 6,414 7,161 12% 32,778 36,294 11% 39,192 43,455 11%
% of Tests 16% 16% 84% 84%
Revenue per Test (EGP) 313 363 16% 113 145 28% 146 181 24%
Test per Patient 3.6 3.9 8% 4.6 4.8 5% 4.4 4.6 5%
Revenue Analysis: Contribution by Geography
Egypt (84.6% of Group revenue in FY 2025)
IDH's home and largest market, Egypt, delivered another year of strong growth,
with revenues increasing 41% year-on-year to EGP 6,642 million in FY 2025,
compared to EGP 4,718 million in FY 2024. Performance was supported by a 10%
increase in tests performed alongside a 28% rise in average revenue per test,
reflecting the continued impact of strategic price adjustments and a
progressively richer diagnostic mix, particularly within radiology and
specialised testing.
Al-Borg Scan and Radiotherapy
IDH's radiology segment, comprising Al Borg Scan and the newly added
radiotherapy offering following the acquisition of Cairo Ray for Radiotherapy
in June 2025, continued to expand its contribution to the Group's Egyptian
operations. Radiology and radiotherapy revenues reached EGP 310 million in FY
2025, up from EGP 224 million in FY 2024, representing year-on-year growth of
38%. Growth was primarily value-driven, supported by a higher-value service
mix and improved monetisation, while volumes were broadly stable on a
full-year basis.
House Calls
IDH's house-call service remained a core pillar of its Egyptian operations
throughout FY 2025, accounting for approximately 20% of Egypt's revenues, in
line with recent periods and well above pre-pandemic levels. The service
continues to benefit from strong consumer adoption, supported by enhanced
digital booking capabilities, efficient logistics, and the Group's nationwide
footprint.
Wayak
Wayak, IDH's digital health and e-pharmacy platform, sustained its strong
growth trajectory during FY 2025, with revenues reaching EGP 34 million, up
53% year-on-year. Growth was supported by a 19% increase in orders fulfilled,
which reached approximately 260 thousand orders over the year, supported by
continued optimisation of the platform's delivery network and expanding
cross-selling through IDH's branch and digital ecosystem.
Detailed Egypt Performance Breakdown
FY 2024 FY 2025 Change
Revenue (EGP mn, contribution to Egypt's results) 4,718 6,642 41%
Pathology Revenue 4,494 (95.2%) 6,332 (95.3%) 41%
Radiology & Radiotherapy Revenue 224 (4.8%) 310 (4.7%) 38%
Tests performed (mn) 36.4 40.0 10%
Revenue per test (EGP) 130 166 28%
Jordan (13.1% of Group revenue in FY 2025)
In IDH's second-largest market, Jordan, Biolab reported revenues of JOD 15
million in FY 2025, representing a 7% year-on-year increase compared to JOD 14
million in FY 2024. Growth was primarily volume-led, with the number of tests
performed rising 21% year-on-year, supported by continued patient acquisition
and the sustained impact of promotional and digital outreach initiatives
implemented during the year. Average revenue per test in local currency
declined 12% year-on-year, reflecting the combined effect of promotional
pricing and a deliberate strategy to stimulate volumes, strengthen patient
loyalty, and defend market share in an increasingly competitive environment.
In Egyptian pound terms, revenues increased 14% year-on-year to EGP 1,026
million, supported by both underlying operational growth and FX translation
effects.
Detailed Jordan Performance Breakdown
FY 2024 FY 2025 Change
Revenue (EGP mn) 899 1,026 14%
Revenue (JOD mn) 14 15 7%
Tests performed (mn) 2.5 3.0 21%
Revenue per test (EGP) 358 337 -6%
Nigeria (1.5% of Group revenue in FY 2025)
Echo-Lab, IDH's Nigerian subsidiary, reported revenues of NGN 3,712 million in
FY 2025, representing 37% year-on-year growth compared to NGN 2,716 million in
FY 2024. Revenue growth was primarily driven by a 29% increase in average
revenue per test in local currency terms, as Echo-Lab continued to adjust
pricing in line with local inflationary trends. Test volumes increased 6%
year-on-year, reflecting a gradual recovery in patient activity as consumer
purchasing power stabilised over the course of the year. In Egyptian pound
terms, revenues rose 47% year-on-year to EGP 121 million, supported by both
operational growth and FX translation effects.
Saudi Arabia (0.8% of Group revenue in FY 2025)
Biolab KSA, IDH's newest market venture, recorded revenues of SAR 5.0 million
in FY 2025, representing a 252% year-on-year increase compared to SAR 1.4
million in FY 2024. In Egyptian pound terms, revenues increased more than
threefold to EGP 65 million, reflecting the continued ramp-up in operations
and growing brand recognition across the Kingdom.
Growth was supported by a sharp increase in patient volumes as the network
expanded, with the subsidiary ending the year operating three branches,
following the inauguration of its third location in Riyadh during the year.
The Saudi market remains a key long-term growth driver for IDH, underpinned by
favourable demographics, rising healthcare awareness, and a highly fragmented
private diagnostics sector offering significant consolidation potential. Over
the coming period, IDH plans to continue expanding its footprint in the
Kingdom in a disciplined and value-accretive manner.
Sudan (0.03% of Group revenue in FY 2025)
In Sudan, operations remained severely constrained by the ongoing conflict.
One branch remained partially operational throughout the year, while the
remaining 17 branches continued to be closed indefinitely pending
stabilisation of conditions in the country.
The Group generated SDG 109 million in revenues in FY 2025, compared with SDG
85.3 million in FY 2024. In Egyptian pound terms, revenues amounted to EGP 2.3
million, versus EGP 2.6 million last year, with the year-on-year decline in
EGP terms reflecting adverse FX movements rather than underlying operational
performance.
Revenue Contribution by Country
FY 2024 FY 2025 Change
Egypt Revenue (EGP mn) 4,718 6,642 41%
Pathology Revenue (EGP mn) 4,494 6,332 41%
Radiology Revenue (EGP mn) 224 282 26%
Radiotherapy Revenue (EGP mn) - 28 -
Egypt Contribution to IDH Revenue 82.5% 84.6%
Jordan Revenue (EGP mn) 899 1,026 14%
Jordan Revenues (JOD mn) 14 15 7%
Jordan Revenue Contribution to IDH Revenue 15.7% 13.1%
Nigeria Revenue (EGP mn) 82 121 47%
Nigeria Revenue (NGN mn) 2,716 3,712 37%
Nigeria Contribution to IDH Revenue 1.4% 1.5%
Saudi Arabia Revenue (EGP mn) 18 65 252%
Saudi Arabia Revenue (SAR mn) 1.4 5.0 252%
Saudi Arabia Contribution to IDH Revenue 0.3% 0.8%
Average Exchange Rate
FY 2024 FY 2025 Change
USD/EGP 45.5 49.1 8%
JOD/EGP 64.1 69.1 8%
NGN/EGP 0.0301 0.0326 8%
SAR/EGP 12.2 13.1 7%
SDG/EGP 0.1 0.1 -20%
Patients Served and Tests Performed by Country
FY 2024 FY 2025 Change
Egypt Patients Served (mn) 8.5 8.9 5%
Egypt Tests Performed (mn) 36.4 40.0 10%
Jordan Patients Served (k) 368 381 4%
Jordan Tests Performed (k) 2,507 3,039 21%
Nigeria Patients Served (k) 116 114 -1%
Nigeria Tests Performed (k) 230 244 6%
Saudi Arabia Patients Served (k) 6 30 402%
Saudi Arabia Tests Performed (k) 45 160 255%
Total Patients Served (mn) 8.9 9.4 5%
Total Tests Performed (mn) 39.2 43.5 11%
Operational Branches by Country
31 December 2024 31 December 2025 Change
Egypt 587 724 +137
Jordan 26 27 +1
Nigeria 12 12 -
KSA 2 3 +1
Sudan 1 1 -
Total 628 767 +139
Cost of Goods Sold (COGS)
IDH's cost of goods sold amounted to EGP 4,502 million in FY 2025, marking a
27% increase year-on-year in line with higher activity levels and continued
network expansion. Importantly, as a proportion of consolidated revenue, COGS
declined meaningfully to 57.3%, compared with 61.9% in FY 2024, highlighting
the Group's ability to capture operating leverage and execute on its
cost-efficiency agenda.
The improvement was broad-based, with all major COGS components declining as a
share of revenue, reflecting tighter cost discipline, procurement
efficiencies, and the benefits of scale as volumes increased across IDH's core
markets.
COGS Breakdown as a Percentage of Revenue
FY 2024 FY 2025
Raw Materials 22.0% 19.3%
Wages & Salaries 18.6% 18.4%
Depreciation & Amortisation 7.7% 6.7%
Other Expenses 13.6% 13.0%
Total 61.9% 57.3%
Raw materials, the single largest cost component, stood at EGP 1,516 million
in FY 2025. While raw material costs increased in absolute terms to support
higher testing volumes, as a percent of revenue they declined to 19.3% of
revenue in FY 2025, down from 22.0% last year. The improvement at the margin
level reflects IDH's centralised procurement model, improved inventory
planning, and enhanced supplier negotiations, which helped cushion the impact
of inflationary pressures on input costs.
Direct wages and salaries, including employee profit-sharing, remained well
controlled at EGP 1,445 million in FY 2025 or 18.4% of revenue, broadly stable
compared with 18.6% in FY 2024. This reflects a balance between continued
investment in talent to support branch openings and service quality, and
ongoing efforts to optimise staffing levels and productivity across the
network.
Direct Wages and Salaries by Region
FY 2024 FY 2025 Change
Egypt (EGP mn) 774 1,121 45%
Jordan (EGP mn) 242 268 11%
Jordan (JOD mn) 3.8 3.9 3%
Nigeria (EGP mn) 22 28 28%
Nigeria (NGN mn) 726 865 19%
Saudi Arabia (EGP mn) 25 28 14%
Saudi Arabia (SAR k) 2,024 2,138 6%
Direct depreciation and amortisation amounted to EGP 523 million in FY 2025
and declined to 6.7% of revenue, from 7.7% last year, despite sustained
capital deployment into new branches, laboratory upgrades, and diagnostic
equipment.
Other direct costs, including hospital contracts, maintenance, utilities,
transport, consulting, and licensing expenses, reached EGP 1.0 billion in FY
2025, or 13.0% of revenue down from 13.6% in FY 2024, supported by tighter
cost controls and ongoing efficiency initiatives across operating units.
Gross Profit
IDH generated gross profit of EGP 3,353 million in FY 2025, representing a 54%
year-on-year increase compared with FY 2024. Gross profit margin expanded to
42.7%, up from 38.1% last year, reflecting the combined impact of strong
revenue growth, improved cost discipline, and increasing scale across the
Group's operations.
The sustained expansion in gross margin underscores the strength and
scalability of IDH's operating model, as well as its ability to translate
higher volumes and an improving service mix into structurally stronger
profitability, even while continuing to invest in geographic expansion and
enhanced diagnostic capabilities.
Selling, General, and Administrative (SG&A) Expenses
IDH's SG&A expenses amounted to EGP 1,180 million in FY 2025, representing
a 22% increase year-on-year compared with FY 2024. Despite the increase in
absolute terms, SG&A declined as a proportion of consolidated revenue to
15.0%, down from 16.9% last year, reflecting continued operating leverage,
disciplined cost management, and the scalability of the Group's platform amid
strong revenue growth. The year-on-year movement in SG&A was primarily
driven by the following factors:
· Indirect wages and salaries reached EGP 552 million in FY 2025,
up 42% year-on-year, reflecting annual salary adjustments, selective headcount
additions to support network expansion and new business lines, particularly in
Saudi Arabia, as well as FX translation effects on Jordanian and Saudi payroll
costs following the depreciation of the Egyptian pound.
· Advertising and marketing expenses increased 39% year-on-year to
EGP 210 million, as the Group continued to invest in strengthening brand
visibility in Egypt while accelerating marketing and customer acquisition
efforts in Saudi Arabia in line with the expansion of the Biolab KSA network.
Selling, General, and Administrative Expenses
EGP mn FY 2024 FY 2025 Change
Wages & Salaries 389 552 42%
Accounting and Professional Fees 175 147 -16%
Market - Advertisement expenses 151 210 39%
Other Expenses - Operation 179 234 31%
Depreciation & Amortisation 41 42 2%
Impairment Loss on Trade and Other Receivable 48 45 -7%
Travelling and Transportation Expenses 39 49 26%
Other Income -55 -99 80%
Total 967 1,180 22%
EBITDA
IDH reported EBITDA of EGP 2,738 million in FY 2025, representing a 61%
year-on-year increase compared with EGP 1,697 million in FY 2024. The Group's
EBITDA margin expanded to 34.9%, up from 29.7% last year, driven by lower COGS
as a percentage of revenue, tighter SG&A management despite ongoing growth
investments, and the continued benefits of digitalization and procurement
efficiencies. Performance was further supported by the sustained turnaround in
Nigeria, meaningful scale-up in Saudi Arabia, and the consolidation of Cairo
Ray within the radiology platform.
Adjusted EBITDA, which excludes a gain on bargain purchase of EGP 40.1 million
related to Cairo Ray's acquisition June 2025, stood at EGP 2,698 million,
reflecting a 34.3% adjusted EBITDA margin, compared to an adjusted EBITDA of
EGP 1,731 million in FY 2024 with a 30.3% margin.
EBITDA by Country
In Egypt, IDH generated EBITDA of EGP 2,494 million in FY 2025, up 58%
year-on-year from EGP 1,584 million in FY 2024. EBITDA margin expanded to
37.6%, compared with 33.6% last year. The improvement reflects stronger gross
profitability, improved cost absorption across a larger branch base, and
continued SG&A optimisation.
In Jordan, Biolab reported EBITDA of JOD 4.1 million in FY 2025, up 7%
year-on-year from JOD 3.9 million in FY 2024. In EGP terms, EBITDA recorded
EGP 285 million in FY 2025, compared with roughly EGP 253 million last year.
EBITDA margin in local currency terms recorded 27.8%, reflecting disciplined
cost management despite promotional pricing initiatives aimed at stimulating
volume growth.
In Nigeria, Echo-Lab delivered a significant turnaround, reporting EBITDA of
NGN 193 million in FY 2025, compared with an EBITDA loss of NGN 846 million in
FY 2024. This equates to approximately EGP 6 million, versus a loss of
approximately EGP 26 million last year. EBITDA margin improved to 5.2%,
compared with negative 31.1% in FY 2024. The improvement reflects continued
pricing discipline, cost rationalisation, and stabilising operating
conditions.
In Saudi Arabia, Biolab KSA recorded EBITDA losses of SAR 3.5 million in FY
2025, compared with SAR 9.3 million in FY 2024. This corresponds to
approximately EGP 46 million in losses, versus roughly EGP 113 million last
year. The substantial reduction in losses reflects strong revenue ramp-up,
improved utilisation of fixed costs, and early-stage operating leverage as the
branch network expands.
Regional EBITDA in Local Currency
FY 2024 FY 2025 Change
Egypt EBITDA (EGP mn) 1,584 2,494 58%
Margin 33.6% 37.6% 4.0 pts.
Jordan EBITDA (JOD mn) 3.9 4.1 7%
Margin 27.7% 27.8% 0.1pts
Nigeria EBITDA (NGN mn) (846) 193 -
Margin -31.1% 5.2% 36.3 pts.
Saudi Arabia EBITDA (SAR mn) (9.3) (3.5) -62%
Margin -660.7% -70.5% 590.2 pts
Interest Income / Expense
IDH recorded interest income of EGP 223 million in FY 2025, up 54% from EGP
145 million in FY 2024, reflecting the Group's higher average cash balance
during the year and continued benefit from elevated deposit rates in Egypt for
much of the reporting period. While the Central Bank of Egypt began easing
policy rates during the year, yields remained attractive relative to
historical levels, supporting strong treasury income.
Total interest expense(7) increased to EGP 236 million in FY 2025, compared
with EGP 197 million in FY 2024, representing a 20% year-on-year rise. The
increase was primarily attributable to:
· Interest on financial obligations rising to EGP 133 million, up
18% year-on-year, largely reflecting the expansion of the branch network and
the associated lease liabilities under IFRS 16.
· Interest on borrowings increasing significantly to EGP 52 million
from EGP 24 million last year, mainly due to higher average debt balances
following the loan drawdown related to the acquisition of Cairo Ray for
Radiotherapy, as well as elevated borrowing costs during the year.
· Bank charges rising to EGP 27 million from EGP 17 million, in
line with higher transaction volumes and revenue growth across the Group.
It is important to note that IDH's interest-bearing debt(8) (excluding accrued
interest) increased during FY 2025 to reach EGP 427 million as at 31 December
2025, from EGP 265 million at year-end 2024. The increase is due to a loan
withdrawal for the acquisition of Cairo Ray.
Interest Expense Breakdown
EGP mn FY 2024 FY 2025 Change
Interest on Leases 113 133 18%
Interest Expenses on Financial Obligations 34 24 -30%
Interest Expenses on Borrowings(9) 24 52 116%
Bank Charges 17 27 59%
Fast Track Payment 9 - -
Total Interest Expense 197 236 20%
7 Interest expenses on medium-term loans include EGP 44 million (EGP 21
million in FY 2024) related to the Group's facility with Kuwait Finance House
(KFH) - formerly Ahli United Bank (AUB).
8 IDH's interest-bearing debt as at 31 December 2025 included EGP 403 million
(EGP 85 million as at 31 December 2024) related to its facility with Kuwait
Finance House (KFH) - formerly Ahli United Bank (AUB) (outstanding loan
balances are excluding accrued interest for the period).
9 Interest expenses on medium-term loans include EGP 44 million (EGP 21
million in FY 2024) related to the Group's facility with Kuwait Finance House
(KFH) - formerly Ahli United Bank (AUB).
Foreign Exchange
IDH recorded a foreign exchange loss of EGP 37 million in FY 2025, compared
with a foreign exchange gain of EGP 303 million in FY 2024. The foreign
exchange loss relates to intercompany balances revaluation in entities where
the balance was in a currency different to the functional currency.
Taxation
Tax expenses, including current and deferred tax, amounted to EGP 817 million
in FY 2025, compared with EGP 431 million in FY 2024. IDH's effective tax rate
increased significantly versus the same period of last year, reaching 39% in
FY 2025 versus 30% last year. The increase reflects a normalisation in foreign
exchange gain recorded during the period. It is important to highlight that
there is no tax payable for IDH's two holding-level companies.
Taxation Breakdown by Region
EGP mn FY 2024 FY 2025 Change
Egypt 397 790 99%
Jordan 31 17 -46%
Nigeria 0.2 0.6 243%
KSA 3 9 188%
Total Tax Expenses 431 817 89%
Net Profit
IDH recorded a net profit of EGP 1,302 million in FY 2025, representing a 29%
year-on-year increase from EGP 1,008 million in FY 2024. It is worth noting
that the prior year's bottom line benefited from significant foreign exchange
gains, which created a high comparative base in FY 2024. The Group's net
profit margin stood at 16.6% in FY 2025, compared with 17.6% last year, with
the slight contraction primarily reflecting the absence of last year's
exceptional FX gains and higher financing costs associated with strategic
investments undertaken during the year.
When adjusting for non-recurring items in FY 2025 and foreign exchange gains
in FY 2024, adjusted net profit reached EGP 1,262 million in FY 2025, up 79%
year-on-year from EGP 705 million in FY 2024. The corresponding adjusted net
profit margin improved significantly to 16.1%, compared with 12.3% last year,
underscoring the strength of the Group's underlying operating performance,
margin expansion, and improved cost structure.
