Primary lifts profit by 28.7 per cent

MEDICAL centres, pathology and imaging services provider Primary Health Care has boosted its payout to shareholders substantially, after lifting its annual profit by 28.7 per cent.

Primary on Wednesday booked a net profit of $150.1 million for the 2012/13 financial year, up from $116.6 million in the prior year.

Primary will pay shareholders a fully franked final dividend of 11 cents per share, up from six cents per share in the prior corresponding period.

“I am pleased that Primary’s consistent performance and improved balance sheet will allow us to reward our loyal shareholders with a final dividend of 11 cents per share fully franked, up significantly on last year,” Primary managing director Dr Edmund Bateman said in a statement.

Primary’s medical centres, pathology and imaging services made significant gains in margins during fiscal 2013 as a result of economies of scale and operational efficiencies.

The company is forecasting growth in earnings per share of seven to 13 per cent in the current financial year.

Primary says bolt-on acquisitions may be more attractive in the current financial year because sellers’ expectations on price are moderating.

Shares in Primary were 14 cents lower at $5.15 at 1417 AEST on Wednesday.

Primary Health will be lifting their earnings

Medical centre operator Primary Health Care remains on track to lift earnings by up to 25 per cent in the 2012/13 financial year.

Managing director Dr Edmund Bateman told shareholders at the company’s annual meeting Primary’s earnings before interest, tax, depreciation and amortisation (EBITDA) were expected to rise to between $370 million and $380 million.

As a result, earnings per share (EPS) were expected to grow by between 20 and 25 per cent.

“Revenues, margins and EBITDA trends have continued to be favourable across the business for the four months ended 31 October 2012 and all divisions are trading in line with our expectations,” Mr Bateman said on Friday.

The forecast is in line with guidance the company gave in August when it announced its net profit for 2011/12 had soared by 50 per cent to $116.6 million.

Mr Bateman said Primary would review its dividend payout to reflect the anticipated EPS growth this financial year.

He expects the dividend pay-out ratio will be similar to that in 2011/12.

Source Article: http://au.finance.yahoo.com/news/primary-health-track-lift-earnings-005408475.html