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8 Quick Points That Investors Should Know From Singapore O&G Ltd’s Latest Results

Singapore O&G Ltd  (SGX: 41X) is a healthcare company that was listed in June 2015. The company operates mainly in three segments, namely, Obstetrics and Gynaecology, Cancer-related and Dermatology.

The company recently its released its 2017 fourth quarter (4Q FY17) earnings update. In this article, we will look at eight quick points to summarise its latest earnings.

1. Sales for the quarter was up by 17.3% year-on-year to S$8.2 million.

2. Revenue increased across all operating segments. The new Paediatrics segment, which started in July 2017, contributed S$0.2 million to the group’s revenue.

3. Profit from operations jumped 23.0% year-on-year to S$2.9 million, mainly driven by growth in revenue.

4. Quarterly net profit jumped 23.7% year-on-year to S$2.5 million.

5. Operating margin increased from 34.2% a year ago to 35.9% in the latest quarter, mainly due to slower growth in employee expenses as compared to the growth of revenue.

6. Net cash generated from operating activities was up from S$2.7 million last year to S$3.6 million in the reporting quarter. The increase was due to the higher profit as mentioned earlier and an increase in payables during the quarter.

7. Singapore O&G had S$20.0 million in cash and cash equivalents and no debt, as of 31 March 2018, up from S$16.4 million in cash and cash equivalent and no debt, as at 31 December 2017.

8. Looking ahead, the company said:

“On 1 July 2017, the Group extended its services through the offering of general paediatrics and adolescent medicine services. With the new Paediatrics segment, it allows the Group to continue to take care of our existing patients and their newborns. As this is a new segment and in a start-up phase, the Group expects the contribution from this segment to continue to be moderate for FY 2018.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.