Earnings of integrated healthcare group Alliance Healthcare jumped by 88.1% to $1.7 million in 1HFY2021 ended Dec 31, from the $0.9 million posted the year before.
On a fully diluted basis, this translates to earnings per share of 0.81 cents in 1HFY2021, compared to 0.43 cents in the previous corresponding period.
The stronger performance follows a 23.8% increase in revenue to $28.6 million in 1HFY2021, thanks to higher sales in segments like mobile and digital health, GP clinic services and managed healthcare solutions.
Revenue from the mobile and digital health services segment more than doubled to $6.4 million, following broad-based increments across segments.
Income from GP clinic services rose by 26.9% to $8.5 million on the back of more patient visits following higher Covid-19 vaccinations and the easing of restrictions. Similarly, higher patient volumes pushed up the revenue from managed healthcare services by around 13% to $2.6 million.
However, a further surge in revenue was prevented by a drop in takings for its pharmaceutical services due to reduced demand for medical supplies from certain hospitals.
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In this time, employee benefits expenses increased by $3.8 million or 33.6% to $15.0 million due to more benefits conferred and an increase in salaries and defined contribution plan.
Meanwhile, depreciation and amortisation expenses softened by 0.9% to $1.4 million while finance costs dropped by 16.2% to $119,393.
As at Dec 31 2021, cash and cash equivalents stood at $18.4 million, up from $16.2 million a year ago.
Overall, the group’s profit before tax increased by 106.4% to $2.8 million in 1HFY2021. This comes on the back of an improvement across its business segments which follows an increase in the number of visits to Alliance Healthcare’s self-owned and panel clinics.
In this time, the group’s mobile and digital health services segment has continued to grow in line with its goal.
Going forward, the group is looking to further enhance its digital technology capabilities to remain at the forefront of an increasingly digitalised healthcare sector.
“We believe that digitalisation will continue to play an increasingly important role in the healthcare sector as it provides cost-effective, time saving and quality healthcare for our patients,” says Barry Thng, CEO and executive chairman of Alliance Healthcare.
Shares in Alliance Healthcare closed flat at 16.5 cents on Feb 10, before its results announcement.
Cover image of Barry Thng: Albert Chua/The Edge Singapore
