Thomson Medical expects net loss in 6M, 18M FY2020 on non-cash impairment

THOMSON Medical expects to post a net loss for the six months, as well as for the 18 months ended June 2020, due to a non-cash impairment loss in Malaysia and weaker contributions from certain segments, the mainboard-listed firm said in a profit guidance on Friday.

The impairment loss arose from a significant decline in the market valuation of Thomson Medical's 9.23ha freehold land within the Iskandar Development Region in Johor Bahru, Malaysia. This was due to political uncertainty in Malaysia and the weak property market amid the Covid-19 pandemic.

Meanwhile, contributions from the specialist segment in Singapore as well as the hospital and fertility operations in Malaysia were weak due to restrictions by the authorities to control the spread of Covid-19.

Demand for obstetric services in Singapore has however remained healthy. With the easing of restrictions in Singapore and Malaysia from June, Thomson Medical has also seen a gradual recovery of patient volumes.

"The group continues to generate sufficient cash flows to finance its operations, and has adequate cash and bank resources to fund its working capital needs as well as its existing committed business growth requirements," it said in its bourse filing.

Thomson Medical will release its unaudited financial results for 6M FY2020 and 18M FY2020 on or before Aug 29.

Shares of Thomson Medical closed at S$0.056 on Friday, down 1.75 per cent.