Dividends
The Board of Directors has recommended that a cash dividend of USD 4.9 million
(USD 0.0085 per share), should be paid to shareholders who appear on the
register as of 29 May 2026, with an ex-dividend date of 28 May 2026. The
payment date for the dividend will be 22 June 2026. Proposed dividends for
ordinary shares are subject to the approval of the Annual General Meeting
(AGM) and are not recognised as a liability as of 31 December 2025.
ii. Balance Sheet Analysis
Assets
Property, Plant and Equipment (PPE)
IDH recorded PPE cost of EGP 3,900 million as at 31 December 2025, up from the
EGP 3,111 million as at year-end 2024. The increase primarily reflects the
addition of new branches across key markets, continued investments in
laboratory and radiology equipment, the renovation and upgrade of existing
locations to enhance service quality and operational capacity, and the
acquisition of Cairo Ray.
Total CAPEX Addition Breakdown - FY 2025
EGP mn FY 2025 % of Revenue
Leasehold Improvements/new branches 406 5%
Radiotherapy (Cairo Ray acquisition) 440 6%
Al-Borg Scan Expansion 30 0.4%
CAPEX Additions 876 11%
Translation Effect (70) -1%
Disposals (17) -0.2%
Total Increase in PPE Cost 789 10%
Trade Receivables and Provisions
Net trade receivables stood at EGP 996 million as at 31 December 2025,
compared with EGP 804 million at year-end 2024. Despite the increase in
absolute receivables in line with revenue growth, Days on Hand (DOH) improved
to 122 days, compared with 140 days at the end of 2024, reflecting enhanced
collections discipline and continued focus on working capital optimisation.
Meanwhile, provision charges for doubtful accounts in FY 2025 stood at EGP 45
million, down from EGP 48 million in FY 2024.
Inventory
As at 31 December 2025, IDH's inventory balance stood at EGP 424 million,
compared with EGP 318 million at year-end 2024. Meanwhile, Days Inventory
Outstanding (DIO) improved to 94 days, versus 105 days at 31 December 2024.
The improvement reflects stronger sales momentum during the year, improved
procurement planning, and enhanced inventory turnover management across the
Group's expanding branch network.
Cash and Net Debt
Cash balances and financial assets at amortised cost reached EGP 2,090 million
as at 31 December 2025, compared with EGP 1,716 million at year-end 2024,
reflecting strong operating cash generation during the year.
EGP mn 31 December 2024 31 December2025
Treasury Bills 74 123
Time Deposits 1,126 1,604
Current Accounts 494 326
Cash on Hand 23 37
Total 1,716 2,090
IDH's net cash(10) balance recorded EGP 472 million as at 31 December 2025,
compared to a net cash of EGP 226 million as at year-end 2024.
EGP mn 31 December 2024 31 December 2025
Cash and Financial Assets at Amortised Cost(11) 1,716 2,090
Lease Liabilities Property* (943) (1,006)
Total Financial Liabilities (Short-term and Long-term) (264) (180)
Interest-Bearing Debt ("Medium Term Loans")** (283) (432)
Net Cash/(Debt) Balance 226 472
Note: Interest Bearing Debt includes accrued interest for each period.
*If excluding Lease Liabilities Property (IFRS 16), IDH would have recorded
net cash of EGP 1,478 million.
**Includes accrued finance cost.
1(0) The net cash/(debt) balance is calculated as cash and cash equivalent
balances including financial assets at amortised cost, less interest-bearing
debt (medium term loans), finance lease and right-of-use liabilities.
(11) It is worth noting that some term deposits and treasury bills cannot be
accessed for over three months and are therefore not treated as cash. Term
deposits which cannot be accessed for over three months stood at EGP 336
million at 31 December 2025 (2024: EGP 468 million). Meanwhile, treasury bills
not accessible for over three months stood at EGP 83 million (2024: EGP 60
million).
Lease liabilities and financial obligations on property recorded EGP 1,006
million at 31 December 2025, up from EGP 943 million recorded at year-end
2024. Meanwhile, financial obligations related to equipment recorded at EGP
180 million as at 31 December 2025, down from EGP 264 million at year-end 2024
reflecting the addition of no new contracts in 2025. Finally, interest bearing
debt(12) (excluding accrued interest) reached EGP 427 million at 31 December
2025, up from EGP 265 million at year-end 2024.
Liabilities
Trade Payable(13)
As at 31 December 2025, IDH's trade payables stood at EGP 563 million, up from
EGP 320 million at year-end 2024. Meanwhile, Days Payable Outstanding (DPO)
recorded 112 days, compared with 90 days at 31 December 2024.
Put Option
The put option current liability stood at EGP 629 million as at 31 December
2025, up versus the EGP 532 million at 31 December 2024, and is related to
both:
· The option granted in 2011 to Dr. Amid, Biolab's CEO, to sell his
stake (40%) to IDH. The put option is in the money and exercisable since 2016
and is calculated as seven times Biolab's LTM EBITDA minus net debt.
· The option granted in 2018 to the International Finance
Corporation from Dynasty - shareholders in Echo Lab - and it is exercisable in
2024. The put option is calculated based on fair market value (FMV).
It is important to note that the put option previously included as part of the
agreement between IDH, Biolab and Izhoor in Saudi Arabia has been removed
following IDH's acquisition of Izhoor's entire 49% stake in Biolab KSA, which
was concluded in December 2024. Biolab KSA is now owned 79% by IDH and 21% by
its Jordanian subsidiary Biolab.
1(2) IDH's interest-bearing debt as at 31 December 2025 included EGP 403
million to its facility with Kuwait Finance House (KFH) - formerly Ahli United
Bank (AUB) (outstanding loan balances are excluding accrued interest for the
period).
1(3) Accounts payable is calculated based on average payables at the end of
each period.
Trade Receivables and Provisions
Net trade receivables stood at EGP 996 million as at 31 December 2025,
compared with EGP 804 million at year-end 2024. Despite the increase in
absolute receivables in line with revenue growth, Days on Hand (DOH) improved
to 122 days, compared with 140 days at the end of 2024, reflecting enhanced
collections discipline and continued focus on working capital optimisation.
Meanwhile, provision charges for doubtful accounts in FY 2025 stood at EGP 45
million, down from EGP 48 million in FY 2024.
Inventory
As at 31 December 2025, IDH's inventory balance stood at EGP 424 million,
compared with EGP 318 million at year-end 2024. Meanwhile, Days Inventory
Outstanding (DIO) improved to 94 days, versus 105 days at 31 December 2024.
The improvement reflects stronger sales momentum during the year, improved
procurement planning, and enhanced inventory turnover management across the
Group's expanding branch network.
Cash and Net Debt
Cash balances and financial assets at amortised cost reached EGP 2,090 million
as at 31 December 2025, compared with EGP 1,716 million at year-end 2024,
reflecting strong operating cash generation during the year.
EGP mn 31 December 2024 31 December2025
Treasury Bills 74 123
Time Deposits 1,126 1,604
Current Accounts 494 326
Cash on Hand 23 37
Total 1,716 2,090
IDH's net cash(10) balance recorded EGP 472 million as at 31 December 2025,
compared to a net cash of EGP 226 million as at year-end 2024.
EGP mn 31 December 2024 31 December 2025
Cash and Financial Assets at Amortised Cost(11) 1,716 2,090
Lease Liabilities Property* (943) (1,006)
Total Financial Liabilities (Short-term and Long-term) (264) (180)
Interest-Bearing Debt ("Medium Term Loans")** (283) (432)
Net Cash/(Debt) Balance 226 472
Note: Interest Bearing Debt includes accrued interest for each period.
*If excluding Lease Liabilities Property (IFRS 16), IDH would have recorded
net cash of EGP 1,478 million.
**Includes accrued finance cost.
1(0) The net cash/(debt) balance is calculated as cash and cash equivalent
balances including financial assets at amortised cost, less interest-bearing
debt (medium term loans), finance lease and right-of-use liabilities.
(11) It is worth noting that some term deposits and treasury bills cannot be
accessed for over three months and are therefore not treated as cash. Term
deposits which cannot be accessed for over three months stood at EGP 336
million at 31 December 2025 (2024: EGP 468 million). Meanwhile, treasury bills
not accessible for over three months stood at EGP 83 million (2024: EGP 60
million).
Lease liabilities and financial obligations on property recorded EGP 1,006
million at 31 December 2025, up from EGP 943 million recorded at year-end
2024. Meanwhile, financial obligations related to equipment recorded at EGP
180 million as at 31 December 2025, down from EGP 264 million at year-end 2024
reflecting the addition of no new contracts in 2025. Finally, interest bearing
debt(12) (excluding accrued interest) reached EGP 427 million at 31 December
2025, up from EGP 265 million at year-end 2024.
Liabilities
Trade Payable(13)
As at 31 December 2025, IDH's trade payables stood at EGP 563 million, up from
EGP 320 million at year-end 2024. Meanwhile, Days Payable Outstanding (DPO)
recorded 112 days, compared with 90 days at 31 December 2024.
Put Option
The put option current liability stood at EGP 629 million as at 31 December
2025, up versus the EGP 532 million at 31 December 2024, and is related to
both:
· The option granted in 2011 to Dr. Amid, Biolab's CEO, to sell his
stake (40%) to IDH. The put option is in the money and exercisable since 2016
and is calculated as seven times Biolab's LTM EBITDA minus net debt.
· The option granted in 2018 to the International Finance
Corporation from Dynasty - shareholders in Echo Lab - and it is exercisable in
2024. The put option is calculated based on fair market value (FMV).
It is important to note that the put option previously included as part of the
agreement between IDH, Biolab and Izhoor in Saudi Arabia has been removed
following IDH's acquisition of Izhoor's entire 49% stake in Biolab KSA, which
was concluded in December 2024. Biolab KSA is now owned 79% by IDH and 21% by
its Jordanian subsidiary Biolab.
1(2) IDH's interest-bearing debt as at 31 December 2025 included EGP 403
million to its facility with Kuwait Finance House (KFH) - formerly Ahli United
Bank (AUB) (outstanding loan balances are excluding accrued interest for the
period).
1(3) Accounts payable is calculated based on average payables at the end of
each period.
iii. Principal Risks, Uncertainties & their Mitigation
As with all corporations, IDH is exposed to several risks and uncertainties
which may have adverse impacts on the Company's performance. IDH's Chairman,
Lord St John of Bletso, systematically stresses the importance of the risk
matrix as a key driver of the Group's long-term success, and one which must be
equally shared by the Board of Directors and senior management.
While no system is capable of mitigating every risk, and while some risks, at
the country level, are largely without potential mitigants, the Group has
developed complex processes, procedures, and baseline assumptions which
provide effective mitigation. The Board and senior management agree that the
principal risks and uncertainties facing the Group include:
Specific Risk Mitigation
Country/regional risk - Economic and Forex
Egypt: IDH is directly impacted by the economic conditions of its largest Overall, management reiterates that IDH employs a robust and resilient
market, Egypt, and, to a lesser extent, those of its other operating business model which has helped the Company navigate several economic and
geographies. Egypt accounted for 84.6% of consolidated revenues in 2025 (82.5% political downturns, including two revolutions, while allowing the business to
in 2024) and 91% of adjusted EBITDA (93% in 2024). expand its offering and record positive growth across key operational and
financial performance indicators. Moreover, as part of IDH's long-term growth
strategy, the Company is working to diversify its geographic exposure by
decreasing its exposure to any single country. To this end in January 2024,
Starting in early 2022, IDH's home and largest market has been directly the Company launched its Saudi Arabian venture under the name Biolab KSA. Once
impacted by the Russian-Ukraine war due to Egypt's reliance on wheat imports fully ramped up, the venture will offer a full suite of diagnostic testing
and tourism inflows from both countries, as well as its broader exposure to services.
capital outflows during periods of global and regional economic uncertainty.
These pressures were further exacerbated by the global tightening of monetary
policy during 2022-2024, which led to reduced foreign capital inflows across
emerging markets. Meanwhile, since late 2023, Egypt has also been affected by IDH has maintained an active approach in shielding the business from exchange
the ongoing conflict in Gaza and wider regional tensions, which have rate fluctuations in its markets. As part of its mitigation efforts, IDH
periodically weighed on tourism activity, investor sentiment, and Suez Canal negotiates contracts with tenures ranging from 5 to 7 years (at fixed FX
traffic-an important source of foreign currency for the country. Disruptions rates, which only get revised once the currency surpasses an agreed upon
to Israeli natural gas supply during periods of escalation also contributed to value) and purchases laboratory test kits on contract with volume-linked
intermittent energy supply constraints, although the government has taken prices. Meanwhile, thanks to its large scale and longstanding supplier
steps to mitigate these risks through diversified energy sourcing and relationships, the Company is able to secure favourable test kit prices with
infrastructure investments. all its major suppliers. Additionally, the Company takes proactive steps to
hedge against foreign currency risks on a case-by-case basis whenever
applicable.
Despite these external pressures, Egypt's macroeconomic environment began to
stabilise significantly following the landmark economic reforms implemented in
early 2024. These included the transition to a flexible exchange rate regime Meanwhile, the Group's asset-light model allows for minimal borrowing and
in March 2024 and a substantial tightening of monetary policy to address significant strategic flexibility, providing it with ample leeway to navigate
inflation and restore confidence in the financial system. In parallel, Egypt challenging times while supporting its expansion plans even in high-interest
secured significant external support, including investment commitments from rate environments.
Abu Dhabi's ADQ, expanded financing arrangements with the International
Monetary Fund (IMF), and additional funding from international and regional
partners including the European Union. These measures helped restore foreign
currency liquidity, eliminate the parallel foreign exchange market, and
encourage the return of foreign investment and remittance flows through formal
channels. As a result, throughout 2025, the Egyptian Pound has demonstrated
relative stability compared to the volatility experienced in prior periods.
Inflationary pressures, which peaked in early 2024 amid currency adjustments
and subsidy reforms, began to moderate during 2025 as the effects of monetary
tightening and improved foreign exchange availability took hold. While
inflation remains above the Central Bank of Egypt's long-term targets, it has
been on a declining trajectory, allowing the Central Bank to gradually begin
easing monetary policy during 2025 following the aggressive tightening cycle
of the preceding two years. Nonetheless, inflation and interest rates remain
elevated relative to historical norms, reflecting the lagged impact of
structural reforms and global economic uncertainty.
Egypt's political environment remained stable during 2025 following the
presidential elections held in December 2023, which saw President Abdel Fattah
El-Sisi secure a new six-year mandate. The government has continued to advance
its structural reform agenda, including fiscal consolidation, privatisation
initiatives, and policies aimed at increasing private sector participation in
economic activity. These reforms are intended to strengthen macroeconomic
resilience, improve fiscal sustainability, and support long-term economic
growth.
While external risks-including geopolitical tensions, global financial
conditions, and commodity price volatility-continue to present potential
challenges, Egypt's economic outlook has improved materially compared to prior
years. The country's strengthened foreign exchange position, improved investor
confidence, and ongoing reform programme have contributed to greater
macroeconomic stability. IDH continues to closely monitor developments in
Egypt and has demonstrated resilience through prior economic cycles, supported
by the essential nature of its services, diversified customer base, and
flexible operating model.
Foreign currency risk: IDH is exposed to foreign currency risk, placing
potential pressure on the cost side of the business. Despite the majority of
the Company's suppliers receiving payments in EGP, due to the fact that
materials are imported, prices vary based on the exchange rate between EGP and
foreign currencies. Moreover, a small portion of suppliers are priced in
foreign currency and paid in EGP based on the prevalent exchange rate at the
time of purchase. It is important to note that starting in spring 2024, FX
availability for importers significantly improved with priority sectors able
to access the needed capital to fulfil obligations and resume normal business
operations.
Nigeria: macroeconomic environment remained characterized by elevated currency
and inflation volatility following the liberalization of the Nigerian Naira in
2023. The currency remained under pressure through 2025, with the Naira
trading at approximately NGN 1,443 per US Dollar on average in late 2025 and
fluctuating within a range of approximately NGN 1,450-1,600 per US Dollar
during the year, reflecting ongoing foreign exchange constraints and
structural adjustments in the economy. While volatility persisted, exchange
rate movements began to stabilize relative to the sharp depreciation
experienced in prior periods, supported by ongoing monetary and fiscal
reforms.
As a result of the devaluation and foreign currency shortages, Nigerian
inflation has maintained an upward trend, with inflation rates averaging
21-22% throughout 2025 (33.2% in 2024).
During 2025, almost none of the Company's cost of supplies were payable in US
Dollars apart from one supplier, minimizing exposure to foreign currency risk.
Furthermore, the Company's proactive inventory and supplier management
strategy has seen it able to contain the impacts of a weaker EGP and rising
inflation on its raw material expenses with its raw material to sales ratio
improving year-on-year in 2025 at 19.3% (versus 22.0% in 2024 and 22.2% in
2023). The Company will continue to capitalise on its established reputation
and position as a leading diagnostic services provider in the region to
negotiate favourable prices and mitigate the impact of foreign currency
fluctuations whenever possible.
It is important to highlight that starting January 2024, IDH has renegotiated
the terms of its contracts with its major suppliers to pay for its supplies in
EGP. Some contracts with major suppliers, however, are fixed at USD prices,
with payments made in EGP at the official exchange rate at the time of
payment. As such, there have been no USD payments for supplies since the
beginning of 2024.
In response to the high inflationary pressures in Nigeria, management is
methodically implementing cost optimization strategies, while implementing
price increases across its service portfolio. In 2025, average revenue per
test in Nigeria rose 31% year-on-year in local currency terms, signalling the
effectiveness of management's pricing strategies.
It is worth noting that Nigerian operations are naturally shielded from
foreign currency risk and inflation, due to IDH's asset base in the country
which can be sold in US Dollars.
Country/regional risk - Political & Security
Sudan: Sudan's economic progress continues to be affected by economic and It is worth highlighting that in 2025 Sudan only constituted 0.03% of
political turmoil, starting with the secession of South Sudan in 2011 and the consolidated revenues. With regards to the ongoing conflict, management
associated loss of the majority of the country's oil production. This unrest continues to actively monitor the evolving situation on the ground, taking all
continued throughout the remainder of the decade, eventually culminating in necessary measures to safeguard its operations and guarantee the health and
the removal of the country's president, President Al-Bashir, in 2019 via a safety of its personnel and patients. This included the temporary suspension
military coup. Despite a significant easing of tensions in 2022, a violent of all commercial activities at the start of the conflict at 17 of its 18
conflict erupted in April 2023 between two rival groups; the Sudanese Armed branches. IDH is also taking steps to keep its stakeholders updated on the
Forces (SAF) and the Rapid Support Forces (RSF). The conflict is currently developing situation.
ongoing resulting in widespread humanitarian, economic, and infrastructure
disruption across the country. Millions of people have been displaced, and
economic activity remains severely constrained, with ongoing interruptions to
healthcare services, logistics, banking operations, and power infrastructure.
The security situation remains highly volatile, with no clear timeline for a
full resolution of hostilities or stabilisation of the operating environment.
As a result of the ongoing conflict, nearly all of IDH's branches in Sudan
remain closed indefinitely. As at year-end 2025, only one branch remains
partially operational, operating on a limited basis depending on local
security and infrastructure conditions.
Nigeria: the country faces security challenges on several fronts, including
re-emerging ethnic tensions and resurgent attacks by Islamist militants in the
northeast. Political instability is further magnified by economic pressures,
which remained volatile over the past two years, primarily driven by major
structural reforms implemented by the Nigerian government. These have included
the removal of fuel subsidies and the liberalisation of the exchange rate
regime, which resulted in significant depreciation of the Nigerian Naira,
elevated inflation, and higher operating and transportation costs across the
economy. Inflation remained elevated throughout 2024 and 2025, continuing to
weigh on household purchasing power and business costs.
In 2025 Nigeria comprised just 1.5% of IDH's consolidated revenues.
