Thu | Mar 28, 2024

No replacement yet for Elite boss

Published:Wednesday | September 1, 2021 | 12:05 AMNeville Graham/Business Reporter
Elite Diagnostic Limited CEO Warren Chung.
Elite Diagnostic Limited CEO Warren Chung.

Warren Chung will step down as CEO of Elite Diagnostic Limited at month end for personal reasons. Chung, 57, has helmed the business since its formation a decade ago, but having steadied the performance of the Drax Hall, St Ann, diagnostic centre,...

Warren Chung will step down as CEO of Elite Diagnostic Limited at month end for personal reasons.

Chung, 57, has helmed the business since its formation a decade ago, but having steadied the performance of the Drax Hall, St Ann, diagnostic centre, its first outside of Kingston, he says he now wants to prioritise his family, which includes two young children aged three and six years.

“I think I want to take the kids to school, pick them up and do those daddy things that feel good and leave a lasting impression,” Chung says, noting that he is leaving Elite in good hands and that the groundwork has been laid for it to move on to the next level.

“Drax Hall really set us back over the last 18 months and COVID-19 didn’t help,” he added.

The Elite board, which is chaired by investment banker Steven Gooden, is yet to decide on a direct replacement for Chung, but Elite co-founder and COO Dr Neil Fung and General Manager Marjorie Miller could be possible contenders.

Preliminary estimates of Elite’s June 2021 year-end results reflect continued pressure from the pandemic. Revenue improved to $502 million, but profit fell to $659,000 due to improvements in the fourth quarter. The results are still subject to audit. Last year it managed to eke out a small profit of $8.5 million, which was one-sixth its pre-pandemic performance in 2019 when earnings were just shy of $52 million.

Chung said getting the Drax Hall location up and running had been his central focus up to recently. The centre became operational in 2019 but was beset by problems that took time to iron out.

“What we experienced at Drax Hall was very unusual in that the machines went down, and we were unable to get the repairs done readily due to COVID-19. In truth, that location has only had a clear run over the last four months,” Chung said.

As to the overall performance of the medical diagnostic company, Chung cited several factors for the southward drift in earnings.

“Compared to the prior year, it was not as healthy as we would have wanted it, but there was the matter of depreciation and how we treat with leasehold improvements, plus, expenses have gone up,” he said.

He is now banking on steady performance at Drax Hall to reinvigorate the company’s bottom line. The centre carries Elite’s full range of diagnostic machines, including MRI, CT scanner, X-ray, and ultrasound. The complex also includes various doctors ‘offices as tenants.

“We’re looking at Drax Hall to do very well. Certainly, with the seven doctors’ offices, there is a ready stream of clients,” Chung said, adding that the company is considering accommodating additional tenants but would need to expand the complex to facilitate it.

Chung plans to remain on Elite’s board after his departure as CEO to guide the continued development of the company.

neville.graham@gleanerjm.com