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ISEC Healthcare Q4 net profit edges up 1% to S$2.3m

CATALIST-LISTED ISEC Healthcare's net profit for the fourth quarter ended Dec 31, 2019 inched up 1 per cent to S$2.3 million from S$2.28 million a year ago, the company announced on Wednesday.

Revenue rose 11 per cent to S$11.6 million from S$10.5 million previously. Earnings per share were 0.44 Singapore cent, down slightly from 0.45 cent in Q4 2018.

For the full year, net profit was down 11 per cent to S$7.5 million from S$8.4 million a year ago. This was despite revenue growing 6 per cent to S$42.9 million from S$40.4 million, on the back of increased business activities in its specialised health services business segment.

Some reasons for the lower profit include impairment loss for goodwill for JL Medical (Sembawang) where the resident doctor was on extended medical leave of absence, and the same for JL Medical (Woodlands) where the clinic's relocation resulted in a decrease in patient visits.

The effective tax rate for the group also rose to 27 per cent in FY2019 from 22 per cent in FY2018. If the impairment loss for goodwill had been excluded, the FY2019 effective tax rate would have been 24 per cent.

Earnings per share for the full year were 1.41 Singapore cents compared with 1.63 cents in the previous year.

The board has declared a final dividend of 0.50 Singapore cent per share. Combined with a first interim dividend of 0.30 cent for the three months ended June 30, the aggregate dividend for FY2019 was 0.80 cent per share.

In the corresponding period of the previous year, ISEC Healthcare issued a final dividend of 0.78 cent and a special dividend of 0.98 cent. With the addition of a first interim dividend of 0.78 cent for the three months ended June 30, 2018, the aggregate dividend for FY2018 was 2.54 cents.

ISEC Healthcare shares closed up 0.5 cent or 1.45 per cent to S$0.35 on Wednesday.