ECON HEALTHCARE LIMITED (Company Registration No.: K)

Transcription

1 ECON HEALTHCARE LIMITED (Company Registration No.: K) Full Year Financial Statement and Dividend Announcement for the year ended 31 March 2005 PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS 1 (a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year. (i) Consolidated Income Statement For the financial year ended 31 March 2005 The figures have not been audited 31/3/ /3/2004 S$'000 S$'000 % Increase / (Decrease) Revenue 13,419 11, Other income (including interest income) Supplies and consumables (1,698) (1,276) 33 Staff costs (6,553) (5,202) 26 Depreciation of property, plant and equipment (601) (558) 8 Amortisation of goodwill (22) (11) 100 Operating lease expense (1,795) (1,668) 8 Other operating expenses (1,939) (1,571) 23 Profit from operations 1, Finance costs (252) (204) 24 Profit from ordinary activities before taxation Income tax expense (109) (226) (52) Profit from ordinary activities after taxation Minority interests Net profit for the period

2 (ii) Notes to Consolidated Income Statement Profit from operations is arrived at after (crediting)/charging the following: 31/3/ /3/2004 Increase / (Decrease) S$'000 S$'000 % Gain on disposal of quoted investments (265) - NM Allowance for doubtful debts NM Impairment loss on quoted investments 93 - NM NM Not meaningful

3 1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. Balance sheets as at 31 March 2005 Group Company 31/3/ /3/ /3/ /3/2004 S$ 000 S$ 000 S$ 000 S$ 000 Non-current assets Property, plant and equipment 20,795 18,493 14,809 12,506 Investment in subsidiaries - - 4,935 4,935 Investment in jointly-controlled entity * * - - Other investments 1,999 1,999 1,999 1,999 Goodwill on consolidation ,979 20,699 21,743 19,440 Current assets Inventories Trade and other receivables 1,967 1,546 1, Other investments Cash and cash equivalents ,133 3,164 2,300 1,705 Current liabilities Bank overdrafts Trade and other payables 2,420 2,492 4,050 3,405 Current portion of interest-bearing 1,502 2,505 1,502 2,505 bank loans Current portion of finance lease liabilities Current tax payable ,688 5,680 6,102 6,199 Net current liabilities (1,555) (2,516) (3,802) (4,494) Non-current liabilities Interest-bearing bank loans 6,897 4,127 6,897 4,204 Finance lease liabilities Deferred tax liability ,040 4,256 6,951 4,204 Minority interests 1,425 1, Net assets 12,959 12,261 10,990 10,742 Share capital 6,585 6,585 6,585 6,585 Share premium 3,382 3,382 3,382 3,382 Currency translation reserve (2) (1) - - Merger deficit (1,485) (1,485) - - Accumulated profits 4,479 3,780 1, Shareholders equity 12,959 12,261 10,990 10,742 * - Amount is less than $1,000

4 1(b)(ii) Aggregate amount of group s borrowings and debt securities. Amount repayable in one year or less, or on demand As at 31/3/2005 As at 31/3/2004 Secured Unsecured Secured Unsecured $ 000 $ 000 $ 000 $ 000 1, ,194 1,500 Amount repayable after one year As at 31/3/2005 As at 31/3/2004 Secured Unsecured Secured Unsecured $ 000 $ 000 $ 000 $ 000 6,951-4,204 - The secured bank loans and bank overdrafts are secured by a corporate guarantee from a subsidiary, Econ Nursing Home Services (1987) Pte Ltd and on the following assets:- Group and Company 31/3/ /3/2004 $ 000 $ 000 Freehold land and building at 9,466 9,480 valuation Freehold building at cost 2,452 2,502 Carrying amounts 11,918 11,982

