Singapore Institute of Advanced Medical Holdings Announces Disclaim of Opinion on Financial Results
THE Singapore Institute of Advanced Medical Holdings (SIAMH) announced that external auditors of the company issued a disclaimer of opinion on the group’s results for the financial year ended Jun 30.
Material Uncertainties Cast Doubt on Going Concern Status
In a report dated Dec 9, the auditors noted the presence of material uncertainties that could cast significant doubt on the ability of SIAMH to continue as going concerns to stay afloat.
Financial Performance
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.
Dependence on Subsidiary
The wider company has other receivables from a subsidiary that manages the radiation therapy services cash-generating unit with a net carrying amount of S$84.3 million, which accounts for around 87 per cent of its total assets.
However, this subsidiary reported a loss after tax of S$21.1 million for FY2024, and its current liabilities exceeded its current assets by S$146.6 million as at Jun 30.
The company is dependent on the cash flows from this subsidiary to discharge its liabilities as and when they fall due.
Conclusion
The company’s financial statements have been prepared on a going-concern basis due to key assumptions that depend on the outcome of future events which cannot be determined as of the date of the independent auditors’ report. This includes the ability of SIAMH to draw down on financial support, bridge loans and ramp up the radiation therapy business of its subsidiary.
FAQs
Q: What was the reason for the disclaimer of opinion on SIAMH’s financial results?
A: The external auditors noted the presence of material uncertainties that could cast significant doubt on the ability of SIAMH to continue as going concerns.
Q: What was the financial performance of SIAMH for FY2024?
A: 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.
Q: What is the dependence of SIAMH on its subsidiary?
A: The company is dependent on the cash flows from its subsidiary to discharge its liabilities as and when they fall due.
Q: What is the current financial situation of SIAMH’s subsidiary?
A: The subsidiary reported a loss after tax of S$21.1 million for FY2024, and its current liabilities exceeded its current assets by S$146.6 million as at Jun 30.
Q: What is the impact on SIAMH’s shares?
A: Shares of SIAMH closed flat at S$0.085 before the announcement.