Additionally, while security and political challenges do impact operations in
the country, IDH's industry continued to be largely inelastic by nature, with
patient and test volumes remaining relatively resilient throughout economic
cycles. This is particularly apparent given the consistent growth in
operational KPIs, with test and patient volumes recording a compound annual
growth rate of 5.3% and 0.8%, respectively, between 2019 and 2025. It is
important to mention, however, that Echo-Lab delivered a significant
turnaround, reporting EBITDA of NGN 193 million in 2025, compared with an
EBITDA loss of NGN 846 million in 2024. This equates to approximately EGP 6
million, versus a loss of approximately EGP 26 million last year.
While these political challenges are particularly difficult to mitigate, IDH
continued to take all necessary steps to safeguard its employees and
operations. The Group employs rigorous standards to evaluate the country's
political climate, ensuring it is well-equipped to deal with any developments
as they unfold.
Middle East Conflicts
The latest escalation of the long-lasting Israeli Palestinian conflict erupted While this specific conflict has no direct mitigations from the Company's
on 7 October 2023 following an attack by Gaza-based group, Hamas. Israel side, IDH continues to actively monitor the situation, placing an emphasis on
responded by launching a retaliation campaign on Gaza, enacting a remaining updated on the impacts of the war on IDH's markets of operation and
15-month-long total siege on the territory. As of February 2026, the conflict the subsequent repercussions on IDH's business.
is conflict is estimated to have resulted in the death of over 75,000 people
and the injury of an additional 171,000. In October 2025, Israel and Hamas
reached a ceasefire and hostage-release agreement, bringing about a temporary
reduction in hostilities. However, the truce has remained fragile, with However, it is worth noting that IDH's business is inherently resilient to
periodic flare-ups and ongoing uncertainty around longer-term political and macroeconomic and political difficulties, due to its inelastic nature of
security arrangements. healthcare and diagnostics demand. While the Company does not expect any major
direct impact from this war on its operations, it will continue monitoring
events and update the market, as necessary.
More recently, in early 2026, regional conflict has broadened to include a
direct escalation involving the United States, Israel, and Iran, marking a
significant intensification of regional tensions. This development has
increased the risk of wider geopolitical disruption across the Middle East,
with potential implications for energy markets, trade routes, and overall
regional stability.
With the Gaza Strip bordering IDH's home and largest market, Egypt, and with
several other of the Company's geographies situated within the region, namely
Jordan and Saudi Arabia, the evolving conflict environment creates the
potential for heightened economic and political headwinds. These developments
may affect tourism flows in neighbouring countries, weigh on investor
sentiment, and contribute to increased volatility in capital flows.
For Egypt specifically, the conflict has contributed to regional insecurity
and, at points, to disruptions in energy and trade dynamics. Moreover, due to
ongoing attacks on shipping lanes in and around the Red Sea, a number of
shipping companies have diverted vessels away from the Suez Canal route,
creating pressure on canal-related foreign currency inflows. Meanwhile,
broader regional escalation - including disruption to the Strait of Hormuz and
reported targeting of energy infrastructure in Saudi Arabia and GCC countries
- has heightened volatility in regional energy markets, with potential
spillover effects on energy supply, pricing, and fiscal dynamics across the
region.
Global Supply Chain Disruptions
While global supply chain disruptions that negatively impacted businesses and IDH's management team continually monitors the evolving situation and have
consumers during the post-Covid-19 recovery have largely moderated, they taken proactive steps to build up its inventory to shield the Group from any
continue to operate below optimal efficiency levels and remain vulnerable to potential future disruptions. IDH is in continual dialogue with key suppliers
geopolitical and trade-related shocks. Throughout 2025, key challenges to gauge the risk associated with a shortage of materials and is yet to
affecting global supply chains included ongoing missile attacks on commercial identify a weakness. Throughout 2025, thanks to IDH's proactive inventory
shipping routes in the Red Sea, continued logistical bottlenecks in critical build-up and sourcing strategy, the Group continued to face no problems
shipping corridors, and renewed trade protectionism, particularly following acquiring raw materials.
the reintroduction and expansion of tariff measures by the United States on a
broad range of imported goods. These tariffs, targeting key manufacturing
inputs and equipment from major trading partners, have contributed to
increased costs, supply re-routing, and heightened uncertainty across global
procurement and manufacturing networks.
Supplier Risk
IDH faces the risk of suppliers re-opening price negotiations in the face of IDH boasts strong, longstanding relationships with its key suppliers, to whom
increased inflationary pressures and/or a possible, albeit limited, IDH remains a large regional client. Due to the sheer volume of kits the Group
devaluation risk. purchases on a regular basis, the Company is able to successfully secure
favourable pricing conditions and mitigate the impacts of inflationary
pressures to maintain relatively stable raw material costs as a percentage of
revenues.
IDH's supplier risk is concentrated amongst its three largest suppliers -
Siemens, Roche, and Sysmex - who provide the Company with kits constituting
50% of the total value of raw materials in 2025 (48% in 2024).
Total raw material costs as a percentage of sales stood at 19.3% in 2025,
compared to 22.0% in 2024 and 22.2% in 2023.
Remittance of dividend regulations and repatriation of profit risk
The Group's ability to remit dividends abroad may be adversely affected by
changes in foreign exchange regulations, capital controls, or taxation
frameworks in the jurisdictions in which it operates. Under Egyptian law, During 2025, IDH successfully resumed dividend distributions following a
companies seeking to transfer dividends overseas are required to obtain the period of hiatus between 2023 and 2024, reflecting improved foreign exchange
necessary regulatory clearances and comply with applicable withholding tax availability. The Group did not encounter material obstacles in obtaining the
requirements. While Egypt experienced periods of foreign currency shortages necessary approvals or executing dividend repatriation.
and administrative constraints in 2022 and 2023, conditions improved
materially during 2024 and 2025, supported by enhanced foreign exchange
liquidity and macroeconomic stabilisation measures.
The Board will continue to periodically review dividend decisions in light of
prevailing market conditions, foreign exchange dynamics, and the Group's
strategic investment priorities to safeguard both shareholder returns and
Nevertheless, the potential re-emergence of foreign exchange volatility, long-term financial resilience.
regulatory amendments, or administrative delays could affect the timing or
efficiency of dividend repatriation in the future.
Legal and regulatory risk to the business
The Group's business is subject to, and thus affected by, extensive, rigid, The Group's legal and the quality assurance teams work together to keep IDH
and constantly evolving laws and regulations, in addition to changing fully informed, and in compliance with, both legislative and regulatory
enforcement regimes in each of its operating geographies. Further, the Group's updates.
position as a major player in the Egyptian private clinical laboratory market
subjects IDH to antitrust and competition-related restrictions, as well as the
chance of investigation by the Egyptian Competition Authority.
On the antitrust front, the private laboratory segment (of which IDH is part)
accounts for only a small proportion of the total market, which consists of
small private labs, private chain labs, and large governmental and
quasi-governmental institutions.
Pricing pressure in a competitive, regulated environment
The Group may face pricing pressures from several third-party payers,
including national health insurance, syndicates, other governmental bodies,
which are potentially capable of adversely impacting Group revenue. Pricing This is an external risk for which few mitigants exist.
may also be restricted in cases by recommended or mandatory fees set by
government ministries and other authorities.
In the case of price competition escalation between market players, the Group
relies on its wide national footprint as a mitigant. More specifically, IDH is
The risk may be more apparent in cases of increased inflationary pressures, able to leverage its nationwide network to attract contract clients to the
particularly following the devaluation of the Egyptian Pound and its Group (67% of the Company's revenues in 2025 were generated through its
subsequent effects. contract segment), who prefer IDH's national reach and established position
over patchworks of local players.
The Group may also face pricing pressure from existing competitors and new
market entrants. IDH enjoys limited ability to influence changes to mandatory pricing policies
set forth by government agencies, as with those in Jordan, where basis tests
account for the majority of IDH's business in that nation are subject to price
controls. Instead, IDH's operations in Jordan are focused on driving volume
growth as a catalyst for expanding revenues.
IDH banks on its strong brand equity in its markets of operation to enjoy a
solid positioning. As such, IDH is a price maker, especially in Egypt where
the Group currently controls the largest network of branches amongst all
private sector players. Moreover, the Group faces no potential risk of
governmental price regulations in its home and largest market, Egypt, which
made up 84.6% of revenues in 2025.
Cybersecurity risks
IDH controls a vast and growing database of confidential data for its patient The Company places top priority on its data security, regularly conducting
records; to this end, there is a cybersecurity risk for both data stress tests of its IT infrastructure to confirm the effectiveness of its
confidentiality and security. internal controls. Additionally, its cybersecurity controls and protocols are
regularly updated to address potential shortcomings and remain up-to-date and
in full adherence with data security regulations in its markets. In response
to a cybersecurity incident in 2023, IDH took immediate steps to assess and
contain the incident, launch an incident response plan, and engage specialist
support services. While the incident did not involve patient data nor directly
impact IDH's operations, all appropriate regulatory authorities were informed
of the incident, and the Company continues to conduct regular tests of its
systems to ensure their security, prioritising the security of its patients'
data. It is important to note that no cybersecurity incidents occurred during
2025.
Business continuity risks
Management concentration risk: IDH is dependent on a highly experienced IDH comprehends the importance of strengthening its human capital to support
management team boasting decades of experience in their respective fields. The its future growth plans. The Company is therefore committed to expanding its
loss of key members of IDH's team could materially affect the Company's senior management team, under the experienced leadership of its CEO, Dr. Hend
operations and business. El Sherbini, to add and maintain the talent needed for the expansion of its
footprint. In January 2024, the Group welcomed on board Sherif El Zeiny as
Board Member, Vice President and Group Chief Financial Officer. The Group has
constituted an Executive Committee, led by Dr. El Sherbini, and composed of
head of departments. The Executive Committee meets every second week.
The Group has in place a full disaster recovery plan, with procedures and
provisions for spares, redundant power systems, and the use of mobile data
systems as alternatives to landlines, among multiple other factors. To ensure
its readiness, IDH performs disaster recovery plan tests on a regular basis,
with updates as well as internal and external audits.
In Egypt and Jordan, to mitigate the impact of potential branch closures on
operations, the Group has been ramping up its house call services which in
Business interruption: Virtually all aspects of the Group's business use IT 2025 contributed to c.20% of total revenue versus a pre-pandemic average of
systems extensively. This includes test and exam results reporting, billing, 9%. Moreover, the Group's important role in conducting key testing in both
customer service, logistics, and management of medical data. Similarly, Egypt and Jordan makes it unlikely that branches would be closed even if new
business interruption at one of the Group's larger facilities could result in restrictive measures were introduced.
significant material losses and reputational damage to IDH's business. This
could be a result of natural disasters, fire, riots, or extended power
failures. The Group, therefore, depends on the continued and uninterrupted
performance of its systems.
INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH"
AND ITS SUBSIDIARIES
Consolidated Financial Statements
for the year ended 31 December 2025
Consolidated statement of financial position as at 31 December 2025
Notes 2025 2024
EGP'000 EGP'000
Assets
Non-current assets
Property, plant and equipment 12 1,992,972 1,489,647
Intangible assets and goodwill 13 1,852,521 1,806,067
Right of use assets 26 797,879 753,298
Total non-current assets 4,643,372 4,049,012
Current assets
Inventories 16 424,428 317,562
Trade and other receivables 17 1,402,301 1,010,605
Financial assets at fair value through profit and loss 15 35,285 36,158
Financial assets at amortized cost 19 419,002 527,832
Cash and cash equivalents 18 1,670,799 1,188,082
Total current assets 3,951,815 3,080,239
Total assets 8,595,187 7,129,251
Equity
Share capital 20 1,039,121 1,039,121
Share premium reserve 20 1,027,706 1,027,706
Capital reserves 20 (314,310) (314,310)
Capital Redemption Reserve 20 33,379 33,379
Legal reserve 20 51,641 51,641
Put option reserve 20 (628,645) (532,499)
Translation reserve 20 (446,198) (407,595)
Future Minority Interest Reserve 23,813 -
Retained earnings 2,596,607 1,812,706
Equity attributable to the owners of the Company 3,383,114 2,710,149
Non-controlling interests 2 747,262 789,350
Total equity 4,130,376 3,499,499
Non-current liabilities
Provisions 22 14,051 23,288
Borrowings 25 253,493 40,479
Other financial obligations 26 941,037 970,890
Deferred tax liabilities 10 558,654 431,355
Total non-current liabilities 1,767,235 1,466,012
Current liabilities
Trade and other payables 23 1,121,523 826,251
Other financial obligations 26 244,857 236,197
Current put option liability 24 628,645 532,499
Borrowings 25 173,849 224,528
Current tax liabilities 29 528,702 344,265
Total current liabilities 2,697,576 2,163,740
Total liabilities 4,464,811 3,629,752
Total equity and liabilities 8,595,187 7,129,251
The accompanying notes on pages 36-83 form an integral part of these
consolidated financial statements.
These consolidated financial statements were approved and authorised for issue
by the Board of Directors and signed on their behalf on 16 April 2026 by:
Dr. Hend El Sherbini Sherif El Zeiny
Chief Executive Officer Chief Financial Officer
Consolidated income statement for the year ended 31 December 2025
Notes 2025 2024
EGP'000 EGP'000
Revenue 7 7,855,407 5,719,742
Cost of sales 9.1 (4,502,223) (3,538,189)
Gross profit 3,353,184 2,181,553
Marketing and advertising expenses 9.2 (432,693) (291,098)
Administrative expenses 9.3 (794,009) (672,466)
Impairment loss on trade and other receivable 17 (45,108) (48,312)
Net other income 9.4 91,940 44,671
Operating profit 2,173,314 1,214,348
Net fair value losses on financial assets at fair value through profit or loss 9.9 (4,940) (25,996)
Finance costs 9.7 (272,730) (196,898)
Finance income 9.7 222,909 448,141
Net finance (cost)/income 9.7 (49,821) 251,243
Profit before income tax 2,118,553 1,439,595
Income tax expense 10 (816,889) (431,221)
Profit for the year 1,301,664 1,008,374
Profit/(Loss) attributed to:
Owners of the Company 1,262,207 1,077,434
Non-controlling interests 39,457 (69,060)
1,301,664 1,008,374
Earnings per share
Basic and diluted (EGP) 11 2.17 1.82
The accompanying notes on pages 36-83 form an integral part of these
consolidated financial statements.
Consolidated statement of comprehensive income for the year ended 31 December
2025
2025 2024
EGP'000 EGP'000
Net profit for the year 1,301,664 1,008,374
Other comprehensive (expense)/income:
Items that may be reclassified to profit or loss:
Exchange difference on translation of foreign operations (63,311) 82,447
Other comprehensive (expense)/income for the year, net of tax (63,311) 82,447
Total comprehensive income for the year 1,238,353 1,090,821
Attributable to:
Owners of the Company 1,223,604 752,180
Non-controlling interests 14,749 338,641
1,238,353 1,090,821
The accompanying notes on pages 36-83 form an integral part of these
consolidated financial statements.
Consolidated statement of cash flows for the year ended 31 December 2025
Note 2025 2024
EGP'000 EGP'000
Cash flows from operating activities
Profit before tax 2,118,553 1,439,595
Adjustments for:
Depreciation of property, plant and equipment 12 342,687 300,049
Depreciation of right of use assets 26 197,913 173,655
Amortisation of intangible assets 13 24,525 9,094
Unrealised foreign exchange gains and losses 9.7 36,957 (303,466)
Fair value losses on financial assets at FV through profit or loss 4,940 25,996
Finance income 9.7 (222,909) (144,675)
Finance Expense 9.7 235,774 196,898
Bargain gain from business acquisition (40,120) -
(Gain)/loss on disposal of PPE (4,006) 2,692
Impairment in trade and other receivables 17 45,108 48,312
ECl in cash 561 1,260
Equity settled financial assets at fair value (1,381) 4,680
ROU Asset/Lease Termination (1,700) (655)
Change in Provisions 22 (9,041) 5,099
Change in Inventories (110,562) 76,760
Change in Trade and other receivables (446,249) (208,758)
Change in Trade and other payables 236,200 93,884
Cash generated from operating activities before income tax payment 2,407,250 1,720,420
Taxes paid (502,838) (151,818)
Net cash generated from operating activities 1,904,412 1,568,602
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 10,309 9,120
Interest received 215,347 134,398
Payments for acquisition of property, plant and equipment (436,154) (209,214)
Payments for acquisition of Radiotherapy branch (340,000) -
Payments for acquisition of intangible assets (84,887) (15,383)
Payments for the purchase of financial assets at amortised cost (827,486) (550,870)
Proceeds from the sale of financial assets at amortized cost 914,893 211,231
Payment for purchase of global depository receipts (short-term investment) 9.9 (55,047) (308,606)
Proceeds from sale of global depository receipts (short-term investments) 9.9 50,107 282,610
Net cash used in investing activities (552,918) (446,714)
Cash flows from financing activities
Proceeds from borrowings 28 383,459 184,941
Repayment of borrowings 28 (219,817) (35,047)
Payment of financial obligations 28 (78,317) (42,209)
Principal payment of lease liabilities 28 (175,914) (143,359)
Dividends paid (535,143) (27,421)
Payments for shares bought back - (374,354)
Interest paid 28 (221,870) (170,805)
Bank charge paid (27,272) (26,324)
Cash injection by owner of non-controlling interest - 48,055
Acquire shares non-controlling interest - (162,474)
Proceeds from future equity agreement 23,813 -
Net cash flows used in financing activities (851,061) (748,997)
Net increase in cash and cash equivalents 500,433 372,891
Cash and cash equivalents at the beginning of the year 1,188,082 674,253
Effect of exchange rate on cash (17,716) 140,938
Cash and cash equivalents at the end of the year 18 1,670,799 1,188,082
Non-cash investing and financing activities disclosed in other notes are:
· acquisition of right-of-use assets - note 26
· Put option liability - note 24
The accompanying notes on pages 36-83 form an integral part of these
consolidated financial statements.
Consolidated statement of changes in equity for the year ended 31 December
2025
EGP'000 Share Capital Share premium reserve Capital reserves Legal reserve* Capital Redemption Reserve Put option reserve Translation reserve Future Minority Interest Reserve Retained earnings Total attributed to Non-Controlling interests Total Equity
the owners of the
Company
1,039,121 1,027,706 (314,310) 51,641 33,379 (532,499) (407,595) - 1,812,706 2,710,149 789,350 3,499,499
As at 1 January 2025
Profit for the year - - - - - - - - 1,262,207 1,262,207 39,457 1,301,664
Other comprehensive expense for the year - - - - - - (38,603) - - (38,603) (24,708) (63,311)
Total comprehensive income/(expenses) - - - - - - (38,603) - 1,262,207 1,223,604 14,749 1,238,353
Transactions with owners in their capacity as owners
Dividends - - - - - - - - (478,306) (478,306) (56,837) (535,143)
Movement in put option liability in the year - - - - - (96,146) - - - (96,146) - (96,146)
Agreement for future equity to non- controlling interest** - - - - - - - 23,813 - 23,813 - 23,813
Total - - - - - (96,146) - 23,813 (478,306) (550,639) (56,837) (607,476)
At 31 December 2025 1,039,121 1,027,706 (314,310) 51,641 33,379 (628,645) (446,198) 23,813 2,596,607 3,383,114 747,262 4,130,376
1,072,500 1,027,706 (314,310) 51,641 - (356,583) (82,341) - 1,280,287 2,678,900 421,888 3,100,788
As at 1 January 2024
Profit / (loss) for the year - - - - - - - - 1,077,434 1,077,434 (69,060) 1,008,374
Other comprehensive (expense)/ income for the year - - - - - - (325,254) - - (325,254) 407,701 82,447
Total comprehensive income - - - - - - (325,254) - 1,077,434 752,180 338,641 1,090,821
Transactions with owners in their capacity as owners
-
Dividends - - - - - - - - - - (27,421) (27,421)
Buyback of shares - - - - - - - - (374,354) (374,354) - (374,354)
Cancellation of treasury shares (33,379) - - - 33,379 - - - - - - -
Movement in put option liability in the year - - - - - (338,390) - - - (338,390) - (338,390)
Acquisition of non-controlling interests without change in control - - - - - 162,474 - - (170,661) (8,187) 8,187 -
Cash injection by owner of non-controlling interest - - - - - - - - - - 48,055 48,055
Total (33,379) - - - 33,379 (175,916) - - (545,015) (720,931) 28,821 (692,110)
At 31 December 2024 1,039,121 1,027,706 (314,310) 51,641 33,379 (532,499) (407,595) - 1,812,706 2,710,149 789,350 3,499,499
* Under Egyptian Law each subsidiary must set aside at least 5% of its annual
net profit into a legal reserve until such time that this represents 50% of
each subsidiary's issued capital. This reserve is not distributable to the
owners of the Company
** During the year Chronx Limited (one of the subsidiaries of the Group)
entered into a SAFE agreement for future equity in Chronx Limited in exchange
for USD 500 thousand. If there is an Equity Financing before the termination
of this Safe, on the initial closing of such Equity Financing, this Safe will
automatically convert into the number of Senior Preferred Shares equal to the
Purchase Amount divided by the lowest price per share of the Senior Preferred
Shares.
