Raffles Medical Group says it has posted a 20.3% rise in 2Q earnings of $10.6m for the second quarter ending June 30 2010 (2QFY2010) compared to $8.8 million for 2QFY2009. Group revenue rose 8.7% to a record $58.6 million from $53.9 million.

Revenue of Hospital Services grew by 11.2% and Healthcare Services increased by 3.7%. All divisions of the group continued to contribute positively to the growth in revenue.

Improved operating efficiencies, the recruitment of more specialist consultants, higher patient load and a wider range of medical specialties contributed to the improved profit from operating activities which grew from $11 million in Q2 2009 to $13 million, an increase of 18.5%.

As at 30 June 2010, the group had a healthy net cash position of $61.6 million from the continued strong operating cashflows generated by the group after distributing final dividend for the financial year ended 31 December 2009 of $10.5 million.

Raffles Hospital says it has received the grant of outline permission from the Urban Redevelopment Authority to build an additional 102,408 square feet of space on its site. This additional area will enable the group to expand existing services as well as to develop new facilities and services at the hospital. Details of design are being finalised for further submission.

In June 2010, the group started managing a medical centre in China – Raffles Medical Shanghai. It will provide professional medical and dental care to expatriates and the local population. The initial reception since opening has been encouraging.

Barring unforeseen deterioration in the external environment, Raffles Medical’s directors are optimistic that the group will continue to perform well in 2010.