This printed article is located at http://asiamedic.listedcompany.com/chairman_statement.html
The Group entered FY2022 with certain uncertainties due to the completion of major imaging and health screening projects in FY2021. Confronted with such challenges, the Group took proactive steps to pursue other business opportunities. I am pleased to report that the Group ended the year with a commendable performance. The Group's revenue increased by $0.6 million or 3% to $18.9 million for FY2022, from $18.3 million for FY2021. The Group recorded a profit of $2.2 million in FY2022 due mainly to a net writeback of non-cash impairment charge of $1 million.
Over the years, AsiaMedic’s executive health screening centre has consolidated its reputation as one of the leading health screening providers in Singapore. It is located in a prime location at the intersection of Orchard Road and Scotts Road, is fully equipped with advanced diagnostic imaging equipment and staffed by trained doctors and personnel. During the year, we made special efforts to optimise our workflow and to ensure that we maintained proper staffing levels. These enabled us to support a higher volume of business at the year-end peak season. I mentioned in last year’s letter to shareholders that the Group is no longer the sole provider of school-based health screening and vaccination services from January 2022, which would have an impact on the revenue and earnings of the onsite healthcare business in FY2022. In view of this, the onsite healthcare team worked on sourcing for new projects. It is noteworthy that the team was successful in securing and completing other projects which mitigated the lower contribution from the schools.
The performance of the imaging business improved in FY2022 due mainly to a higher volume of diagnostic imaging scans from referrals by specialist clinics as a result of foreign patients returning to Singapore post-pandemic. A significant proportion of our imaging business is from referrals by specialist clinics. The provision of MRI scanning services for restructured hospitals also increased in the second half of FY2022. Our continued selection by the restructured hospitals demonstrates our capability to meet demanding standards. As a result of the improved utilisation rate of the imaging equipment, there was a writeback of non-cash impairment charge for the imaging business' plant and equipment and right-of-use assets (for lease of premises) of $1.9 million.
Revenue from the aesthetic business and the international clinic business decreased in FY2022, due mainly to the attrition of doctors and the drop in Covid-related tests as Covid restrictions were gradually relaxed, respectively. A non-cash impairment loss for plant and equipment and goodwill relating to the aesthetics business of $0.4 million and $0.5 million respectively was recognised after taking into consideration that the business has been loss-making as the level of activity of the aesthetic business has not recovered to pre-pandemic levels.
The operating environment of our Group continues to be challenging due to intense competition, shortage of skilled manpower and rising manpower costs. The Group has intensified its efforts to address such challenges and achieve the Group's long-term strategic goals. The Singapore government's focus towards a healthier population through the ‘Healthier SG' initiative may generate increased awareness for preventive healthcare and therefore drive demand for our wellness business. We should be mindful that the revenue of our onsite healthcare business may fluctuate from year to year due to the inherent nature of project-based contracts. We are reviewing the capacity of our MRI and ultrasound services in view of the rising demand from both the private and public sectors, as well as the need to stay current with the latest software and hardware technological advances. Our international clinic is now co-located at the same level of Shaw House with our imaging centre which will allow urgent diagnostic scans to be done, thereby providing greater convenience and enhancing our patients' experience. Management is currently undertaking a review of its strategic options of the aesthetics business and is actively taking steps to address the situation of the shortage of doctors for the aesthetic business as this remains a key constraint faced by the business. As digital technology is a vital component in healthcare going forward, we are upgrading our information technology (IT) infrastructure and adopting new digital and artificial intelligence (AI) technology to enhance our patients' experience, improve workflows, efficiency, and patient care.
Our businesses only exist owing to the support and trust of our many patients and clients. To them, I express our heartfelt gratitude. To all our staff, I am grateful for their sacrifices, dedication, and hard work throughout the year. I would also like to thank the Board of Directors for their invaluable guidance. Last, but most certainly not least, I thank our valued shareholders for their continuing support.
AsiaMedic celebrated its 25th anniversary in FY2022. I look forward to many more successful years with all our stakeholders.
CHARLES WANG
Non-Executive Chairman