RMG: 1Q09 results

Very nice. Both topline and bottom-line growth:

• Revenue up 7%, abt 4M
  
• Staff costs, the largest cost component, only up 4%, or 1M
• 17% increase in purchased and contracted services (approx 600K), mostly due to insurance claims. Partially offset by a 4.5% decrease in consumables.
• Profit before tax up 21%. 1Q09 EPS was 1.50c
  

The 1Q results take care about any concerns I had of RMG's revenue falling due to the recession. And their move into the insurance business with subsidiary International Medical Insurers looks to be paying off.

My only concern:
Medical insurance is a completely different business from providing healthcare:

• Medical insurance may leave you with a lot of potential liabilities, especially when you offer worldwide coverage. Indeed, the business of medical insurance is to cover such unexpected liabilities. It is hard, mabye even impossible, to get a picture of such potential liabilities from a balance sheet.
• This is more so when the insurance business results are consolidated with those of healthcare and hospital.

Other notes:

• CIMB report (11th Mar) says they expect Raffles Hospital to increase bed capacity from 200 to 220 by 2010.
• (BT article, Friday 17th Apr 09, Chen Huifen) At a media briefing..., Dr Loo said that only 40% of staff costs are fixed. Assume he is referring to the whole group (healthcare plus hospital).