MEDILINK-GLOBAL UK LTD ("Medilink", the "Company" or the "Group")
FINAL RESULTSMedilink-Global UK Limited (AIM: MEDI), 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, is pleased to announce its audited results for the year ended 31 December 2015. A copy of the annual report and accounts will be posted to shareholders tomorrow morning Malaysia time and will be available shortly thereafter from the Company's website,www.medilink-global.com.
FINANCIAL HIGHLIGHTSTotal revenue for the year increased by 10% to £1,540,000 (FY2014: £1,405,000). There was a significant increase in revenue in Malaysia of 31% to £998,000 (2014: £762,000).
Software licensing revenues increased by 130% to £250,000 (FY2014: £109,000) following the completion of the Great Eastern Life Assurance Co., Ltd project, which contributed
£213,000 of revenue in the period (total contract value SGD625,600).
The Group registered a profit after tax from continued operations of £322,000 (FY2014: Loss after tax of £1,931,000). The main contributing factors were the gain on disposal of its subsidiary, Medilink (Beijing) TPA Pte Ltd (£783,000) tempered by an impairment loss (£322,000) and the software licensing revenues from the GE Singapore project of £213,000. The previous year's result was impacted by a goodwill impairment of £1,700,000.
Administrative costs have decreased by 10% to £460,000 (FY2014: £511,000).
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 fully completed on 10 July 2015 when the transfer of ownership took place.
The business highlights of Medilink-Global UK Limited (the "Company") in the following regions.
Peo pl e's Re pub lic of Chin a ( " China" )
Medilink (Beijing) TPA Co., Ltd ("Medilink China"), now a 49% held associate company of Medilink- Global UK Limited, 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 contracts with 9 insurance companies. Malaysia and Singapore
Great Eastern Life 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 Great Eastern Life Assurance Co., Ltd, 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.
ET IQ A Ins uranc e Berh ad ( " ET IQ A" )
Upon completion of the system licensing and implementation for GE Singapore, MedilinkGlobal (M) Sdn Bhd entered into an agreement to provide its proprietary claims application software, 'Managed Care System' ("MCS Software"), to ETIQA Insurance Berhad ("ETIQA"), as announced on 14 January 2016.
ETIQA is a Malaysian incorporated company and is the insurance and Takaful division of Malaysia's largest financial services group, Maybank Group. It provides a wide range of personal and corporate insurance services and products as well as Sharia-compliant Takaful products.
MediLink Malaysia will license its MCS Software to ETIQA for the purpose of facilitating and allowing ETIQA to administer and process its health related insurance portfolios; relating to its insurance and Takaful plans; as well as settlement of claims to the beneficiaries.
The MCS Software project will be delivered in three phases and is expected to be completed within 19 months, and by no later than 31 December 2017. Payments will be made to Medilink Malaysia in stages throughout the project and are subject to agreed milestones, The total value of the agreement is approximately £275,000.
AIA Co., Ltd
AIA contributed to more than 150,000 members of the membership growth of Medilink Malaysia during the period under review.
The Directors of Medilink are confident that our relationship with AIA will continue to have a positive effect on growth for Medilink Malaysia in the years to come.
Syarikat Takaful Malaysia Bhd.
Syarikat Takaful Malaysia Bhd is a Takaful insurance company that was incorporated based on the recommendation of the "Task Force on the Study for the Establishment of an Islamic Insurance Company in Malaysia" (Task Force) set up by the Government of Malaysia in 1981.
Medilink Malaysia renewed its third party administration (TPA) contract with Syarikat Takaful Malaysia Bhd, during the period under review.
Medilink Malaysia has 2 corporate clients whose group hospitalisation and surgical insurance are insured by Syarikat Takaful Malaysia Bhd. This contract helped in contributing to an increase in 2000 members to the growth of TPA membership of Medilink Malaysia in the period under review.
The Board of Directors are confident that the collaboration between the parties shall bring positive and significant increase in the TPA membership for the years to come.
Self-funded and Government-Linked Employers market
Medilink Malaysia made small in-roads into the self-funded employer market and government-linked organisations, which collectively contributed 5,000 members to the membership growth of Medilink Malaysia during the period under review.
