SINGAPORE (June 5): Asian Healthcare Specialists saw its earnings surge more than nine-fold to $1.4 million for the 1H ended March, from $0.2 million a year ago.

This was mainly attributable to a steep drop in expenses from purchased and contracted services, which fell 98.3% to $64,000 during the half-year period, from $3.7 million a year ago.

The decrease was due to termination of the consultancy services agreements with four of its orthopaedic specialists, which were replaced with the commencement of employment agreements with them.

Consequently, staff costs jumped five-fold to $1.7 million in 1H18, compared to $0.3 million a year ago.

1H18 revenue was stable at $5.6 million.

Other operating expenses more than doubled to $1.3 million in 1H18, from $0.6 million a year ago, on the back of IPO-related expenses. 

As at end March, cash and cash equivalents stood at $2.3 million.

The group has declared an interim dividend of 0.2 cent per share for the period.

Looking ahead, AHS says its strategic focus is on growth plans via acquisitions, joint ventures or strategic alliances, and investment into synergistic businesses, as well as investment in human talent, both at management level and in healthcare professionals, in order to strengthen the group’s market position.

While the group expects the growing demand for medical services in Singapore is expected to continue on the back of a growing and ageing population, coupled with an increasing percentage of insured patients, it adds that it is mindful that the healthcare business remains highly competitive.

Shares of Asian Healthcare Specialists closed half a cent higher at 27.5 cents on Monday.