.
(In the notes all amounts are shown in Egyptian Pounds "EGP'000" unless
otherwise stated)
1. Corporate information
The consolidated financial statements of Integrated Diagnostics Holdings plc
and its subsidiaries (collectively, "the Group") for the year ended 31
December 2025 were authorised for issue in accordance with a resolution of the
directors on 16 April 2026. Integrated Diagnostics Holdings plc "IDH" or "the
company" is a public limited company incorporated in Jersey. It has been
established according to the provisions of the Companies (Jersey) law 1991
under No. 117257. The registered office address of the Company is 12 Castle
Street, St Helier, Jersey, JE2 3RT. The Company is a listed entity, in London
stock exchange since 2015.
The principal activity of the Group is investments in all types of the
healthcare field of medical diagnostics (the key activities are pathology and
radiology) and medical treatment (Radiotherapy) either through acquisitions of
related business in different jurisdictions or through expanding the acquired
investments IDH has. The key jurisdictions that the Group operates are in
Egypt, Jordan, Nigeria, Sudan and Saudi Arabia.
The Group's financial year starts on 1 January and ends on 31 December each
year.
2. Group information
Information about subsidiaries
The consolidated financial statements of the Group include:
Principal Country of % Equity interest Non-Controlling interest
activities Incorporation
2025 2024 2025 2024
Al Borg Laboratory Company ("Al-Borg") Medical diagnostics service Egypt 99.3% 99.3% 0.7% 0.7%
Al Mokhtabar Company for Medical Labs ("Al Mokhtabar") Medical diagnostics service Egypt 99.9% 99.9% 0.1% 0.1%
Medical Genetic Center Medical diagnostics service Egypt 55.0% 55.0% 45.0% 45.0%
Al Makhbariyoun Al Arab Medical diagnostics service Jordan 60.0% 60.0% 40.0% 40.0%
Golden Care for Medical Services Holding company of SAMA Egypt 100.0% 100.0% 0.0% 0.0%
Integrated Medical Analysis Company (S.A.E) Medical diagnostics service Egypt 100.0% 100.0% 0.0% 0.0%
SAMA Medical Laboratories Co. ("Ultralab medical laboratory ") Medical diagnostics service Sudan 80.0% 80.0% 20.0% 20.0%
AL-Mokhtabar Sudanese Egyptian Co. Medical diagnostics service Sudan 65.0% 65.0% 35.0% 35.0%
Integrated Diagnostics Holdings Limited Intermediary holding company Cayman Islands 100.0% 100.0% 0.0% 0.0%
Dynasty Group Holdings Limited Intermediary holding company England and Wales 51.0% 51.0% 49.0% 49.0%
Eagle Eye Echo-Scan Limited Intermediary holding company Mauritius 77.57% 77.57% 22.43% 22.43%
Echo-Scan* Medical diagnostics service Nigeria 100.0% 100.0% 0.0% 0.0%
WAYAK Pharma Medical services Egypt 99.99% 99.99% 0.01% 0.01%
Medical Health Development** Medical services Saudi Arabia 100.0% 100.0% 0.0% 0.0%
Chronx Limited*** Intermediary holding company United Arab Emirates 80.0% 80.0% 20.0% 20.0%
* The Group owns 39.6% of Echo-Scan due to the ownership of the entity being
held through subsidiaries with a non-controlling interest.
**The Group owns 91.6% of Medical Health Development due to the ownership of
the entity being held through a subsidiary with a non-controlling interest.
*** On October 23, 2024, the Group completed the establishment of Chronx
Limited, a limited company based in United Arab Emirates with a total stake of
80% directly and 20% held by Dr.Khaled Ezzeldin Ismail.
Non-Controlling interest
Non-Controlling Interest is measured at the proportionate share basis.
Proportion of equity interest held by non-controlling interests:
Country of incorporation 2025 2024
Medical Genetic Center Egypt 45.0% 45.0%
Al Makhbariyoun Al Arab Jordan 40.0% 40.0%
SAMA Medical Laboratories Co. " Ultra lab medical laboratory " Sudan 20.0% 20.0%
AL-Mokhtabar Sudanese Egyptian Co. Sudan 35.0% 35.0%
Al Borg Laboratory Company Egypt 0.7% 0.7%
Dynasty Group Holdings Limited England and Wales 49% 49%
Eagle Eye Echo-Scan Limited Mauritius 22.43% 22.43%
Chronx Limited United Arab Emirates 20% 20%
The summarised financial information of subsidiaries that have material
non-controlling interests is provided below. This information is based on
amounts before inter-company eliminations.
Al Makhbariyoun Al Arab Dynasty Group Total
EGP'000
EGP'000
EGP'000
Summarised statement of income for 2025:
Revenue 1,034,690 120,748 1,155,438
Profit 82,759 902 83,661
Other comprehensive expenses (49,337) (1,723) (51,060)
Total comprehensive income/(expenses) 33,422 (821) 32,601
Profit allocated to non-controlling interest 33,104 554 33,658
Other comprehensive expenses allocated to non-controlling interest (19,942) (2,648) (22,590)
Summarised statement of financial position as at 31 December 2025:
Non-current assets 587,668 33,948 621,616
Current assets 413,216 43,342 456,558
Non-current liabilities (228,062) (485) (228,547)
Current liabilities (295,113) (23,316) (318,429)
Net assets 477,709 53,489 531,198
Net assets attributable to non-controlling interest 191,084 31,492 222,576
Al Makhbariyoun Al Arab Dynasty Group Total
EGP'000
EGP'000
EGP'000
Summarised statement of income for 2024:
Revenue 901,693 82,073 983,766
Profit/(loss) 43,284 (28,681) 14,603
Other comprehensive income 236,565 507,452 744,017
Total comprehensive income 279,849 478,771 758,620
Profit/(loss)allocated to non-controlling interest 17,314 (17,451) (137)
Other comprehensive income allocated to non-controlling interest 95,631 280,775 376,406
Summarised statement of financial position as at 31 December 2024:
Non-current assets 686,881 40,962 727,843
Current assets 444,959 43,039 487,998
Non-current liabilities (275,070) (3,911) (278,981)
Current liabilities (289,230) (23,365) (312,595)
Net assets 567,540 56,725 624,265
Net assets attributable to non-controlling interest 227,016 33,718 260,734
3. Business combinations
3.1. Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Group and its subsidiaries as at 31 December 2025. Control is achieved when
the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its
power over the investee.
i. Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group
controls an entity where the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date that control
ceases.
Inter-company transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the transferred
asset. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown
separately in the consolidated statement of income statement of comprehensive
income, statement of changes in equity and statement of financial position
respectively.
ii. Changes in ownership interests
The Group treats transactions with non-controlling interests that do not
result in a loss of control as transactions with equity owners of the Group. A
change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their
relative interests in the subsidiary. Any difference between the amount of the
adjustment to non-controlling interests and any consideration paid or received
is recognised in a separate reserve within equity attributable to owners of
the Group.
When the Group ceases to consolidate or equity account for an investment
because of a loss of control, joint control or significant influence, any
retained interest in the entity is remeasured to its fair value, with the
change in carrying amount recognised in profit or loss. This fair value
becomes the initial carrying amount for the purposes of subsequently
accounting for the retained interest as an associate, joint venture or
financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the
Group had directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in other comprehensive income are
reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but
joint control or significant influence is retained, only a proportionate share
of the amounts previously recognised in other comprehensive income are
reclassified to profit or loss where appropriate.
The acquisition method of accounting is used to account for all business
combinations, regardless of whether equity instruments or other assets are
acquired. The consideration transferred for the acquisition of a subsidiary
comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of the acquired business
• equity interests issued by the Group
• fair value of any asset or liability resulting from a contingent
consideration arrangement, and
• fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are, with limited exceptions, measured
initially at their fair values at the acquisition date. The Group recognises
any non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the
non-controlling interest's proportionate share of the acquired entity's net
identifiable assets.
Acquisition-related costs are expensed as incurred.
The excess of the:
• consideration transferred,
• amount of any non-controlling interest in the acquired entity, and
• acquisition-date fair value of any previous equity interest in the
acquired entity over the fair value of the net identifiable assets acquired is
recorded as goodwill. If those amounts are less than the fair value of the net
identifiable assets of the business acquired, the difference is recognised
directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts
payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the entity's incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently
remeasured to fair value, with changes in fair value recognised in profit or
loss.
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date. Any gains or
losses arising from such remeasurement are recognised in profit or loss.
On 19 June 2025 the Group acquired the assets related to Radiotherapy branch
through its subsidiary Al Borg Laboratory Company for total consideration of
EGP 400 million. This has been treated as a business combination under IFRS 3
since the assets acquired and agreement in place which transferred employees
and customer lists are considered to constitute a business. The assets
acquired and the key inputs calculate the value these assets has been included
below.
The acquisition has been completed with total consideration with EGP 400
million and a purchase price allocation study at the date of the acquisition
concluded total identified assets with EGP 440,120 thousand, and that resulted
40,120 thousand as a bargain gain from the acquisition. The PPA performed by
the company's expert Prime Capital has identified fair value for acquired
assets as follows:
EGP'000
Building* 243,404
Equipment** 186,516
Auxiliary assets 10,200
Total fair value for the identified asset 440,120
Total consideration 400,000
Bargain gain from the acquisition*** 40,120
* The market value of the building was assessed with the comparable method in
accordance with the following considerations: the advantages of the location
and plot size, the quality of internal finishes, the medical nature of the
facility, and a market survey of comparable units.
** The market value of the Equipment was assessed by obtaining a purchase
quotation from the manufacturer of the Equipment and adjusting it with the
technical depreciation rate and technical usability rate.
*** Bargain gain resulted from the acquisition recorded within the net other
income at the income statement
The recognized bargain purchase gain resulted from acquiring the building at
an amount below its fair value. Because The property had already been fully
fitted out to meet the operational requirements of radiation therapy services
and to accommodate the specialized equipment installed within it.
Consequently, the former owner's ability to sell the asset was limited to
buyers operating in the same line of business., the Company also engaged in
extensive negotiations to secure the acquisition at the lowest possible price.
These factors collectively led to the purchase consideration being lower than
the fair value of the acquired net assets, resulting in the recognition of a
bargain purchase gain.
From the acquisition date until the end of the reporting period, the branch
generated revenues of EGP 28,215 thousand and a net profit of EGP 358
thousand. Had the acquisition been completed at the beginning of the financial
year, Radiotherapy branch would have contributed approximately EGP 51,997
thousand in revenues and EGP 1,177 thousand in net profit for the year."
The new carrying amount of fixed assets resulting from the purchase price
allocation created a temporary difference between the net book value of the
assets recognized under IFRS 3 and their tax base as determined by the
Egyptian Tax Authority (ETA), which recognize fixed assets based on their
transaction cost. Consequently, a deferred tax liability has been recorded on
the temporary difference, amounting to EGP 9,027 thousand.
4. Basis of preparation
Statement of compliance
Integrated Diagnostics Holdings plc "IDH" or "the company" has been
established according to the provisions of the Companies (Jersey) law 1991
under No. 117257. The Company is listed entity on London stock exchange and
was delisted from the Egyptian stock exchange in September 2024. The
consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards as adopted by the
European Union and the Companies (Jersey) Law 1991.
Basis of measurement
The consolidated financial statements have been prepared on a historical cost
basis, except where adopted IFRS mandates that fair value accounting is
required which is related to financial assets and liabilities measured at fair
value.
New standards and interpretations Adopted
The Group has applied the following amendments for the first time for their
annual reporting period commencing 1 January 2025:
· IAS 21 - Translation to a Hyperinflationary Presentation Currency
The amendment listed above did not have any impact on current and prior years
and not expected to affect future years.
New standards and interpretations not yet adopted
The Group is currently assessing the likely impact of IFRS 18 -"Presentation
and Disclosure in Financial Standards". It is due for adoption for the year
end 31 December 2027 and has not been early adopted. It is expected that this
will have a material impact on the financial statements and disclosure of
items within the income statement in particular. Further disclosure in
relation to this shall be provided next year. There are no other new standards
that are not yet adopted that the Group has identified that are expected to
have a material impact.
Going concern
These consolidated financial statements have been prepared on the going
concern basis. On 31 December 2025, the Group had cash and cash equivalent
balance plus treasury bills / deposits minus borrowing amounting to KEGP
1,662,459. The Directors have considered a number of downside scenarios,
including the most severe but plausible scenario, for a period of 16 months
from the signing of the financial statements. We have conducted multiple
sensitivity analysis to assess the impact of inflationary pressures and
potential currency evaluation for the next 16 months. We did not consider the
Biolab put option since it is not plausible that the option will be exercised
refer to (note 24). We assume that dividends are expected to be paid during
the period for which going concern is being assessed or those in respect of
merger and acquisition 'M&A' activity. Under all of these scenarios, there
remains significant headroom from a liquidity and covenant perspective.
Therefore, the Directors believe the Group has the ability to meet its
liabilities as they fall due throughout the going concern period and the use
of the going concern basis in preparing the financial statements is
appropriate.
Material accounting policy information and other explanatory information
The accounting policies set out below have been consistently applied to all
the years presented in these consolidated financial statements.
a) Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not
subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets
(cash-generating units). Non-financial assets other than goodwill that
suffered an
impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.
b) Fair value measurement
The Group measures financial instruments such as non-derivative financial
instruments and contingent consideration assumed in a business combination at
fair value at each balance sheet date.
When measuring the fair value of an asset or a liability, the Group uses
observable market data as far as possible. Fair value is categorised into
different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:
Ø Level 1 - Quoted (unadjusted) market prices in active markets for identical
assets or liabilities.
Ø Level 2 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly
observable.
Ø Level 3 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements at
fair value on a recurring basis, the Group determines whether transfers have
occurred between levels in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value measurement as
a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Group has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks
of the asset or liability and the level of the fair value hierarchy, as
explained above.
The fair value less any estimated credit adjustments for financial assets and
liabilities with maturity dates less than one year is assumed to approximate
their carrying value. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future contracted cash
flows at the current market interest rate that is available to the Group for
similar transactions.
c) Revenue recognition:
Revenue represents the value of medical diagnostic services rendered in the
year and is stated net of discounts. The Group has two types of customers:
Walk-in patients who make payments upon completion of the service and patients
served under contracts who are invoiced and subject to standard credit terms.
For patients under contracts, rates are agreed in advance on a per-test,
client-by-client basis based on the pricelists agreed within these contracts.
The following steps are considered for all types of patients:
1. Identification of the Contracts: written contracts are agreed
between IDH and customers. The contracts stipulate the duration, price per
test and credit period.
2. Determining performance obligations are the diagnostics tests
within the pathology, radiology services and Radiotherapy. The performance
obligation is achieved when the customer receives their test results, and so
are recognised at point in time.
3. Transaction price: Services provided by the Group are distinct in
the contract, as the contract stipulates the series of tests' names/types to
be conducted along with its distinct prices.
4. Allocation of price to performance obligations: Stand-alone selling
price per test is stipulated in the contract. In case of discounts, it is
allocated proportionally to all of tests prices in the contract.
5. Revenue is being recorded after the satisfaction of the above
mentioned conditions.
The Group considers whether it is the principal or the agent in each of its
contractual arrangements. In line with IFRS 15 "Revenue from contracts" in
assessing the appropriate treatment of each contract, factors that are
considered include which party is controlling the service being performed for
the customer and bears the inventory risk. Where the Group is largely
controlling the service and bearing the inventory risk it is deemed to be the
principal and the full consideration received from the customer is recognised
as revenue, with any amounts paid to third parties treated as cost of sales.
Customer loyalty program:
The Group operates a loyalty program where customers accumulate points for
purchases made which entitle them to a discount on future purchases. The
points are valid for 12 months from the time they are awarded. The value of
points to be provided is based on the expectation of what level will be
redeemed in the future before their expiration date. This amount is netted
against revenue earned and included as a contract liability and only
recognised as revenue when the points are then redeemed or have expired.
d) Income Taxes
Tax on the profit or loss for the year comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised directly in equity, in which case it is recognised in equity.
i. Current tax
Current tax is the expected tax payable or receivable on the taxable income or
loss for the year, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous
years.
ii. Deferred tax
Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax is recognised on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated
financial statements.
However, deferred tax liabilities are not recognised if they arise from the
initial recognition of goodwill; deferred income tax is not accounted for if
it arises from initial recognition of an asset or liability in a transaction
other than a business combination and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences,
the carry forward of unused tax credits and any unused tax losses. Deferred
tax assets are recognised to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences,
and the carry forward of unused tax credits and unused tax losses can be
utilised. Deferred tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the reporting date and are expected to
apply when the related deferred income tax asset is realized, or the deferred
income tax liability is settled.
e) Foreign currency translation
i) Functional and presentation currency
Each of the Group's entities is using the currency of the primary economic
environment in which the entity operates ('the functional currency'). The
Group's consolidated financial statements are presented in Egyptian Pounds,
being the reporting currency of the main Egyptian trading subsidiaries within
the Group and the primary economic environment in which the Group operates.
ii) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions, and from
the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates, are generally recognised in profit or
loss. They are deferred in equity if they relate to qualifying cash flow
hedges and qualifying net investment hedges or are attributable to part of the
net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in
the statement of profit or loss, within finance costs. All other foreign
exchange gains and losses are presented in the statement of profit or loss on
a net basis within other gains/(losses).
Non-monetary items that are measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was
determined. Translation differences on assets and liabilities carried at fair
value are reported as part of the fair value gain or loss. For example,
translation differences on non-monetary assets and liabilities such as
equities held at fair value through profit or loss are recognised in profit or
loss as part of the fair value gain or loss, and translation differences on
non-monetary assets such as equities classified as at fair value through other
comprehensive income are recognised in other comprehensive income.
f) Hyperinflationary Economies
The financial statements of "SAMA Medical Laboratories Co. and AL-Mokhtabar
Sudanese Egyptian Co." report their financial statements in the currency of
a hyperinflationary economy. In accordance with IAS 29 financial reporting in
Hyperinflationary Economies, the financial statements of those subsidiaries
were restated by applying the consumer price index at closing rates in
December 2025 Nil (2024 December Nil) before they were included in the
consolidated financial statements.
g) Property, plant and equipment
All property and equipment are stated at historical cost or fair value at
acquisition, less accumulated depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the
consolidated statement of income during the financial period in which they are
incurred. Land is not depreciated.
