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 Care with a strong profit rise

MEDICAL centre owner Primary Health Care has lifted its first-half profit by 50 per cent and forecast a rise in its full-year earnings of up to eight per cent.

Primary Health Care made a net profit of $69.5 million in the six months to December 31, up from $46.3 million in the same period in the previous year. Earnings and profit margins continued to grow in the six months to December, despite GP patient numbers remaining weak due to the cautious economic mood, Primary Health Care said.

The company also operates pathology and imaging centres, where earnings and margins also improved over the six months to December 31, it said. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) in the six months to December 31 were $186.1 million, up 12 per cent on the previous corresponding period. It expects EBITDA for the year to June 30 to be in the range of $370 million and $380 million, which compares to the previous year’s $351.1 million.

“Strong underlying demand and a high quality, extensive infrastructure footprint should continue to provide revenue growth, while further benefits from economies of scale and operating efficiencies are expected to result in EPS (earnings per share) growth for the year to 30 June 2013 of 20 to 25 per cent,” Dr Bateman said today.

Primary Health Care declared a fully-franked interim dividend of 6.5 cents per share, up from five cents at the same time in the previous year.