Thomson Medical Group swings into profit of S$6.2m for H2 from loss of S$97.5m

HEALTHCARE provider Thomson Medical Group (TMG) reported a net profit of S$6.2 million in the first half of 2021, swinging from a loss of S$97.5 million run up in the same period last year.

For its financial year ended June 30, net profit amounted to S$14.2 million, reversing losses of S$99.4 million in FY2020, according to the group's interim financial statements released on Friday after market close.

Revenue for H2 rose 26.3 per cent to nearly S$123.8 million, bringing full-year revenue to S$240.4 million, an 11.2 per cent increase from the previous financial year.

This was bolstered by a higher patient load as the Covid-19 restrictions eased gradually, the mainboard-listed company said.

In addition to its core services of obstetrics, gynaecology and paediatrics, TMG also supported governments in Singapore and Malaysia with Covid-19 vaccination services, it said.

Group executive director and group chief executive Wong Chiang Yin said: "The gradual reopening of the economy has been helpful, particularly for non-critical services which were adversely affected last year as parents postponed treatments due to the pandemic." He added that the Singapore market accounts for nearly three-quarters of TMG's revenue.

Earnings per share for FY21 stood at 0.054 cents, compared with a loss per share of 0.376 cents in the previous financial year.

The company's directors are proposing a final special dividend of 0.015 cents per share. No dividend was declared in the previous year.

In the past year, TMG also invested in new areas of growth, such as launching a dedicated specialised centre for children with learning difficulties, and setting up Thomson Women's Clinic Punggol. It also set up a new subsidiary, Thomson X, to spearhead the group's foray into health tech solutions.

Dr Wong said the management is "cautiously optimistic" about prospects in South-east Asia, where growing affluence and demographic factors would drive demand for private healthcare.

He added that TMG will look to overseas markets for expansion, including in Malaysia, where a new wing at Thomson Hospital Kota Damansara has been completed and could begin operations by end-2021.

TMG shares closed at 8.5 Singapore cents on Friday, down 0.2 cents or 2.3 per cent, ahead of its announcement.