Catalist-listed HC Surgical Specialists saw its earnings more than double to a record $5 million in 1HFY2021 ended November, from $2.17 million a year ago.

This was mainly attributable to higher revenue during the half-year period, which rose 12.4% y-o-y to $11.0 million from $9.8 million the year before.

According to HC Surgical, the increase in revenue was mainly due to the increase in the number of patients after the circuit breaker measures were lifted in June 2020.

Other income rose by 52.3% y-o-y to $702,000.

The group also recognised fair value gain on financial assets of $1.5 million from the $601,000 loss in 1HFY2020.

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The gain was primarily due to the increase in share price of Medinex, which the company holds a direct interest of 22.9% and a deemed interest of 9.5% in the Medinex’s total issued share capital.

The fair value gain was also attributable to the increase in fair value of investment in Singapore Paincare Holdings after its listing on the Catalist board.

Employee benefits expenses rose to $450,000 due to the higher provision of bonus for the current financial year and increased headcount.

Operating lease expenses stood at a negative $41,000 due to the amount of rental reliefs received in 2021.

The increase in depreciation and amortisation expenses by $170,000 was due to recognition of additional lease liabilities during the year for new and renewed tenancy agreements for clinic premises.

Earnings per share (EPS) for the 1HFY2021 stood at 3.32 cents per share on a fully diluted basis, compared to 0.21 cents per share in the year before.

As at Nov 30, 2020, cash and cash equivalents stood at $1.2 million.

An interim dividend of 1.7 cents per share has been declared for the 1HFY2021, compared to 1.3 cents per share a year ago.

The dividend will be paid on Feb 2.

SEE:HC Surgical wins $5 mil investment from Temasek's Heliconia

“Although the Group has seen pent up demand for its services in HY2021 post circuit-breaker period, it is uncertain if this trend will continue. Nevertheless, the Group continues to explore opportunities to improve its financial position,” it says in a statement on Jan 13.

“With the Covid-19 situation still raging globally and the slowdown of the economic activity, both local and worldwide, the Group is mindful to keep its operations intact and will continue to strengthen its core competencies to serve the local population well,” it adds.

“We are happy that our hard work has shown good results. The HY2021 performance is built upon the cohesiveness and relentless spirit of all the staff amidst this Covid-19 pandemic situation, on top of patients’ belief and trust in our quality care for them. I am confident that as Singapore and the world emerge from the pandemic, HCSS will continue in our pursuit to bringing “quality healthcare to the doorsteps” of many more in our community," says CEO Dr Heah Sieu Min. 

"As a reward to our shareholders who have supported us during this difficult period, we have raised our interim dividend by 30% to $0.017 per ordinary share, which is in line with our improved core operational performance," Heah adds.

Shares in HC Surgical closed 1 cent lower or 2.8% down at 35 cents on Jan 13.