Econ Healthcare posts 41.2% rise in full-year net profit to S$5.7m
ECON Healthcare Group on Friday posted a 41.2 per cent rise in full-year net profit. This came as the private nursing home operator saw a rise in operating subvention grants and other income, partially offset by a drop in revenue.
Net profit for the full year ended March 31, 2021, stood at S$5.7 million, up 41.2 per cent from S$4 million the year before.
The results translate to an earnings per share of 2.75 Singapore cents, against earnings per share of 1.95 Singapore cents in the previous year.
Operating subvention grants rose 13.9 per cent to S$17.5 million from S$15.4 million, mainly due to the increase in the total number of beds occupied by subsidised residents in Econ Healthcare's medicare centres and nursing homes.
The increase was due to a joint effort by the group and the Singapore government to cater more beds for residents entitled to subsidies. There was also a rise in the number of subsidised residents due to, among others, Covid-19 impact on hospital resources.
The rise in operating subvention grants was partially offset by the 7.1 per cent drop in revenue for the full year to S$20.4 million from S$21.9 million. The decrease in revenue was due to a decline in the number of private residents within FY2020 and FY2021.
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Meanwhile, other income stood at S$6.2 million, 10.6 times that of the S$588,000 recorded in the year-ago period. This was mainly due to Jobs Support Scheme and foreign worker levy grants, rent concessions and property tax rebates, as well as staff accommodation grants.
Staff accommodation grants are a form of funding support to help staff find temporary lodging in order to adhere to split zones and safe distancing, Econ Healthcare said.
The board has recommended a final dividend of 0.78 Singapore cent per share for the fiscal year. If approved by shareholders, the dividend will be paid out on Sept 3, after the Aug 23 record date.
The group said its outlook remains optimistic. It commenced the operations of its first nursing home in Chongqing, China, with another two additional nursing homes in Chengdu and Changshou in the pipeline. Econ Healthcare also expects its 12th nursing home in Singapore to be operational in 2022.
Shares of Catalist-listed Econ Healthcare were trading flat at 35.5 Singapore cents on Friday when market closed.
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