SINGAPORE (May 13): Thomson Medical Group (TMG), formerly known as Rowsley, has announced a $1 million loss for the 1Q ended March, reversing from earnings of $89,000 in 1Q18 due to a spike in finance costs in the recent quarter under review.
Revenue for 1Q19 grew 4% to $54.5 million from $52.5 million a year ago, due to higher inpatient volumes and higher average bill sizes at the Group’s hospitals and specialist clinics in Singapore and Malaysia.
Operating profits rose 16% to $9.4 million from $8.1 million previously, which TMG says is evident of the strength of its underlying core healthcare business.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 14% to $13.4 million from $11.8 million in 1Q18. This was largely due to lower operating expenses booked after adopting the new SFRS (I) 16 leases, which resulted in a corresponding increase in depreciation expenses.
Excluding the effect of adopting the new accounting standard, the group’s adjusted EBITDA remains largely unchanged.
Financing costs for the quarter, however, continued to drag on the group’s bottomline, due to costs associated with the takeover of healthcare assets last year.
Net finance costs for the latest quarter grew $5.4 million from just $1.8 million in 1Q18 on the back of additional bank borrowings taken as part of TMG’s acquisition of its healthcare business.
As at end-March, cash and cash equivalents stood at $124 million, down from $135.8 million a year ago.
Going forward, TMG says it will continue its strategy of extending its market leadership position in women and children’s health and fertility while also developing new core specialities in oncology and wellness and lifestyle services.
Shares in the group closed 2.8% lower at 7 cents.
