Thomson Medical cuts H2 loss by 43.9%

Other operating expenses dropped 48.7% to $61.3m.

Thomson Medical Group narrowed its net loss by 43.9% to $19.5m for the second half ended 30 June, compared to $34.7m a year earlier.

The lower net loss came as other operating expenses fell 48.7% to $61.3m from $119.4m a year earlier, mainly due to a lower goodwill impairment loss of $15.2m on its Vietnam business, compared with $75.1m a year earlier.

Net finance costs also fell 14.7% to $23.2m, mainly due to lower interest rates, whilst revenue rose 5.8% to $207m.

Basic and diluted loss per share improved to $0.00074 from $0.00131 a year earlier.

“No dividend has been declared or recommended for the current financial year as the Group intends to conserve cash for its working capital needs and to fund any potential growth opportunities,” the group said.

The increase in revenue was attributable to higher revenue intensity in Singapore, reduced discounts to corporate customers, and higher revenue contributions from the Oncology Centre in Malaysia.

“In addition, the revenue in Vietnam has also increased due to higher patient volumes,” Thomson Medical said, adding that an unfavourable exchange rate offset the increase.

For the full year, net loss narrowed by 40.8% to $27.8m from $47m the previous year, whilst revenue rose 6.4% to $420.1m.

“The Group expects to continue incurring losses over the next 12 months as it continues its investment, expansion, and transformation,” it said.

Thomson Medical added that it is “well positioned to capture emerging opportunities and translate its capabilities into sustainable, quality growth, and greater value.”