SINGAPORE (Aug 15): Clearbridge Health announced a loss of $12.2 million for the 2Q ended June, widening from the $0.2 loss it posted a year ago mainly due to fair value losses recorded during the quarter under review.
This brings the group’s losses to a total of $14 million for 1H18 compared to the $25,000 loss recorded in 1H17.
Revenue for 2Q18 surged to $1.5 million compared to $3,000 a year ago due to the group’s recent acquisitions in the Philippines, Singapore and Indonesia. Topline growth was also boosted by revenue from existing clinics which commenced operations in Singapore and Hong Kong in July 2017, as well as the provision of laboratory testing services.
Over the quarter, a $1.5 million fair value loss on other investments was recorded compared to a gain in 2Q17 due to lower fair value of convertible loans issued by Clearbridge Biomedics.
Fair value loss on associates widened to $4.7 million from $0.8 million a year ago on changes in the fair value of an associated company, CBB.
Due to a lower valuation of CBB this quarter, the group also recorded a fair value loss on derivative financial instruments of $2.9 million, reversing from the gain of $0.5 million in 2Q17.
Other operating expenses grew to $1.2 million from $0.3 million a year ago due to higher legal and professional fees incurred due to acquisitions and collaborations over the latest quarter, as well as other expenses attributable to the group’s business expansion.
Clearbridge says it remains positive on the outlook for its laboratory testing services and medical clinics/centres businesses, supported by trends such as population growth, increased life expectancy and an ageing society that are likely to drive demand for better healthcare services going forward.
Jeremy Yee, executive director and CEO of Clearbridge, claims the group would have recorded a lower pre-tax loss of $1.8 million if not for the non-recurring operating expenses and fair value changes.
“Our medical clinics/centres business has continued to contribute quarter-on-quarter growth to our revenue, and this, together with our ongoing efforts to expand our laboratory testing services, reflects the success of our strategy to transform into a pan-Asian integrated healthcare Group with a focus on precision medicine,” says Yee.
As at 10:47am, shares in Clearbridge closed 2.33% higher at 22 cents.
