SINGAPORE (Aug 14): Q&M Dental Group posted earnings of $4.6 million for the 2Q ended June, some 67% lower than earnings of $13.6 million a year ago.
This was mainly attributable to the absence of a one-time gain of $16.9 million in 2Q last year from the spin-off of Aoxin from a subsidiary to an associate in April 2017.
Excluding these exceptional other gains and losses, 2Q18 earnings would have been 6% than a year ago.
Revenue for 2Q18, excluding Aoxin, increased by 5% to $29.5 million on the back of higher revenue from Singapore and Malaysia.
As at end June, cash and cash equivalents stood at $29.5 million.
The group has proposed an interim dividend of 0.4 cents per share for 2Q18, some 42.9% lower than the interim dividend of 0.7 cents per share a year ago.
Q&M announced that it has adopted a dividend policy of paying dividends of at least 30% of the group’s core operating earnings, excluding other one-time income and share of associate profits. The 2Q18 interim dividend of 0.4 cents per share represents 59% of the group’s 1H18 core operating earnings.
“We look forward to expanding our operations in Singapore and Malaysia this year, by recruiting more dental GPs and specialists as well as by opening more clinics, to further capture the rising demand for primary and higher value specialist dental healthcare services in the region,” says Dr Ng Chin Siau, Q&M’s group chief executive officer
“We are also actively searching for acquisitions of large and established dental institutions or dental supplies manufacturers in [China] that will provide stable and sustainable synergistic value for the group and ultimately, increase long-term shareholders’ value,” Ng adds.
Shares in Q&M closed 2.5 cents higher at 53 cents on Tuesday.
