TIDMMEDI
RNS Number : 2398L
Medilink-Global UK Limited
29 September 2016
29 September 2016
MediLink-Global UK Limited
("MediLink" or "the Company")
HALF-YEARLY REPORT for the six months to 30 june 2016
MediLink, the provider of electronic healthcard network services
to insurance companies and corporate organisations, to help them
facilitate the administration of medical claims and healthcare data
management, announces its interim results for the six months ended
30 June 2016.
Financial highlights
-- Revenue increased by 33.7% to GBP941,000 (H1 2015: GBP704,000);
-- Revenue contribution from Malaysia operations increased by
57.3% to GBP648,000 (H1 2015: GBP412,000);
-- Operating profit of GBP382,000 (H1 2015: operating loss of GBP112,000); and
-- The improvement in operating performance was attributable to
revenue growth in Malaysia arising from the software licensing
contract with Etiqa Insurance Berhad and increased membership
levels, combined with continued cost saving measures within
MediLink's operations.
Operational highlights
Medilink Malaysia
-- The Directors continue to believe there is growing demand in
Malaysia for Third Party Administration ("TPA") services in the
Small and Medium Enterprises Sector as well as Government-link
agencies, Government-link bodies and Government-link Corporations.
MedilinkGlobal (M) Sdn Bhd ("MGMY") is now focusing its business
development effort in these growing market segments.
-- During the period under review, the marginal increase in
membership of 5,000 from the existing self-funded corporate clients
of Medilink Malaysia, contributed to the revenue growth of the
Group.
-- AIA Bhd (AIA) contributed an additional 139,000 members to
the membership growth of Medilink Malaysia during the period under
review.
In collaboration with Qualitas Medical Group Sdn Bhd, a
Malaysian based primary healthcare provider group with operations
in Malaysia and several countries in the Asia Pacific region,
Medilink Malaysia licensed the use of its Claims Management system
and front-end electronic healthcard network infrastructure, to
facilitate on-line-real-time member's eligibility validation and
submission of primary care claims. Through this collaboration, an
additional 15,000 members from a total of 10 employers newly
acquired as of September 2016, were added to the Medilink service
platform.
The Board of Directors of Medilink are confident that there will
be a continuous positive effect for Medilink Malaysia in the years
to come. Notwithstanding this, and further to the announcement
released by the Company on 27 July 2016, the Board considers that
it is no longer in the interests of the Company to continue to be
admitted to trading on AIM. As such, the Company will be seeking
shareholder approval for cancellation of the Company's shares from
trading AIM in the near future.
Enquiries:
MediLink-Global UK Limited Allenby Capital Limited
(Nominated Adviser and
Broker)
Shia Kok Fat, Chief Executive Nick Athanas
Officer
Tel: 00 603 2296 3028 James Reeve
Liz Kirchner
www.medilink-global.com Tel: +44(0)20 3328 5656
CHAIRMAN'S STATEMENT
The Board of MediLink is pleased to present the Group's
unaudited results for the six month period ended 30 June 2016,
which show an encouraging trend in improved operating performance
compared with the comparative period for the six months ended 30
June 2015.
FINANCIAL REVIEW
The Group recorded revenues of GBP941,000 (H1 2015: GBP704,000)
and an operating profit before tax of GBP363,000 (H1 2015:
operating loss of GBP112,000) for the six months ended 30 June 2016
from its continuing operations
Growth in revenues increased by 33.7% over the same period last
year, with revenue from Malaysia growing by 57.3% and TPA income
increasing by 21.5%. The Malaysian operating entities continued to
make the largest contribution of 67% (H1 2015: 59%) of the Group's
revenues for the period under review, whilst Singapore contributed
33% (H1 2015: 42%).
Revenue contribution from Malaysia operations increased by 57.3%
to GBP648,000 (H1 2015: GBP412,000). The Company's operations in
Singapore recorded a marginal increase in revenues, by 8.6% to
GBP317,000, compared with the same period last year (FY 2015:
GBP292,000). After taking into account inter-group transactions in
the period, as detailed in note 5 to the interim results, the
Group's revenue generated in the period totalled GBP941,000.
