27 August 2002

Raffles Medical Group posted a robust net profit growth of 51% in the first half of 2002, making $1.3 million compared with $0.9 million of the same period last year.

Raffles Hospital made the most positive impact on the Group's profitability. Its cashflow has been positive since March 2002, just one year after its start of operations. In the first half of 2002, Raffles Hospital operations expanded, posting a 42% turnover growth over the same period last year.

Coupled with the steady and consistent growth of the Group's clinic operations, Raffles Medical Group's consolidated turnover hit $41.8 million, up by 11% from the $37.7 million last year. The Group's EBITDA surged from $2.7 million to $4 million, an increase of 49%.

Executive Chairman Dr Loo Choon Yong commented: "We achieved these results despite a gloomy economic climate characterised by one of Singapore's worst recession and growing competition from neighbouring countries."

"Our resilience come from us being an integrated group practice," said Dr Loo. "We have established a solid reputation for providing quality integrated care and are building up a strong culture of service excellence through structured programmes."

He added: "With the support of our patients and corporate clients, we have the strength and resources to continue to grow by expanding the scale and scope of services."

The RMG Board expressed confidence that the positive performance and profit trends in the first half would continue into the second half.

Raffles Hospital is expected to continue contributing to the good performance of the Group. Said Dr Loo: "Raffles Hospital will breakeven for the second half of the year, way ahead of market expectations of start-up losses for the first three to five years."