UEM Edgenta eyes support services contracts from private hospitals as concession slows

PETALING JAYA: UEM Edgenta Bhd is eyeing Hospital Support Services (HSS) contracts from private hospitals to offset the impact of declining contribution from its long-term concession with the Ministry of Health.

Following the reduction in the number of public hospitals nationwide serviced by UEM Edgenta to 32 from 81 effective April 1, 2015, group pre-tax profit for the financial year ending Dec 31, 2016 (FY16) is expected to decline by RM45 million and revenue by RM280 million.

UEM Edgenta provides services to hospitals ranging from biomedical engineering maintenance to waste management and laundry services.

Managing Director and Chief Executive Officer Azmir Merican said as the reduction in contribution from the healthcare business in Sabah and Sarawak would affect the company’s earnings, UEM Edgenta would focus on sustaining its financial performance for FY16.

To date, the company’s order book stands at RM6 billion.

In its annual report, UEM Edgenta noted that it provides maintenance services for hospitals in Kedah, Perak, Penang and Perlis valued at RM307 million a year.

“Due to the challenges faced by two of our businesses, namely asset consultation and healthcare segment, we foresee the perfomance would be maintained,” he told a media conference after the Annual General Meeting today.

To a question, Azmir said the company plans to invest RM22 million in its Command Centre to leverage on the Internet of Things in order to enhance its services, as well as invest in its research and development centre to develop different grades of pavement to suit different uses, including pavement made from recycled materials.

For FY15, its pre-tax profit fell to RM305.42 million from RM324.46 million, while revenue rose to RM3.123 billion from RM3.09 billion. — Bernama

 

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