Singapore Medical Group more than triples full-year profit to S$8.5m, proposes 1-for-20 rights issue

SINGAPORE - Catalist-listed Singapore Medical Group (SMG) saw a 250.8 per cent jump in net profit to S$8.5 million for its 2017 financial year ended Dec 31, from S$2.4 million a year ago.

Earnings per share rose to 2.02 Singapore cents as at end-December, from 0.84 Singapore cents previously.

Revenue climbed 63.5 per cent year on year to S$68 million, driven by growth across the group's healthcare and diagnostic and aesthetics segments.

SMG said robust core business operations have generated strong operating cash flows of S$12.8 million. It added that the group remains poised to scale its pan-Asian specialist healthcare platform in markets such as Vietnam, Indonesia, Malaysia and Australia.

SMG also proposed a renounceable non-underwritten rights issue of one rights share for every 20 existing shares at an issue price of 48 cents to raise up to S$10.8 million.

This will strengthen the balance sheet to support the group's high-growth trajectory led by inorganic and organic growth initiatives, it said.

Shareholders will be asked to vote on the rights issue at an extraordinary general meeting to be convened.