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25 March 2002
Raffles Hospital is expected to hit its break even point in 2002, way ahead of market expectations of start-up losses for the first three to five years.
Despite the economic slowdown and Raffles Hospital's maiden year loss, Raffles Medical Group (RMG) made an operating profit of $1.1 million before providing for exceptional items.
This was possible because of the strong revenue growth of 22.2% - $76.7 million as compared with $62.8 million in 2000 - and the good performance of its clinic and dental operations.
However, due to exceptional items of $1.7 million, a $6.6 million share of the revaluation deficit of the hospital property co-owned with Capital Land and $1.5 million of tax payable by profitable companies, the Group's operating loss after tax was $8.7 million.
Executive Chairman Dr Loo Choon Yong said: "I am confident the consolidated results of Raffles Medical Group will return to profitability this financial year.
Our fundamentals are strong and Raffles Hospital has already begun to pull its weight. We will continue to scale up the services provided by Raffles Hospital and it will achieve break even point this year."
Dr Loo added: "We expect continued growth in revenue as we broaden and strengthen our business base in Singapore and in the region. With signs of the global economic recovery, we are upbeat in our outlook for this year."
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