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The Group’s revenue increased by 24% to S$14.7
million for the financial year ended 31 December 2013
(“FY2013 ”) compared with S$11.9 million in the previous
corresponding year (“FY2012”). The increase was due to
improved performance from core business of advanced
imaging and wellness businesses. It was also boosted by
positive maiden contributions from Complete Healthcare
International Pte Ltd (“CHI”) and Astique The Aesthetic
Clinic (“Astique”) which were acquired in May 2013 and
June 2013 respectively. The Group acquired 80% of CHI
and 70% of Astique. The increase in other income was due
mainly to reimbursements for performance guarantee and
consultancy expenses.
The increase in consumables was due mainly to the
inclusion of CHI whose business has a higher proportion
of medications content compared with the Group’s core
business. Employee benefits expense increased due mainly
to higher headcount and the inclusion of manpower from
CHI and Astique which were acquired during the year.
Depreciation expense decreased as a result of fixed assets
becoming fully depreciated. During the year, the Group
secured additional floor space on the 10th floor of Shaw
House for its local expansion and a third MRI scanner
which resulted in the increase in operating lease expenses.
Laboratory and consultancy costs increased in line with
revenue growth. The Group obtained bank financing for
the acquisition of CHI and capital expenditure during
the year which resulted in the increase in finance costs.
The increase in other operating expenses of S$708,000
was mainly due to (i) the inclusion of the other operating
expenses of CHI and Astique; (ii) loss on disposal or write-
off of older fixed assets which were retired when upgrading
the medical equipment and premises; ( i i i ) increase in
marketing expenses, (iv) one-off legal and professional fees
incurred for acquisitions, new investments and tenancies,
and (v) the impairment of convertible loan and short term
loan receivables was in respect of loans granted to the
post-natal centre in Shanghai. The Group also had overall
business development expenses for overseas markets
amounting to approximately S$285,000 in FY2013 (FY2012:
S$188,000).
The share of results of associates in FY2013 increased due
mainly to higher contribution from Positron Tracers Pte Ltd.
The income tax credit was due mainly to write-back of
over-provision of deferred tax liabilities.
The Group registered a profit for the year of S$65,000
for FY2013 compared with S$34,000 for FY2012. The
earnings before interest, taxat ion, depreciat ion and
amortisation (“EBITDA”) for FY2013 was S$1,152,000
(FY2012: S$1,343,000) . Excluding the one-off legal
and professional fees, overseas business development
costs, impairment of loans, as well as start-up costs of
Cryoviva Singapore Pte Ltd, the EBITDA would have been
approximately S$1.8 million for FY2013 (FY2012: S$1.5
million).
Non-Current Assets
Property, plant and equipment increased due mainly to
purchases of advanced medical equipment (such as MRI
and CT scanners, and digital X-ray and mammography
imaging systems) and renovations for the additional space
on 10th floor of Shaw House. The increase in investments
in associates was due mainly to the new investment in
Cryoviva. The convertible loans represent working capital
loans extended to the medical and post-natal centres
in Shanghai, net of impairment provision. The intangible
asset and goodwill arose from the acquisitions of CHI and
Astique.
Current Assets
The increase in inventories and trade receivables was due
mainly to the inclusion of CHI and Astique. The increase in
ASIAMEDIC LIMITED
ANNUAL REPORT 2013 07
FINANCIAL REVIEW