SINGAPORE (May 31): International Healthway Corp (IHC) sunk into the red in FY16, reporting a net loss of $76.8 million compared to earnings of $0.4 million in FY15.
Full-year revenue improved 9% to $49.1 million but IHC suffered other operating losses of $58 million mainly due to impairment loss on goodwill of $32.6 million from the accounts consolidation of Wuxi Hospital and fair value loss on investment properties in China of $18.8 million.
IHC says the higher FY16 revenue came from higher sales from their investment properties in two Australian cities – St Kilda and Geelong. The group’s operational nursing facilities in Japan also contributed a $1.8 million sales increase in rental revenue.
In FY16, IHC generated a negative operating cashflow of $12.86 million. This resulted in net debt position of $295.75 million, which equates to a net gearing of 223%.
For 4Q16, net losses deepened to $86.2 million from $29.1 million in 4Q15 as revenue dropped 17.1% to $10.6 million. No dividend was declared in 4Q16.
In a 17 May announcement, IHC says the litigation case against the receivers and the Crest funds concerning the receivership over the share capital of certain subsidiaries is still ongoing.
In an effort to continue growing healthcare services, management says it will review the business operations and development plans to develop and acquire in the Asian markets.
At its current price of 10 cents, IHC has a market cap of $165.9 million with a price-to-book of 1.3x and price-to-sales is 3.4x.