Depreciation expense is calculated using the straight-line method to allocate
the cost or to their residual value over their estimated useful lives, as
follows:
Buildings
50 years
Medical, electric and information systems equipment
4-10 years
Leasehold
improvements
4-5 years
Fixtures, fittings &
vehicles
4-16 years
The assets useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period.
An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated
recoverable amount. Gains and losses on disposals are determined by comparing
the proceeds with the carrying amount and are recognised within 'Other
(expenses)/income - net' in the consolidated statement of income.
h) Intangible assets
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is
their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses.
Internally generated intangibles, excluding capitalised development costs, are
not capitalised and the related expenditure is reflected in profit or loss in
the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or
indefinite.
Intangible assets with finite lives are amortised over the useful economic
life and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period. Changes in the expected useful life or
the expected pattern of consumption of future economic benefits embodied in
the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives is recognised in
the statement of income in the expense category that is consistent with the
function of the intangible assets. The Group amortises intangible assets with
finite lives using the straight-line method over the following periods:
- IT development and software 4-5 years
Intangible assets with indefinite useful lives are not amortised, but are
tested for impairment annually, either individually or at the cash-generating
unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the
change in useful life from indefinite to finite is made on a prospective
basis.
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess
of the consideration transferred over interest in net fair value of the net
identifiable assets, liabilities and contingent liabilities of the acquiree
and the fair value of the non-controlling interest in the acquire.
Goodwill is stated at cost less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in a business combination is
allocated to each of the cash-generating units (CGUs), or groups of CGUs, that
is expected to benefit from the synergies of the combination. Each unit or
group of units to which the goodwill is allocated represents the lowest level
within the entity at which the goodwill is monitored for internal management
purposes. The impairment assessment is done on an annual basis.
Brand
Brand names acquired in a business combination are recognised at fair value at
the acquisition date and have an indefinite useful life.
The Group brand names are considered to have indefinite useful life as the
Egyptian brands have been established in the market for more than 40 years and
the health care industry is very stable and continues to grow.
The brands are not expected to become obsolete and can expand into different
countries and adjacent businesses, in addition, there is a sufficient ongoing
marketing efforts to support the brands and this level of marketing effort is
economically reasonable and maintainable for the foreseeable future.
I) Financial instruments - initial recognition and subsequent measurement
A financial instrument is any contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
i. financial assets
Classification
The Group reclassifies debt investments when and only when its business model
for managing those assets changes.
The Group classifies its investments in debt Instruments in the following
measurement categories:
• those to be measured subsequently at fair value (either through OCI or
through income statement), and
• those to be measured at amortised cost.
The classification depends on the entity's business model for managing the
financial assets and the contractual terms of the cash flows.
For investments in equity instrument measured at fair value, gains and losses
will either be recorded in income statement or OCI.
For investments in equity instruments that are not held for trading, this will
depend on whether the Group has made an irrevocable election at the time of
initial recognition to account for the equity investment at fair value through
other comprehensive income (FVOCI).
Recognition and derecognition
According to the standard, purchases and sales of financial assets are
recognised on trade date, being the date on which the Group commits to
purchase or sell the asset. Financial assets are derecognised when the rights
to receive cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all the risks and
rewards of ownership.
Measurement
At initial recognition, the Group measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value, through profit or
loss (FVPL) transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets
carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety
when determining whether their cash flows are solely payment of principal and
interest.
Debt instruments
Subsequent measurement of debt instruments depends on the Group's business
model for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which the Group classifies its
debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash
flows, where those cash flows represent solely payments of principal and
interest, are measured at amortised cost. Interest income from these financial
assets is included in finance income using the effective interest rate method.
Any gain or loss arising on derecognition is recognised directly in profit or
loss and presented in other gains/(losses) together with foreign exchange
gains and losses. Impairment losses are presented as a separate line item in
the consolidated income statement.
• FVOCI: Assets that are held for collection of contractual cash flows and
for selling the financial assets, where the assets' cash flows represent
solely payments of principal and interest, are measured at FVOCI. Movements in
the carrying amount are taken through OCI, except for the recognition of
impairment losses, interest income and foreign exchange gains and losses,
which are recognised in profit or loss. When the financial asset is
derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to profit or loss and recognised in other
gains/(losses). Interest income from these financial assets is included in
finance income using the effective interest rate method. Foreign exchange
gains and losses are presented in other gains/(losses), and impairment
expenses are presented as separate line item in the consolidated income
statement.
• FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are
measured at FVPL. A gain or loss on a debt investment that is subsequently
measured at FVPL is recognised in profit or loss and presented net within
other gains/(losses) in the period in which it arises. Management has assessed
the underlying nature of the investments and designated upon investment that
this should be treated as an investment held at fair value with movements
going through the income statement on the basis of the size of the investment
and the reasons for making the investment.
Equity instruments
The Group subsequently measures all equity investments at fair value. Where
the Group's management has elected to present fair value gains and losses on
equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to profit or loss following the derecognition of the
investment. Dividends from such investments continue to be recognised in
profit or loss as other income when the Group's right to receive payments is
established.
Changes in the fair value of financial assets at FVPL are recognised in other
gains/(losses) in the statement of income as applicable. Impairment losses
(and reversal of impairment losses) on equity investments measured at FVOCI
are not reported separately from other changes in fair value.
Impairment
The Group assesses on a forward-looking basis the expected credit losses
associated with its debt instruments carried at amortised cost and FVOCI. The
impairment methodology applied depends on whether there has been a significant
increase in credit risk. For trade receivables, the Group applies the
simplified approach permitted by IFRS 9, which requires expected lifetime
losses to be recognised from initial recognition of the receivables.
Further disclosures relating to impairment of financial assets are also
provided in the following notes:
Ø Disclosures for significant estimates and
assumptions Note 5.2
Ø Financial
assets
Note 6
Ø Trade
receivables
Note 17
The Group uses an allowance matrix to measure the ECLs of trade receivables
from individual customers, which comprise a very large number of small
balances.
Loss rates are calculated using a 'roll rate' method based on the probability
of a receivable progressing through successive stages of delinquency to
write-off. Roll rates are calculated separately for exposures in different
segments based on credit risk characteristics, age of customer relationship.
Loss rates are based on actual credit loss experience over the past three
years. These rates are multiplied by scalar factors to reflect differences
between economic conditions during the period over which the historical data
has been collected, current conditions and the Group's view of economic
conditions over the expected lives of the receivables.
ii. Financial liabilities
Initial recognition and measurement
Financial liabilities are classified as measured at amortised cost or FVTPL. A
financial liability is classified at FVTPL if it is classified as held for
trading, financial liabilities at FVTPL are measured at fair value and net
gains and losses including any interest expenses are recognised in profit or
loss.
Put options included in put option liabilities are carried at the present
value of the redemption amount in accordance with IAS 32 in regard to the
guidance on put option on an entity's own equity shares. The Group has written
put options over the equity of its (Bio Lab, Echo-Scan and Medical Health
Development) subsidiaries. The option on exercise is initially recognised at
the present value of the redemption amount with a corresponding charge
directly to equity. The charge to equity is recognised separately within the
put option reserve and this is in line with paragraph 23 of IFRS 10.
All of the Group's financial liabilities are classified as financial
liabilities carried at amortised cost using the effective interest method. The
Group does not use derivative financial instruments or hedge account for any
transactions. Unless otherwise indicated, the carrying amounts of the Group's
financial liabilities are a reasonable approximation of their fair values.
The Group's financial liabilities include trade and other payables, put option
liabilities, borrowings, and other financial obligations.
Derecognition
A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the statement of income.
iii. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is
reported in the consolidated statement of financial position if there is a
currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, to realise the assets and settle the
liabilities simultaneously.
j) Inventories
Raw materials are stated at the lower of cost and net realisable value. Cost
comprises direct materials, direct labour and an appropriate proportion of
variable and fixed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. Costs are assigned to individual items of
inventory on the basis of weighted average costs. Costs of purchased inventory
are determined after deducting rebates and discounts. Net realisable value is
the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the
sale.
k) Cash and short-term deposits
Cash and short-term deposits in the statement of financial position comprise
cash at banks and on hand and short-term deposits with original maturities of
three months or less, which are subject to an insignificant risk of changes in
value.
For the purpose of the consolidated statement of cash flows, cash and cash
equivalents consist of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the
Group's cash management.
l) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs
incurred. Borrowings are subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using
the effective interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw-down occurs. To the extent there is
no evidence that it is probable that some or all of the facility will be drawn
down, the fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
Borrowings are removed from the statement of financial position when the
obligation specified in the contract is discharged, cancelled or expired. The
difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12
months after the reporting period.
m) Borrowing costs
General and specific borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are capitalised
during the period of time that is required to complete and prepare the asset
for its intended use or sale. Qualifying assets are assets that necessarily
take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings,
pending their expenditure on qualifying assets, is deducted from the borrowing
costs eligible for capitalisation. Other borrowing costs are expensed in the
period in which they are incurred.
n) Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation. When the Group expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of
profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
Provisions are measured at the present value of the expenditures expected to
be required to settle the obligation using a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific
to the obligation. The increase in the provision due to passage of time is
recognised as a finance cost.
o) Pensions and other post-employment benefits
A defined contribution plan is a pension plan under which the Group pays fixed
contributions into a separate entity. The Group has no legal or constructive
obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the
current and prior periods. Obligations for contributions to defined
contribution pension plans are recognized as an expense in the income
statement in the periods during which services are rendered by employees.
p) Segments
The Group has five operating segments based on geographical locations and
these have been disclosed in note 7.
q) Leases as lessee (IFRS 16)
At the inception of a contract, the Group assesses whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in
exchange for consideration.
As a lessee
At commencement or on modification of a contract that contains a lease
component, along with one or more other lease or non-lease components, the
Group accounts for each lease component separately from the non-lease
components. However, for the non-leases element of the underlying asset, the
Group has elected not to separate non-lease components and account for the
lease and non-lease components as a single lease component. The Group
allocates the consideration in the contract to each lease component on the
basis of its relative stand-alone price and the aggregate stand-alone price of
the non-lease components.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located,
less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the end of the lease term, unless the
lease transfers ownership of the underlying asset to the Group by the end of
the lease term or the cost of the right-of-use asset reflects that the Group
will exercise a purchase option. In that case the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined
on the same basis as those of property and equipment. In addition, the
right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
incremental borrowing rate for the IFRS 16 calculations. This is set based
upon the interest rate attached to the Group's financing and adjusted, where
appropriate, for specific factors such as asset or company risk premiums.
Lease payments included in the measurement of the lease liability comprise the
following:
- fixed payments, including in-substance fixed payments.
- variable lease payments that depend on an index or a rate, initially
measured using the index or rate as at the commencement date.
- amounts expected to be payable under a residual value guarantee,
- the exercise price under a purchase option that the Group is
reasonably certain to exercise,
- lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option, and
- penalties for early termination of a lease unless the Group is
reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in future lease payments
arising from a change in an index or rate, there is a change in the Group's
estimate of the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised
in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset, to the extent that
the right-of-use asset is reduced to nil, with any further adjustment required
from the remeasurement being recorded in profit or loss.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease
liabilities for lease of low-value assets and short-term leases. The Group
recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
5. Key judgments and critical accounting estimates
5.1. Judgement
Useful economic lives of Brands
Management have assessed that the brands within the Group which have a value
have an indefinite life. This is based on their strong history and existence
in the market over a large number of years, in addition to the fact that these
brands continue to grow and become more profitable. As the brands have been
assigned an indefinite life then they are not amortised and assessed for
impairment on an annual basis.
Control over subsidiaries
The Group makes acquisitions that often see a non-controlling interest
retained by the seller. The assessment of if the Group has control of these
acquisitions in order to consolidate is a critical judgement in these
financial statements.
To determine whether it controls an investee an investor shall assess whether
it has all the following:
(a) Power over the investee.
(b) Exposure, or rights, to variable returns from its involvement with the
investee.
(c) The ability to use its power over the investee to affect the amount of the
investor's returns.
Consideration of the following factors assist in making that determination:
(a) The purpose and design of the investee.
(b) What the relevant activities are and how decisions about those activities
are made.
(c) Whether the rights of the investor give it the current ability to direct
the relevant activities.
(d) Whether the investor is exposed, or has rights, to variable returns from
its involvement with the investee.
(e) Whether the investor has the ability to use its power over the investee to
affect the amount of the investor's returns.
The Group is able to consolidate its subsidiary, Echo-Scan in Nigeria, despite
owning only 39.6% indirect ownership. This is due to several reasons:
1) The Group exercises control over all intermediate entities that connect the
parent company to Echo-Scan.
2) The Group has a technical service agreement in place, which grants them the
authority to direct and oversee the operations of the subsidiaries in Nigeria.
Despite not having majority ownership, the Group's control over the
intermediate entities and technical service agreement allows them to exercise
control in their financial statements.
5.2. Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below.
The Group based its assumptions and estimates on parameters available when the
consolidated financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Group.
Such changes are reflected in the assumptions when they occur.
Impairment of intangible assets
The Group tests annually whether goodwill and other intangibles with
indefinite lives have suffered any impairment. Impairment exists when the
carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its
value in use.
The recoverable amounts of cash generating units have been determined based on
value in use. The value
in use calculation is based on a discounted cash flow ("DCF") model.
The cash flows are derived from the budget for the next five years and do not
include restructuring activities that the Group is not yet committed to or
significant future investments that will enhance the asset performance of the
CGU being tested. The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes. For more detailed assumptions
refer to (note 14).
Valuation of tangible assets resulting from business combination
The group uses different valuation techniques for different types of tangible
assets as the following:
Building:
This method determines fair value by examining recent sales prices of
comparable medical units in the surrounding area and applying adjustments for
location, space, floor position, use (medical), and quality of finishes.
Comparable sales prices were based on price per square foot range. The average
weighted price per square foot resulted in a value of 243m EGP. If the lowest
price per square foot was used this would have resulted in a value of EGP 211
m. If the highest price per square foot had been used it would have resulted
in a value of EGP 274 m.
Equipment:
The market value of the Equipment was assessed by obtaining a purchase
quotation from the manufacturer of the Equipment and adjusting it with the
technical depreciation rate and technical usability rate based on the data of
purchase of the old owner and the condition of the equipment at the data of
the acquisition.
If the technical depreciation rate had been increased by 10% and technical
usability had been decreased by 10% then this would have resulted in a 44m EGP
reduction in the value of the equipment.
Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk
of default and expected loss rates. The Group uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on
the Group's history and existing market conditions, as well as forward-looking
estimates at the end of each reporting period. Details of the key assumptions
and inputs used are disclosed in note 17.
6. Financial assets and financial liabilities
2025 2024
EGP'000
EGP'000
Cash and cash equivalents (Note 18) 1,670,799 1,188,082
Term deposits and treasury bills (Note 19) 419,002 527,832
Trade and other receivables (Note 17) 1,280,743 930,308
Total financial assets 3,370,544 2,646,222
2025 2024
EGP'000
EGP'000
Trade and other payables (Note 23) 950,326 705,304
Put option liability (Note 24) 628,645 532,499
Financial obligations (Note 26) 1,185,894 1,207,087
Loans and borrowings (Note 28) 431,586 282,566
Total other financial liabilities 3,196,451 2,727,456
Total financial instruments* 174,093 (81,234)
* The financial instruments exclude prepaid expenses, deferred revenue, and
tax (current tax, payroll tax, withholding tax,…etc).
The fair values of financial assets and liabilities are considered to be
equivalent to their book value.
The fair values measurements for all the financial assets and liabilities have
been categorized as Level 3, if its fair value can't be determined by using
readily observable measures.
Echo-Scan put option (note 24) has been categorized as Level 3 as the fair
value of the option is based on un-observable inputs using the best
information available in the current circumstances, including the company's
own projection and taking into account all the market assumptions that are
reasonably available.
Financial instruments risk management objectives and policies
The Group's principal financial liabilities are trade and other payables, put
option liabilities, borrowings and other financial liabilities. The Group's
principal financial assets include trade and other receivables, financial
assets at amortised cost, financial asset at fair value and cash and cash
equivalents that derive directly from its operations.
The Group is exposed to market risk, credit risk and liquidity risk. The
Group's overall risk management program focuses on the unpredictability of
markets and seeks to minimize potential adverse effects on the Group's
financial performance. The Group's senior management oversees the management
of these risks. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.
The board provides written principles for overall risk management, as well as
written policies covering specific areas, such as foreign exchange risk,
interest rate risk, and credit risk, use of derivative financial instruments
and non-derivative financial instruments, and investment of excess liquidity.
- Market risk
Market risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk
and other price risk, such as equity price risk and commodity risk. Financial
instruments affected by market risk include borrowings and deposits.
The sensitivity analysis in the following sections relate to the position as
at 31 December 2025 and 2024. The sensitivity analysis has been prepared on
the basis that the amount of net debt, the ratio of fixed to floating interest
rates of the debt and the proportion of financial instruments in foreign
currencies are all constant.
The analysis excludes the impact of movements in market variables on
provisions, and the non-financial assets and liabilities of foreign
operations. The following assumptions have been made in calculating the
sensitivity analysis:
Ø The sensitivity of the relevant consolidated income statement item is the
effect of the assumed changes in respective market risks. This is based on the
financial assets and financial liabilities held at 31 December 2025 and 31
December 2024
- Interest rate risk
The Group is trying to minimize its interest rate exposure, especially in
Egypt region, which has seen several interest rate rises over the year.
Minimising interest rate exposure has been achieved partially by entering into
fixed-rate instruments.
Exposure to interest rate risk
The interest rate profile of the Group's interest-bearing financial
instruments as reported to the management of the Group is as follows:
2025 2024
EGP'000 EGP'000
Fixed-rate instruments
Financial obligations (note 26) 1,185,894 1,207,087
Loans and borrowings (note 25) 46,863 197,542
Treasury bills (note 18 & 19) 122,918 74,048
Term deposits (note 18 & 19) 1,603,622 1,125,548
Variable-rate instruments
Loans and borrowings (note 25) 380,479 67,465
Cash flow sensitivity analysis for variable-rate instruments
A reasonable possible change of 100 basis points in interest rates at the
reporting date would have increased /(decreased) profit or loss by the amounts
EGP 3,805k (2024: EGP 675k). This analysis assumes that all other variables,
remain constant.
- Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of
an exposure will fluctuate because of changes in foreign exchange rates.
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to the US
Dollar, Sudanese Pound, the Jordanian Dinar, Nigerian Naira and Saudi Riyal.
Foreign exchange risk arises from the Group's operating activities (when
revenue or expense is denominated in a foreign currency), recognized assets
and liabilities and net investments in foreign operations. However, management
aims to minimize open positions in foreign currencies to the extent that is
necessary to conduct its activities.
Management has set up a policy to require group companies to manage their
foreign exchange risk against their functional currency. Foreign exchange risk
arises when future commercial transactions or recognised assets or liabilities
are denominated in a currency that is not the entity's functional currency.
