Medinex FY2020 net profit soars 345% to S$3.6m on longer financial year

CATALIST-LISTED medical clinic support services provider Medinex on Thursday posted a 345 per cent jump in net profit to S$3.6 million for FY2020, from S$817,000 in FY2018.

This was in part due to a longer financial year for FY2020 compared to FY2018, the company said.

Medinex on Aug 21, 2019 changed its financial year-end from Dec 31 to March 31, 2020. As a result, its FY2020 results are for the 15 months from Jan 1, 2019 to March 31, 2020, while its FY2018 results are for the 12 months from Jan 1, 2018 to Dec 31, 2018.

Earnings per share stood at 2.77 Singapore cents for FY2020, up from 0.83 cent in FY2018.

Revenue for FY2020 jumped 85.9 per cent to S$16.7 million, from S$9 million in FY2018. This was due to the full revenue contribution from subsidiaries Medinex Professional Services and Jo-L Consultus - which were acquired in FY2018 - and revenue contribution from the acquisition of four subsidiaries in FY2020, namely: Sen Med Holdings, Ark Leadership and Learning, SKI Consultancy, and Medinex Advisory.

No dividend was declared for FY2020. Medinex said dividends for the financial period from Jan 1, 2019 to Dec 31, 2019 had been declared and paid.

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An interim cash dividend of 0.84 Singapore cent per share was declared on Dec 18, 2019 for the financial period ended Dec 31, 2019 and paid on Jan 17, 2020, unchanged from FY2018.

An interim cash dividend of 0.84 cent per share was also declared on Aug 14, 2019 for the six months ended June 30, 2019, and paid on Sept 13, 2019.

Medinex, which specialises in services such as overseeing the setting up of clinics, facilitating applications for relevant clinic licences, and providing business support services, said it had suffered "no significant impact" from the Covid-19 pandemic in the short term.

However, the company "has to gear itself up to counteract the longer-term impact, especially with the increasing number of business closures and cost pressures from clients whose survival is at stake", it added.

To cope with cost pressures from clients and competitors, Medinex said it had recently set up an operation unit in Malaysia to "capitalise on lower manpower cost while maintaining stringent internal controls and quality outputs".

It is also investing in an online marketing platform as well as technology to help its clients accelerate their online presence, garner more business opportunities locally and regionally, and lessen the impact of a downward revenue trend, the company added.

"The increasing reliance on technology and artificial intelligence has caused us to move to providing higher-value services that cannot be easily substituted, such as business consultation and customised data analytical services," Medinex said.

Shares of Medinex were trading at 25 Singapore cents as at 10.48am on Thursday, up four cents or 19.1 per cent, after the results were announced.