Thomson Medical Group (TMG) has reported a net loss of $47 million for the FY2025 ended June 30, largely attributable to a one-off, non-cash goodwill impairment and continued strategic investments.
This refers to the fair values of assets acquired and liabilities assumed during the acquisition of Far East Medical Vietnam Limited (FEMVN) which took place in 2023. As the purchase price allocation for the acquisition was incomplete as at June 30, 2024, a resultant goodwill of $406.4 million was accounted for which was paid off in this financial year.
“Importantly, all of the group’s operating assets remain profitable, with the loss driven primarily by high interest costs stemming from elevated gearing levels,” the group says.
TMG reported a revenue growth of 12.4% in FY2025 of $394.6 million, and a 6.9% y-o-y growth for 2HFY2025 to $195.6 million.
For the full year, TMG’s revenue from Singapore decreased by 4.9% whereas Malaysia grew by 5.2%. The decrease in revenue from Singapore was mainly attributed to the cessation of project-related services, such as managing transitional care facilities (TCF), which was partially offset by the increasing revenue intensity in Singapore.
Revenue growth in Malaysia was mainly attributed to the revenue contribution from the newly opened Oncology Centre and a favourable exchange rate resulted in higher translated revenue for FY2025, which was partially offset by the higher discounts given to customers and termination of certain customer contracts.
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Additionally, the increase was also driven by the full year revenue contribution from FEMVN.
Total assets of the group came in lower at $1.78 billion as at June 30, and total liabilities grew to $1.24 billion.
Cash and cash equivalents stood at $37.9 million as at end June.
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No dividends have been declared.
Shares in TMG closed 0.2 cents lower or 3.175% down at 6.1 cents on Aug 29.