The Group achieved operating profit for the period compared to
the same period last year as a result of revenue growth in Malaysia
and the cost saving measures taken across all the subsidiaries of
MediLink resulting in a 11% reduction in administrative costs.
PERIOD IN FOCUS
The first half of 2016 witnessed another increase in revenue in
Malaysia from GBP412,000 in the first half of last year to
GBP648,000 for the six months to 30 June 2016, representing a 57.3%
growth over the same period last year. The number of enrolled
members in Malaysia as at the end of June 2016 was approximately
1,050,000 (30 June 2015: 990,000) and this had grown to 1,100,000
by the end of August 2016, while the number of corporate clients
contracted stood at 227 at 30 June 2016, compared to 226 at the
same stage last year. The number of healthcare providers operating
in our network in Malaysia now stands at 1,500 (1,500 at this stage
last year).
In the period under review, the software licensing income
contributed GBP198,000 (2015: GBP3,000), representing 27% of the
33.7% increase in the Company's turnover and 47% of the 57%
increase in Malaysia revenue.
The reduction of administration costs, combined with the strong
contribution from software licensing income and the growth in
membership levels, has helped to generate a healthy operating
profit in Malaysia, representing a significant improvement on the
loss incurred in the corresponding period last year. Management are
not anticipating a significant increase in operating costs in the
second half of 2016.
Further to the completion and deployment of the Claims
Management System licensing to Great Eastern Life Assurance Co.,
Ltd on 11 September 2015, the Malaysia entity had secured an
18-month contract with Etiqa Insurance Berhad for a licensing of
its bespoke Electronic Claims Clearing System (E.C.C.S).
PROSPECTS
With the impact of continued growth in TPA membership revenue,
as well as system licensing in our Malaysia operation, the
Directors are confident that the Group's financial performance
should continue to improve in the second half of 2016 and during
the financial years thereafter.
Notwithstanding the improved financial performance, it is the
opinion of the board that it is no longer in the long term
interests of the Company and its shareholders to continue to be
admitted to trading on AIM, as the Board considers that the costs
associated with the listing are not commensurate with the benefits
that the company is receiving. The Company is in the process of
preparing a circular, setting out further details on the rationale
for seeking cancellation and a further update will be provided in
due course.
Norman Lott
Chairman
Consolidated Statement of Comprehensive Income
Six month period ended 30 June 2016
Period Period Year
Ended Ended Ended
30.06.16 30.06.15 31.12.15
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Continuing Operations
Revenue 5 941 704 1,540
Cost of sales (620) (508) (1,166)
Gross profit 321 196 374
Other income / (expense) 334 - 4
Goodwill impairment - - -
Impairment Loss - (322)
Gain on disposal of
subsidiary 783
Administrative expenses (273) (308) (460)
Operating Profit / (Loss) 382 (112) 379
Finance expenses (19) (19) (44)
Profit/(Loss) before
taxation from continuing
Operations 363 (131) 335
Taxation 4 - - (13)
---------- ---------- ----------
Profit/(Loss) for the
year from continuing
operations 363 (131) 322
Discontinued Operations
Loss after tax for the
year - (58) (57)
---------- ---------- ----------
Profit/(Loss) for the
year 363 (189) 265
Other Comprehensive (loss)/profit
Exchange differences on translating
foreign operations (334) 296 9
---------- ---------- ----------
Total comprehensive profit for the period
net of tax 29 107 274
Profit/(Loss) for the year attributable to:
Owner of the Company 362 (190) 261
Non-controlling 1 1 4
363 (189) 265
---------- ---------- ----------
Total comprehensive profit attributable to: attributable to:
Owner of the Company 30 109 270
Non-controlling (1) (2) 4
---------- ---------- ----------
29 107 274
---------- ---------- ----------
Earning per share (pence)
Basic and Diluted 2 0.27 (0.15) 0.21
Earnings per share for
continuing operations
(pence)
Basic and Diluted 2 0.27 (0.11) 0.26
* In accordance with IAS33 "Earnings per share" and where the
Group has reported a loss for the period, the potential shares are
not dilutive. The Group has not issued any instrument with dilutive
effect.
