SINGAPORE (Feb 26): ISEC Healthcare, the regional provider of a comprehensive suite of medical eye-care services with ambulatory surgical centres, generated a 10% increase in FY18 earnings to $8.7 million, or 1.63 cents per share, from a year ago. This came on the back of higher revenue, which expanded 9% y-o-y to $40.4 million.
ISEC says stronger full-year topline was due to higher revenue from an increase in patient visits at its specialised eye-care centres in Malaysia and Singapore. In Malaysia, the group’s revenue rose 11% to $31 million while its Singapore operations garnered a 5% increase in revenue to $9.4 million over the same period. Rising in tandem with the topline, gross profit came in 11% higher y-o-y at $19.5 million with gross profit margin also increasing 0.8 points to 48.1% in FY18.
ISEC Healthcare has proposed a special dividend of 0.98 cents per share in addition to a final dividend of 0.78 cents per share. Together with the interim dividend of 0.78 cents per share, this brings the total dividend for FY18 to 2.54 cents per share or $13.1 million, or 151% of the group’s earnings for FY18.
For 4Q18, the group’s revenue and gross profit increased 10% y-o-y to $10.5 million and 12% y-o-y to $5.1 million respectively, while gross profit margin was 0.8 percentage points higher at 48.4%. This lifted earnings by 17% to $2.4 million.
As at Dec 31 2018, the group’s net asset value per share was 0.13 cent, while cash and cash equivalents stood at a healthy at $27.1 million with no borrowings.
Dr Wong Jun Shyan, ISEC Healthcare’s Executive Director and CEO, says: “FY2018 was a good year for ISEC with stronger bottomline performance from both our specialised eye care and general health services. Our clinics in our key markets of Singapore and Malaysia observed greater footfall with more patients seeking treatment. We are pleased to share our earnings with shareholders in view of the financial results.”
Looking ahead to the next 12 months, Wong says the region’s ageing population as well as increasing awareness about the benefits of seeking early treatment for ophthalmology issues will continue to drive demand for the specialised services that we provide.
“We will continue to search for investment opportunities to strengthen our presence in our existing markets and to explore new markets such as China, Indonesia, Myanmar and Vietnam,” says Wong.
In August 2018, ISEC announced the incorporation of ISEC Myanmar Company together with three other independent parties. The new entity will operate and administer ophthalmology centres and provide medical consultations and services in the country and is expected to start operations in the second quarter of 2019.
In the same month, ISEC expanded its general medical services and aesthetic treatment services arm when its 100% owned subsidiary JL Medical (Bukit Batok) acquired a 25% stake in I Medical & Aesthetics. This investment is expected to bring new business opportunities in the field of general medical consultations and aesthetics services in Singapore while offering the possibility of synergistic partnerships and cross-selling with the Group’s existing business of specialist medical eye care services.
As at 10.34am, shares in ISEC are trading 1.5 cents higher at 29 cents.
