Financials

Condensed Interim Consolidated Financial Statements For The Six Months And Full Year Ended 31 December 2024

Condensed Interim Consolidated Statement Of Profit Or Loss And Other Comprehensive Income

Condensed Interim Statements Of Financial Position

Review of Performance

2H2024 vs 2H2023

The Group achieved strong revenue growth, increasing by $2.9 million (22%) to $15.8 million, driven primarily by higher referrals from specialist clinics and hospitals, as well as increased imaging capacity following the installation of a new MRI scanner in September 2023.

Other income rose by $6,854 (3%) to $275,235, supported by higher interest income from short-term investments and grant income.

Operational costs rose in line with business expansion across imaging, health screening, and other service lines. Additionally, higher costs were incurred in preparation for the opening of the Group's new medical diagnostic imaging centre in Novena (the "Novena Centre"), a strategic partnership with Sunway Equity Holdings Pte. Ltd. ("SEH", a subsidiary of Sunway Berhad) as announced by the Company on 22 February 2025.

Consumables used increased by $67,210 (7%) to $1,035,860, reflecting higher activity levels across all business units. Personnel expenses increased by $498,821 (8%) to $7,058,528, driven by workforce expansion to support growth, including new hires for the Novena Centre. Laboratory and consultancy fees increased significantly by $1,511,975 (70%) to $3,663,481, reflecting increased service volumes and collaboration with third parties. Depreciation of non-current assets decreased by $172,055 (37%) to $286,949 primarily due to certain equipment reaching full depreciation. Finance costs increased, mainly due to higher interest expenses on finance leases related to newly acquired medical equipment.

The Group recorded profit before tax of $745,973 in 2H2024, representing an 87% increase compared to 2H2023, driven by revenue growth and operational efficiency, despite higher costs including the pre-opening costs for the Novena Centre.

The Group had income tax credit of $4,177 in 2H2024 (2H2023: S$891,000). As a result of the lower income tax credit for 2H2024, profit after tax in 2H2024 was 42% lower as compared to 2H2023. Excluding the one-off income tax credit of $891,000 in 2H2023, the Group's performance in 2H2024 was stronger in 2H2024 compared to the same period in 2H2023.

FY2024 vs FY2023

The Group achieved annual revenue of $28.9 million, up $5.3 million (23%), driven by growth in imaging and health screening services as well as higher revenue across other business units.

Other income increased by $13,746 (2%) to $663,895, attributed to higher interest income from investments, sub-lease income and grant income.

Operational cost increases were aligned with business growth and pre-opening expenses for the Novena Centre.

Personnel expenses increased by $2,182,692 (18%) to $14,347,307, supporting service expansion and new hires for the Novena Centre. Laboratory and consultancy fees increased by $2,295,909 (64%) to $5,867,765, reflecting increased patient volume and collaboration with third parties. Depreciation of non-current assets decreased by $189,349 (22%) to $691,006 due to certain equipment reaching full depreciation.

The share of results from the associate declined in FY2024 compared to FY2023, as the associate's net profit was impacted by equipment downtime and higher maintenance costs.

The Group reported a profit before tax of $641,541, a 38% decrease compared to FY2023, mainly due to pre-opening expenses for the Novena Centre. Profit after tax declined by 66% to $645,718, as FY2023 included a income tax credit of $891,000.

While net profit was lower due to these factors, the rise in expenses reflects business growth, with increased costs directly tied to expanded operations and investments in equipment and talent to support service volumes.

The Group delivered solid revenue growth, though profitability was impacted by the absence of last year's tax credit and costs related to the new Novena Centre. These investments underscore the Group's strategic focus on long-term value creation and operational expansion.

Condensed Interim Statements of Financial Position

31 December 2024 vs 31 December 2023

Non-Current Assets

Non-current assets increased to $29.0 million from $14.8 million, primarily due to investments for the new Novena Centre.

Key changes included: plant and equipment increased to $3.8 million from $2.6 million, reflecting acquisitions of new medical equipment, including installations for the Novena Centre. Right-of-use assets rose significantly to $22.1 million from $8.4 million, representing new leases and medical equipment acquired through finance leases, including those related to the Novena Centre. Investments in associates remained stable at $2.2 million.

Several accounts were reduced to zero in 2024: the employment bond was eliminated following the cancellation of the Service Agreement. Goodwill was fully impaired, and prepayments were fully utilized.

