MEDILINK-GLOBAL UK LTD ('Medilink', the 'Company' or the 'Group')
Medilink-Global UK Limited (AIM: MEDI), the electronic health card network service provider, is pleased to announce its audited results for the year ended 31 December 2014. A copy of the annual report and accounts and notice of the Company's annual general meeting, to be held at C-16-3, Level 16, Tower C, Wisma Goshen, Plaza Pantai, No.5, Persiaran Pantai Baru, 59200, Kuala Lumpur, Malaysia at 11.00 am (Malaysia time) on 27 October 2015 has been posted to shareholders today and will be available shortly from the Company's website, www.medilink-global.com.
Total revenue for the year increased by 7% to £1,405,000 (FY2013: £1,316,000). There were significant increases in revenue contribution from Singapore to £643,000 (FY2013: £508,000)
Software licensing revenues increased fivefold to £109,000 (FY2013: £22,000) helped by a contribution from the Great Eastern Life Assurance Co., Ltd contract of SGD625,600
The significant increase in the loss after taxation from continuing operations of £1,931,000 (FY 2013: loss after tax of £509,000) was as a result from a conservative approach taken in assessing the carrying value of the Group's intangible assets, including goodwill, which resulted in an impairment provision of £1,700,000 in the period under review. There was a marked improvement in the underlying trading result with increased revenues, higher margins, reduced overheads and a significant improvement in the contribution from Medilink (Beijing) TPA Services Co Limited.
Administrative costs have reduced by 13% to £511,000 (FY 2013 : £587,000)
On 1 August 2014, the Group entered into a sale and purchase agreement with Selfdoctor (Beijing) Technology Co., Limited to divest 51% of its interest in Medilink (Beijing) TPA Services Co Limited. The divestment was deemed to have fully completed on 10 July 2015 when the transfer of ownership took place. With a strategic local partner in place and with enhanced financial support it is believed this will add value to the China business and help expand Medilink China's business activities.
The business highlights of Medilink-Global UK Limited (the 'Company') in the following regions. Malaysia and Singapore
G r eat E as tern L if e As s uran c e Co. L td ( ' G E Si nga por e' )
As previously reported Medilink-Global (Asia) Pte Ltd received an order from GE Singapore in 2013, to study and outline the user requirement and system specification and commenced work to develop and implement its Claims Management System in 2014. The system went live in September 2015.
AIA Co., Ltd
American International Assurance Berhad (AIA) had renewed its agreement with Medilink Malaysia for another 2 years. AIA had contributed more than 100,000 members to the membership growth of Medilink Malaysia during the period under review.
The Directors of Medilink are confident that there will be a continuous positive effect for Medilink Malaysia from AIA in the years to come.
Syarikat Takaful Malaysia Bhd.
Syarikat Takaful Malaysia Bhd is a 30 year old Takaful insurance company that was incorporated on the recommendation of the 'Task Force on the Study for the Establishment of an Islamic Insurance Company in Malaysia' (Task Force) and was set up by the Government of Malaysia in 1981.
Medilink Malaysia entered into a yearly renewal third party administration (TPA) contract with Syarikat Takaful Malaysia Bhd, during the period under review.
Medilink Malaysia secured 4 new corporate clients whose group hospitalisation and surgical insurance are insured by Syarikat Takaful Malaysia Bhd. It contributed a membership size of 20,000 to the growth of Medilink Malaysia in the period under review.
The Board of Directors are confident that the collaboration between the parties will bring a positive and significant increase in TPA membership levels for the years to come.
Self-funded and Government-Linked Employers market
Medilink Malaysia made little in-roads into the self-funded employer market and government-linked organisations, which collectively contributed 17,000 members to the membership growth of Medilink Malaysia during the period under review.
Licensing of its proprietary Claims Management System
Medilink-Malaysia is currently finalising an 18 months Claims Management System licensing contract with an established Malaysian insurance company.