At year end, major financial assets / (liabilities) denominated in foreign
currencies were as follows:
31-Dec-25
Assets Liabilities Net exposure
Cash and cash equivalents Other Total Put option Finance Trade Total
assets
assets
lease
payables
liability
US 15,610 - 15,610 - (70,880) (133,312) (204,192) (188,582)
JOD - - - (578,151) - - (578,151) (578,151)
31-Dec-24
Assets Liabilities Net exposure
Cash and cash equivalents Other Total Put option Finance Trade Total
assets
assets
lease
payables
liability
US 4,358 - 4,358 - (116,012) (65,365) (181,377) (177,019)
JOD - - - (512,577) - - (512,577) (512,577)
The following is the exchange rates applied:
Average rate for the year ended
31-Dec-25 31-Dec-24
US Dollars 49.05 45.53
Euros 55.49 49.17
GBP 64.81 58.27
JOD 69.07 64.11
SAR 13.08 12.15
SDG 0.08 0.06
NGN 0.03 0.03
Spot rate for the year ended
31-Dec-25 31-Dec-24
US Dollars 47.63 50.79
Euros 55.98 52.68
GBP 64.13 63.78
JOD 67.05 71.51
SAR 12.70 13.52
SDG 0.08 0.03
NGN 0.03 0.03
At 31 December 2025, if the Egyptian Pound had weakened/strengthened by 10%
against the US Dollar with all other variables held constant, total equity for
the year would have increased/decreased by EGP (18.9m) (2024: EGP (17.7m),
mainly as a result of foreign exchange gains/losses and translation reserve on
the translation of US dollar-denominated financial assets and liabilities as
at the financial position of 31 December 2025.
At 31 December 2025, if the Egyptian Pound had weakened / strengthened by 10%
against the Jordanian Dinar with all other variables held constant, total
equity for the year would have increased/decreased by EGP (57m) (2024: EGP
(51m), mainly as a result of foreign exchange gains/losses and translation
reserve on translation of JOD -denominated financial assets and liabilities as
at the financial position of 31 December 2025.
- Price risk
The Group's exposure to equity securities price risk arises from investments
held by the Group and classified in the balance sheet as at fair value through
profit or loss (FVPL) (note 15).
- Credit risk
Credit risk is the risk a financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations and it arises principally from under the Groups receivables. The
Group is exposed to credit risk from its operating activities (primarily trade
receivables) and financial assets at amortised cost, such as term deposits and
treasury bills.
Credit risk is managed on a group basis, except for credit risk relating to
accounts receivable balances. Each local entity is responsible for managing
and analysing the credit risk for each of their new clients before standard
payment and delivery terms and conditions are offered. Credit risk arises from
cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposures to customers,
including outstanding receivables and committed transactions.
The Group's cash balance and financial assets at amortized cost are held in
financial institutions as of 31 December 2025, with 70% rated Caa1 for credit
risk in Egypt, 8% rated at least Ba3 for credit risk in Jordan, 20% rated Aa2
for Bank Mashreq Dubai, and 2% rated at least B3 for credit risk in Nigeria.
The Group's cash balance and financial assets at amortized cost are held in
financial institutions as of 31 December 2024, with 60% rated Caa1 for credit
risk in Egypt, 10% rated at least Ba3 for credit risk in Jordan, 26% rated A3
for Bank Mashreq Dubai, and 4% rated at least Caa1 for credit risk in Nigeria.
Trade receivables
The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the
default risk associated with the industry and country or region in which
customers operate. Details of concentration of revenue are included in the
operating segment note (see Note 7).
The risk management committee has established a credit policy under which each
new customer is analysed individually for creditworthiness before the Group's
standard payment and delivery terms and conditions are offered and credit
limit is set for each customer. The Group's review includes external ratings,
if available, financial statements, industry information and in some cases
bank references. Receivable limits are established for each customer and
reviewed quarterly. Any receivable balance exceeding the set limit requires
approval from the risk management committee. Outstanding customer receivables
are regularly monitored and the average general credit terms given to contract
customers are 45 - 60 days.
An impairment analysis is performed at each reporting date on an individual
basis for major clients. In addition, a large number of minor receivables are
grouped into homogenous groups and assessed for impairment collectively. The
calculation is based on actual incurred historical data and expected future
credit losses. The Group does not hold collateral as security. That maximum
exposure to credit risk is disclosed in note 17.
Cash and cash equivalents
Credit risk from balances with banks and financial institutions is managed by
the Group's treasury department in accordance with the Group's policy.
Investments of surplus funds are made only with approved counterparties and
within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Group's Board of Directors on an annual basis and may be
updated throughout the year subject to approval of the Group's management. The
limits are set to minimise the concentration of risks and therefore mitigate
financial loss through a counterparty's potential failure to make payments.
The maximum exposure to credit risk at the reporting date is the carrying
value of cash and cash equivalents disclosed in Note 18.
- Liquidity risk
The Group's objective is to maintain a balance between continuity of funding
and flexibility through the use of finance leases and loans.
The table below summarises the maturity profile of the Group's financial
liabilities based on contractual undiscounted cashflows:
31 December 2025 1 year or less 1 to 5 years more than 5 years Total
Financial obligations 405,831 1,096,393 334,449 1,836,673
Put option liabilities 628,645 - - 628,645
Borrowings 248,480 326,478 - 574,958
Trade and other payables 950,326 - - 950,326
2,233,282 1,422,871 334,449 3,990,602
31 December 2024 1 year or less 1 to 5 years more than 5 years Total
Financial obligations 372,329 1,104,329 230,185 1,706,843
Put option liabilities 532,499 - - 532,499
Borrowings 248,197 47,484 - 295,681
Trade and other payables 705,304 - - 705,304
1,858,329 1,151,813 230,185 3,240,327
Cash flow forecasting is performed in the operating entities of the Group and
aggregated by group finance. The Group finance monitors rolling forecasts of
the Group's liquidity requirements to ensure it has sufficient cash to meet
operational needs. Such forecasting takes into consideration the Group's
compliance with internal financial position ratio targets and, if applicable
external regulatory or legal requirements - for example, currency
restrictions.
The Group's management retain cash balances in order to allow repayment of
obligations in due dates, without taking into account any unusual effects
which it cannot be predicted such as natural disasters. All suppliers and
creditors will be repaid over a period not less 30 days from the date of the
invoice or the date of the commitment.
7. Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker who is responsible for allocating resources and assessing
performance of the operating segments has been identified as the steering
committee that makes strategic decisions.
The preparation of the Group's consolidated financial statements in conformity
with adopted IFRSs requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities.
The Group has five operating segments based on geographical location, with the
Group's Chief Operating Decision Maker (CODM) reviewing the internal
management reports and KPIs of each geography. The CODM does not separately
review assets and liabilities of the Group by reportable segment.
The Group operates in five geographic areas, Egypt, Sudan, Jordan, Nigeria and
Saudi Arabia. As a provider of medical diagnostic services, IDH's operations
in Sudan are not subject to sanctions. The revenue split, adjusted EBITDA
split (being the key profit measure reviewed by CODM), impairment loss on
trade receivables and net profit and loss between the five regions is set out
below.
Revenue split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-25 6,642,253 2,280 1,025,527 120,748 64,599 7,855,407
31-Dec-24 4,718,163 2,624 898,515 82,073 18,367 5,719,742
Adjusted EBITDA split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-25 2,454,202 (935) 284,724 6,322 (45,994) 2,698,319
31-Dec-24 1,617,263 (10) 252,636 (26,410) (112,591) 1,730,888
Impairment loss on trade receivables split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-25 41,663 - 2,445 1,000 - 45,108
31-Dec-24 44,504 - 2,829 979 - 48,312
Net profit / (loss) split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-25 1,283,188 9,271 102,679 509 (93,983) 1,301,664
31-Dec-24 1,117,360 (422) 66,878 (29,377) (146,065) 1,008,374
The operating segment profit measure reported to the CODM is adjusted EBITDA,
as follows:
2025 2024
EGP'000 EGP'000
Profit from operations 2,173,314 1,214,348
Property, plant and equipment and right of use depreciation 540,600 473,704
Amortization of Intangible assets 24,525 9,094
EBITDA 2,738,439 1,697,146
Nonrecurring items* (40,120) 33,742
Adjusted EBITDA 2,698,319 1,730,888
* Nonrecurring items: on 19 June 2025 the company acquired Radiotherapy branch
through its subsidiary Al Borg Laboratory Company with total consideration of
EGP 400 million which is treated under IFRS 3 as a business combination with
total fair value resulted from Purchase price allocation study performed on
the acquisition date with EGP 440 million. Difference between the acquisition
cost and the fair value identified recorded as a bargain gain from the
acquisition with EGP 40,120 thousand. In 2024 the Company also incurred
expenses related to delisted from the Egyptian stock exchange amounting to EGP
33,742 thousand.
IDH recorded one-off items during the year, namely:
2025 2024
EGP'000 EGP'000
Delisting fees - 33,742
Bargain gain from branch acquisition (40,120) -
(40,120) 33,742
The non-current assets reported to CODM is in accordance with IFRS are as
follows:
Non-current assets by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-25 3,757,154 - 784,762 28,217 73,239 4,643,372
31-Dec-24 3,037,039 2,374 883,309 35,808 90,482 4,049,012
8. Capital management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue in order to provide returns for shareholders and benefits
for other stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the
amount of dividends paid to shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt.
The repatriation of a declared dividend from Egyptian group entities are
subject to regulation by Egyptian authorities. The outcome of an Ordinary
General Meeting of Shareholders declaring a dividend is first certified by the
General Authority for Investment and Free Zones (GAFI).
Approval is subsequently transmitted to Misr for Central Clearing, Depository
and Registry (MCDR) to distribute dividends to all shareholders, regardless of
their domicile, following notification of shareholders via publication in one
national newspaper.
The Group monitors capital on the basis of the net debt to equity ratio. This
ratio is calculated as net debt divided by total equity. Net debt is
calculated as (short-term and long-term financial obligation plus short-term
and long term borrowings) less cash and cash equivalents and financial assets
at amortised cost.
2025 2024
EGP'000 EGP'000
Financial obligations (note 26) 1,185,894 1,207,087
Borrowings and accrued interest (note 28) 431,586 282,566
Less: Financial assets at amortised cost (note 19) (419,002) (527,832)
Less: Cash and cash equivalents (Note 18) (1,670,799) (1,188,082)
Net funds (472,321) (226,261)
Total Equity 4,130,376 3,499,499
Net funds as % of equity (11.4) % (6.5) %
No changes were made in the objectives, policies, or processes for managing
capital during the years ended 31 December 2025 and 31 December 2024.
9. Expense
Included in consolidated income statement are the following:
9.1 Cost of sales
2025 2024
EGP'000 EGP'000
Raw material 1,434,499 1,204,351
Cost of specialized analysis at other laboratories 81,327 52,527
Wages and salaries 1,444,574 1,062,684
Property, plant and equipment, right of use depreciation and Amortisation 523,066 441,541
Other expenses 1,018,757 777,086
Total 4,502,223 3,538,189
9.2 Marketing and advertising expenses
2025 2024
EGP'000 EGP'000
Advertisement expenses 210,080 150,764
Wages and salaries 125,368 81,435
Property, plant and equipment depreciation 1,541 723
Other expenses 95,704 58,176
Total 432,693 291,098
9.3 Administrative expenses
2025 2024
EGP'000 EGP'000
Wages and salaries 421,081 307,875
Property, plant and equipment and right of use depreciation 40,518 40,534
Share based payment* 5,355 -
Other expenses 327,055 324,057
Total 794,009 672,466
* During the period the company charged expenses with EGP 5.4 M due to
contract signed with Dr. Amid Abdelnour is hereby allocated shadow shares
from Medical health development company (KSA) shares equivalent to 4% of the
shares of the issued and paid-up share capital of the company, from time to
time, in two equal rounds: 2% on 31 December 2024 (First Round Shadow Shares)
2% on 31 December 2025 (Second Round Shadow Shares), the value of the
calculations based on company valuation.
9.4 Net other income
2025 2024
Other expenses EGP'000 EGP'000
ECL in Cash (561) (1,260)
Provision for end of service (1,373) (2,206)
Provision for legal claims (4,878) (5,667)
Provision for Egyptian Government Training Fund for employees - (995)
Total (6,812) (10,128)
2025 2024
EGP'000 EGP'000
Bargain gain from branch acquisition 40,120 -
Other income 58,632 54,799
Total 98,752 54,799
Other income/(expenses) 91,940 44,671
9.5 Expenses by nature
2025 2024
EGP'000 EGP'000
Raw material 1,434,499 1,204,351
Wages and Salaries 1,991,023 1,451,994
Property, plant and equipment, right of use depreciation and amortisation 565,125 482,798
Advertisement expenses 210,080 150,764
Cost of specialized analysis at other laboratories 81,327 52,527
Transportation and shipping 174,023 130,613
Cleaning expenses 115,239 93,487
Call Center 40,370 29,511
Hospital Contracts 184,591 111,172
Consulting Fees 260,318 230,084
Utilities 77,215 68,326
License Expenses 128,640 106,176
Other expenses 466,475 389,950
Total 5,728,925 4,501,753
9.6 Auditors' remuneration
The Group paid or accrued the following amounts to its auditors for the
financial year ended 31 December 2025 and 2024 and its associates in respect
of the audit of the financial statements and for other services provided to
the Group.
2025 2024
EGP'000 EGP'000
Fees payable to the Company's auditors for the audit of the Group's annual 39,878 34,875
financial statements
The audit of the Company's subsidiaries pursuant to legislation 40,579 37,233
80,457 72,108
9.7 Net finance (costs)/income
2025 2024
EGP'000 EGP'000
Interest expense (208,501) (170,574)
Bank Charges (27,272) (26,324)
Foreign Exchange loss (36,957) -
Total finance costs (272,730) (196,898)
Interest income 222,909 144,675
Foreign Exchange gain - 303,466
Total finance income 222,909 448,141
Net finance (costs)/income (49,821) 251,243
9.8 Employee numbers and costs
The average number of persons employed by the Group (including directors)
during the year and the aggregate payroll costs of these persons, analysed by
category, were as follows:
2025 2024
Medical Administration and market Total Medical Administration and market Total
Number of employees 6,146 991 7,137 5,354 955 6,309
2025 2024
EGP'000
EGP'000
Medical Administration and market Total Medical Administration and market Total
Wages and salaries 1,321,536 502,040 1,823,576 965,757 360,160 1,325,917
Social security costs 101,665 35,629 137,294 79,760 22,877 102,637
Contributions to defined contribution plan 21,373 8,780 30,153 17,167 6,273 23,440
Total 1,444,574 546,449 1,991,023 1,062,684 389,310 1,451,994
Details of key management remuneration are provided in note 27 and details of
amounts paid to directors are included in the Remuneration Committee Report on
page 124 of the Group's Annual Report for 2025.
9.9 Net fair value losses on financial assets at fair value through profit
or loss
During 2025, Integrated Diagnostics Holdings Limited company invested in
Global Depositary Receipt (GDR) tradable in stock exchanges, where the
companies purchased 2.740 million shares, EGP 55 million from the Egyptian
Stock Exchange and sold them during the same period on the London Stock
exchange at USD 1.03 million excluding the transaction cost.
During 2024, Integrated Diagnostics Limited company invested in Global
Depositary Receipts (GDR) tradable in stock exchanges, where the companies
purchased 4 million shares, EGP 309 million from the Egyptian Stock Exchange
and sold them during the same period on the London Stock Exchange at USD 5.9
million excluding the transaction cost.
2025 2024 2025 2024
Number of shares'000
EGP'000 EGP'000
listed equity securities Shares bought 2,740 3,975 (55,047) (308,606)
Shares sale 2,740 3,975 50,107 282,610
(4,940) (25,996)
10. Income tax
a) Amounts recognised in profit or loss.
2025 2024
EGP'000 EGP'000
Current year tax (620,551) (376,356)
DT on undistributed reserves (163,862) (48,667)
DT on reversal of temporary differences (32,476) (6,198)
Total Deferred tax (196,338) (54,865)
Tax expense recognized in profit or loss (816,889) (431,221)
b) Reconciliation of effective tax rate
The company is a UK tax resident, and subject to UK taxation. Dividend income
into the company is exempt from taxation when received from a wholly
controlled subsidiary, and costs incurred by the company are considered
unlikely to be recoverable against future UK taxable profits and therefore
form part of our unrecognised deferred tax assets. Our judgement on tax
residency has been made based on where we hold board meetings, our listing on
the London Stock Exchange and interactions with investors, and where our
company secretarial function is physically based. Our external company
secretarial function manages a number of activities of our parent and its
board. Board meetings are chaired in London and are now largely taking place
physically in London with the expectation of one physical board meeting a year
in Cairo.
2025 2024
EGP'000 EGP'000
Profit before tax 2,118,553 1,439,595
Profit before tax multiplied by rate of corporation tax in Egypt of 22.5% 476,674 323,909
(2024: 22.5%)
Effect of overseas tax rates 22,684 (69,685)
Tax effect of:
Deferred tax not recognised 52,870 59,306
Deferred tax arising on undistributed dividend 163,862 48,667
Non-deductible expenses for tax purposes - employee profit share 46,938 26,781
Non-deductible expenses for tax purposes - other 53,861 42,243
Tax expense recognised in profit or loss 816,889 431,221
Deferred tax
Deferred tax relates to the following:
2025 2024
Assets Liabilities Assets Liabilities
EGP'000 EGP'000 EGP'000 EGP'000
Property, plant and equipment - (70,225) - (38,224)
Intangible assets - (117,919) - (120,077)
Undistributed reserves from group subsidiaries - (370,571) - (275,542)
Tax Losses 61 - 2,488 -
Total deferred tax assets/(liability) 61 (558,715) 2,488 (433,843)
- (558,654) - (431,355)
All deferred tax amounts are expected to be recovered or settled more than
twelve months after the reporting period.
The difference between net deferred tax balances recorded on the income
statement is as follows:
2025 Net Balance 1 January Deferred tax recognized in profit or loss Effect of translation to presentation currency WHT tax Net Balance 31 December
paid
Property, plant and equipment (38,224) (32,207) 206 - (70,225)
Intangible assets (120,077) 2,158 - - (117,919)
Undistributed dividend from group subsidiaries (275,542) (163,862) - 68,833 (370,571)
Tax losses 2,488 (2,427) - - 61
(431,355) (196,338) 206 68,833 (558,654)
2024 Net balance at 1 January Deferred tax recognised in profit or loss Effect of translation to presentation currency WHT tax paid Net balance 31 December
Property, plant and equipment (39,552) 3,089 (1,761) - (38,224)
Intangible assets (111,033) (9,044) - - (120,077)
Undistributed dividend from group subsidiaries (226,875) (48,667) - - (275,542)
Tax losses 2,731 (243) - - 2,488
(374,729) (54,865) (1,761) - (431,355)
All movements in the deferred tax asset/liability in the year have been
recognised in the profit or loss account.
Deferred tax liabilities and assets have been calculated based on the enacted
tax rate at 31 December 2025 for the country the liabilities and assets has
arisen. The enacted tax rate in Egypt is 22.5% (2024: 22.5%), Jordan 21%
(2024: 21%), Sudan 30% (2024: 30%) and Nigeria 30% (2024: 30%).
* Undistributed reserves from group subsidiaries
The Group's dividend policy is to distribute any excess cash after taking into
consideration all business cash requirements and potential acquisition
considerations. The expectation is to distribute profits held within
subsidiaries of the Group in the near foreseeable future. During 2015 the
Egyptian Government imposed a tax on dividends at a rate of 5% of dividends
distributed from Egyptian entities. On September 30, 2020, the Egyptian
government issued a law to increase the tax rate to 10%. As a result, a
deferred tax liability has been recorded for the future tax expected to be
incurred from undistributed reserves held within the Group which will be taxed
under the new legislation imposed and were as follows:
2025 2024
EGP'000 EGP'000
Al Mokhtabar Company for Medical Labs 151,583 100,361
Alborg Laboratory Company 92,800 69,979
Integrated Medical Analysis Company 93,540 65,983
Al Makhbariyoun Al Arab Company 32,648 39,218
370,571 275,541
Unrecognized deferred tax assets
The following items make up unrecognised deferred tax assets. The local tax
law does not permit deductions for provisions against income tax until the
provision becomes realised. No deferred tax asset has been recognised on tax
losses for both Echo-Scan Nigeria and Wayak Egypt due to the uncertainty of
the available future taxable profit, which the Group can use the benefits
therefrom.