Current Assets

Current assets rose to $17.7 million from $14.2 million, driven by increased activity and improved cash flow. Trade receivables increased to $4.1 million from $2.8 million, reflecting higher service volumes from expanded operations. Other financial assets comprised short-term investments in Singapore Government Treasury Bills and credit-linked notes issued by DBS Bank Ltd. Cash and cash equivalents increased to $8.0 million from $4.6 million, supported by improved operating cash flow. Other receivables and deposits increased significantly, mainly due to the accrued receivable from the termination of Service Agreement. Prepayments were slightly lower than as at 31 December 2023 as some prepayments were fully utilized.

Current liabilities

Current liabilities increased to $9.4 million from $6.8 million, mainly due to pre-opening costs for the Novena Centre and higher business activity: other payables and accruals increased to $4.8 million from $2.2 million, reflecting higher activity levels and pre-operational expenses for the Novena Centre. Borrowings rose to $2.4 million from $1.7 million, reflecting financing for new equipment, including those for the Novena Centre.

Net Current Assets

Net current assets increased to $8.3 million from $7.4 million, supported by a higher level of current assets despite increased liabilities due to pre-operational expenses for the Novena Centre.

Non-Current Liabilities

Non-current liabilities increased significantly to $20.4 million from $8.9 million, primarily due to investments for the Novena Centre. Borrowings rose to $18.8 million from $7.7 million, reflecting financing for equipment acquisitions and lease liability, including for the Novena Centre. Provision for reinstatement increased to $1.6 million from $1.2 million due mainly to a new lease entered for the Novena Centre

Non-controlling interest

This refers to the Group strategic partnership to set up and operate the Novena Centre with SEH in 2024. The Group has accounted for its investment in the collaboration entity as a subsidiary of the Group because the Group has control over the entity. The non-controlling interest refers to the interest in the collaboration entity held by SEH.

Condensed Interim Consolidated Statement of Cash Flows

The Group recorded a net cash inflow from operating activities of $2.48 million in FY2024, compared to $3.41 million in FY2023. The decrease was mainly due to higher trade receivables from increased service volumes and pre-operational expenses for the new Novena Centre, partially offset by higher payables.

Net cash inflow from investing activities was $213,683, significantly lower than an outflow of $4.86 million in FY2023, mainly due to lower financial asset divestments. The Group acquired plant and equipment totalling $1.8 million, of which $1.08 million was financed through hire purchase arrangements.

The Group achieved a net cash inflow from financing activities of $692,746, compared to an outflow of $589,392 in FY2023. This was mainly due to a $3.0 million contribution from non-controlling interest of Novena Centre.

Overall, the Group had a net increase in cash and cash equivalents of $3.39 million, ending the year with $7.99 million in cash, driven by strong financing inflows and disciplined capital management.

Commentary

While the broader long-term outlook for the healthcare and wellness industry is positive, the operating environment over the next 12 months continues to be highly competitive with a shortage of skilled manpower and rising labour costs. The Group has intensified its efforts to mitigate the impact of these challenges, adopting new technology to enhance patients' experience, and improve workflows, efficiency, and patient care.

Amidst growing demands from clinics, hospitals and other healthcare providers, the Group has nearly doubled its diagnostic imaging capacity with the opening of Novena Centre, in partnership with SEH, a subsidiary of Sunway Berhad.

Officially launched on 21 February 2025, the Novena Centre's strategic location will greatly complement the Group's existing integrated medical centre at Orchard Road to serve more patients. Equipped with advanced medical imaging equipment, the Novena Centre offers a comprehensive range of diagnostic imaging services, including computed tomography (CT) and magnetic resonance imaging (MRI), with a special focus on sub-specialised fields of radiology supported by a team of experienced radiologists.

The set-up of the Novena Centre has necessitated the hiring of additional staff and doctors amidst intense competition for talent in the healthcare industry. The additional manpower is needed to support the Group's investments for future growth following the significant capacity expansion.

The investments in new talent and technology are essential to support service expansion and position the Group to capture growing demand from specialist clinics and hospitals in Singapore's expanding healthcare sector. The Group will focus on operational efficiency and optimal utilisation to achieve long-term sustainable growth.

The rising awareness of preventive healthcare, the adoption of employee wellness programmes, and national health promotion initiatives contribute positively to the long-term demand for the Group's established custom wellness and health screening services.

On 21 January 2025, Grow Well SG, a national health promotion strategy was launched to enhance preventive care and inculcate healthier lifestyles in children and adolescents. As a provider of onsite school health screening services, the Group will support Grow Well SG's Child Health Plan initiative which will be progressively rolled out for students in Primary 1 to Primary 3.

Looking ahead, the Group will continue exploring opportunities to expand its service offerings and leverage strategic partnerships to drive sustainable growth. Investments in innovation, digital health solutions, and integrated healthcare services will be key priorities to maintain competitiveness in the evolving healthcare landscape.