Meta Health Limited – Net Profit Decline of 38% in FY2024

Business Description

Meta Health Limited is a healthcare company incorporated in Singapore. The company operates in two main business segments: medical screening services and medical equipment distribution. The company has a presence in Singapore and China, with its medical screening services focused in Singapore and its medical equipment distribution business covering both Singapore and China.

Financial Statement Analysis

Based on the financial report for the financial year ended 31 December 2024 (FY2024), the key findings are:

Income Statement

– Revenue from continuing operations decreased by 20% to S\$245,000 in FY2024. – Net loss from continuing operations increased by 38% to S\$1,049,000 in FY2024. – Net loss from discontinued operations was S\$400,000 in FY2024 due to the disposal of subsidiaries. – Overall net loss for the year was S\$1,449,000, a 38% increase compared to the previous year.

Balance Sheet

– The company’s total assets decreased by 78% to S\$1,609,000 as of 31 December 2024, mainly due to the disposal of subsidiaries. – Total liabilities increased by 35% to S\$3,298,000, primarily due to an increase in borrowings. – The company’s net equity position remained negative at S\$1,689,000 as of 31 December 2024.

Cash Flow Statement

– Net cash used in operating activities was S\$1,093,000 in FY2024, compared to net cash generated of S\$529,000 in the previous year. – Net cash used in investing activities was S\$1,604,000, mainly due to the net outlay from the disposal of subsidiaries. – Net cash used in financing activities was S\$2,285,000, primarily for the repayment of borrowings. – Overall, the company experienced a net decrease in cash and cash equivalents of S\$4,982,000 in FY2024.

Recommendation

Based on the financial report, we do not recommend investors to hold or purchase shares of Meta Health Limited at this time. The company’s financial performance has deteriorated significantly, with a 38% increase in net loss, a negative equity position, and a substantial decline in cash flow. The disposal of subsidiaries and the company’s inability to generate positive cash flow from operations are concerning. Investors should closely monitor the company’s future developments and turnaround efforts before considering any investment.

Disclaimer

This report is based solely on the information provided in the financial report for the financial year ended 31 December 2024. Investors should conduct their own due diligence and seek professional financial advice before making any investment decisions.

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