SINGAPORE (Feb 25): Raffles Medical Group (RMG) announced $71.1 million in earnings for FY18, rising a marginal 0.4% from $70.8 million in FY17 as higher tax expenses and additional depreciation from the recently-completed Raffles Specialist Centre continued to be a drag on the group’s bottomline.
See: The Edge Singapore’s 2019 stock pick: Raffles Medical Group
Revenue for the full year grew 2.4% to $489.1 million from $477.6 million a year ago, due mainly to 6% higher contributions from the Healthcare Services division on the back of a new contract to provide Air Borders screening services, as well as the addition of new corporate clients.
Revenue contributions from the Hospital Services division fell by 0.8% from a year ago due to the refurbishment of current inpatient facilities in 2018.
Tax expense for FY18 grew 9.7% to $13.3 million from $12.1 million a year ago.
Depreciation of property, plant and equipment rose 19.3% to $17.2 million compared to $14.4 million in FY17. The group says this was mainly due to the expansion of medical centres in the new Raffles Specialist Centre in order to meet growing patient demands.
Over FY18, RMG also recorded 7% higher purchased and contracted services of $42.3 million compared to $39.6 million a year ago, due to increased expenditure for insurance claims, laboratory purchases and repair & maintenance of premises.
Cash and cash equivalents stood at $106 million as at end-2018, up from $98.3 million in the previous year.
The group is recommending a final dividend of 2 cents per share, amounting to approximately $35.9 million for FY18.
Including the interim dividend of half cent per share paid in Sept 2018, this brings the total dividend for the financial year to 2.5 cents per share, up 11.1% from that of the previous year.
Going forward, RMG expects to remain profitable in FY19 – notwithstanding the anticipated start-up loss for its Chongqing hospital, where it expects to progressively open up more inpatient beds and other facilities in response to patient and corporate client demand.
Shares in the group closed 1 cent lower at $1.11 on Friday.
