HC Surgical Specialists H2 earnings up by 64.7% on pent-up demand for gut checks

CATALIST-LISTED medical services provider HC Surgical Specialists has doubled its dividend, citing uplift from demand for colorectal procedures.

Second-half net profit was up by 64.7 per cent year on year to S$3.0 million for the six months to May 31, 2021, according to unaudited financial statements released on Tuesday.

That's as revenue rose 78.0 per cent to S$12.4 million, which the group attributed to an increase in patients after the end of the year-ago "circuit breaker" semi-lockdown.

Earnings per share stood at 2.02 Singapore cents for the half-year, up from 1.21 cents before. Net asset value was 6.6 cents a share, against 10.81 cents as at May 31, 2020.

For the 12 months, net profit more than doubled from S$3.99 million to S$8.0 million, while revenue increased by 39.7 per cent year on year to S$23.4 million.

The higher group revenue was "due to the pent-up demand for its services post circuit breaker", HC Surgical said in a statement.

The board recommended a final dividend of 2.3 cents a share, compared with 0.7 cent previously. If approved, it would take the full-year payout to 4.0 cents a share, twice the dividend of 2.0 cents paid out for the year before.

Books closure and payment dates will be announced later, added the group, which offers colorectal-focused endoscopic procedures across 18 clinics.

Shares closed on Tuesday at S$0.48, down by half a cent or 1.03 per cent, before the results were announced.