News Column

IHH unveils new dividend policy

February 27, 2014

Foo Eu jin

KUALA LUMPUR: IHH Healthcare Bhd has started its new financial year by unveiling a new dividend policy on the back of continued double-digit growth for the year ended December 31 2013.

The dividend payout will be no less than 20 per cent of the group's profit after tax and minority interests (Patmi) excluding exceptional items, under the new dividend policy.

"This is after considering the level of available cash and cash equivalents, return on equity and retained earnings, and projected levels of capital expenditure and other investment plans," IHH chief financial officer Tan See Haw said at a media briefing, here, yesterday.

IHH directors have recommended a first and final single-tier cash dividend of two sen for the financial year 2013.

Group revenue declined three per cent to RM6.8 billion, while earnings before interest, tax, depreciation, amortisation, exchange differences and other non-operational items (Ebitda) rose six per cent to RM1.7 billion.

The group's underlying operational performance saw strong growth, with revenue up 18 per cent to RM6.7 billion, while Ebitda increased 32 per cent to RM1.5 billion and Patmi jumped 70 per cent to RM602.5 million.

IHH managing director and chief executive officer Dr Tan See Leng said its strong performance in 2013 and the fourth-quarter in particular gave the group solid momentum into the new year to continue organic growth and generate new revenue streams from expansion projects across multiple markets.

The group expects medical tourism revenue to continue to grow as it diversifies into non-traditional sources of foreign patients through corporate arrangements put in place in the prior year and continuous marketing efforts.

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Source: Business Times (Malaysia)

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