Catalist-listed pain care medical services group, Singapore Paincare Holdings Limited (“SPCH”) (SGX: FRQ) has just released its financial results for the 12 months ended 30 June 2021 (FY2021).
The group has recorded approximately 17.0% rise in profitability to S$2.2 million on the back of a successful execution of its domestic expansion strategy.
It has also announced an expansion of services to include Traditional Chinese Medicine (TCM), which will pave the way for the group to integrate both Western and Eastern treatment interventions for holistic pain management.
Here are 5 highlights that investors should know about SPCH’s latest earnings.
1. Revenue rose approximately 13.6% to S$11.0 million
For FY2021, SPCH’s revenue grew by 13.6% year-on-year to S$11.0 million versus S$9.7 million in FY2020,
The higher revenue reflected increased contribution from its specialist and general clinics, one of which was appointment by the Ministry of Health as a Covid-19 vaccine administrator.
Concurrently, the group recorded maiden contribution from its acquisitions and expanded range of services.
The group expanded its network with the addition of 2 specialists and 3 primary care clinics. The new clinics are:
- Binjai Medical and Paincare Clinic (GM Medical Clinic) (51%; August 2020)
- KCS Anaesthesia Services Pte. Ltd. (40%; December 2020)
- CS Yoong Anaesthesiology and Pain Services Pte. Ltd. (100%; March 2021)
- Kovan Medical and Paincare Clinic Pte. Ltd. (60%, May 2021)
- Medihealth Bishan Clinic & Surgery (60%; July 2021)
The group has also expanded its range of treatment options for patients suffering from acute, chronic and post-operative pain through the establishment of Ready Fit Physiotherapy Private Limited in November 2020, to offer post-operation rehabilitation services.
2. Net profits increased approximately 17.0% to S$11.0 million
Meanwhile, SPCH’s net profits increased 17.0% year-on-year to S$2.2 million from the S$1.9 million in the previous corresponding year.
Commenting on the results, SPCH’s CEO, Dr Bernard Lee said, “We are glad to report improvements in our top and bottom lines amid a challenging year. While our plans for international expansion were hampered by the Covid-19 pandemic, our continued efforts to grow out network locally has yielded us good fruit. We look forward to the re-opening of borders among the Asian countries, when we can accelerate our growth momentum to extend out footprint abroad.”
3. Final cash dividend of 0.75 cents per share
In conjunction with the positive results, the group has declared a tax exempt one-tier final cash dividend of 0.75 cents per share, which is higher than the 0.70 cents per share paid out in the previous financial year.
Based on its current share price of S$0.19, the indicative dividend yield stands at 3.9%.
4. Cash and bank balance stood at a healthy S$15.8 million
As at the close of June 2021, the group’s cash and bank balance stood at a healthy S$15.8 million, compared to S$5.0 million as of 30 June 2020.
If we were to exclude the short and long term bank borrowings of S$3.7 million, SPCH would have a net cash position of S$12.1 million as of 30 June 2021.
5. Expansion into TCM services
Earlier this month, SPCH announced that it has incorporated a new wholly-owned subsidiary, Singapore Paincare TCM Wellness for the provision of TCM medical consultation, treatments and wellness programmes. This marks the group’s first foray into TCM and represents a new revenue stream.
To launch its TCM services, SPCH plans to open its largest integrated paincare and wellness centre at a 2,347-ft. premise in Marina Square by early 2022.
It will be the group’s 13th location and will feature 3 of the group’s brands that aim to bring relief and hope for those who suffer from difficult and long-term pain, by providing a suite of services from pain screening, pain treatments, rehabilitation to overall wellness enhancement.
The brands include DR+, general practitioner clinic with specialist interest in pain treatment, Ready Fit Physiotherapy for post-treatment rehabilitation, and its newly launched TCM brand Singapore Paincare TCM Wellness, for eastern treatments.