Pacific Healthcare’s revenue plunges 14% to $68.9m in 2011

The group’s medical segment suffered from a $10.8m loss due to the decrease in doctors.

According to a financial statement, the group’s decline in revenue for Q4 was $3.89m (19.1%) when compared to Q4 2010. For the full year of 2011, the group’s revenue declined by $11.34m (14.1%) from $80.29m to $68.95m as compared to the previous financial year.

The medical segment accounted for $10.78m of this decline and was attributable to the attrition of doctors. The group has since recruited medical consultants to replace most of the doctors who left and the decline is primarily due to the time lag required for the new doctors to establish themselves.

The operating expenses for Q4, 2011 and FY 2011 were correspondingly lower than the same periods of the previous year.

Employee Benefits reduced by 13.7% in 4Q 2011 from $10.94m to $9.44m. For FY 2011, it reduced by 11.3% from $45.36m to $40.22m.

Consumables and other cost of sales reduced by 15.9% in 4Q 2011 from $4.89m to $4.11m.

For FY 2011, the reduction was 12.6% from $17.67m to $15.44m. The reduction in these expenses was in line with the fall in revenue for 4Q 2011 and FY 2011.

Rental expense for FY 2011 reduced by 12.9% from $9.59m to $8.36m principally due to savings of $1.23m from discontinuing the Cancer Hospital project.

The Group fully impaired residual goodwill of $9.9 million in 4th quarter of 2011.

The total goodwill impairment in FY 2011 was $11.33m. In FY 2010, the group impaired $3.15m.

This resulted in the Group’s other expenses for the current reporting year increasing by $5.72m (68.1%) in 4Q 2011 and $6.5m (43%) in FY2011 when compared to the same periods in the previous year.

As at 31 December 2011, the Group’s current assets were at $22.44 m as compared to $31.22m as at 31 December 2010, a decrease of $8.8m. The cash and bank balance declined by $7.19m and stood at $9.75m as of 31 December 2011. This reduction was due principally to reduction of bank borrowings. The total liabilities reduced by $6.55m from $34.86m to $28.31m. In addition, the Group made an investment of $1.3m for a 51% stake in a new medical specialist centre in Jakarta, Indonesia.