SINGAPORE (May 14): Thomson Medical, formerly known as Rowsley, says first quarter losses widened to $6.5 million in 1Q18 from $1.55 million in 1Q17.

Revenue was 9% lower at $20.6 million compared to $22.6 million last year, mainly due to the consultancy business which has declined as a result of a slowdown in private sector building developments.

Other income increased by 25% to $3.19 million from $2.56 million a year ago, mainly attributable to higher wages reimbursement from the consultancy business.

Operating expenses increased by 23% to $9.68 million from $7.86 million in the previous year, mainly due to acquisition expenses for the healthcare business acquisition of $0.87 million, higher consultancy expenses of $0.20 million and higher hospitality operating costs of $0.47 million.

Fair value changes in purchase consideration payable dropped significantly to $0.46 million from $2.92 million last year. This arose from the remeasurement of the group’s purchase consideration payable in the form of shares of the group at a lower closing share price as at March 31.

During the quarter, the group recorded gains from foreign currency translation differences for foreign operations of $9.85 million, compared to a loss of $7.05 million in 1Q17.

As at March 31, the group’s cash and cash equivalents amounted to $18.78 million.

Tan Wee Tuck, CEO of Thomson Medical’s Real Estate business, says, “The Singapore property market has turned, and we are cautiously optimistic that this will translate into recovery for our consultancy business. Our orders momentum is picking up and we expect to do better in the year ahead.”

Looking ahead, the group will focus on its healthcare business and its existing real-estate business will be grouped under a new branding called RSP Holdings. As previously announced, the group is exploring options to divest its real estate business.

Shares in Thomson Medical closed at 8.9 cents on Monday.