Consolidated Statement of Financial Position
As at 30 June 2016
30.06.16 30.06.15 31.12.15
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 1,530 1,485 1,532
Property, plant and
equipment 6 71 35
Total non-current
assets 1,536 1,556 1,567
Current assets
Trade and other receivables 1,241 1,191 1,157
Cash and cash equivalents 473 383 573
---------- ---------- ---------
1,714 1,574 1,730
Assets held for sales 1,012 -
---------- ---------- ---------
Total current assets 1,714 2,586 1,730
TOTAL ASSETS 3,250 4,142 3,297
========== ========== =========
EQUITY
Capital and Reserves
Share capital 6 6,074 6,074 6,074
Share premium account 6 1,507 1,507 1,507
Reserves (7,224) (7,675) (7,522)
---------- ---------- ---------
Total shareholders'
equity 357 (94) 329
Non-controlling interests (1) (4) (1)
---------- ---------- ---------
Total equity interest 356 (99) 328
---------- ---------- ---------
Current liabilities 2,691 2,719 2,794
Liabilities directly
associated with the
assets held for sales - 1,349 -
Total current liabilities 2,691 4,068 2,794
------ ------ ------
Non-current liabilities
Other payables 145 129 118
Deferred tax liabilities 58 44 57
Total non-current
liabilities 203 173 175
------ ------ ------
TOTAL EQUITY AND
LIABILITIES 3,250 4,142 3,297
====== ====== ======
Consolidated Statement of Cash Flows
Six months ended 30 June 2016
30.06.16 30.06.15 31.12.15
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) before taxation 363 (131) 335
Loss before taxation for discontinued
operation - (58) (57)
Adjustments for:
Amortisation of intangible
assets 34 10 11
Depreciation of property, plant
and equipment 40 33 49
Gain on disposal of subsidiary (336) - (783)
Goodwill impairment -
Finance costs 10 12 27
---------- ---------- ---------
Cash from operating activities
before changes in working capital 111 (124) (401)
(Increase)/decrease in inventory (29) 112 -
(Increase)/decrease in trade
and other receivables (21) (256) 231
Increase in trade and other
payables 41 412 730
---------- ---------- ---------
Cash flows from operations 102 144 560
Interest paid - - -
Net cash used in operations 102 144 560
---------- ---------- ---------
Investing activities
Purchase of intangible assets - - (38)
Net cashflow arising from loss
of control of subsidiary (180)
Purchase of property, plant
and equipment - (39) (24)
Net cash used in investing
activities - (39) (242)
---------- ---------- ---------
Financing activities
Interest paid (10) (12) (28)
Term Loan - - -
Advance from shareholders - 5 60
Repayment of hire purchase
liabilities (2) (2) -
Net cash (used in)/generated
by financing activities (12) (9) 32
---------- ---------- ---------
Net increase in cash and cash
equivalents 90 96 350
Effect of exchange rate changes - - (31)
Cash and cash equivalents at
the beginning of the period 383 287 254
---------- ---------- ---------
Cash and cash equivalents at
the end of the period 473 383 573
---------- ---------- ---------
Consolidated Statement of Changes in Equity
Six months ended 30 June 2016
Share Share Exchange Retained Total Non Total
capital Premium Reserves Earnings Controlling
Interest
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 01
January 2014 6,045 1,507 5 (5,478) 2,079 (2) 2,077
Loss for the
year other comprehensive
income - - - (1,990) (1,990) (2) (1,992)
Exchange differences - - (59) - (59) (1) (60)
--------- --------- ---------- ---------- -------- ------------- --------
Total comprehensive
loss for the
year - - (59) (1,990) (2,049) (3) (2,052)
Issue of shares 29 - - - 29 - 29
--------- --------- ---------- ---------- -------- ------------- --------
Balance at 31
December 2014 6,074 1,507 (54) (7,468) 59 (5) 54
Loss for the
year other comprehensive
income - - - 261 261 4 265
Exchange differences - - 9 - 9 - 9
--------- --------- ---------- ---------- -------- ------------- --------
Total comprehensive
loss for the
year - - 9 261 270 4 274
Transfer of
foreign exchange
attributable
to the loss
of control of
subsidiary - - 122 (122) - - -
--------- --------- ---------- ---------- -------- ------------- --------
Balance at 31
December 2015 6,074 1,507 77 (7,329) 329 1 328
--------- --------- ---------- ---------- -------- ------------- --------
Profit for the
year - - - 362 362 1 363
Exchange differences - - (335) - (335) - (335)
--------- --------- ---------- ---------- -------- ------------- --------
Total comprehensive
loss for the
year - - (335) 362 27 1 28
Issue of shares
--------- --------- ---------- ---------- -------- ------------- --------
Balance at 30
June 2016 6,074 1,507 (258) (6,967) 356 - 356
--------- --------- ---------- ---------- -------- ------------- --------
Notes to the Interim Financial Information
Six month period ended 30 June 2016
1. Basis of preparation
The financial information has been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union. The principal accounting policies used in
preparing the interim results are consistent with those the group
expects to apply in its financial statements for the year ending 31
December 2016 and are consistent with those disclosed in the
group's Report and Financial Statements for the year ended 31
December 2015.