5 1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated Statement of Cash Flows For the financial year ended 31 March /3/ /3/2004 S$'000 S$'000 Operating activities Profit from ordinary activities before taxation Adjustments for : Amortisation of goodwill Depreciation of property, plant and equipment Gain on disposal of quoted investments (265) - (Gain)/loss on disposal of property, plant and equipment (2) 1 Dividend income (6) - Interest expense Impairment loss on quoted investments 93 - Operating profit before working capital changes 1,536 1,562 Changes in working capital: Inventories (5) (15) Trade and other receivables (421) (155) Trade and other payables (72) (12) Cash generated from operations 1,038 1,380 Income taxes paid (270) (295) Cash flows from operating activities 768 1,085 Investing activities Dividend received 6 - Purchase of property, plant and equipment (2,903) (2,556) Net cash outflow on acquisition of subsidiary - (2,620) Proceeds from disposal of property, plant and equipment 2 - Fixed deposits charged to bank (95) - Proceeds from disposal of quoted investments Purchase of quoted investments (33) (2,732) Cash flows from investing activities (2,370) (7,908) Financing activities Interest paid (252) (204) Dividends paid (274) (274) Payment of finance lease liabilities (23) (16) Proceeds from bank loans 4,000 4,500 Repayment of bank loans (2,233) (654) Cash flows from financing activities 1,218 3,352 Net decrease in cash and cash equivalents (384) (3,471) Cash and cash equivalents at beginning of year 623 4,094 Cash and cash equivalents at end of year Notes to consolidated statement of cash flows Cash and bank balances Bank overdrafts (secured) (446) (167) Cash and cash equivalents at end of year

6 Fixed deposits amounting to $114,000 (2004: $19,000) are not available for use by the Group as they are charged to the bank for facilities granted by the bank. In 2004, the Group acquired property, plant & equipment with an aggregate cost of S$2,667,000 of which S$111,000 were acquired by means of hire purchase.

7 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediate preceding year. Group Statement of Changes in Equity for the financial year ended 31 March 2005 Share capital Share premium Foreign currency translation reserve Merger deficit Accumulated profits Total S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 At 1 April ,585 3,382 (1) (1,485) 3,780 12,261 Net profit for the year Dividends paid (274) (274) Translation differences relating to financial statements of subsidiary whose measurement currency is different from the Company - - (1) - - (1) At 31 March ,585 3,382 (2) (1,485) 4,479 12,959 At 1 April ,585 3,382 - (1,485) 3,325 11,807 Net profit for the year Dividends paid (274) (274) Translation differences relating to financial statements of subsidiary whose measurement currency is different from the Company - - (1) - - (1) At 31 March ,585 3,382 (1) (1,485) 3,780 12,261 Company Share capital Share premium Foreign currency translation reserve Merger deficit Accumulated profits Total S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 At 1 April ,585 3, ,742 Net profit for the year Dividends paid (274) (274) At 31 March ,585 3, ,023 10,990 At 1 April ,585 3, ,064 11,031 Net profit for the year (15) (15) Dividends paid (274) (274) At 31 March ,585 3, ,742

8 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There is no change in the Company s issued share capital since the last financial year ended 31 March Whether the figures have been audited, or reviewed and in accordance with which standard or practice. The figures have not been audited or reviewed. 3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter). Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied. The Group has adopted the same accounting policies and methods of computation in the financial statements for the current reporting period as compared with the audited financial statements of the Group as at 31 March If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. Not applicable. 6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately

9 preceding financial year, after deducting any provision for preference dividends. Earnings per share () a) Based on the weighted average number of ordinary shares on issue () 31/3/ b) On fully diluted basis () /3/ Earnings per share is calculated based on the Group's profit for the financial year attributable to shareholders of $973,000 (2004: $729,000) divided by the weighted average number of ordinary shares of 109,756,000 (2004: 109,756,000) of S$0.06 each in issue during the financial year. 7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the: (a) current period reported on; and (b) immediately preceding financial year. Net asset value per ordinary share based on issued share capital as at end of the period Group Company 30/3/ /3/ /3/ /3/ Net asset value per ordinary share as at 31 March 2005 and 31 March 2004 is calculated based on issued share capital of the Company at the end of the financial year of 109,756,000 (2004 : 109,756,000) ordinary shares. 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Revenue Our Group s revenue increased by 19% from S$11.2 million in FY 04 to S$13.4 million in FY 05. The increase was mainly attributable to the increase in occupancy at our medicare centres and contributions from the full year consolidation of the results of a subsidiary, West Point Family Hospital Pte Ltd ( WPFH ), that was acquired in October 2003.