Peo pl e's Re pub lic of Chin a ( ' China' )
Medilink (Beijing) TPA Co., Ltd ('Medilink China') remains a subsidiary as at 31 December 2014 and, as such, the financial statements reflect 100% of the subsidiary's results However it has been treated as a discontinued operation as the Group has sold a 51% interest in the Company, as announced on 1 August 2014, which has resulted in a loss of control. It is now a 49% held associate company of Medilink-Global UK Limited but continues to secure and renew its Third Party Administration ('TPA') service contracts with reputable and established insurers in China.
Contract renewals
During the financial year under review, Medilink China renewed its contract with 7 insurance companies.
New contracts secured
During the financial year under review, Medilink China secured 6 new TPA contracts within the insurance industry; they are, Manulife-Sinochem, Beijing Hezheng Insurance Broker Co., Ltd, CPIC Allianz Health Insurance Co., Ltd, Funde Sino Life Insurance Co., Ltd Shanghai Branch and Sunshine Life Insurance Co., Ltd.
For further information contact:
MediLink-Global UK Limited Shia Kok Fat, Chief Executive Officer www.medilink-global.com | Tel: + 603 2296 3028 |
Allenby Capital Limited (Nominated Adviser and Broker) Nick Athanas, James Reeve | Tel: +44 (0)20 3328 5656 |
Medilink-Global UK Limited is pleased to present the Group's results for the year ended 31 December 2014.
The Group recorded revenues of £1.405 million (FY 2013: £1.316 million) and a loss after taxation of
£1,992,000 (FY 2013: £678,000) for the year ended 31 December 2014.
Despite the increase in revenues which were largely due to good revenue growth from our Singapore operations, the Group recorded an increase in the loss after taxation from £678,000 to £1,992,000. This
was largely due to the goodwill impairment of £1,700,000 reflecting the loss of control of the operating segment in China as well as the ongoing economic uncertainty impact on the group's operations.
The underlying trading result itself improved significantly as a result of increased revenues, higher margins, reduced overheads and an improved contribution from Medilink (Beijing) TPA Services Co Limited,
Malaysia
As previously reported the acquisition of ING Malaysia by AIA is an important corporate development which we expect will create a positive impact for Medilink Malaysia in terms of larger business volumes and enhanced market position. The newly-merged insurance entity has become the number one insurer in the country in terms of total premium size and policy holders' base. In this respect our business with AIA Malaysia, both conventional and Takaful business, grew by 3% in 2014.
AIA had fully completed its merger exercise to operate under a single license in Malaysia after acquiring ING Group's local insurance operations. We have seen an increase of 100,000 members in the Medilink Malaysia portfolio.
We expect continuing growth in TPA revenue arising from both the self-insured as well as insured sector in the coming years.
Singapore
Revenues from Singapore increased by 26% to £643,000 (FY 2013: £508,000) from the previous year while the number of healthcare providers in our network remained at 146.
China
Revenues from Medilink-China continued to grow steadily, achieving a growth rate of 18% in the period under review to £886,000 (FY 2013: £753,000) as a result of the growth in membership enrolment arising from the TPA contracts and healthcare management service contracts with its portfolio of Insurance Companies. Membership levels increased by 32% from 19,000 at the end of 2013 to 25,000 by the end of 2014. At the date of this report membership levels are standing at approximately 30,000.
Medilink China's operating costs have further stabilised which resulted in only a marginal increase of 3% over the previous year. The overall improvement in MCN's performance meant that the Group's share of the losses incurred were reduced by £108,000 year on year.
The average monthly revenue per employee during the year for our China operations was £1,420, an improvement of approximately 9% compared to the previous year figure of £1,307. We expect the monthly average revenue per employee for China to continue to improve as business volumes increase.
To date, we have signed TPA and healthcare management service contracts with 34 insurance companies in China, of which 6 came on board during the FY 2014. At the end of 2014, there were 560 (FY 2013: 549) healthcare providers operating throughout our network in China and Hong Kong.