The interim results have not been reviewed nor audited by the
Company's auditors. The comparatives for the year ended 31 December
2015 are not the Company's full statutory financial statements for
that period. A copy of the statutory financial statements for that
period, which were prepared under IFRS, have been delivered to the
Registrar of Companies. The auditors' report on those accounts was
unqualified, but included an emphasis of matter in respect of going
concern:
"In forming our opinion on the financial statements, which is
not modified, we have considered the adequacy of the disclosure
made in note 2 (v) to the financial statements concerning the
company's ability to continue as a going concern. The financial
statements have been prepared on the going concern basis, which
depends on the continued shareholder support and the generation of
increased revenues. These conditions, along with the other matters
explained in note 2 (v) to the financial statements, indicate the
existence of a material uncertainty which may cast significant
doubt about the company's ability to continue as a going concern.
The financial statements do not include the adjustments that would
result if the company was unable to continue as a going
concern."
Whilst the financial information included in this Interim
Financial information has been prepared in accordance with the
recognition and measurement criteria of IFRS, it does not include
sufficient information to comply with IFRS.
The interim results announcement was approved by the board on 29
September 2016.
2. Basic and diluted loss per ordinary share
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period. In
accordance with IAS 33 and where the Group has reported a loss for
the period, the shares are not dilutive.
Period ended Period Year ended
30.06.16 ended 31.12.15
30.06.15
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Profit (loss) before
taxation
* Continued operations 363 (131) 322
* Discontinued operations - (58) (57)
363 (189) 265
------------- ------------- ------------
Basic weighted average
shares in issue 121,492,004 121,492,004 121,492,004
Basic and diluted
earnings(loss) per
share based on issued
share capital (pence) 0.27 (0.17) 0.21
------------- ------------- ------------
3. Dividend
The Directors do not propose a dividend in the period.
4. Taxation
No charge to taxation arises in the six months ended 30 June
2016.
5. Turnover and segmental analysis
Per IFRS 8 operating segments are based on internal reports
about components of the group, which are regularly reviewed and
used by the Board of Directors being the Chief Operating Decision
Maker ("CODM") for strategic decision making and resource
allocation, in order to allocate resources to the segment and to
assess its performance. The Group's reportable operating segments
are as follows:
(I) Third party administrator
(II) Software licensing
The CODM monitors the operating results of each segment for the
purpose of performance assessments and making decisions on resource
allocation. The management has organised the entity based on
differences in products and services. Third party administrator
segment is derived from aggregating China, Malaysia and Singapore
entity while Software licensing segment represent a single entity
from Malaysia. Performance is based on external and internal
revenue generations and profit before tax, which the CODM believes
are the most relevant in evaluating the results relative to other
entities in the industry. Segment assets and liabilities are
presented inclusive of inter segment balances, as inter-segment
pricing. Information regarding each of the operations of each
reportable segment is included below.
