Troubled healthcare provider Singapore Institute of Advanced Medicine (SIAMH) said on Thursday (Dec 26) that it’s not guaranteed the company can generate “significant” revenue and profitability.
“There is no assurance that the group will be able to expand its business and secure sufficient patients to generate significant revenue and profitability or, if attained, there is no assurance that the group will be able to sustain the profitability,” it said in response to queries from the Singapore Exchange (SGX).
The SGX RegCo had on Tuesday asked for the company to give further clarity on its annual report for the financial year ended Jun 30, said SIAMH.
Earlier this month, it was flagged for uncertainties over staying afloat, with auditors noting in a Dec 9 report the presence of material uncertainties that could cast significant doubt on its ability to continue as a going concern.
The group reported a loss after tax of S$37.4 million for FY2024, from continuing operations and net cash used in operating activities that amounted to S$12.9 million.
Founded in 2011, SIAMH focuses on diagnosing and treating various diseases and health conditions. These include cancer, as well as neurodegenerative and cardiovascular diseases.
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On Thursday, SIAMH said that its working capital adequacy is now dependent on the outcome of “certain future events” that include its ability to draw down on financial support and bridging loans, as well as whether it can ramp up its radiation therapy business.
It also said this month that it set up a strategic review committee to look into improving its performance. Among other steps, it will examine ways to improve the usage of the company’s proton beam therapy, photon radiation therapy facilities and diagnostic equipment.
Shares of SIAMH had plummeted 17.4 per cent below its initial public offering price at its Catalist debut in February.
SIAMH said it had experienced a shortfall in the increase in patients expected from certain trends it stated in its offer documents.
That led to its negative working capital and negative operating cash flow position for FY2024, it said on Thursday.
In its offer documents, SIAMH had expected to see an increase in patients purchasing health screening services due to more demand from medical tourism, among other factors. It had also expected pent-up demand for its diagnostic imaging services, among its other offerings.
The company said that since then, the shortfall in the growth of patient numbers could be attributed to factors such as pricing pressure, competition and lower-than-projected patient acquisitions.
Shares of SIAMH were last at S$0.055, having dived nearly 72 per cent since its IPO in February.