GOING CONCERNThe Board wishes to bring to shareholders' attention the following section from note 2 in the annual report and accounts:
Going Concern
The directors report that after making enquiry, they have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Certain shareholders and directors of the Company have provided working capital loans to the Group to finance its on-going expansion. Loans of an aggregate value of £678,000 are either repayable with 12 months of the date of approval of these financial statements or are not subject to a formal repayment term. The providers of the loans have informed the directors that repayment will not be sought within 12 to 18 months of the date of approval of these financial statements unless the Group has sufficient available working capital to support the making of repayments. The directors have considered and assessed the support
provided by shareholders and directors and are satisfied that they will and can, if required, continue to provide the support for the development of the Group's growth over at least the next twelve months from the date of approval of these financial statements and are therefore satisfied that the going concern basis of preparation is appropriate. In considering the appropriateness of this basis of preparation. The directors have reviewed working capital forecasts for the Group and performed sensitivity analysis thereon and the key inputs into these can be found in note 10 in the annual report and accounts. The directors believe that the increasing revenues from trading activities and the continuing support of shareholders and directors will be sufficient for the Group's purposes for a minimum of 12 months from the date of the approval of these financial statements.
Enquiries:MediLink-Global UK Limited | Allenby Capital Limited (Nominated Adviser and Broker) |
Shia Kok Fat, Chief Executive Officer Tel: 00 603 2296 3028 www.medilink-global.com | 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 2015.
FINANCIAL REVIEWThe Group recorded revenues of £1.540 million (FY 2014: £1.405 million) and a profit after taxation, including the discontinued operation, of £0.265 million (FY 2014: loss of £1.992 million) for the year ended 31 December 2015.
The increase in revenues which were largely due to good revenue growth from our Malaysia operations as detailed below, The Group recorded a profit after taxation of £265,000 for the period under review representing a significant improvement on last year. In addition to the growth in the Malaysian operations the main contributing factors were the gain on disposal of its subsidiary, Medilink (Beijing) TPA Pte Ltd (£783,000), which was tempered by an impairment loss (£322,000), together with the software licensing revenues from the GE Singapore project totalling £213,000.
The average monthly revenue per employee during the year for our Malaysia and Singapore operations was £3,100, an improvement of approximately 19% compared to the previous year figure of £2,609. We expect the monthly average revenue per employee to continue to improve as business volumes increase.
GROUP'S OPERATIONS REVIEWMalaysia
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 merged insurance entity has become the number one insurer in the country in terms of total premium size and policyholders' base. In this respect our business with AIA Malaysia, both conventional and Takaful business, grew by 13% compared to FY2014.
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 150,000 members in the Medilink Malaysia portfolio.
Overall revenue from our TPA business grew by 15% to £748,000 in 2015 (FY2014 £653,000). 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 decreased by 16% to £539,000 (FY 2014: £643,000) from the previous year while the number of healthcare providers in our network remained at 146.
PROSPECTS
Medilink will continue to provide excellent services to its customers and with our new initiatives in Malaysia and Singapore, we anticipate that the Group's prospects will continue to improve in 2016.
We will look to strengthen all areas of the organisation and maintain our position as a leading regional Third Party Administrator, Electronic Card Network Operator and an Insurance Claims system solutions provider in the Asia Pacific region with a global servicing capacity.
The Company continues to monitor its cash position, which is currently relatively constrained. Cash and cash equivalents at 31 December 2015 were £573,000 (31 December 2014: £254,000). Cost cutting measures implemented during 2014 and 2015 have assisted in improving the Company's working capital position in the period under review. The Directors will continue to explore options for supplementing the Group's cash resources, at both the Company and subsidiary level.
Certain shareholders and directors of the Company have previously provided working capital loans to the Group to finance its on-going expansion. Loans of an aggregate value of £678,000 are either repayable with 12 months of the date of approval of these financial statements or are not subject to a formal repayment term. The providers of the loans have informed the directors that repayment will not be sought within 12 to 18 months of the date of approval of these financial statements unless the Group has sufficient available working capital to support the making of repayments.
ACKNOWLEDGMENTSOn 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.
Norman LottChairman
27 June 2016Medilink-Global UK Limited published this content on 27 June 2016 and is solely responsible for the information contained herein.
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