Cordlife delivers strong earnings as more clients buy into cord blood banking

Cordlife Group's full year net profit almost doubled to $13.5 million from $6.9 million, on the back of healthy revenue growth, strong margins as well as a S$2.7 million one-time disposal gain.

Revenue for the year ended June 30 rose by 14.6 per cent to $34.7 million, due mainly to an increase in the number of client deliveries, from about 7,200 to 7,700.

The increase in deliveries was due to increased awareness as a result of an increase in educational programmes undertaken by the group.

Cordlife collects, processes, tests, cryopreserves and stores stem cells from the umbilical cord blood of a child at birth, allowing customers to preserve their child's cord blood stem cells for treatment later in his or her life if their child so requires.

"We continue to maintain a high, consistent level of gross profit margin of about 73 per cent, given our leadership position as Singapore's largest private cord blood bank," said Cordlife chief executive Jeremy Yee.

"With the completion of the acquisition of cord blood and cord tissue banking businesses and assets in India, the Philippines, Hong Kong and Indonesia from Australia-listed Cordlife Limited, Cordlife is now well-positioned to capitalise on the tremendous growth opportunities in these economies driven by rising affluence of the middle-class."

Earnings per share swelled to 5.8 cents from 4.03 cents previously while net asset value per share grew by 2.74 cents to 33.32 cents.

A final dividend of one cent a share was proposed.