chairman’s
message As at June 30, 2013, the Group maintained a strong balance sheet, with cash and cash equivalents of S$23.3 million and a low gearing of 0.08 times. We are well-positioned to pursue future growth opportunities, leveraging on our strong balance sheet position. Based on the strong performance, we are pleased to propose a final, 1-tier tax exempt dividend of 1.0 S Cent, payable on November 15, 2013. This is in addition to the interim dividend of 1.0 S Cent that was distributed on April 5, 2013. The total dividend of 2.0 S Cents represented a dividend payout ratio of 34.5% for FY2013. This is line with our commitment to reward shareholders.
Dr. Ho Choon Hou
Chairman and Non-Executive Director
Quality - First and Foremost
In spite of the above financial results, the Quality of our service cannot be compromised for economic gains. In 2013, Cordlife India attained AABB accreditation, a testament to the Company’s commitment to adopting vigorous standards. With this accreditation, the Group now has 3 AABB accredited facilities, namely Singapore, Hong Kong and India. It is also for this hallmark of quality that mothers have chosen Cordlife to act as a custodian for the cord blood and tissues of their precious baby’s cells. Dear Valued Shareholders, On behalf of the Board of Directors of Cordlife, it is my pleasure to present our annual report for the financial year ended June 30, 2013. We achieved good results for the financial year, with net profit for the full year (“FY2013”) increasing by 94.7% to S$13.5 million year-on-year (YOY) on the back of healthy revenue growth, strong margins as well as a S$2.7 million one-time disposal gain. Even after the one-off disposal gain of S$2.7 million, the non-recurring costs of S$1.0 million in FY2013, and the IPO expenses of S$1.9 million recorded in FY2012 were excluded, net profit after tax would still have increased by 33.6% to S$11.8 million year-on-year.
04
Positioned for growth
Growth via Economies of Scale and Scope
We are looking to tap into the growth story of emerging Asian nations and expand our geographical footprint in Asia as part of our horizontal growth plans to derive economies of scale. In terms of our vertical growth, the Company is also transitioning into a multi-product healthcare company catering to the mother and child segment. In addition to providing cord blood and tissue banking services, the Company is looking to provide other complementary products and services that cater to the mother and child segment, which will see us benefit from economies of scope. On September 4, 2013, the Group announced that it has entered into a conditional sale and purchase agreement with certain vendors to acquire a 19.92% interest in StemLife Berhad (“StemLife”), a company listed on Bursa Malaysia for an aggregate consideration of RM29.58 million. Through