SINGAPORE (Aug 16): Healthway Medical Corporation reported a loss of $504,000 for the 1Q17 ended March, compared to $580,000 in profits posted in 1Q16 as finance costs more than doubled from a year ago on short-term borrowings.
Revenue for the quarter declined 6.2% to $23.2 million from $24.7 million previously, largely due to lower contributions from the primary healthcare segment.
In line with the lower revenue, medical supplies, consumables and laboratory expenses fell 12.9% to $4.1 million from $4.7 million a year ago.
However, finance costs grew by $0.5 million to $0.8 million from a year ago due to short-term borrowings secured during the period for working capital purposes.
Current assets fell to $71 million at end March, $1.5 million lower than $72.5 million as at end 2016 due to a decrease in cash and cash equivalents of $1.3 million, which was mainly as a result of withdrawal of fixed deposit used to repay the loans.
At the end of the quarter, the group had a positive working capital of $40.8 million.
Noting that the operating environment remains challenging, Healthway Medical claims to now be well-capitalised following the issuance of its convertible notes.
“The group is on a sound footing to enhance its current operations, improve its services to provide better patients care, and grow in a sustainable manner,” it adds.
Shares in Healthway Medical closed 2.2% lower at 4.4 cents on Tuesday.
