Q&M's FY16 profit more than doubled to S$28.3m

MAINBOARD-LISTED Q&M Dental Group on Wednesday reported that net profit for the full year more than doubled to S$28.3 million on the back of a one-time gain of S$23.1 million from the spin-off of Aidite (Qinhuangdao) Technology from a subsidiary to an associate in FY16.

In line with this, profit before tax for the 12 months ended Dec 31, 2016, rose 111 per cent year on year to S$35.5 million. Excluding the one-time gain of S$21.3 million from the spin-off of Aidite and a reclassification from a subsidiary to an associate, PIC (Productivity and Innovation Credit) cash pay-out/PIC bonus of S$0.5 million, one-off incidental expenses of S$1.1 million and professional fees of S$1.1 million relating to the spin-off of Aidite and Aoxin, as well as impairment of goodwill of S$4.1 million, the group's profit before tax for FY16 would have been S$20 million.

Revenue from the group's dental and medical clinics for FY16 jumped 21 per cent to S$118.7 million, mainly due to higher revenue from existing dental outlets in Singapore, the acquisitions of TP Dental Surgeons, Tiong Bahru Dental Surgery, Bright Smile Dental Surgery, acquisition of Aesthetics Dental Surgery in Nov 2015 and Lee & Lee (Dental Surgeons) in March 2016, as well as revenue contribution from Panjin Jingcheng Q&M Stomatology, Panjin Jinsai Q&M Stomatology and Gaizou City Aoxin Q&M Stomatology Hospital in Jan 2016 in China.

Revenue from the dental equipment and supplies distribution business for FY16 also went up 43 per cent to S$13.7 million, primarily due to revenue contribution from the acquisition of Shenyang Maotai Quanmin Medical Equipment in China in Jan 2016.

The group said revenue contribution from Aidite, the dental supplies manufacturing business in China, grew by 35 per cent to S$22.5 million in FY16, driven by higher sales as a result of moving to its own bigger premises with higher production capacity.

Correspondingly, other expenses rose 20 per cent year on year to S$12.8 million in FY16, largely due to the one-off incidental expenses relating to the acquisitions, among other things.

A final dividend of 0.7 Singapore cent per share has been declared, bringing the full-year dividend to 1.12 cents per share - higher than the total of 0.84 cent in FY15.