Meta Health Limited Financial Report Analysis: Net Profit Decline by 73%

Business Description

Meta Health Limited is incorporated in Singapore and operates in the healthcare sector. The company engages in telemedicine, nursing services, and e-pharmacy. The Group operates primarily in Singapore.

Industry Position and Market Share

Meta Health Limited operates within the healthcare industry, specifically focusing on digital health services. The company faces competition from other telemedicine providers and traditional healthcare services in Singapore. The specific market share is not detailed in the report, but the company has seen a significant reduction in its healthcare business activities.

Revenue Streams and Customer Base

The company’s revenue streams have seen a drastic decline, attributed to the disposal of its Metal business and a scale-down in its Healthcare business post-COVID-19. The report highlights a 98% decrease in revenue from S\$4.5 million in 9M2023 to S\$0.1 million in 9M2024. The customer base has likely contracted due to the reduction in COVID-19 related services and vaccinations.

Income Statement Analysis

Meta Health Limited reported a net loss of S\$0.7 million for 9M2024, a significant improvement from the loss of S\$2.5 million in 9M2023. Revenue decreased by 98%, but other income increased significantly due to recovery of losses from irregularities concerning a subsidiary.

Balance Sheet Analysis

The company’s total assets decreased from S\$7.97 million as at 31 December 2023 to S\$1.86 million as at 30 September 2024. Cash and bank balances reduced significantly from S\$3.37 million to S\$0.73 million over the same period. Total liabilities also reduced from S\$8.47 million to S\$2.84 million.

Cash Flow Statement Analysis

Net cash used in operating activities was S\$0.8 million in 9M2024 compared to a net cash generation of S\$94,000 in 9M2023. Cash flow from investing activities was positive at S\$0.1 million, mainly from partial proceeds from the disposal of a subsidiary. Cash used in financing activities was S\$1.9 million, primarily due to repayment of borrowings.

Dividend Information

No dividend has been declared or recommended for 3Q2024 and 9M2024 due to the company’s loss-making position.

Special Actions for Profitability

The company has reached a settlement agreement in a legal suit, expecting cash settlement proceeds of S\$1.3 million by December 2024. Additionally, a substantial shareholder has provided an undertaking to support financial stability up to 12 June 2025.

Conclusion and Recommendations

For Existing Investors

Given the company’s ongoing losses and significant reduction in revenue, existing investors should consider holding their position and closely monitoring upcoming financial performances and the potential acquisition of a Singapore clinic, which could improve revenue streams.

For Potential Investors

Prospective investors might want to wait for clearer indications of recovery and stability. The company’s current financial health suggests significant risk, and it would be prudent to wait for further improvements or successful acquisitions that could stabilize the revenue.

Disclaimer

This analysis is based on the unaudited financial statements provided and should not be considered as financial advice. Investors are encouraged to perform their own due diligence or consult with a financial advisor before making investment decisions.

Report Date

This report is for the financial period ended 30 September 2024, with the date of the report being 13 November 2024.