SINGAPORE (Feb 23): Healthway Medical Corporation (HMC) announced that it has narrowed its 4Q17 losses by 35.6% to $28.8 million compared to $44.8 million in 4Q16.
This brings FY17 losses to $34.8 million, 21.1% lower than $44.1 million recorded in FY16.
Revenue for the quarter increased by 24.6% to $29.0 million from $23.3 million last year, mainly due to the increase in revenue from the group’s Primary and Specialist & Wellness Healthcare segments.
The Group’s turnover for both Primary Healthcare segment and Specialist & Wellness Healthcare segment includes revenue from clinics owned by Healthway Medical Enterprise (HME), which was acquired in 2Q17.
Medical supplies, consumables and laboratory expenses increased by 18.4% to $5.34 million compared to $4.5 million a year ago.
Staff costs increased 28.2% to $20.2 million from $15.7 million last year.
Impairment loss on intangible assets more than quadrupled to $25.0 million from $6.05 million last year. This comprises of $51.2 million relating to goodwill and brand name recognised upon the acquisition of HME, offset by impairment of goodwill of $25 million recognised during the year.
The goodwill impairment of $25.0 million was made for both primary healthcare, as well as specialist and wellness business unit as a result of less than satisfactory performance for FY17 due to challenging operating environment.
Looking forward, the group expects to continue its optimisation strategy, and expand or consolidate its Primary healthcare and/or Specialist and Wellness business units based on continual performance assessment and evaluation.
Shares in HMC last traded at 5.1 cents on Thursday.