Econ Healthcare posts 41.2% rise in full-year net profit to $5.7m

Econ Healthcare executive chairman and group chief executive Ong Chu Poh with his daughter, deputy CEO Ong Hui Ming. PHOTO: THE BUSINESS TIMES

SINGAPORE (THE BUSINESS TIMES) - Econ Healthcare Group on Friday posted a 41.2 per cent rise in full-year net profit. This came as the private nursing home operator saw a rise in operating subvention grants and other income, partially offset by a drop in revenue.

Net profit for the full year ended March 31 this year stood at $5.7 million, up 41.2 per cent from $4 million the year before.

The results translate to an earnings per share of 2.75 cents, against earnings per share of 1.95 cents in the previous year.

Operating subvention grants rose 13.9 per cent to $17.5 million from $15.4 million, mainly due to the increase in the total number of beds occupied by subsidised residents in Econ Healthcare's medicare centres and nursing homes.

The increase was due to a joint effort by the group and the Singapore Government to cater more beds for residents entitled to subsidies. There was also a rise in the number of subsidised residents due to, among others, Covid-19 impact on hospital resources.

The rise in operating subvention grants was partially offset by the 7.1 per cent drop in revenue for the full year to $20.4 million from $21.9 million. The decrease in revenue was due to a decline in the number of private residents within FY2020 and FY2021.

Meanwhile, other income stood at $6.2 million, 10.6 times that of the $588,000 recorded in the year-ago period, as a result of the Jobs Support Scheme and foreign worker levy grants.

The board has recommended a final dividend of 0.78 cents per share for the fiscal year. If approved by shareholders, the dividend will be paid out on Sept 3, after the Aug 23 record date.

Shares of Catalist-listed Econ Healthcare closed at 35.5 cents on Thursday, up 7.6 per cent, or 2.5 cents, before the results were released.

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