SINGAPORE (Jan 9): Medical services group HC Surgical Specialists saw its earnings surge to $2.5 million for the 1H2018 ended November, from $0.1 million a year ago.

Excluding one-off items incurred in 1H2017, including IPO expenses, interest on redeemable convertible loan and fair value gain on derivative financial instruments, HCSS would have seen earnings of $1.5 million a year ago.

The increase was on the back of an 80% growth in revenue to $7.7 million in 1H18, largely due to the capturing of the full six months contributions from new subsidiaries.

Employee benefits expense increased by 93.3% to $2.6 million, mainly attributable to increased headcount from new subsidiaries acquired or incorporated.

Other expenses decreased by 18.6% to $1.6 million, mainly due to one-off IPO expenses of $1.3 million incurred in 1HFY2017. This was partially offset by higher allowance for impairment loss on doubtful investee non-trade receivables of $361,000 and operating expenses incurred by new subsidiaries acquired or incorporated.

As at end November, cash and cash equivalents stood at $5.4 million.

HCSS has declared an interim dividend of 1.1 cent per share for the period, payable on Jan 30. This is lower than the dividend of 1.8 cents per share paid in the corresponding period a year ago.

“We are encouraged by the results which are attributed to both organic and inorganic growth and are optimistic with the future,” says HCSS executive director and CEO Heah Sieu Min.

Heah adds that the group will continue to look for collaborative opportunities both locally and regionally, including further expansion into heartland areas.

Shares of HCSS closed flat at 72 cents on Tuesday.