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Acquisition of Sasteria drags down profits of Thomson Medical Group

ONE-OFF costs associated with the acquisition of healthcare business Sasteria Pte Ltd in April this year dampened results for Thomson Medical Group Ltd in its first half.

The group's profit fell 58.4 per cent to S$5.5 million from the year-before period, it said in a Singapore Exchange filing.

This was largely due to a combination of higher operating expenses owing to cost inflation of goods and services, one-off acquisition related expenses, costs associated with expansion such as hospital expansion and new clinics, and higher financing costs owing to additional bank loans taken as part of the acquisition of Sasteria.

For the six months ended June 30, revenue rose 8.1 per cent to S$105.5 million from the preceding year. The gain in revenue was due to the improved performance from the healthcare business, partly driven by higher patient volume, higher revenue intensity, and higher average bill sizes.

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Earnings per share dropped to 0.021 Singapore cents from 0.051 Singapore cents in the preceding year. Net asset value per share increased to 2.82 Singapore cents as at June 30, from 2.4 Singapore cents six months ago.

The counter closed S$0.001 or 1.3 per cent higher at S$0.079 on Tuesday.