The auditor's report to the financial statements for the year ended 31 December 2014 includes an emphasis of matter in relation to the Group's ability to continue as a going concern. The Company has historically received the support of certain of its key shareholders and directors. Shia Kok Fat, the Company's Chief Executive, has indicated that he will be willing to continue to support the business, should it be required. Notwithstanding this, the Directors are confident in the Group's ability to continue as a going concern and consider that the Group is well placed for revenue growth.
Medilink will continue to provide excellent services to its customers and with our new initiatives in Malaysia and our continued membership growth in China we anticipate the Group to further reduce its losses during 2015 and move towards profitability in 2016.
We will continue to strengthen all areas of the organisation and maintain our position as a leading regional TPA in the Asia Pacific region with a global servicing capacity.
The Company continues to closely monitor its cash position, which remains constrained. Cost cutting measures implemented during 2013 and 2014 have assisted in this regard. The Directors will continue to explore options for supplementing the Group's cash resources, at both the Company and subsidiary level.
On behalf of the board, I would like to extend our thanks to our business partners, customers, associates, healthcare providers and valued shareholders for their support throughout the year. We also wish to thank the management and staff of the entire Medilink-Global Group for their continued loyalty and commitment in discharging their duties.
Chairman
30 September 2015 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2014Note | Restated | ||
2014 | 2013 | ||
Continuing operations | £'000 | £'000 | |
Revenue | 3 | 1,405 | 1,316 |
Cost of sales | (1,154) | (1,227) | |
Gross profit | 250 | 89 | |
Other income | 68 | 16 | |
Goodwill impairment | (1,700) | - | |
Administrative expenses | (511) | (587) | |
Operating loss | (1,893) | (482) | |
Finance expenses | 7 | (38) | (23) |
Loss before taxation from continuing operations | (1,931) | (505) | |
Taxation | 8 | - | (4) |
Loss for the year from continuing operations | (1,931) | (509) | |
Discontinued operations | |||
Loss after tax for the year from discontinued operations | 21 | (61) | (169) |
Loss for the year | (1,992) | (678) | |
Other comprehensive loss | |||
Items that may be reclassified subsequently to profit or loss: | |||
Exchange difference on translation of foreign subsidiaries | (60) | 132 | |
Total comprehensive loss for the year attributable to equity holders | (2,052) | (546) | |
Loss for the year attributable to: | |||
Owners of the company | (1,990) | (676) | |
Non-controlling interest | (2) | (2) | |
(1,992) | (678) | ||
Total comprehensive loss attributable to: | |||
Owners of the company | (2,049) | (544) | |
Non-controlling interest | (3) | (2) | |
(2,052) | (546) | ||
Loss per ordinary share (pence) | 20 | ||
Basic and diluted* | (1.64) | (0.56) | |
Loss per ordinary share for continuing operations (pence) | |||
Basic and diluted* | (1.59) | (0.42) | |
The notes to the financial statements form an integral part of these financial statements.
* In accordance with IAS 33 'Earnings per share' and as the Group has reported a loss for the period the shares are not diluted. The Group has not issued any instruments with dilutive effects.
