Catalist-listed Econ Healthcare Group has announced earnings of $5.7 million for the FY2021 ended March, 41.2% higher than earnings of $4.0 million in the year before.

Earnings per share (EPS) stood 2.75 cents for the FY2021 on a fully diluted basis, compared to the FY2020’s 1.95 cents.

Total revenue for the full year stood 7.1% lower y-o-y at $20.4 million due to a decline in the number of private residents.

Meanwhile, aggregate revenue and operating subvention grant increased 1.6% y-o-y to $37.9 million due to higher operating subvention grants of $2.1 million for subsidised residents.

For more stories about where the money flows, click here for our Capital section

Want our latest Singapore corporate news stories for FREE

Follow our Telegram, Facebook for the latest updates round the clock

The higher grants were due to the increase in the total number of beds occupied by subsidised residents. They were, however, offset by lower fees from the group’s Medicare Centres and Nursing Homes and ancillary fees.

Ancillary fees fell to $1.1 million from $2.1 million in FY2021 due to the cessation of the group’s ambulance services. Management fees charged to the group’s related corporation WPHPL, which owned and operated West Point Hospital, were reduced, due to the cessation of operations of the hospital in August 2020.

Bed occupancy increased 11.1% y-o-y to 1,376 in FY2021.

Other income increased by over 10 times to $6.3 million from $588,000, mainly due to government grants, rent concessions and property tax rebates, as well as staff accommodation grants.

Operating profit for the FY2021 was up by 40.6% y-o-y to $8.2 million due mainly to the increase in other income and partly offset by IPO expenses and other expenses related to the Covid-19 pandemic.

The group has declared a final dividend of 0.78 cent per share, in line with its policy of distributing dividends of at least 35% of its earnings.

The dividend will be paid out on Sept 3.

SEE:Shares in Econ Healthcare closed 3.6% higher than IPO price on first day

“With secured expansion pipelines, we look forward to the operations of our 12th nursing home, with a 236 bed capacity, in Singapore next year. With two additional nursing homes in China contributing 680 bed capacity, the total Group’s bed capacity will increase from 1,376 in FY2021 to a total of 2,336 in 2022,” says Ong Chu Poh, founder, executive chairman and group CEO of Econ Healthcare (Asia).

“I am confident that Econ is in a leading position to pave the way in senior care for the present and the future. Our key differentiating factor is in the holistic delivery of care with a human touch, serving generations of seniors for more than three decades. We remain committed in bringing the best care and attention to families,” he adds.

As at March 31, cash and cash equivalents stood at $16.0 million.

As at 9.46am, shares in Econ Healthcare stood 0.5 cent higher or 1.4% up at 36 cents.