Q & M Dental Group (QC7) lifts 1H2026 profit 27 %, advances Australia and Thailand clinic deals

SGX Filings
Yesterday

Q & M Dental Group (QC7) reported that revenue for the six months ended Jun, 30 2026 rose 13 % year on year to 99.5 million Singapore dollars, driven mainly by a 13 % increase in core dental revenue to 98.6 million Singapore dollars. Profit attributable to shareholders climbed 27 % to 4.9 million Singapore dollars, while Group EBITDA expanded 19 % to 19.2 million Singapore dollars. Net operating cash flow came in at 12.6 million Singapore dollars.

Profit-guarantee income slid to 0.1 million Singapore dollars from 1.3 million Singapore dollars a year earlier; management said this item is non-recurring and relates to guarantees from earlier acquisitions that are nearing expiry.

In Singapore, the company plans to lift same-store growth by upskilling about 100 dentists through its in-house College of Dentistry and by leveraging recent increases in Community Health Assist Scheme and Flexi-MediSave subsidies. Although the upcoming Johor Bahru–Singapore Rapid Transit System Link could encourage patients to seek routine treatments across the border, Q & M expects complex specialist work to remain in Singapore due to established insurance coverage and subsidy structures.

Regionally, Q & M is progressing with two binding acquisitions signed on Jul, 10 2026. The group will buy Australia’s 40-clinic Experteeth network for about 119.6 million Australian dollars (approximately 116 million Singapore dollars) and inject a further 30.4 million Australian dollars (about 29 million Singapore dollars) to repay debt and fund growth. In Thailand, it will take a 51 % stake in Deezy Q & M Dental Group for 994.5 million Thai baht (about 38.7 million Singapore dollars). Both deals are subject to customary conditions precedent, with the Singapore Exchange having granted in-principle approval on Sep, 15 2026 for the listing of up to 16.4 million new shares to part-fund the Thai purchase.

Funding for the two transactions will combine internal cash, bank borrowings and new shares. Q & M will issue 70.3 million shares for the Australian purchase and 16.4 million for the Thai deal at 0.70 Singapore dollars each—together equivalent to roughly 9 % of its enlarged share base. All consideration shares will be locked up for 15 years to align vendor interests.

Both acquisitions carry multi-year profit guarantees backed by escrow, share pledges and dividend waivers. In Australia, eight dentist-founders have committed to an eight-year guarantee totalling about 112.6 million Australian dollars. In Thailand, the six-year guarantee amounts to roughly 1.25 billion Thai baht.

The board declared a first interim dividend of 0.40 Singapore cent per share, matching the prior-year period and representing a payout ratio above the company’s policy of distributing at least 30 % of core earnings.

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