SINGAPORE – Healthcare provider Thomson Medical Group has posted a robust set of numbers for the first half.
The firm reported after markets closed on Friday that earnings before interest, taxes, depreciation and amortisation (Ebitda) jumped 41 per cent jump to $55.5 million in the six months to Dec 31, 2022 compared with the same period a year earlier.
Revenue increased 27 per cent to $184 million, due in part to higher patient loads and ongoing public-private projects in Singapore. In Malaysia, Thomson Hospital Kota Damansara (THKD) in Petaling Jaya expanded its capacity by opening a new 300-bed wing.
Hospital revenue grew 15 per cent to $91.3 million, while turnover from specialist services expanded 41 per cent to $92.5 million.
Net profit after tax rose 74 per cent, from $14 million to $24.3 million.
Manpower costs increased by 27 per cent to $62.6 million in the half-year, partly related to an increase in headcount for the new wing at THKD and also as a result of a competitive healthcare market with higher salary expectations.
Other operating expenses rose 11 per cent to $38.6 million due to an increase in professional fees, higher utility costs and the development of THKD’s new wing.
Chief executive Melvin Heng, noting that the sector faces a shortage of nurses, said he hopes to hire about 50 to 100 more nurses, as well as high performing individuals to join the corporate team.
“We are also streamlining and automating processes to cut down manpower needs, but similar to many healthcare providers out there, we also need nurses,” he added.
Cash and short-term deposits stood at $153.5 million as at Dec 31, providing the group sufficient funds to support growth plans.
Regional expansion into countries like Indonesia and Vietnam are a top priority in 2023, noted group executive vice-chairman Kiat Lim.
Expansion would be done via a variety of means, such as mergers and acquisitions (M&A). Without revealing the size of its war chest, Dr Heng noted that in general, M&As in the regional hospital scene typically cost at least $200 million.
“We may not want to do it alone, but together with partners, those that resonate with our brand and vision. When good opportunities arise, we will want to pursue them,” Mr Lim said.
Both men took on new leadership roles in late 2022.
Dr Heng added: “We are in for the long term, with a 10 to 15-year horizon. When we enter a project, we want to make sure that we are able to best optimise it, extract the most amount of value, and build the ecosystem around it to improve the standards of healthcare in South-east Asia.
“This is the kind of work that management is capable, and able to see it through its entire lifespan.”
Mr Lim noted: “As a Singapore-based brand that is very well known in the women and children’s space, this gives us a lot of credibility, and we want to export this brand and unlock its untapped value.
“We are not just another general hospital; we do have a unique proposition and a very sticky customer base because of our ability to deliver quality services.”
