Peter Lim Eng Hock increased his controlling stake in Thomson Medical Group. On Feb 18, he acquired just over 26.1 million shares on the open market for $2.3 million, or an average of just over 8.8 cents per share. He now holds a total of 23.55 billion shares, or 89.08%, up from 88.98% earlier. Out of these, 9.3 billion shares, representing a 35.3% stake, are directly held while the remaining 14.2 billion shares are indirectly held.
On Feb 8, Thomson Medical reported earnings of $8.1 million for the 1HFY2020 ended Dec 31, 2020, reversing from losses of $1.9 million in 1HFY2019. Revenue came in at $116.6 million, down 1.3% y-o-y.
According to the group, the decrease in revenue was mainly due to the lower overall patient loads in both Singapore and Malaysia owing to the various restrictions imposed by the respective governments to contain the spread of Covid-19.
Higher earnings came from government support as part of the Covid-19 relief measures. In addition, the group recorded additional income from managing the serology tests for foreign workers housed at the dormitories and isolation facilities. It also put in place cost-saving measures.
Looking ahead, Thomson Medical, which is better known in Singapore for serving women and children, plans to expand its range of services. For example, it plans to introduce its first dedicated specialised learning centre for children with developmental delay as part of the Thomson Kids subsidiary platform. It also has plans to launch Thomson X — a platform that will oversee its technology roadmap through partnerships with various HealthTech start-ups.
Another beneficiary of Covid-19 relief measures
In what was the first transaction by company insiders or directors since 2019, Hiroshi Tatara, controlling shareholder of RE&S, on Feb 9 acquired 67,100 shares on the open market for $10,051.58. On Feb 15, Tatara, president and executive director of the company, acquired another 100,000 shares for $17,000. The average purchase price on each day works out to 15 cents and 17 cents respectively. Tatara now holds nearly 219.2 million shares, equivalent to a 61.91% stake, up from 61.88% earlier.
Just one day before Tatara first bought the shares, RE&S, which runs a chain of Japanese restaurants under brands such as Kuriya Dining, Ichiban Boshi and Yaki Yaki Bo, announced earnings of $7.5 million for the 1HFY2021 ended Dec 31, 2020, reversing from losses of $3.86 million in 1HFY2020, as it enjoyed $3.4 million and $1.2 million in support from the government and landlords respectively.
Revenue was down 3.7% y-o-y to $64 million as the company closed so-called full-service restaurants and opened up more quick-service restaurants.
While the company did not declare any dividend last year, RE&S plans to pay an interim and special dividend of 0.5 cent and 0.35 cent respectively.
In its earnings commentary, RE&S, which was listed in Nov 2017, notes that consumer confidence “has largely increased” as the economy enters Phase Three reopening. “The group remains cautiously optimistic and continues to enhance its preparedness in a climate of unknowns and fast-evolving situations,” the company says. It warns that government support will decrease and it will be focusing more on the so-called quick-service restaurants that cater to the mid-range market segment.