Third party Software
30 June 2016 administrator licensing Consolidation Total
(unaudited)
GBP'000 GBP'000 GBP'000 GBP'000
External revenue 750 191 (27) 914
Internal revenue 20 7 - 27
Total revenue 770 198 (27) 941
-------------- ----------- --------------------- --------
Interest expenses (21) - - (20)
Depreciation
and amortisation (38) - - (109)
Corporation tax - - - -
Earning before
tax (EBT) 36 (10) - 26
Assets 4,325 169 (1,244) 3,250
Liabilities (5,794) (336) 3,237 (2,893)
-------------- ----------- --------------------- --------
(i) The assets of third party administrator include the goodwill
on consolidation of GBP1,338,000.
Revenues from the Group's major customers AIA Berhad amounted to
GBP356,151: (H1 2015: GBP276,621) arising from sales in the third
party administrator segment.
Third party Software
30 June 2015 (unaudited) administration licensing Consolidation Total
GBP'000 GBP'000 GBP'000 GBP'000
External revenue 701 3 - 704
Internal revenue - - - -
Total revenue 701 3 - 704
--------------- ----------- -------------------- --------
Interest expenses (20) - - (20)
Depreciation and
amortisation (109) - - (109)
Corporation tax - - - -
Earning before
tax (EBT) (58) (6) (67) (131)
Assets 6,602 182 (2,642) 4,142
Liabilities (7,129) (329) 3,217 (4,241)
--------------- ----------- -------------------- --------
The assets of third party administrator include the goodwill on
consolidation of GBP1,338,000.
Third party Software
31 December 2015 administration licensing Consolidation Total
(audited)
GBP'000 GBP'000 GBP'000 GBP'000
External revenue 1,290 250 - 1,540
Internal revenue 133 79 (212) -
Total revenue 1,423 329 (212) 1,540
--------------- ----------- ---------------- --------
Interest revenue - - - -
Interest expenses 44 - - 44
Depreciation and
amortisation 59 1 - 60
Impairment loss - - (322) (322)
Earning before
tax (EBT) 94 (13) 254 335
Assets 4,404 152 (1,259) 3,297
Liabilities (5,616) (284) 2,931 (2,969)
--------------- ----------- ---------------- --------
The assets of third party administrator are including the
goodwill on consolidation of GBP1,338,000 (2014: GBP1,338,000).
Revenues from a customer amounted to GBP280,142 (2014:
GBP263,249) arising from sales by third party administrator
segment.
The geographical split of revenue and non-current assets arises
as follows:
30 June 2016 Jersey Singapore Malaysia Total
(unaudited)
GBP'000 GBP'000 GBP'000 GBP'000
Revenue - 317 648 965
Intangible assets - - 147 147
Goodwill 1,338 - - 1,338
PPE - - 6 6
-------- ------------------ ----------- --------
30 June 2015 Jersey Singapore Malaysia Total
(unaudited)
GBP'000 GBP'000 GBP'000 GBP'000
Revenue - 292 412 704
Intangible assets - - 147 147
Goodwill 1,338 - - 1,338
PPE - - 71 71
-------- ------------------ ----------- --------
31 Dec 2015 Jersey Singapore Malaysia Total
(audited)
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 3 539 998 1,540
Intangible assets - - 194 194
Goodwill 1,338 - - 1,338
PPE - - 35 35
-------- ------------------ ----------- --------
6. Share capital
MGL have one class of ordinary share capital which carry no
rights to fixed income, any preferences or restrictions.
Authorised share capital (unaudited):
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Authorised:
200,000,000 Ordinary
Shares of 5p each 10,000 10,000 10,000
Issued:
121,492,004 Ordinary
Shares of 5p each 6,074 6,074 6,074
7. Foreign currency exchange rate
The following significant exchange rates applied during the
period:
Average Reporting
Rate Date
------------ -------- ----------
GBP1 : SGD 1.9626 1.8082
------------ -------- ----------
GBP1 : MYR 5.7529 5.3971
------------ -------- ----------
GBP1 : HKD 12.1386 10.3926
------------ -------- ----------
8. Nature of financial information
These interim results will be available shortly on the Company's
website, www.medilink-global.com in accordance with the AIM Rules.
Further copies can be obtained from the registered office at
Queensway House, Hilgrove Street, St Helier, Jersey JE1 1ES.
9. Nature of financial information
There are no seasonal factors that materially affect the
operations of any company in the Group.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFISASIAFIR
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