Richard Davis

Independent Chairman

Leading through resilience

Monash IVF Group has managed an unprecedented number of operational and financial challenges resulting from COVID-19. Agility and resilience were critical as we adapted our operating model in response to the temporary elective surgery suspension, the introduction of safety and protective measures, border restrictions and the significant changes to state based health policies across Australia and Malaysia.

During this time, the Board and management team worked closely to ensure our people, doctors and patients were at the centre of our decisions and operational changes.

Patient and community focus

As a leader in the community, we were aware that our contribution needed to extend beyond the operations of Monash IVF Group. We were considered in how we balanced the needs of our patients with the needs of the greater healthcare system in our decision making.

I am proud of the commitment of our people and the high level of care, empathy and support they provided in what was an unsettling time for patients.

As day-to-day business processes were adapted for the new normal, we also collaborated with our patients to co-design and improve the patient experience. This included addressing key pain points for our patients, digitising parts of the patient journey and improving patient communications.

Innovation despite adversity

We progressed a number of significant growth initiatives during the year. These included construction of our new flagship Sydney CBD fertility clinic which is due to open later this year, and our second international investment with the acquisition of KPJ Johor Specialist Hospital Fertility Business in Malaysia.

We demonstrated our agility and willingness to respond to new ways of working and living through the shift to telehealth, remote working in some parts of our business, digital engagement with our patients and people, and the myriad of operational changes which were implemented to ensure the ongoing safety of our people, patients and doctors.

Our future growth and succession plans were significantly strengthened during the year with 12 specialists participating in our fertility traineeship program, and eight new contracted fertility specialists joining Monash IVF Group.

Strength in recovery

Our management team has done an impressive job in navigating the myriad of challenges and leading us through to a strong recovery. Through close collaboration with our fertility specialists and people, we have seen our business emerge financially stronger, more resilient and with strong growth momentum.

Our Adjusted Profit After Tax for certain non-regular items was $14.4m with revenues of $145.4m. There was a $3.9m adverse NPAT impact during March to June 2020 compared to the prior comparison period due predominately to the COVID-19 temporary shutdown, which includes $4.9m (pre-tax) JobKeeper subsidies to maintain our workforce during hibernation and recovery periods. The dividend for the first half of FY20 has been deferred to 2 October 2020.

Importantly, following the recommencement of IVF services in Australia, our full service stimulated cycles increased by 33.6% from June to July 2020 compared to last year.

Our Malaysian business has recovered well following easing of the Movement Control Orders on 9 June, which resulted in 23.5% stimulated cycle growth in June to July 2020 with July up 72% compared to the prior comparison period.

This minimised the adverse impact on our volumes and is reassuring as we head into FY21.

A number of initiatives were implemented to assist in mitigating the financial impact of COVID-19 during the period from March to June 2020, including an $80m equity raising to reduce debt, strengthening our balance sheet, pursuing further growth opportunities in South East Asia and investment in our domestic infrastructure.

Evolution and growth

The next 12 months are now focused on continued investment, evolution and growth.

We will continue to evolve and deliver new services and technologies that meet society’s changing needs including earlier and preventative reproductive health, and continued enhancement of the patient experience through digitisation.
We have also updated our brand identity to reflect our best in class positioning and the empathetic, warm and nurturing patient experience we provide to our patients each and every day.

In conclusion, we are excited about the year ahead and look forward to continuing to deliver the best possible reproductive care for our patients and strong results for our shareholders.

Thanks and appreciation

On behalf of the Board and Management I wish to extend thanks to Christy Boyce for her contribution to the Monash IVF Group Board. Christy tended her resignation from the Board on 29th June 2020. Christy was a foundation director and held the position of Chair of the Remuneration and Nomination Committee for the past six years. We thank Christy for her service to Monash IVF Group and wish her well for the future.

Following the resignation of Christy, we are delighted to welcome Catherine West to the Board of Directors. Catherine was appointed on 8 September 2020 as an Independent Non-executive Director. We are thrilled to have the skill and expertise of Catherine on the Board and look forward to working with her.

In closing, the Board wishes to thank our investor shareholders for their commitment to Monash IVF Group. Thanks must also be extended to Michael Knaap our CEO and his experienced management team, together with our doctors, nurses, scientists and support staff for their commitment and leadership during what has been a challenging 2020.

Mr Richard Davis
Independent Chairman