SINGAPORE (Feb 28): Singapore Medical Group (SMG) announced that its FY17 earnings has increased by 250.8% to $8.50 million compared to $2.42 million in FY16.
Revenue for the full year ended Dec 31 2017 came in at $68.0 million, 63.5% higher than $41.6 million last year.
The increase was mainly due to an increase in revenue in the group’s health business segment mainly contributed by the subsidiaries acquired in FY17 – Astra Companies, the Kids Clinic and BCSC; and increase in revenue in the group’s diagnostic & aesthetics business segment mainly contributed by the subsidiary, Lifescan Imaging.
Cost of sales was 46.3% higher y-o-y at $39.0 million, bringing FY17 gross profit to $29.0 million, 94.4% higher than $14.9 million in FY16.
Administrative expenses increased by 63.5% to $16.0 million from $9.75 million last year, mainly due to increase in staff headcount resulting from the acquisition of LSI, the Astra Companies, the Kids Clinics and BCSC, as well as higher depreciation expense for the financial year resulting from the acquisition of LSI.
Financial expenses saw a significant increase to $0.72 million from $0.11 million a year ago, due to higher interest expenses incurred for a new bank loan obtained for the acquisition of the Astra Companies, finance leases arising from the acquisition of LSI and accretion of interest on deferred purchase consideration.
Looking forward, the group will continue to review its cost structure and progressively integrate acquired businesses by driving operational efficiencies in areas such as staffing, marketing and space utilisation, allowing it to derive revenue and cost synergies while leveraging on its existing regional network to scale and promote cross-selling opportunities.
The group will also continue to explore value-driven investment opportunities that are synergistic with its existing specialties.
Shares in SMG closed at 56 cents on Wednesday.
