Raffles Medical sees 2.4% rise in full-year profit, proposes 1-to-3 share split

Raffles Hospital at North Bridge Road.
Raffles Hospital at North Bridge Road. PHOTO: RAFFLES MEDICAL GROUP

SINGAPORE - Raffles Medical Group posted a 2.4 per cent increase in its net profit for the full 2015 financial year to S$69.3 million from S$67.6 million a year ago.

The medical group also announced on Monday it was proposing a 3-for-1 stock split.

Excluding a fair value gain on investment properties of S$1.5 million in 2015, earnings for the year ended Dec 31 was 4.9 per cent higher at S$67.8 million.

Revenue rose 9.6 per cent to a record S$410.5 million from S$374.6 million a year ago on the back of growth in both the group's healthcare services and hospital services divisions.

Healthcare services grew 14.6 per cent in 2015 with sales contributions from newly acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH) since Oct 17, as well as an expanding Raffles Medical clinic network and the provision of insurance services to more corporate clients.

Revenue from hospital services increased by 7 per cent from more specialist consultants, increased patient load and greater patient acuity.

A final dividend of 4.5 cents per share has been recommended by the board of directors. Including interim dividend of 1.5 cents per share paid in August 2015, the total dividend for FY2015 rose by 0.5 cent, or 9.1 per cent, to 6 cents per share compared to the previous year.

Explaining the rationale for its proposed share split, the board said it will benefit both company and shareholders as it may reduce the price of each lot of the company's shares, making them more affordable and accessible to both existing and potential investors.

With the increased number of lots available for trading purposes, the proposed share split may also broaden the shareholder base from about 7,780 shareholders currently.

The issued and paid-up share capital of the company as at Dec 31 of S$286.4 million will remain unchanged after the implementation of the proposed share split.