2025 2025 2024 2024
Gross Amount Tax Effect Gross Amount Tax Effect
EGP'000 EGP'000 EGP'000 EGP'000
Impairment of trade receivables (Note 17) 241,426 54,321 197,914 44,531
Impairment of other receivables (Note 17) 10,559 2,376 10,559 2,376
Provision for legal claims (Note 22) 10,459 2,353 9,759 2,196
Tax losses* 1,970,077 491,313 1,419,590 358,081
2,232,521 550,363 1,637,822 407,184
Unrecognized deferred tax asset 550,363 407,184
There is no expiry date for the Unrecognized deferred tax assets.
* The company has carried forward tax losses on which no deferred tax asset is
recognised as follows:
2025 2025 2024 2024
Gross Amount Tax Effect Gross Amount Tax Effect
Company Country EGP'000 EGP'000 EGP'000 EGP'000
Integrated Diagnostics Holdings plc Jersey 1,096,118 274,029 942,357 235,590
Dynasty Group Holdings Limited England and Wales 322,222 80,556 10,425 2,606
WAYAK Pharma Egypt 9,369 2,108 19,908 4,479
Medical Genetic Center Egypt 17,350 3,904 17,325 3,898
Golden Care for Medical Services Egypt 8,610 1,937 8,254 1,857
Medical health care Saudi Arabia 261,435 52,287 167,451 33,490
Echo-Scan Nigeria 254,973 76,492 253,870 76,161
1,970,077 491,313 1,419,590 358,081
11. Earnings per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to
ordinary equity holders of the parent by the weighted average number of
ordinary shares outstanding during the year. There are no dilutive effects
from ordinary share and no adjustment required to weighted-average numbers of
ordinary shares.
The following table reflects the income and share data used in the basic and
diluted EPS computation:
2025 2024
Profit attributable to ordinary equity holders of the parent for basic 1,262,207 1,077,434
earnings EGP'000
Weighted average number of ordinary shares for basic and dilutive EPS'000 581,326 593,622
Basic and diluted earnings per share EGP 2.17 1.82
Earnings per diluted share are calculated by adjusting the weighted average
number of shares by the effects resulting from all the ordinary potential
shares that causes this dilution.
The Company has no potentially dilutive shares as of the 31 December 2025 and
31 December 2024, therefore; the earnings per diluted share are equivalent to
basic earnings per share.
12. Property, plant and equipment
Land & Buildings Medical, & electric equipment Leasehold improvements Fixtures, fittings & vehicles Building & Leasehold improvements in construction Payment on account Total
EGP'000 EGP'000 EGP'000 EGP'000 EGP'000 EGP'000 EGP'000
Cost
At 1 January 2024 460,869 1,254,894 644,956 155,168 38,227 10,882 2,564,996
Additions 3,284 125,227 57,012 14,684 9,007 - 209,214
Disposals - (10,365) (3,063) (2,468) - (3,747) (19,643)
Exchange differences 28,784 144,968 129,583 47,852 5,371 - 356,558
Transfers - - 30,972 - (30,972) - -
At 31 December 2024 492,937 1,514,724 859,460 215,236 21,633 7,135 3,111,125
Additions 15,764 298,037 71,592 9,821 40,686 254 436,154
Additions resulted from acquisition* 243,404 186,516 - 10,200 - - 440,120
Disposals - (13,437) (394) (3,354) - - (17,185)
Exchange differences (4,579) (35,868) (21,803) (7,831) 89 - (69,992)
Transfers - - 13,302 - (13,302) - -
At 31 December 2025 747,526 1,949,972 922,157 224,072 49,106 7,389 3,900,222
Accumulated Depreciation and impairment
At 1 January 2024 69,311 655,649 353,808 71,503 - - 1,150,271
Depreciation charge for the year 8,561 161,722 108,912 20,854 - - 300,049
Disposals - (6,030) (544) (1,257) - - (7,831)
Exchange differences 2,999 88,985 60,291 26,714 - - 178,989
At 31 December 2024 80,871 900,326 522,467 117,814 - - 1,621,478
Depreciation charge for the year 11,263 188,834 120,596 21,994 - - 342,687
Disposals - (7,742) (353) (2,787) - - (10,882)
Exchange differences (605) (28,149) (12,127) (5,152) - - (46,033)
At 31 December 2025 91,529 1,053,269 630,583 131,869 - - 1,907,250
Net book value
At 31-12-2025 655,997 896,703 291,574 92,203 49,106 7,389 1,992,972
At 31-12-2024 412,066 614,398 336,993 97,422 21,633 7,135 1,489,647
*Refer to Note 3 (a) - Business Combinations.
13. Intangible assets and goodwill
Goodwill Brand Name Software Total
EGP'000 EGP'000 EGP'000 EGP'000
Cost
At 1 January 2024 1,304,967 403,461 99,358 1,807,786
Additions - - 15,383 15,383
Effect of movements in exchange rates 58,310 25,648 13,969 97,927
At 31 December 2024 1,363,277 429,109 128,710 1,921,096
Additions - - 84,887 84,887
Effect of movements in exchange rates (9,482) (4,100) (2,228) (15,810)
At 31 December 2025 1,353,795 425,009 211,369 1,990,173
Amortisation and impairment
At 1 January 2024 17,718 392 79,493 97,603
Amortisation - - 9,094 9,094
Effect of movements in exchange rates (476) (25) 8,833 8,332
At 31 December 2024 17,242 367 97,420 115,029
Amortisation - - 24,525 24,525
Effect of movements in exchange rates (149) (24) (1,729) (1,902)
At 31 December 2025 17,093 343 120,216 137,652
Net book value
At 31 December 2025 1,336,702 424,666 91,153 1,852,521
At 31 December 2024 1,346,035 428,742 31,290 1,806,067
14. Goodwill and intangible assets with indefinite lives (note
4-h)
Goodwill acquired through business combinations and intangible assets with
indefinite lives are allocated to the Group's CGUs as follows:
2025 2024
EGP'000 EGP'000
Al Makhbariyoun Al Arab ("Biolab")
Goodwill 140,325 149,658
Brand name 61,281 65,357
201,606 215,015
Alborg Laboratory Company ("Al-Borg")
Goodwill 497,275 497,275
Brand name 142,066 142,066
639,341 639,341
Al Mokhtabar Company for Medical Labs ("Al-Mokhtabar")
Goodwill 699,102 699,102
Brand name 221,319 221,319
920,421 920,421
Balance at 31 December 1,761,368 1,774,777
Assumptions used in value in use calculations and sensitivity to changes in
assumptions.
IDH internally prepared an impairment assessment of the Group's CGUs. The
assessment was carried out based on business plans provided by IDH.
These plans have been prepared based on criteria set out below:
2025
Bio Lab Al-Mokhtabar Al-Borg
Average annual patient growth rate from 2026 -2030 8% 5% 6%
Average annual price per test growth rate from 2026 -2030 1% 9% 12%
Annual revenue growth rate from 2026 -2030 9% 15% 18%
Average gross margin from 2026 -2030 47% 47% 42%
Terminal value growth rate from 1 January 2030 3% 5% 5%
Discount rate 18% 23% 24%
2024
Bio Lab Al-Mokhtabar Al-Borg
Average annual patient growth rate from 2025 -2029 4% 5% 1%
Average annual price per test growth rate from 2025 -2029 1% 9% 8%
Annual revenue growth rate from 2025 -2029 5% 12% 10%
Average gross margin from 2025 -2029 39% 42% 35%
Terminal value growth rate from 1 January 2029 3% 5% 5%
Discount rate 14% 24% 24%
The above assumptions are based on historical performance, macroeconomic
conditions and forecasted performance for each CGU.
Management have compared the recoverable amount of CGUs to the carrying value
of CGUs. The recoverable amount is the higher of value in use and fair value
less costs of disposal. In the exercise performed and the assumptions noted
above the value in use was noted to be higher than the fair value less costs
of disposal.
During 2025, management has conducted a business plan projection with the
assumptions above used to calculate the net present value of future cashflows
to determine recoverable amount. The projected cash flows from 2026- 2030 have
been based on detailed forecasts prepared by management for each CGU and a
terminal value thereafter. Management have used experience and historical
trends achieved to determine the key growth rate and margin assumptions set
out above. The terminal value growth rate applied is not considered to exceed
the average growth rate for the industry and geographic locations of the CGUs.
This recoverable amount is then compared to the carrying value of the asset as
recorded in the books and records of IDH plc. The WACC has been used
considering the risks of each CGU. These risks include country risk, currency
risk as well as the beta factor relating to the CGU and how it performs
relative to the market.
The headroom between carrying value and recoverable amount is as follows:
Company Recoverable amount CGU carrying value Headroom
EGP'000
EGP'000
EGP'000
Almokhtabar 7,825,136 2,040,952 5,784,184
Alborg 4,407,098 2,100,623 2,306,475
Al Makhbariyoun Al Arab 1,921,336 893,683 1,027,653
Echo-Scan, and our other businesses are loss making but carry no goodwill or
intangible assets, and thus where there are indicators of impairment risk this
would relate to the specific recoverability of their net assets, which is
largely Property Plant and Equipment in nature. Management have assessed these
and consider either the values in question to not be significant, or that the
carrying values are supported based on realisable value or forecast future
profits and cashflow.
As a sensitivity analysis, management has also considered multiple Scenario to
reflect additional risk. This did not result in an impairment under any of the
CGUs that had a recoverable amount based on value in use as the following:
Scenario Recoverable amount CGU carrying value Headroom
EGP'000
EGP'000
EGP'000
Almokhtabar - impact of increasing the discount rate by 5% 6,087,893 2,040,952 4,046,941
Almokhtabar - impact of reducing the cash flow by reducing both the prices 7,090,524 2,040,952 5,049,572
and the volume by 2%
Almokhtabar - impact of reducing the cash flow by reducing both the prices 5,420,855 2,040,952 3,379,903
and the volume by 2%, increasing the discount rate by 5% and decreasing the
terminal value growth by 1%
Alborg - impact of increasing the discount rate by 5% 3,470,587 2,100,623 1,369,964
Alborg - impact of reducing the cash flow by reducing both the prices 3,748,382 2,100,623 1,647,759
and the volume by 2%
Alborg - impact of reducing the cash flow by reducing both the prices 2,922,094 2,100,623 821,471
and the volume by 2%, increasing the discount rate by 5% and decreasing the
terminal value growth by 1%
Al Makhbariyoun Al Arab - impact of increasing the discount rate by 5% 1,400,742 893,683 507,059
Al Makhbariyoun Al Arab - impact of reducing the cash flow by stabilizing the 1,420,366 893,683 526,683
prices and
Reducing the volume by 2%
Al Makhbariyoun Al Arab - impact of reducing the cash flow by stabilizing the 1,018,738 893,683 125,055
prices,
Reducing the volume by 2%, increasing the discount rate by 5% and decreasing
the
terminal value growth by 1%
15. Financial asset at fair value through profit and loss
2025 2024
EGP'000 EGP'000
Current equity investments 35,285 36,158
Balance at 31 December 35,285 36,158
* On August 17, 2017, Al Makhbariyoun Al Arab (seller) has signed IT
purchase Agreement with JSC Mega Lab (Buyer) to transfer and install the
Laboratory Information Management System (LIMS) for a purchase price amounted
to USD 400,000, which will be in the form of 10% equity stake in JSC Mega Lab.
In case the valuation of the project is less or more than USD 4,000,000, the
seller stake will be adjusted accordingly, in a way that the seller equity
stake shall not fall below 5% of JSC Mega Lab.
- Ownership percentage in JSC Mega Lab at the transaction date on
April 8, 2019, and as of December 31, 2025, was 8.25%.
- On April 8, 2019, Al Mokhabariyoun Al Arab (Biolab) signed a
Shareholder Agreement with JSC Mega Lab and JSC Georgia Healthcare Group
(CHG), which meant that BioLab had a put option, exercisable within 12 months
immediately after the expiration of five (5) year period from the signing
date. This put option allowed BioLab's stake to be bought out by CHG at a
price of the equity value of BioLab Shares/total stake (being USD 400,000)
plus 15% annual IRR (including preceding 5 Financial years). This option was
not subsequently exercised, and therefore lapsed on April 8 2025. From this
date, the agreement stated that CHG have a call option to purchase Biolab's
shares at a price equivalent to the equity value of Biolab's stake (being USD
400,000) plus the higher of 20% annual IRR or 6X EV/EBITDA (of the financial
year immediately preceding the call option exercise date).
16. Inventories
2025 2024
EGP'000 EGP'000
Chemicals and operating supplies 424,428 317,562
424,428 317,562
During 2025, EGP 1,434,499k (2024: EGP 1,204,351k) was recognised as an
expense for inventories, this was recognised in cost of sales. The major
balance of the raw material is represented in the Kits, slow-moving items of
those Kits are immaterial. It is noted that days inventory outstanding (based
on the average of opening and closing inventory) stands as 94 days at 31 Dec
2025(2024: 105 days).
17. Trade and other receivables
2025 2024
EGP'000 EGP'000
Trade receivables - net 996,485 804,081
Prepayments 121,558 80,297
Due from related parties note (27) 5,968 5,543
Other receivables 258,697 108,652
Accrued revenue 19,593 12,032
1,402,301 1,010,605
As at 31 December 2025, the expected credit loss related to trade and other
receivables was EGP 251,988k (2024: EGP 208,476k). Below show the movements in
the provision for impairment of trade and other receivables:
2025 2024
EGP'000 EGP'000
At 1 January 208,476 191,580
Charge for the year 45,108 48,312
Utilised - (41,567)
Exchange differences (1,596) 10,151
At 31 December 251,988 208,476
The Group allocates each exposure to a credit risk grade based on data that is
determined to be predictive of the risk of loss (historical customer's
collection, Customers' contracts conditions) and applying experienced credit
judgement. Credit risk grades are defined using qualitative and quantitative
factors that are indicative of the risk of default.
Expected credit loss assessment is based on the following:
1. The customer list was divided into 9 sectors,
2. Each sector was divided according to customers aging,
3. Each sector was studied according to the historical events of each
sector. According to the study conducted, the expected default rate was
derived from each of the aforementioned period,
4. General economic conditions.
The results of the quarterly assessment will increase/decrease the percentage
allocated to each period. Balances overdue by at least one year are fully
provided for. On a quarterly basis, IDH revises its forward-looking estimates
and the general economic conditions to assess the expected credit loss.
Impairment of trade and notes receivables
The requirement for impairment of trade receivables is made through monitoring
the debts aging and reviewing customer's credit position and their ability to
make payment as they fall due. An impairment is recorded against receivables
for the irrecoverable amount estimated by management. At the year end, the
provision for impairment of trade receivables was EGP 241,426k (31 December
2024: EGP 197,913k). This is lower than the amount of EGP 251,988k (31
December 2024: EGP 208,476k) as that amount also includes provision on other
receivables.
A reasonable possible change of 100 basis points in the expected credit loss
at the reporting date would have increased (decreased) profit or loss by the
amount of EGP 12,379k. This analysis assumes that all other variables remain
constant.
The following table provides information about the exposure to expected credit
loss (ECL) for trade receivables from individual customers for the nine
segments at:
Weighted average Gross carrying Loss
loss rate
amount
allowance
31-Dec-25 EGP'000 EGP'000 EGP'000
Current (not past due) 3.00% 478,953 (14,370)
1-30 days past due 9.00% 193,642 (17,420)
31-60 days past due 5.38% 133,930 (7,206)
61-90 days past due 8.54% 69,381 (5,924)
91-120 days past due 12.99% 49,407 (6,417)
121-150 days past due 11.90% 32,420 (3,858)
More than 150 days past due 66.47% 280,178 (186,231)
Gross carrying Loss
amount
allowance
Weighted average
loss rate
31-Dec-24 EGP'000 EGP'000 EGP'000
Current (not past due) 3.70% 326,272 (12,079)
1-30 days past due 4.59% 148,696 (6,822)
31-60 days past due 5.18% 135,133 (6,999)
61-90 days past due 8.89% 88,708 (7,885)
91-120 days past due 15.84% 48,706 (7,714)
121-150 days past due 15.77% 29,520 (4,654)
More than 150 days past due 67.46% 224,959 (151,760)
As at 31 December, the ageing analysis of trade receivables is as follows:
EGP'000 EGP'000 EGP'000 EGP'000 EGP'000
Total < 30 days 30-60 days 61-90 days > 90 days
2025 996,485 640,805 126,724 63,457 165,499
2024 804,081 456,067 128,134 80,823 139,057
18. Cash and cash equivalents
2025 2024
EGP'000 EGP'000
Cash at banks and on hand 363,261 516,318
Treasury bills (less than 3 months) 39,670 14,358
Term deposits (less than 3 months) 1,267,868 657,406
1,670,799 1,188,082
Cash at banks earns interest at floating rates based on daily bank deposit
rates. Short-term deposits and treasury bills are made for varying periods of
between one day and three months, depending on the immediate cash requirements
of the Group, and earn interest at the respective weighted average rate. Of
the above Short-term deposits, EGP 1,000,000k (2024: EGP 536,850k) relates
to amounts held in Egypt with a weighted average rate of 16.94% (2024:
22.65%), EGP 67,048k (2024: EGP 49,984k) relates to amounts held in Jordan
with a weighted average rate of 4.65% (2024: 4.86%), EGP 24,602k (2024: EGP
70,572k) relates to amounts held in Mauritius with a weighted average rate of
4.07% (2024: 4.80%) and EGP 176,218k (2024: EGP Nil) relates to amounts held
in Dubai with a weighted average rate of 3.61% (2024: Nil%). Treasury bills
are denominated in EGP and earn interest at a weighted average rate of 26.68%
(2024: 30.52%) per annum.
19. Financial assets at amortised cost
2025 2024
EGP'000 EGP'000
Term deposits (more than 3 months) 335,754 468,142
Treasury bills (more than 3 months) 83,248 59,690
419,002 527,832
The maturity date of the fixed term deposit and treasury bills is between 3-12
months. Treasury bills are denominated in EGP and earn interest at an
effective rate of 26.42% (2024: 29.96%) per annum. Of the above Term
deposits, EGP 29,936k (2024: EGP 42,736k) relates to amounts held in Egypt
with a weighted average rate of 5.58% (2024: 15.97%), EGP 67,685k (2024: EGP
69,900k) relates to amounts held in Jordan with a weighted average rate of
4.25% (2024: 5.09%) and EGP 238,133k (2024: EGP 355,506k ) relates
to amounts held in Dubai with a weighted average rate of 3.75% (2024: 4.33%).
20. Share capital and reserves
The Company's ordinary share capital is $145,331,568 equivalent to EGP
1,039,120,711.
All shares are authorised and fully paid and have a par value $0.25.
2025 2024
In issue at beginning of the year 581,326,272 600,000,000
Buyback of shares - (18,673,728)
In issue at the end of the year 581,326,272 581,326,272
On 18 September 2024, Integrated Diagnostics Holding PLC Company "IDH"
Purchased a total of 18,673,728 treasury shares at a total amount of EGP 374.4
million, all of these treasury shares were cancelled on 8 October 2024.
The table below shows the number of shares held by Hena Holdings Limited and
Actis IDH BV as well as how many shares are then held which are floating and
not held by companies that do not have individuals on the board of the Group
as of December 31, 2025, and December 31, 2024.
Ordinary shares Ordinary shares
Ordinary share capital Name Number of shares % of contribution Par value
USD
Hena Holdings Limited 162,445,383 27.94% 40,611,346
Actis IDH B V 126,000,000 21.67% 31,500,000
Free floating 292,880,889 50.39% 73,220,222
581,326,272 100% 145,331,568
Ordinary share capital Name
Number of shares
% of contribution
Par value
USD
Hena Holdings Limited
162,445,383
27.94%
40,611,346
Actis IDH B V
126,000,000
21.67%
31,500,000
Free floating
292,880,889
50.39%
73,220,222
581,326,272
100%
145,331,568
Other Reserves
The capital reserve was created when the Group's previous parent company,
Integrated Diagnostics Holdings LLC - IDH (Caymans) arranged its acquisition
by Integrated Diagnostics Holdings PLC, a new legal parent. The balances
arising represent the difference between the value of the equity structure of
the previous and new parent companies.
