Raffles Medical – BT

Raffles Medical posts 10.4% rise in Q3 profit

PRIVATE healthcare provider Raffles Medical Group (RMG) posted a 10.4 per cent increase in net profit to $11.79 million for the three months ended Sept 30, 2011 as both its hospital services and healthcare services divisions reported revenue growth.

In Q3 2011, revenue grew 13.5 per cent to about $69 million with its hospital services and healthcare services divisions registering growth of 14.1 per cent and 8.4 per cent, respectively. The group said that the improved performance was on the back of improved operating efficiencies, together with the recruitment of more specialist consultants, higher patient load and increased patient acuity.

Earnings per share were 2.21 cents, up from 2.04 cents in Q3 2010.

As at Sept 30, 2011, the group had a cash position of $40 million, which will help it to fund its growth plans.

During the quarter, Raffles Hospital recruited more doctors, with new staff specialists in orthopaedics and dermatology joining the hospital.

In an update on its Specialist Medical Centre at 30 Bideford Road, RMG said that the centre is slated to start operations in the first half of 2013. Planning and preparatory work for the expansion of Raffles Hospital by some additional 102,000 square feet is also underway.

Meanwhile, RMG is boosting its network of primary care clinics with two new clinics expected to open their doors in the fourth quarter – one at 112 Katong (formerly Katong Mall) and the other at Changi City Point – while Raffles Dental has also recruited more dental surgeons to support its growth.

Touching on the growing number of public and private hospitals set to open in the coming years, Dr Loo Choon Yong, RMG’s executive chairman, said: ‘Competition has never deterred us. We are, however, pleased that the government is working more closely with the private sector in providing medical care to Singaporeans. Raffles has stated clearly that we are prepared to participate actively in caring for public sector patients.’

Shares in RMG closed at $2.25 yesterday, one cent lower.

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