Chairman's Report
Content mirrored from ParkwayHoldings.com
Richard Seow
Chairman
Parkway Holdings Limited
"Strong industry fundamentals, paired with a clear growth strategy, will propel ParkwayHealth to a greater leadership role in defining private sector health care in Asia."
We began the year 2007 with a growth plan geared to deliver strong operational and financial performance. I am pleased to report that your Company has delivered.
Net profit, excluding exceptional items, of S$90.3 million, which also increased earnings per share by 31%;
Earnings Per Share (EPS) increase of 31% from 8.97 cents in 2006 to 11.74 cents last year;
A four-fold increase in gross dividends since year 2003 from 6 cents to 24.45 cents in 2007.
The future of private healthcare in Asia holds significant promise and ParkwayHealth continues to position itself to be the leading provider of value based integrated healthcare in the region.
Towards this end, we continue to maintain our focus in the area of private health care services and specifically in leveraging our expertise in managing health care facilities. We have added to our portfolio of facilities and continue to seek expansion opportunities.
Earnings Per Share 5 - year growth chart
EPS is computed based on net profit attributable to shareholders before exceptional item.
Your Company now operates 15 hospitals (three in Singapore, ten in Malaysia, one in Brunei, one in India), 48 medical centres and clinics (42 in Singapore, six in Shanghai, China), eight Radiologic Clinics across Singapore, four laboratories, and 53 International Patient Assistance Centres (IPAC) across the world.
ParkwayHealth's regional footprint was enhanced significantly with our acquisition of World Link Group of clinics in Shanghai, which provides us a platform for significant expansion in the China healthcare sector. It has been two-and-a-half years since Pantai's group of hospitals came under our management and during this period Pantai has seen marked improvement in operational efficiencies and financial performance.
In December 2007, ParkwayHealth entered into a joint venture agreement to develop, and operate a greenfield, multi-specialty, new 600-bed hospital in Mumbai, India. India's 1.1 billion strong population, a burgeoning middle class, opening up of insurance sector to private players and medical travel are all factors leading up to this excellent opportunity to set up a world class hospital in Mumbai.
Our most important asset - ParkwayHealth's people - underpins the success of the company. Over 1,500 specialist physicians and about 9,000 nurses, support staff and executives in our 26 facilities across Asia, all aim to fulfi l a common mission - to make a difference in people's lives through excellent patient care.
Our growth plans are fuelled by our people. To meet the health care needs of the markets we operate in, ParkwayHealth set up the Parkway College of Nursing and Allied Health Care to train and develop our talent pool. The education and training capability will ensure that ParkwayHealth has the human capital to grow and staff our expansion plans.
Gross Dividend over the past 5 years
We are extremely proud of our people and their commitment to strive to achieve the highest quality care and service for our patients and their families. Another key driver of ParkwayHealth's success is the launch of a new global brand to express the very best of all that represents our people, quality, service, financial and growth capabilities. This is our new master brand and global advertising campaign which is now seen across Asia, Europe and North America.
Looking ahead, I am optimistic and excited about ParkwayHealth's future. The successful acquisition of a land parcel zoned for private hospital development in Sinapore at Novena will augur well for the Group's capacity and clinical programme mix. It has been 30 years since a private hospital was last built from the ground up in Singapore. With our operations nearing capacity, our business growth strategy in Singapore for the long term hinges on our ability to meet the country's private health care demands of the future for both the domestic population and the medical traveller market.
I would like to thank my fellow Directors, the ParkwayHealth management team and all our nurses and staff for their unwavering support over the past year as we implemented a series of organizational changes to transform ParkwayHealth into the cross-functional matrix organisation it is today. While we are still in the early stages of growth in regional private health care we have began to create a vibrant and exciting organization that we intend to build into a world leader in value based, integrated healthcare.
A special note of thanks to our specialist physicians for their dedication to the patients who travel from near and far to seek their expert medical opinions and attention. Our doctors have played and will continue to play a central role in building the ParkwayHealth brand and reputation that is now known around the world for excellent quality and clinical outcomes.
To our shareholders, your continued support and confidence in our vision and mission of creating a global leader in private health care is most appreciated.
Full report of The Chairman's Message is available in PDF for your reading.
