Healthway Medical Corporation Q4 loss widens to $40.9m as allowances surge

Healthway Medical Corporation (HMC) reported a much bigger net loss of S$40.9 million for the fourth quarter ended Dec 31, 2016, from the S$904,000 loss for the same period a year ago.
Healthway Medical Corporation (HMC) reported a much bigger net loss of S$40.9 million for the fourth quarter ended Dec 31, 2016, from the S$904,000 loss for the same period a year ago.ST PHOTO: LAU FOOK KONG

SINGAPORE - Healthway Medical Corporation (HMC), the target of a takeover offer from Indonesia's Lippo Group, reported a much bigger net loss of S$40.9 million for the fourth quarter ended Dec 31, 2016, from the S$904,000 loss for the same period a year ago.

Fourth quarter revenue for Singapore's largest private clinic chain inched up to S$23.4 million but allowance for doubtful loan and other receivables jumped to S$36.6 million from S$312,000 in the previous year.

For the full year, HMC swung to a loss of S$40.2 million from profit of S$1.7 million in FY2015.

Revenue for the full year rose 2.6 per cent to S$96.8 million, mainly due to the increase in revenue of S$3 million from the specialist & wellness healthcare segment (through greater patient load), offset by decrease in primary healthcare segment of S$0.5 million.

Full-year other operating income fell 80.6 per cent to S$1.5 million. This was mainly due to absence in FY2016 of S$0.7 million on disposal of available-for-sale financial assets and S$1.8 million interest income due to the discontinuation of interest charge in relation to a loan receivable, management fee of S$0.9 million and S$3.3 million for the recovery of staff costs for secondment fees, from Healthway Medical Enterprises (HME), an incubator of medical clinics in Singapore owned by an unrelated third party and managed by the company.

Disregarding allowances for doubtful, loan and other receivables and impairment of goodwill amounting to S$40.2 million for FY2016, compared to S$4.4 million for FY2015, other operating income from HME, and gain on disposal of available-for-sale financial assets reclassified from equity of S$0.7 million in FY2015, the group's net profit would have been S$0.1 million.

No dividend was recommended.