Thomson Medical reverses loss to post net profit of S$8.1m in H1 FY21

THOMSON Medical Group on Monday posted a net profit of S$8.1 million for its first half ended Dec 31, 2020 - a reversal from its loss of S$1.9 million in the year-ago period.

While revenue for the mainboard-listed group declined 1.3 per cent year on year (yoy) to S$116.6 million, its earnings before interest, taxes, depreciation and amortisation (Ebitda) jumped 32.6 per cent yoy to S$31.8 million.

"With various movement and social distancing measures still in force to stem Covid-19 transmission, overall patient loads in both Singapore and Malaysia continued to stay low," said the group in a statement on Monday. As a result, revenue took a hit.

Revenue from its hospital services fell 3.6 per cent, but this was offset by its revenue from specialised services, which recorded a 2.7 per cent growth.

Meanwhile, the increase in Ebitda was attributed to grants received via support schemes and initiatives from the local government to help employers through the pandemic.

The figure was "further augmented" by the additional income from providing serology testing operations for foreign workers housed in dormitories and isolation facilities, and bolstered by the group's austerity measures to mitigate the economic impact of Covid-19, said Thomson Medical.

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Earnings per share for the group stood at 0.0306 Singapore cent in H1 FY2021, a reversal from H1 FY2020's loss per share of 0.0072 Singapore cent. Net asset value per share inched up to 2.15 Singapore cents, compared with 2.09 Singapore cents in the year-ago period. (see amendment note)

No dividend was declared for the period, unchanged from the year before.

With the Covid-19 pandemic expected to last for some time, Thomson Medical said there is some uncertainty on how the transition towards normalcy will take shape. While the situation in Singapore has "gradually stabilised and its vaccination programme has commenced, Malaysia, in parallel, has imposed further lockdowns to combat surges in Covid-19 cases".

It added that in light of the developing pandemic situation in Malaysia, it is monitoring the impact of further lockdowns imposed recently on its operations and the expansion works of the new wing at Thomson Hospital Kota Damansara in Selangor.

Notwithstanding another wave of community infections "which might bring about new public health measures or any other unforeseen circumstances", the group said it remains "cautiously optimistic" about its FY2021 outlook.

Shares of Thomson Medical gained S$0.001 or 2.08 per cent to close at S$0.049 on Monday, before the results announcement.

Amendment note: An earlier version of the article incorrectly stated that the loss per share of 0.0072 Singapore cents was in H1 FY2019, when it should be H1 FY2020.