COMPANY STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20142014 | 2013 | |
£'000 | £'000 | |
Administrative expenses | (266) | (231) |
Impairment loss | (1,550) | - |
Operating loss | (1,816) | (231) |
Loss before taxation | (1,816) | (231) |
Taxation | - | - |
Loss profit after taxation | (1,816) | (231) |
The notes to the financial statements form an integral part of these financial statements. All operations of the Company are continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2014Note | 2014 | 2013 | |
ASSETS | £'000 | £'000 | |
Non-current assets | |||
Property, plant and equipment | 9 | 75 | 163 |
Intangible assets | 10 | 1,505 | 3,140 |
Total non-current assets | 1,580 | 3,303 | |
Current assets | |||
Trade and other receivables | 12 | 1,388 | 1,107 |
Cash and cash equivalents | 13 | 254 | 304 |
1,642 | 1,411 | ||
Assets held for sale | 21 | 876 | - |
Total current assets | 2,518 | 1,411 | |
TOTAL ASSETS | 4,098 | 4,714 | |
EQUITY | |||
Equity attributable to the equity holders of the parent: | |||
Share capital | 19 | 6,074 | 6,045 |
Share premium | 1,507 | 1,507 | |
Reserves | (7,522) | (5,473) | |
Total shareholders' equity | 59 | 2,079 | |
Non-controlling interests | (5) | (2) | |
Total equity interest | 54 | 2,077 | |
Current liabilities | |||
Term loan | 18 | 161 | - |
Trade and other payables | 14 | 2,628 | 2,115 |
Hire purchase liabilities | 15 | 3 | 3 |
2,792 | 2,118 | ||
Liabilities directly associated with the assets held for sale | 21 | 1,090 | - |
Total current liabilities | 3,882 | 2,118 | |
Non-current liabilities | |||
Hire purchase liabilities | 15 | - | 7 |
Advance from a director | 17 | 118 | 318 |
Term loan | 18 | - | 150 |
Deferred tax | 16 | 44 | 44 |
Total non-current liabilities | 162 | 519 | |
TOTAL EQUITY AND LIABILITIES | 4,098 | 4,714 | |
The notes to the financial statements form an integral part of these financial statements. Approved and authorised by the Board on 30 September 2015 and signed on its behalf by:
Shia Kok Fat
Director COMPANY STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2014Note | 2014 | 2013 | |
£'000 | £'000 | ||
ASSETS | |||
Non-current assets | |||
Investment in subsidiaries | 11 | 1,500 | 3,050 |
Amount due from subsidiaries and other investment | 12 | - | 37 |
Total non-current assets | 1,500 | 3,087 | |
Current assets | |||
Cash and cash equivalents | 13 | 1 | - |
Total current assets | 1 | - | |
TOTAL ASSETS | 1,501 | 3,087 | |
EQUITY | |||
Equity attributable to the equity holders of Medilink- Global UK Ltd: | |||
Share capital | 19 | 6,074 | 6,045 |
Share premium | 1,507 | 1,507 | |
Reserves | (7,040) | (5,224) | |
Total equity | 541 | 2,328 | |
Current liabilities | |||
Other payables | 14 | 842 | 641 |
Total current liabilities | 842 | 641 | |
Non-current liabilities | |||
Advance from a director | 17 | 118 | 118 |
Total non-current liabilities | 118 | 118 | |
TOTAL EQUITY AND LIABILITIES | 1,501 | 3,087 | |
The notes to the financial statements form an integral part of these financial statements.
Approved and authorised for issue by the Board on 30 September 2015 and signed on its behalf by:
Shia Kok Fat
Director CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 20142014 | 2013 | |
£'000 | £'000 | |
Cash flows from operating activities | ||
Loss before taxation | (1,931) | (505) |
Loss before taxation for discontinued operation | (61) | (169) |
Adjustments for: | ||
Amortisation of intangible assets | 20 | 52 |
Depreciation of property, plant and equipment | 61 | 126 |
Loss / (gain) on disposal of property, plant & equipment | - | 1 |
Disposal of a non controlling interest | - | 61 |
Goodwill impairment | 1,700 | - |
Finance costs | 20 | 5 |
Cash from operating activities before changes in working capital | (191) | (429) |
Decrease /(increase) in inventory | (5) | - |
Decrease /(increase) in trade and other receivables | (772) | 510 |
Increase / (decrease) in trade and other payables | 1,012 | 79 |
Cash flow from operations | 44 | 160 |
Interest received | -* | - |
Net cash flow from operations | 45 | 160 |
Investing activities | ||
Purchase of intangible assets | (85) | - |
Purchase of property, plant and equipment | (13) | (180) |
Cash flow used in investing activities | (98) | (180) |
Financing activities | ||
Interest paid | (20) | (5) |
Term loan | - | 150 |
Advance from shareholders | 27 | - |
Repayment of hire purchase liabilities | (4) | (4) |
Cash flow from financing activities | 3 | 141 |
Net increase/(decrease) in cash and cash equivalents | (50) | 121 |
Effect of exchange rate changes | - | (13) |
Cash and cash equivalents at the beginning of the year | 304 | 196 |
Cash and cash equivalents at the end of the year | 254 | 304 |
Detail of the non-cash transaction is disclosed in note 19.
