Singapore Institute of Advanced Medicine’s Cash Outflow Rose Despite Higher Revenue: What It Means for Dividends

Singapore Institute of Advanced Medicine Holdings (SGX: 9G2) reported higher revenue and a smaller loss for the three months ended 30 September 2026. For dividend investors, the more consequential figure in its 8 November announcement is cash flow: the group used S$4.93 million in operating activities, compared with S$0.46 million a year earlier. It declared or recommended no dividend for the quarter, citing a loss. These quarterly figures are unaudited. [S1, p. 1] [S1, p. 3] [S1, p. 7] [S1, p. 17] [S1, p. 24]

More patients, but losses continue

Revenue rose from S$4.12 million to S$4.51 million. The radiation therapy and medical oncology segment contributed S$1.30 million, up from S$0.69 million. Management attributed that segment’s growth mainly to more patients, while noting that a greater share of lower-priced treatments reduced average revenue per case. [S1, p. 3] [S1, p. 12] [S1, p. 13] [S1, p. 20]

The group’s loss after tax narrowed from S$6.48 million to S$5.83 million. That is progress in the income statement, but it still leaves the business a considerable distance from earnings that could support a payout. Depreciation remained a substantial expense at S$2.62 million; it reduced reported profit without being a cash payment in this quarter. [S1, p. 3] [S1, p. 7]

Why cash moved in the other direction

Operating cash outflow increased to S$4.93 million from S$0.46 million. The cash-flow statement shows S$2.27 million used before working-capital changes. It also records S$2.10 million used as trade and other payables fell, and S$0.49 million used as trade and other receivables rose. Management linked the receivables movement to slower customer collections. Higher revenue has therefore yet to translate into stronger operating cash generation. [S1, p. 7] [S1, p. 22]

The group also spent S$0.15 million on property, plant and equipment and used S$2.95 million in financing activities, including shareholder-loan and bank-loan principal repayments and lease payments. Cash and cash equivalents fell from S$14.19 million at the start of the quarter to S$6.25 million at its end. This cash-flow measure excludes restricted cash and differs from the S$7.24 million cash and bank balance on the balance sheet. [S1, p. 4] [S1, p. 7] [S1, p. 8]

Shareholder support buys time

At 30 September, current liabilities exceeded current assets by S$28.42 million, versus S$16.55 million at 30 June. Current shareholder loans were S$23.96 million. The company said part of the rise in current liabilities reflected loans being reclassified from non-current liabilities as contractual repayments came within the next 12 months. [S1, p. 5] [S1, p. 21]

The going-concern assessment in the 8 November filing says the group had obtained consent to extend shareholder-linked loans with principal amounts of up to S$22 million until 31 December 2027. It also depends on obtaining further financial support of up to S$2 million and on management’s cash-flow and patient-volume expectations. The board said it expected sufficient funds to meet obligations if that support and those expectations materialise. The extension eases a maturity pressure; it does not itself resolve the operating cash outflow. [S1, p. 10]

The latest annual audited accounts carried a disclaimer of opinion covering, among other issues, going concern and asset impairment. The new quarterly statements were not audited or reviewed. Those qualifications matter when assessing how much confidence to place in a recovery path. [S1, p. 17] [S1, p. 18]

What would change the dividend picture?

The quarter offers no dividend entitlement. Revenue growth and a narrower loss are encouraging operational signs, but the reported cash use and reliance on financing support make cash generation the more immediate measure to watch. Subsequent results should show whether higher patient activity improves collections and reduces operating cash outflow, alongside any further updates on funding. [S1, p. 7] [S1, p. 10] [S1, p. 20] [S1, p. 24]