Meta Health Limited: 2Q & 6M 2025 Financial Results Analysis

Meta Health Limited, a Singapore-listed healthcare group, has released its unaudited condensed interim consolidated financial statements for the second quarter (2Q2025) and six months (6M2025) ended 30 June 2025. The report provides a comprehensive look at the company’s financial health following its strategic transition away from the metal business and a recent acquisition in the healthcare sector.

Key Financial Metrics

^*Inferred from half-year data as 1Q2025 was not separately reported.

Historical Performance Trends

The company’s revenue surged in 2Q2025 and 6M2025, primarily due to the acquisition of Jas Medical Screening Centre Pte Ltd in November 2024, which marked a strategic pivot into healthcare. However, the Group continued to post net losses, with a S\$279,000 loss in 2Q2025 compared to a S\$641,000 profit in 2Q2024. The YoY profit swing is largely attributable to a one-off S\$1.0 million recovery in 2Q2024 related to irregularities in a subsidiary, which did not recur in 2025.

Earnings and Expenses Analysis

• Revenue: Increased from S\$43,000 (2Q2024) to S\$354,000 (2Q2025) due to new contributions from Jas Medical and overall expansion in healthcare services.
• Other Income: Plummeted by 99% YoY to S\$8,000, reflecting the absence of exceptional recoveries seen last year.
• Employee Benefits: Rose significantly (+84% for 6M2025) due to higher headcount and staff costs following the acquisition.
• Depreciation (PPE): Decreased due to write-off and full depreciation of legacy assets; depreciation of right-of-use assets increased on new leases.
• Finance Costs: Decreased 38% YoY, reflecting reduced borrowings and lease liabilities.
• Operating Expenses: Declined due to post-divestment cost reductions (notably rental and computer expenses).

Balance Sheet & Cash Flow Review

• Net Liabilities: As of 30 June 2025, the Group had net liabilities of S\$0.8 million (improved from S\$1.7 million at end-2024).
• Cash Position: Cash and bank balances stood at S\$160,000 (down from S\$187,000 at end-2024).
• Borrowings: Total borrowings declined from S\$2.1 million to S\$1.6 million due to repayments.
• Working Capital: Negative net working capital improved from S\$1.7 million deficit to S\$0.9 million deficit.
• Operating Cash Flow: Net outflow of S\$0.9 million for 6M2025, mainly due to operating losses and settlement of payables.
• Financing Activities: Rights issue in February 2025 raised S\$1.46 million, offsetting operating cash outflows.

Exceptional Items & Corporate Actions

• Divestments: Loss from discontinued operations in 6M2024 was due to the disposal of Chinese subsidiaries; no such losses in 2025.
• Fundraising: Rights issue in 1H2025 issued 264 million new shares at S\$0.006 each, expanding share capital to 1.32 billion shares.
• Legal Actions: Ongoing litigation and efforts to recover funds from former subsidiary management are noted, with bankruptcy applications filed against individuals related to irregularities in Gainhealth Pte Ltd.
• No Dividends: No dividend was declared for the current or previous periods due to continued losses.

Chairman’s Statement and Management Outlook

The Chairman’s commentary is cautious but proactive. The company highlights the strategic focus on expanding healthcare operations and seeking new acquisitions, particularly given macroeconomic uncertainty that may create value opportunities. The Board acknowledges ongoing cost-reduction efforts and reliance on continuing financial support from a controlling shareholder to meet obligations. Management warns of potential margin pressure due to rising supplier costs.

Risks, Events, and Unusual Items

• Going Concern: Auditors flagged material uncertainty about the Group’s ability to continue as a going concern, given persistent net losses, negative working capital, and limited cash facilities. Ongoing shareholder financial support is critical to survival.
• GST Recoverability: The Group is awaiting recovery of about S\$1.0 million in GST paid to the Royal Malaysian Customs Department, with an extended payment plan in place.
• No Related-Party Transactions: No significant related-party or interested person transactions were reported.

Conclusion: Performance and Outlook

Meta Health Limited’s latest results reflect a company in transition. While revenue rebounded sharply due to strategic acquisitions in healthcare, the absence of exceptional income and growing cost base resulted in continued losses. The improved net liability and working capital positions signal some progress, but persistent negative operating cash flows and the need for financial support highlight ongoing risks.

With a renewed focus on healthcare, disciplined cost management, and a proactive acquisition strategy, the company may be positioned for stabilization. Nevertheless, the outlook remains weak to neutral until consistent profitability and positive cash flows are achieved. Investors should closely monitor the company’s progress on margin improvement, cash generation, and execution of its acquisition plans.

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