The notes to the financial statements form an integral part of these financial statements.
COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 20142014 | 2013 | |
£'000 | £'000 | |
Cash flows from operating activities | ||
Loss before taxation | (1,816) | (231) |
Adjustments for: | ||
Goodwill impairment | 1,550 | - |
Cash from operating activities before changes in working capital | (266) | (231) |
(Increase) / decrease in trade and other receivables | 37 | (1) |
Increase in trade and other payables | 230 | 222 |
Net cash flow from/(used in) operations | 1 | (10) |
Net (decrease) in cash and cash equivalents | 1 | (10) |
Cash and cash equivalents at the beginning of the period | - | 10 |
Cash and cash equivalents at the end of the period | 1 | - |
Detail of the non-cash transaction is disclosed in note 19.
The notes to the financial statements form an integral part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014Share capital | Share Premium | Exchange Retained Reserves Earnings | Total | Non Controlling Interest | Total | ||||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||
Balance at 01 January 2013 | 6,045 | 1,507 | (127) (4,863 | ) | 2,562 | - | 2,562 | ||
Loss for the year | - | - | - (676 | ) | (676) | (2) | (678) | ||
Other comprehensive income | |||||||||
Exchange differences | - | - | 132 | - | 132 | - | 132 | ||
Total comprehensive loss for the year | - | - | 132 (676 | ) | (544) | (2) | (546) | ||
Transactions with owners in their capacity as owners | |||||||||
Disposal of non controlling interest without a loss of control | - | - | - 61 | 61 | - | 61 | |||
Balance at 31 December 2013 | 6,045 | 1,507 | 5 (5,478 | ) | 2,079 | (2) | 2,077 | ||
Loss for the year | - | - | - (1,990 | ) | (1,990) | (2) | (1,992) | ||
Other comprehensive income | |||||||||
Exchange differences | - | - | (59) | - | (59) | (1) | (60) | ||
Total comprehensive loss for the year | - | - | (59) (1,990 | ) | (2,049) | (3) | (2,052) | ||
Transactions with owners in their capacity as owners | |||||||||
Issue of shares | 29 | - | - | - | 29 | - | 29 | ||
Balance at 31 December 2014 | 6,074 | 1,507 | (54) (7,468 | ) | 59 | (5) | 54 | ||
The notes to the financial statements form an integral part of these financial statements
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014Share capital | Share premium | Retained earnings | Total | |
£'000 | £'000 | £'000 | £'000 | |
As at 1 January 2013 | 6,045 | 1,507 | (4,993) | 2,559 |
Loss for the year | - | - | (231) | (231) |
Total comprehensive loss for the year | - | - | (231) | (231) |
Balance as at 31 December 2013 | 6,045 | 1,507 | (5,224) | 2,328 |
Loss for the year | - | - | (1,816) | (1,816) |
Total comprehensive loss for the year | - | - | (1,816) | (1,816) |
Transactions with owners in their capacity as owners | ||||
Issue of Share | 29 | - | - | 29 |
Balance as at 31 December 2014 | 6,074 | 1,507 | (7,040) | 541 |
The notes to the financial statements form an integral part of these financial statements.
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