10 Operating profit before tax and net profit Overall expenses increased in FY 05 mainly due to the full year consolidation of the expenses of WPFH for FY 05. Staff costs increased in FY 05 due to the additional staff employed by the Group arising from the expansion of business operations, as well as the full year consolidation of staff cost of WPFH. The net profit increased by 33% from S$0.73 million in FY 04 to S$0.97 million in FY 05. The increase is mainly due to the increase in revenue and gain on disposal of quoted investments amounting to S$265,000, partially offset by allowance made for doubtful debts of S$166,000 and impairment loss on quoted investments of S$93,000. Income Tax Expense In FY 05, there is an adjustment for overprovision of prior year taxation of $92K which resulted in a lower effective tax rate. Balance Sheet and Cash Flow Property, plant and equipment as at 31 March 2005 increased by S$2.3 million as as compared to 31 March 2004 mainly due to construction costs incurred for the renovation/upgrading works at the new medicare centres. Trade and other receivables increased by $0.42 million mainly due to the increase in revenue coupled with a slower debtor turnover for WPFH. In addition, there was an increase in amount due from the jointly-controlled entity of S$0.43 million due to payment on behalf of the jointly-controlled entity. Interest-bearing bank loans increased by S$1.8 million mainly to facilitate the set up and construction costs incurred for medicare centres. The Group had net current liabilities of $1.56 million as at 31 March The Group will continue to monitor and maintain sufficient cash and availability of funding through committed credit facilities from various financial institutions. The Group s cash flow generated from operations and proceeds from bank loans are used mainly in purchasing of fixed assets.

11 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. As a result of the recent change of Ministry of Health policies, the occupancy at WPFH was lower than expected in the fourth quarter of FY05. In this connection, the subsidiary suffered a loss, all be it marginal, in the second half of FY05. Other than the above, the current announced results are in line with the information previously disclosed in our announcement of the half year results for the period ended 30 September A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Going forward, the Group expects to see continued growth of its existing residential nursing care services with the set up of two new medicare centres which will be fully operational in FY 06. With its strategy to expand locally and regionally, the Group will continue to look for suitable healthcare business for expansion in the region. Given the above, the Board, barring any unforeseen circumstances, expects to continue to maintain profitability in FY Dividend (a) Current Financial Period Reported On. Any dividend declared for the current financial period reported on? Name of Dividend : First & Final Dividend type : Cash Dividend amount : 0.25 per ordinary share (net of tax) Par value of shares : S$0.06 Tax rate : 20% (b) Corresponding Period of the Immediately Preceding Financial Year. Any dividend declared for the corresponding period of the immediately preceding financial year? Name of Dividend : First & Final

12 Dividend type : Cash Dividend amount : 0.25 per ordinary share (net of tax) Par value of shares : S$0.06 Tax rate : 20% (c) Date payable. The proposed dividend, if approved at the Annual General Meeting, will be paid at a date to be announced. (d) Books closure date. Notice will be given at a later date on the closure of the Share Transfer Books and the Register of Members to determine the shareholders entitlements to the proposed dividends. 12. If no dividend has been declared/recommended, a statement to that effect. Not applicable.

13 PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results) 13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year. Operation of medicare centre and nursing homes Other ancillary services Eliminations Total Business segments S$'000 S$'000 S$'000 S$'000 S$ 000 S$ 000 S$'000 S$'000 Revenue and expenses Revenue 8,826 8,026 4,593 3, ,419 11,231 Inter-segment revenue (301) Total revenue 8,871 8,026 4,849 3,205 (301) - 13,419 11,231 Segmental results 2,879 2, ,079 3,199 Amortisation of goodwill (22) (11) Gain on disposal of quoted investments Dividend income 6 - Allowance for impairment loss on quoted investments (93) - Unallocated corporate expenses (2,142) (2,196) Finance costs (252) (204) Profit on ordinary activities before taxation and minority interests Income tax expense (109) (226) Minority interests Net profit for the financial year Assets and liabilities Segment assets 16,788 13,660 6,502 6,707 (361) - 22,929 20,367 Unallocated assets 3,183 3,496 Total assets 26,112 23,863 Segment liabilities 1, ,661 1,355 (361) - 2,306 2,344 Unallocated liabilities Borrowings 8,921 6,899 Current and deferred tax liabilities Total liabilities 11,728 9,936 Capital expenditure Capital expenditure 2,578 2, ,829 2,415 Unallocated capital expenditure Significant non-cash items 2,903 2,667 Depreciation Unallocated depreciation Gain on disposal of quoted investments Impairment loss on quoted investments (265)

14 14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments. The increased in turnover is contributed mainly due to the consolidation of full year results of WestPoint Family Hospital Pte Ltd as explained in paragraph 8 above. 15. A breakdown of sales. Sales reported for first half year Operating profit after tax before deducting minority interest reported for first half year Sales reported for second half year Operating profit after tax before deducting minority interest reported for first half year 31/3/2005 S$ /3/2004 S$ 000 6,690 4, ,729 6, A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year. Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details) 31/3/2005 S$ /3/2004 S$ 000 Ordinary Preference - - Total BY ORDER OF THE BOARD LEE SENG HUA Company Secretary 30 May 2005