Raffles Medical reports 2.4% rise in FY2015 net profit

RAFFLES Medical Group reported on Monday that its net profit for the full year 2015 rose 2.4 per cent to S$69.3 million, compared to S$67.6 million a year ago.

Excluding the fair value gain of S$1.5 million on its investment properties in 2015, the group's net profit was up 4.9 per cent at S$67.8 million.

Revenue increased 9.6 per cent at S$410.5 million, from S$374.6 million, spurred by growth in healthcare services and hospital services divisions.

Healthcare services grew by 14.6 per cent. Sales contributions came from its newly acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH) since October 17, 2015, as well as an expanding Raffles Medical clinic network and the provision of insurance services to more corporate clients.

Revenue from hospital services increased by 7 per cent with higher revenue contributed by more specialist consultants, increased patient load and greater patient acuity.

The group's strong cash balances and continued operating cashflow from its various business units were able to support its investments in MCH, Raffles Hospital Shanghai and Raffles Hospital extension as well as Raffles Holland V. These investments, including payment of capital expenditure for business expansion, amounted to S$179.8 million in 2015. Cash position stays healthy at S$86.1 million at the end of 2015.

A final dividend of 4.5 Singapore cents a share has been proposed. Including the interim dividend of 1.5 Singapore cents a share paid in August 2015, the total dividend for 2015 increased by 0.5 Singapore cent, or 9.1 per cent, to 6 Singapore cents a share.