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Highlights from Thomson Medical Group Ltd’s First Quarter of 2018 Earnings

Thomson Medical Group Ltd (SGX: A50), formerly known Rowsley Ltd, is one of Asia’s largest healthcare players. Its healthcare business includes Thomson Medical and Malaysia-listed TMC Life Sciences Berhad (0101.KL). Thomson Medical Group also owns RSP Holdings, a real estate business comprising businesses in design and engineering, real estate development and hospitality.

Last week, the group announced its financial results for the first quarter ended 31 March 2018, which involves the real estate business only. The healthcare business’ financial statements will be released for the second quarter ending 30 June 2018.

Here are some of the highlights investors should know from the first-quarter results:

1. Revenue tumbled 9% year-on-year to S$20.6 million mainly due to its consultancy business which performed poorly on the back of “a slow down in private sector building developments”.

2. Operating expenses rose 23% to S$9.7 million largely due to acquisition expenses for the healthcare business acquisition, higher consultancy expenses and higher hospitality operating costs.

3. For the first quarter of 2018, the real estate business reported a loss of S$6.5 million as compared to a loss of S$1.6 million a year ago.

4. As at 31 March 2018, the group had S$19.8 million in cash and bank balances, and S$129.4 million in total debt. This translates to a net debt position of S$109.6 million. In comparison, at the end of December 2017, it had S$98 million in net debt.

5. The net asset value per share stood at 7.66 Singapore cents at the end of the 2018 first-quarter, down from 7.61 cents, as at 31 December 2017.

6. Operating cash flow for the latest quarter was a negative S$4.9 million as opposed to a negative S$3.6 million seen in the previous year.

7. Going forward, Thomson Medical Group will focus on its healthcare business. The existing real estate business has been grouped under a new branding, RSP Holdings, to explore options to divest it when the opportunity arises.

Shares of Thomson Medical Group are now going at S$0.089 apiece, giving a price-to-book ratio of 1.2.

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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.