Clearbridge Health sees ‘material decrease’ in FY2023 results; expects impairment, fair value losses

CLEARBRIDGE Health has recorded a “material decrease” in its FY2023 financial performance amid lower revenues from several business segments, the Catalist-listed company announced on Friday (Feb 9).

Revenue in the distribution of Covid-19 test kits from its medical clinics and centres, as well as from the distribution of medical and pharmaceutical products, have decreased, it said in a bourse filing.

The announcement comes as the company is due to release its FY2023 financial results on or before Feb 29.

Separately, Clearbridge also intends to recognise fair value losses on some bonds, an allowance for credit losses on certain receivables and impairment losses on goodwill.

The fair value losses are set to arise from a reduction in the fair values of convertible bonds issued by a company, Lunadorii Inc, to Clearbridge and its subsidiary, Renum Distribution Holdings. The bonds’ carrying value was S$10.6 million as at Jun 30, 2023.

Meanwhile, the allowance for credit losses comes from a decrease in the recoverable value of receivables owed by two entities: Sam Laboratory and Clearbridge Medical Asia. The carrying value of the receivables was S$11.8 million as at Jun 30, 2023.

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Both the fair value losses and allowance for credit losses “are expected to be material, but cannot be quantified at this stage”, Clearbridge said in its filing.

In addition, the company intends to record impairment losses from a reduction in the recoverable value of goodwill from previously acquired assets. This stems from the weaker financial performance of its medical centres and clinics in FY2023, which is expected to hit the segment’s projected future cash flows.

Clearbridge ended Friday flat at S$0.012.