During 2024, The capital reserve was impacted by the reduction of put option
in Medical Health Development Company ("MHD") after acquiring the stake
previously held by Izhoor Holding Medical Company LLC ("Izhoor"), therefore
the put option is no longer needed.
During 2024, The capital redemption reserve was impacted by the purchasing and
cancelling of treasury stocks based on approval by shareholders through an
Extraordinary general meeting, The shares were purchased at an average price
of EGP 20.05 per share for 18,673,728 shares.
Legal reserves
Legal reserve was formed based on the legal requirements of the Egyptian law
governing the Egyptian subsidiaries. According to the Egyptian subsidiaries'
article of association 5% (at least) of the annual net profit is set aside to
from a legal reserve. The transfer to legal reserve ceases once this reserve
reaches 50% of the entity's issued capital. If the reserve falls below the
defined level, then the entity is required to resume forming it by setting
aside 5% of the annual net profits until it reaches 50% of the issued share
capital.
Put option reserve
Through acquisitions made within the Group, put option arrangements have been
entered into to purchase the remaining equity interests in subsidiaries from
the vendors at a subsequent date. At acquisition date an initial put option
liability is recognised and a corresponding entry recognised within the put
option reserve. After initial recognition the accounting policy for put
options is to recognise all changes in the carrying value of the liability
within put option reserve. When the put option is exercised by the vendors the
amount recognised within the reserve will be reversed.
Translation reserve
The foreign currency translation reserve is used to record exchange
differences arising from the translation of the financial statements of
foreign subsidiaries.
21. Distributions made and proposed
2025 2024
EGP'000 EGP'000
Cash dividends on ordinary shares declared and paid:
US$ 0.017 per qualifying ordinary share (2024: Nil) 478,306 -
478,306 -
After the balance sheet date, the following dividends were proposed by the 235,336 -
directors (the dividends have not been provided for):
US$ 0.0085 per qualifying ordinary share (2024: Nil) 235,336 -
22. Provisions
Provision for end Of Service Provision for Egyptian Government Training Fund for employees Provision for legal claims Total
EGP'000 EGP'000 EGP'000 EGP'000
At 1 January 2025 2,742 10,787 9,759 23,288
Provision made during the year 1,373 - 4,878 6,251
Provision used during the year (299) - (2,838) (3,137)
Provision reversed during the year - (10,787) (1,340) (12,127)
Effect of translation currency (224) - - (224)
At 31 December 2025 3,592 - 10,459 14,051
Current - - - -
Non- Current 3,592 - 10,459 14,051
Provision for end Of Service Provision for Egyptian Government Training Fund for employees Provision for legal claims Total
EGP'000 EGP'000 EGP'000 EGP'000
At 1 January 2024 332 11,865 5,561 17,758
Provision made during the year 2,206 995 5,667 8,868
Provision used during the year (96) - (871) (967)
Provision reversed during the year - (2,073) (598) (2,671)
Effect of translation currency 300 - - 300
At 31 December 2024 2,742 10,787 9,759 23,288
Current - - - -
Non- Current 2,742 10,787 9,759 23,288
Egyptian Government Training Fund for employees
According to Article 134 of the Labor Law for Vocational Guidance and Training
issued by the Egyptian government in 2003, Al-Borg, Almokhtabar and Integrated
Medical Analysis Company shall comply with the requirements stipulated in this
law to provide 1% of net profits each year in the training fund. During 2025
further legislation was published according to Article 2 which confirmed that
the company would not be obligated to any liability relating to labour law.
End Of Service
As per Article 88 of the Labor Law in Saudi Arabia, in the event of the
termination of an employee's service, the company is required to settle the
wages owed within one week. Conversely, if the employee terminates the
contract, the company is obligated to fulfil their rights within two weeks.
Legal claims provision
The amount comprises the gross provision in respect of legal claims brought
against the Group. Management's opinion, after taking appropriate legal
advice, is that the outcome of these legal claims will not give rise to any
significant loss beyond the amounts provided as at 31 December 2025.
23. Trade and other payables
2025 2024
EGP'000 EGP'000
Trade payables 563,450 320,068
Accrued expenses 269,519 246,523
Due to related parties note (27) 35,619 28,654
Other payables 104,405 125,935
Deferred revenue 144,286 96,410
Accrued finance cost 4,244 8,661
1,121,523 826,251
Deferred income relates to loyalty points accrued by customers. During the
year ended 31 December 2025, 100% (year ended 31 December 2024: 100%) of the
opening deferred income was recognised as revenue.
Management expects that 100% of the deferred income balance as at 31 December
2025 will be recognised as revenue during the next financial year.
Unearned revenue in relation to contracts in place as at 31 May 2025 which
will be earned in future periods is EGP 144 million (31 December 2024: EGP 96
million), with 100% expected to be recognised within one year (31 December
2024: 100%).
24. Put option liability
2025 2024
EGP'000 EGP'000
Current put option - Al Makhbariyoun Al Arab 578,151 512,577
Current put option - Eagle Eye Echo-Scan 50,494 19,922
628,645 532,499
Put option - Al Makhbariyoun Al Arab
The accounting policy for put options after initial recognition is to
recognise all changes in the carrying value of the put liability within
equity.
Through the historical acquisitions of Al Makhbariyoun Al Arab the entered
into separate put option arrangements to purchase the remaining equity
interests from the vendors at a subsequent date. At acquisition a put option
liability has been recognised for the net present value for the exercise price
of the option.
The options is calculated at seven times EBITDA of the last 12 months minus
Net Debt, it's exercisable in whole from the fifth anniversary of completion
of the original purchase agreement, which fell due in June 2016. The vendor
has not exercised this right at 31 December 2025. It is important to note that
the put option liability is treated as current as it could be exercised at any
time by the NCI. However, based on discussions and ongoing business
relationship, there is no expectation that this will happen in next 21 months.
The option has no expiry date.
Put option - Eagle Eye Echo-Scan
IFC has the option to put its shares according to definitive agreements signed
on 15 January 2018 between Dynasty group Holdings Limited and International
Finance Corporation (IFC) related to the Eagle Eye Echo-Scan Limited
transaction, IFC has the option to put it is shares to Dynasty group Holdings
Limited in year 2024. The put option price will be calculated on the basis of
the fair market value determined by an independent valuer.
According to the International Private Equity and Venture Capital Valuation
Guidelines, there are multiple ways to calculate the put option including
Discounted Cash Flow, Multiples, Net assets. Multiple valuation was applied
and EGP 50 million was calculated as the valuation as at 31 December 2025
(2024; EGP 20 m). In line with applicable accounting standards with IAS 32 the
entity has recognised a liability for the present value of the exercise price
of the option price.
25. Borrowings
The terms and conditions of outstanding loans are as follows:
Currency Nominal Maturity 31 Dec 25 31 Dec 24
EGP'000 EGP'000
interest rate
Kuwait Finance Bank (AUB - Previously) EGP CBE corridor rate*+1% 26 January 2027 40,479 67,465
Kuwait Finance Bank (AUB - Previously)** EGP CBE corridor rate*+0.75% 31 May 2030 340,000 -
Kuwait Finance Bank (AUB - Previously) EGP Secured 5% 3 December 2026 22,902 17,940
Mashreq bank USD Secured 5% - - 162,474
Bank Al Etihad JOD Secured 9% September 2026 23,961 17,128
427,342 265,007
Amount held as:
Current Liability 173,849 224,528
Non-current liability 253,493 40,479
427,342 265,007
*As at 31 December 2025 corridor rate is 21.00% (2024: 28.25%).
** During the period the company signed medium-term loan amounting to EGP 400
M to finance the investment cost for radiotherapy branch acquisition, as of 31
December 2025 the company had drown down EGP 340 M from the total facility
available, the loan will be fully repaid by May 2030.
A) In July 2018, AL-Borg lab, one of IDH subsidiaries, was granted a
medium term loan amounting to EGP 130.5m from Kuwait Finance Bank (AUB -
Previously) to finance the investment cost related to the expansion into the
radiology segment. As at 31 December 2025, only EGP 124.9M had been drawn down
from the total facility available with EGP 84.4M repaid, the loan will be
fully repaid by January 2027.
The loan contains the following financial covenants which if breached will
mean the loan is repayable on demand:
1. The financial leverage shall not exceed 0.7 throughout the period
of the loan
"Financial leverage": total bank debt divided by equity
2. The debt service ratios (DSR) shall not be less than 1.35 starting
2020
"Debt service ratio": cash operating profit after tax plus depreciation for
the financial year less annual maintenance on machinery and equipment adding
cash balance (cash and cash equivalents) divided by total financial payments.
"Cash operating profit": Operating profit after tax, interest expense,
depreciation and amortization, is calculated as follows: Net income after tax
and unusual items adding Interest expense, Depreciation, Amortisation and
provisions excluding tax related provisions less interest income and
Investment income and gains from non-recurring items.
"Financial payments": current portion of long-term debt including interest
expense and fees and dividends distributions.
3. The current ratios shall not be less than 1.
"Current ratios": Current assets divided current liabilities.
AL- Borg company didn't breach any covenants for MTL agreements.
On June 2025 the company signed medium-term loan with Kuwait Finance Bank
amounting to EGP 400 M for the acquisition of Radiotherapy branch which will
be repaid on 31 May 2030 The loan contains the following financial covenants
which if breached will mean the loan is repayable on demand:
1- The financial leverage shall not exceed 1 throughout the period of
the loan
"Financial leverage": total bank debt divided by equity
2- The debt service ratios (DSR) shall not be less than 1.00 starting
2025
The Company has complied with all financial covenants. Non-compliance with
these covenants may result in penalties, restrictions, or other remedies as
stipulated in the agreement.
26. Financial obligations
The Group leases property and equipment. Property leases include branches,
warehouse, parking and administration buildings. The leases typically run for
average period from 5-10 years, with an option to renew the lease after that
date. Lease payments are renegotiated with renovation after the end of the
lease term to reflect market rentals. For certain leases, the Group is
restricted from entering into any sub-lease arrangements. The property leases
were entered into as combined leases of land and buildings.
If the minimum annual commitment payments are met over the agreement period
ownership of the equipment supplied will legally transfer to the IDH. The
finance asset and liability has been recognised at an amount equal to the fair
value of the underlying equipment. This is based on the current cost price of
the equipment supplied provided by the suppliers of the agreement. The
averaged implicit interest rate of finance obligation has been estimated to be
10.3%. The equipment is being depreciated based on units of production method
as this most closely reflects the consumption of the benefits from the
equipment.
Information about the agreements for which the Group is lessee is presented
below.
a) Right-of-use assets
2025 2024
EGP'000 EGP'000
Balance at 1 January 753,298 683,025
Addition for the year 274,484 109,710
Depreciation charge for the year (197,913) (173,655)
Terminated Contracts (10,164) (18,288)
Exchange differences (21,826) 152,506
Balance at 31 December 797,879 753,298
b) Other Financial obligations
Future minimum financial obligation payments under leases and sales purchase
contracts, together with the present value of the net minimum lease payments
are, as follows:
2025 2024
EGP'000 EGP'000
*Financial liability- laboratory equipment 179,840 263,892
*Lease liabilities building 1,006,054 943,195
1,185,894 1,207,087
*The financial obligation liabilities for the laboratory equipment and
building are payable as follows:
Minimum payments Interest Principal
At 31 December 2025 2025 2025 2025
EGP'000 EGP'000 EGP'000
Less than one year 405,831 160,974 244,857
Between one and five years 1,096,393 395,180 701,213
More than 5 years 334,449 94,625 239,824
1,836,673 650,779 1,185,894
Interest Principal
Minimum payments
At 31 December 2024 2024 2024 2024
EGP'000 EGP'000 EGP'000
Less than one year 372,329 136,132 236,197
Between one and five years 1,104,329 308,544 795,785
More than 5 years 230,185 55,080 175,105
1,706,843 499,756 1,207,087
c) Amounts other financial obligations recognised in consolidated
income statement
2025 2024
EGP'000 EGP'000
Interest on lease liabilities 132,892 112,544
Expenses related to short-term lease 8,586 7,981
During the year, there was a total cash outflow relating to leases of EGP
309,874 K (2024: EGP 255,903K)
27. Related party transactions disclosures
The significant transactions with related parties, their nature volumes and
balance during the period 31 December 2025 and 2024 are as follows:
2025
Related Party Nature of transaction Nature of relationship Transaction amount of the year Amount due from / (to)
EGP'000 EGP'000
ALborg Scan (S.A.E)* Expenses paid on behalf Affiliate** - -
International Fertility (IVF)** Expenses paid on behalf Affiliate*** 4 15
H.C Security Provide service Entity owned by Company's board member (17) (90)
Life Health Care Provided service Entity owned by Company's CEO 724 1,419
Dr. Amid Abd Elnour Put option liability Bio. Lab C.E.O and shareholder (65,574) (578,151)
Current account Bio. Lab C.E.O and shareholder (10,491) (30,174)
Share-based payment Bio. Lab C.E.O and shareholder (5,355) (5,355)
International Finance corporation (IFC) Put option liability Echo-Scan shareholder (30,573) (50,494)
Integrated Treatment for Kidney Diseases (S.A.E) Rental income Entity owned by Company's CEO 2,019 -
Medical Test analysis
Medical Test analysis Entity owned by Company's CEO 1,716 4,534
Hena Holdings Limited shareholders' dividends deferral agreement shareholder 4,879 -
Actis IDH Limited shareholders' dividends deferral agreement shareholder 4,019 -
(658,296)
2024
Related Party Nature of transaction Nature of relationship Transaction amount of the year Amount due from / (to)
EGP'000 EGP'000
ALborg Scan (S.A.E)* Expenses paid on behalf Affiliate** - -
International Fertility (IVF)** Expenses paid on behalf Affiliate*** 11 11
H.C Security Provide service Entity owned by Company's board member 20 (73)
Life Health Care Provided service Entity owned by Company's CEO (2,677) 695
Dr. Amid Abd Elnour Put option liability Bio. Lab C.E.O and shareholder (211,194) (512,577)
Current account Bio. Lab C.E.O and shareholder (19,217) (19,683)
International Finance corporation (IFC) Put option liability Echo-Scan shareholder (7,508) (19,921)
International Finance corporation (IFC) Current account Echo-Scan shareholder - -
Integrated Treatment for Kidney Diseases (S.A.E) Rental income Entity owned by Company's CEO (2,582) 4,837
Medical Test analysis 591
Hena Holdings Limited shareholders' dividends deferral agreement shareholder (1,916) (4,879)
Actis IDH Limited shareholders' dividends deferral agreement shareholder (1,579) (4,019)
(555,609)
* ALborg Scan is a company whose shareholders include Dr. Moamena Kamel
(founder of IDH subsidiary Al-Mokhtabar Labs).
** International Fertility (IVF) is a company whose shareholders include Dr.
Moamena Kamel (founder of IDH subsidiary Al-Mokhtabar Labs).
During the year payments relating to lease obligations of Biolab were made to
entities considered to be related parties due to the interest in them held by
Dr Amid Abd Elnour. Payments made during 2025 were JOD 278,819 (EGP
19,256,906) and during 2024 were JOD 342,718 (EGP 21,970,728).
Terms and conditions of transactions with related parties
Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash. There have been no guarantees provided or received
for any related party receivables or payables. For the year ended 31 December
2025, the Group has not recorded any impairment of receivables relating to
amounts owed by related parties (2024: nil). This assessment is undertaken
each financial year through examining the financial position of the related
party and the market in which the related party operates.
IDH opts to pay approximately 1% of the net after-tax profit of the
subsidiaries Al Borg and Al Mokhtabar to the Moamena Kamel Foundation for
Training and Skill Development. Established in 2006 by Dr. Moamena Kamel, a
Professor of Pathology at Cairo University and founder of IDH subsidiary
Al-Mokhtabar Labs and mother to the CEO Dr. Hend El Sherbini. The Foundation
allocates this sum to organisations and groups in need of assistance. The
foundation deploys an integrated program and vision for the communities it
helps that include economic, social, and healthcare development initiatives.
In 2025 EGP 9,500k (2024: EGP 6,003k) was paid to the foundation by the IDH
group in relation to profits earned for companies Al Borg and Al Mokhtabar in
the prior year.
Compensation of key management personnel of the Group
Key management people can be defined as the people who have the authority and
responsibility for planning, directing, and controlling some of the activities
of the Company, directly or indirectly.
The amounts disclosed in the table are the amounts recognised as an expense
during the reporting period related to key management personnel.
2025 2024
EGP'000 EGP'000
Short-term employee benefits 110,243 87,421
Shared based payment 5,355 -
Total compensation paid to key management personnel 115,598 87,421
28. Reconciliation of movements of liabilities to cash flows arising
from financing activities
EGP'000 Other loans Other financial
,borrowings and accrued interest
obligation
Balance at 1 January 2025 282,566 1,207,087
Proceeds from loans and borrowings 383,459 -
Repayment of borrowings (219,817) -
Payment of liabilities - (254,231)
Interest paid (65,218) (156,652)
Exchange differences (1,306) (29,886)
Total changes from financing cash flows 97,118 (440,769)
New agreements signed in the period - 274,837
Terminated contracts during the year - (11,861)
Interest expense 51,902 156,600
Total liability-related other changes 51,902 419,576
Balance at 31 December 2025 431,586 1,185,894
EGP'000 Other loans, Other financial
borrowings and accrued interest obligation
Balance at 1 January 2024 125,439 1,068,054
Proceeds from loans and borrowings 184,941 -
Repayment of borrowings (35,047) -
Payment of liabilities - (185,568)
Interest paid (24,226) (146,579)
Exchange differences 7,463 233,835
Total changes from financing cash flows 133,131 (98,312)
New agreements signed in the period - 109,710
Terminated contracts during the year - (18,943)
Interest expense 23,996 146,578
Total liability-related other changes 23,996 237,345
Balance at 31 December 2024 282,566 1,207,087
29. Current tax liabilities
2025 2024
EGP'000 EGP'000
Debit withholding Tax (Deduct by customers from sales invoices) (39,071) (29,693)
Income Tax 510,451 330,639
Credit withholding Tax (Deduct from vendors invoices) 40,018 32,265
Other 17,304 11,054
528,702 344,265
Debit withholding tax of EGP 39,071k (2024: EGP 29,693k) represent a
proportion of payments withheld by customers which are paid to the tax
authorities on behalf of the Group.
30. Post Balance Sheet Events
1. On 12 February 2026, the Monetary Policy Committee (MPC) of the
Central Bank of Egypt (CBE) announced a reduction of key policy rates by 100
basis points. Following this decision, the overnight deposit rate was reduced
to 19.0%, the overnight lending rate to 20.0%, and the main operation and
discount rates to 19.5%.
2. As announced on 13 November 2025 by the Company, Actis GP LLP and
Actis Guernsey GP Limited, each, a subsidiary of Actis LLP and which through
funds under their management control shares representing 21.67% of the Company
(the "Actis Shareholding"), have agreed to dispose, by way of an indirect
share sale of Actis IDH Limited, of the entire Actis Shareholding to a special
purpose vehicle, the majority of which is controlled by funds managed by
Elliott Investment Management L.P. (the "Transaction"), of whom the ultimate
beneficial owner is Paul Singer.
The Transaction was conditional on the receipt of regulatory clearance, which
was received on 31 March 2026, at which point the transfer became
unconditional, and was completed on Thursday 9 April 2026.
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