Raffles Medical's full-year profit inches up 0.4% to $71m

Raffles Medical Group has posted a net profit of $71.1 million for 2018, up 0.4 per cent from $70.8 million the previous year.

The group notched a 7.8 per cent rise in Ebitda (earnings before interest, taxes, depreciation and amortisation).

This was offset by higher tax expense and additional depreciation from the completion of Raffles Specialist Centre, which adjoins Raffles Hospital Singapore, early last year.

Revenue for the 12 months to Dec 31 was $489.1 million, up 2.4 per cent from $477.6 million for 2017.

This was led by healthcare services revenue, which rose 6 per cent on the back of contributions from a new contract to provide air borders screening services, as well as new corporate clients.

Revenue from hospital services slipped 0.8 per cent, partly due to the refurbishment of existing inpatient facilities last year.

The group announced a final dividend of two cents per share, up from 1.75 cents for 2017. Including an interim dividend of 0.5 cent per share paid in September last year, total dividends for the full year amount to 2.5 cents.

Full-year earnings per share was 3.98 cents, down from 4.02 cents for 2017. Net asset value per share was 44.54 cents as at Dec 31 last year, up from 41.45 cents as at Dec 31, 2017.

The group said that barring unforeseen circumstances, it will grow its revenue and remain profitable this year, notwithstanding the anticipated start-up loss for Raffles Hospital Chongqing.

Raffles Hospital Chongqing opened its doors on Jan 2, and will progressively provide more inpatient beds and other facilities.

Meanwhile, Raffles Hospital Singapore will proceed with the renovation of the existing hospital building, which is expected to be completed by the middle of this year.

The expansion will enable Raffles Hospital Singapore to meet market growth for the coming years, the group said.

Construction of Raffles Hospital Shanghai in Pudong is expected to be completed in the fourth quarter of this year.

A version of this article appeared in the print edition of The Straits Times on February 26, 2019, with the headline 'Raffles Medical's full-year profit inches up 0.4% to $71m'. Print Edition | Subscribe