PACIFIC HEALTHCARE HOLDINGS LTD. (Company Registration Number: 200100544H) (Incorporated in Singapore on 26 January 2001)
The Board of Directors (the 'Board') of Pacific Healthcare Holdings Ltd. (the 'Company') refers to the announcement dated 5 September 2013 in relation to the Company being placed on the watch- list. Pursuant to Rule 1313(2) of the Listing Manual which requires the Company to provide a quarterly update on its financial situation, including its future direction, or other material development that may have significant impact on its financial position, the Board wishes to provide the following update on the Company and its subsidiaries (the 'Group').
Revenue for the quarter ended 30 September 2015 ('Q3 2015') declined by 4% from S$12.5m to S$12.0m when compared to the corresponding period of last year ('Q3 2014'). This was mainly attributable to general decline in medical tourism and the departure of two doctors.
The decrease in other income was mainly due to the change in recognition of dividend income after PHH raised its stake in Pacific Healthcare Nursing Home Pte Ltd from 35% to 51%.
Total expenses fell by S$3.5m for Q3 2015 vs Q3 2014. Overall operating expenses were lower in Q3 2015, mainly due to the decrease in direct costs in line with the decrease in revenue and other expenses such as bad debts and allowance for doubtful debts. Depreciation expenses decreased by 55% from S$0.8m to S$0.4m due to the disposal of fixed assets relating to Pacific Healthcare Imaging and fixed assets written off.
For Q3 2015, the group incurred a loss attribute to the shareholders of S$2.3m as compare to loss of S$4.5m in Q3 2014.
As at 30 September 2015, the Group's cash and bank balance decreased by S$1.6m to S$1.2m mainly due to the decrease in revenue, and will increase when the sale of the business of Pacific Healthcare Imaging is completed in due course.
The overall environment for the specialist medical business remains challenging in the foreseeable future due to the strong Singapore dollar, and its impact on medical tourism.
The nursing home business continues to be robust and are running at high bed utilization rates. They provide a stable source of revenue and profitability for the Group.
The Group's turnaround plan, centered on the disposal of its loss-making facilities, is still on track. On 3 August 2015, the Group had sold its Imaging business to Lifescan Imaging Pte Ltd. The completion of the sale is expected after shareholders' approval at an EGM to be convened in due course.
The trading in the Company's securities was suspended on 3 July 2015. As announced on 3 September 2015, the Company is pending receipt and completion of an exit offer.
By Order of the Board
Wong Yee Kong (Andrew) Chief Executive Officer 13 November 2015
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