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Healthy Results At Raffles Medical

RafflesMedicalThis morning, Raffles Medical Group Limited (SGX: R01), or RMG for short, released a healthy set of second-quarter results.

Here are the numbers…

It posted a 12.9% increase in second-quarter revenues to $86.8 million. Net profit increased by even more, it jumped 15.7% to $14.5 million.

In the first six months of the year, revenues rose 12.1% to $168 million, while net profits climbed 16% to $28 million. Net profit margin inched up by 0.6 percentage points to 16.7%.

Revenue of Hospital Services segment grew strongly by 16.8%, and Healthcare Services increased by 6.5%. More specialist consultants recruited and higher patient acuity have expanded the depth and breadth of medical services provided by the Raffles Medical, contributing to the better results.

The balance sheet looks robust – the company has plenty of cash. RMG said it had cash and cash equivalents of $126.4 million. Debt came down from $19.7 million to just $3.9 million. The healthy cash position should provide some financial flexibility for the company’s growth and expansion plans. Raffles Medical still holds the Bideford property at $98 million.

The cash flow from operations increased 20.6% to $27 million. With capital expenditure at $2.1 million, the free cash flow generated for the second quarter was a pleasing $24,888,000.

Developments 

Raffles Hospital introduced a new system called SAP Hospital Information System on 1 July 2013 for inpatient operations. It incorporates nursing care management, electronic physician ordering, pharmacy orders and business office functions which should improve operational efficiency.

RMG is working with its team of consultants and the relevant local authorities on the extension of Raffles Hospital at North Bridge Road.

Raffles Medical clinics saw an improved quarter and year-to-date performance with new corporate clientele in the hospitality and education sectors. Three new clinics will be opening up in major suburban population regions in the future.

Dividends

RMG has declared an interim ordinary dividend of 1.0 cent per ordinary share, unchanged from last year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.