Thomson Medical – BT

Thomson Medical posts 18.5% profit jump for Q4

For the year, net profit rises 24.2% to $15.88m; revenue jumps by 21.2%

THOMSON Medical Centre, which provides health care for women and children, saw net profit rise 18.5 per cent year-on-year to $4.04 million for the fourth quarter ended Aug 31, 2010.

Revenue for the quarter rose by 23.3 per cent to $22.19 million on the back of strong performances by both its hospital operations and ancillary services as well as its specialised and other services division, which grew by 11 per cent and 60.5 per cent respectively. Specialised and other services jumped from $4.51 million to $7.24 million due to increased patient loads in the Thomson Women’s Clinics (TWC) and Thomson Women Cancer Centre (TWCC) as well as the contribution from new business, Thomson Paediatric Centre (TPC).

Earnings per share climbed to 1.51 cents in Q410, versus 1.17 cents in Q409.

For the full year, net profit was 24.2 per cent higher at $15.88 million while revenue increased by 21.2 per cent to $81.67 million.

In FY10, the group handled 9,268 deliveries in its hospital, up 4.1 per cent from FY09, while its operating theatres saw 7,482 cases, which represents a 3.2 per cent increase.

Meanwhile, the group’s consultancy and management project in Binh Duong Province in Vietnam, the Hanh Phuc International Women and Children Hospital, will begin operations next month.

However, Thomson Medical’s hospital operations segment is still likely to remain the largest revenue contributing segment for the next three to five years.

The group is also presently looking at potential sites for a second hospital in Hanoi, Vietnam.

Cheng Shao Shiong @ Bertie Cheng, a non-executive director on Thomson Medical’s board and Allan Yeo, group chief executive, have been appointed directors to Hanh Phuc Hospital’s board.

‘We are always looking for suitable opportunities to expand though our main focus is to build up our presence in Vietnam,’ Mr Yeo said, adding that it is interested in fast developing countries which have high birth rates and which lack the necessary healthcare infrastructure. ‘Our strategy in approaching every new market is to find a business partner who can value-add to the collaboration.’

At home, the group will grow by increasing its distribution channels and widening its network of satellite clinics, as well as sourcing for new technologies to improve its services.

However, it has, for now, put on hold plans to have another two operating theatres, with work expected to commence in 2Q11 instead.

The directors are recommending a final dividend of two cents per share, payable 7 January 2011. They are also recommending a bonus issue on the basis of one bonus share for every 10 existing shares held by the shareholders – subject to the approval of the Singapore Exchange Securities Trading and the approval by shareholders at the upcoming Annual General Meeting.

Shares in Thomson Medical closed at $1.01 in trading yesterday, unchanged.

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