SINGAPORE (Apr 9): Medical services provider HC Surgical Specialists saw its earnings surge five-fold to $4.5 million for the 3Q19 ended February, from $0.9 million a year ago.
This was mainly attributable to a fair value gain on financial assets of $2.9 million during the quarter, arising due to recognition of financial assets following a reclassification in line with the group’s adoption of new financial reporting standards.
In 3Q19, HC Surgical registered a gain of $0.3 million on disposal of investment in an associate, related to the disposal of 4 million MediNex shares in connection with MediNex’s IPO share placement.
The group also saw a gain of $0.8 million arising from deemed disposal in associates, related to dilution in the company’s shareholding in MediNex and remeasurement of previously held equity interest in Medical Services @ Tampines (MST) upon the acquisition of additional 50% equity interest in September 2018.
3Q19 revenue rose 7.6% to $4.2 million, from $3.9 million a year ago, on the back of higher revenue contributions from new subsidiaries acquired, including Jason Lim Endoscopy and Surgery, as well as the additional 50% equity interest in MST.
Earnings per share (EPS) rose to 3.05 cents in 3Q19, from 0.61 cents a year ago.
As at end February, cash and cash equivalents stood at $3.5 million.
“During the financial quarter, we delivered a commendable performance with a sterling bottom line as we continue to be on track for our growth trajectory and secure steady revenue contributions bolstered by our existing and newly acquired clinics,” says Dr Heah Sieu Min, CEO of HC Surgical.
“Our strategic acquisitions advertently reflected our success on the financial front and we look forward to unlocking greater value for our shareholders in the forthcoming quarter,” Heah adds.
HC Surgical announced earlier this month that it has been appointed by AIA Singapore as the exclusive healthcare provider for certain of the latter’s eligible clients, specifically those aged 50 and above under the HealthShield Gold Max Essential A Saver and AIA Max VitalHealth A policies.
Under the agreement, AIA Singapore will provide complimentary colonoscopy screening by HC Surgical as part of its ‘Early Detection Screening Benefit’, one of the new insurance product features for the eligible policyholders.
See: HC Surgical appointed as sole colonoscopy screening provider for AIA Singapore
The group says the exclusive collaboration is a “huge leap” taken in response to the government’s calling to have a healthy lifestyle and in a bid to contain the increasing trend in healthcare costs, to ensure sustainability in the long run.
“We see a hoard of opportunities within this meaningful initiative and aim to reduce the number of colorectal cancer cases, while propelling our company to greater heights with the interests of patients’ health at heart,” says Heah.
“Edging forward, we are reinforcing our position in the healthcare industry, as we extend our footprint locally and regionally to promote our quality healthcare services and treatment options in the region.”
Shares in HC Surgical closed flat at 58.5 cents on Tuesday.
