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Half Year Financial Statements Announcement for the 6 months ended 30 June 2018

Financials Archive

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An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

Consolidated Income Statement

Statement Of Comprehensive Income For Half Year Ended 30 June 2018

Statement Of Comprehensive Income For Half Year Ended 30 June 2018

Balance Sheet

Review of Performance

The Group's revenue decreased by S$736,000 or 7% from S$10 million for the half year ended 30 June 2017 ("1H 2017") to S$9.2 million for the half year ended 30 June 2018 ("1H 2018"). The decrease was due mainly to lower revenue from the imaging business as a result of increased competition and lower specialist visitations by private patients.

Other income increased from S$187,000 in 1H 2017 to S$255,000 in 1H 2018 due mainly to higher government grants received and rental income.

Total operating expenses decreased by S$626,000 or 6% in line with the decrease in revenue. Personnel expenses decreased by S$398,000 or 7% due mainly to lower headcount. Depreciation decreased by S$180,000 or 24% due mainly to property, plant and equipment being fully depreciated. Maintenance expenses increased by S$42,000 or 11% due mainly to the changing of parts of a medical equipment and the centre's signages. Laboratory and consultancy fees increased by S$126,000 or 15% due mainly to the engagement of external radiologists during the period. Finance costs decreased by S$9,000 or 18% due to the repayment of loans and finance lease obligations. Other operating expenses decreased by S$123,000 or 10% in line with the decrease in revenue. The share of results of associate increased by S$73,000 or 54% due to its higher sales.

As a result of the lower revenue of the imaging business, the Group recorded a loss of S$926,000 in 1H 2018 compared with a loss of S$956,000 in 1H 2017.

Non-Current Assets

Non-current assets decreased from S$9.4 million as at 31 December 2017 to S$9.2 million as at 30 June 2018 due mainly to depreciation of property, plant and equipment.

Current Assets

Current assets decreased from S$6.4 million as at 31 December 2017 to S$5.4 million as at 30 June 2018 due mainly to the decrease in cash and short term deposits partially offset by the increase in trade receivables. Cash and short term deposits decreased from S$3.2 million as at 31 December 2017 to S$2.2 million as at 30 June 2018. Trade receivables increased from S$1.1 million as at 31 December 2017 to S$1.3 million as at 30 June 2018 due mainly to health screening projects.

Current Liabilities

Current liabilities decreased from S$5.9 million as at 31 December 2017 to S$4.9 million as 30 June 2018 due mainly to the decrease in trade and other payables. The decrease in trade payables from $1.6 million as at 31 December 2017 to S$1.2 million as at 30 June 2018 was due mainly to the payment for purchase of medical equipment. The decrease in other payables from S$2 million as at 31 December 2017 to S$1.7 million as at 30 June 2018 was due mainly to the payment of the proposed acquisition expenses.

Net Current Assets

Net current assets decreased from S$483,000 as at 31 December 2017 to S$444,000 as at 30 June 2018.

Non-Current Liabilities

Non-current liabilities increased from S$730,000 as at 31 December 2017 to S$1.4 million as at 30 June 2018 due mainly to the S$1 million shareholder's loan from Luye Medical Group Pte Ltd partially offset by the repayment of bank loans and borrowings and obligations under finance leases.

Cash Flow

The Group has a cash outflow from operating activities of S$1.2 million in 1H 2018 compared with an outflow of S$0.7 million in 1H 2017 due mainly to payment of the proposed acquisition expenses and the changes in working capital. Cash flows from financing activities increased due mainly to the shareholder's loan of S$1 million in 1H 2018.

Commentary

The market condition for the Group's businesses continues to be competitive. The Group recently strengthened its capabilities in the imaging business with the employment of an interventional neuro-radiologist in July 2018. The Group will strive to deliver improvements in its businesses, implement cost control measures and strengthen its balance sheet.