Auditor-flagged Singapore Institute of Advanced Medicine sets up strategic review committee
CATALIST-LISTED Singapore Institute of Advanced Medicine (SAM) has set up a strategic review committee that will look into improving its performance, the healthcare provider said in a bourse filing on Thursday (Dec 12).
The committee, set up with immediate effect, is made up of five non-executive directors from the company and will include external professionals and service providers where appropriate.
It will examine ways to improve the usage of the company’s proton beam therapy and photon radiation therapy facilities and diagnostic equipment, assess the sustainability of its operations and consider “any other corporate action” deemed appropriate to address its funding requirements.
On Dec 9, SAM’s external auditors PricewaterhouseCoopers issued a disclaimer of opinion on the group’s results for the financial year ended Jun 30, 2024.
They noted material uncertainties that could cast significant doubt on the group’s ability to continue as a going concern.
The group reported a loss after tax of S$37.4 million for FY2024 from continuing operations, and that net cash used in operating activities amounted to S$12.9 million.
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As at Jun 30, the group’s current liabilities exceeded its current assets by S$7.9 million.
SAM’s subsidiary – which accounts for around 87 per cent of its total assets – reported a loss after tax of S$21.1 million for FY2024. Additionally, its current liabilities exceeded its current assets by S$146.6 million as at Jun 30.
In Thursday’s bourse filing, the company said that the ramp up in proton beam therapy as a form of cancer therapy has been significantly slower than expected. It cited delays in being included on the panels of insurance agencies’ healthcare providers, lower patient numbers and competition.
It added that various expenses were “significantly higher than what was planned due to various delays and complexities”. This resulted in net losses, negative working capital and negative cashflow from operations.
SAM’s Catalist initial public offering closed in February this year. It was fully subscribed and raised S$26.2 million.
Shares of SAM closed the day up 39.7 per cent or S$0.023 at S$0.081, before the update.
