Formerly known as Metal Component Engineering, the newly rebranded Meta Health has managed to reverse the group out of the red and has announced earnings of $7.6 million for FY2021 ended December 2021, compared to a loss of $2.0 million a year ago.
This is Meta Health’s maiden results announcement, as the Metal Component in Jan 17 announced its rebranding on Jan 17.
See: Metal Component Engineering changes name to Meta Health, changes focus to healthcare and e-commerce
The group recorded revenue of $43.0 million, a 33% increase from $32.2 million in FY2020, mainly due to an increase in global customer demand for its products in the metal business, primarily from the global recovery from the impact of the Covid-19 pandemic; and the contribution from the new healthcare business that arose after the group’s acquisition of Gainhealth on July 13, 2021.
Other income amounted to $9.5 million in FY2021, as compared to $0.7 million in FY2020. The increase was mainly due to profit from the disposal of MCE Industries and government grants received in Singapore (pursuant to the Job Support Scheme) and in Malaysia (pursuant to the Government Wages Subsidy Stimulus Packages) in FY2021.
As pandemic is still ongoing, driven by the highly transmissible omicron variant, the group’s business outlook remain uncertain and challenging, especially for its engineering business in 2022. But the group is committed to successfully navigate through the challenging business environment.
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“Over the last two years, our metal engineering business was well-managed and adapted to the harsh industry environment with our sales continued to grow over last four half yearly periods. To prepare for our strategic transformation, we converted some of our non-productive assets to revenue generating business, which contributed to more than doubling our cash and bank balances during the period,” says Meta Health in its results announcement.
As for its healthcare arm, it continues to see growth in emand for its telemedicine, nursing services and e-pharmacy services. “We are also making good progress engaging relevant stakeholders to provide care for the elderly. We believe this will continue to strengthen the group's financial performance and provide revenue diversification as we continue to build our competitive advantage within the healthcare industry,” it adds.
With a positive view on future growth, Meta Health’s Chief Investment Officer, Ahillan Pupalasingam says: “We have successfully pivoted towards digital healthcare industry in FY2021, following various strategic partnerships to strengthen our capabilities and market presence. This is a strategic move to diversify our revenue streams and venture into the digital healthcare industry which is expected to see strong underlying demand in the longer term.”
“Moving forward, we will continue to explore potential partnerships to generate sustainable revenue streams in markets with high demand for telemedicine and e-pharmacy solutions, such as Indonesia and Singapore. We remain optimistic in our growth prospects and are committed to deliver sustainable growth for our shareholders,” he adds.
As at 11.50am, shares in Meta Health are trading at 4.5 cents.
