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Primary Health ends 3yrs of profit drops

Stuart Condie  |  16 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Primary Health Care (ASX: PRY) has ended three years of falling profits by lifting first-half profit 4.7 per cent to $22.1 million despite another drop in earnings at its medical centres.

The company says net profit for the six months to December 31 had risen from $21.1 million a year ago, with a good performance from its pathology business and reduced corporate costs offsetting a 25 per cent fall in earnings before interest and tax from its medical centres.

The company says it is midway through overhauling its GP contracts after restrictive terms were blamed for a shortage of practitioners that had hit medical centre performance over recent years.

"We have developed shortened and simplified HCP contracts with far fewer legal restraints," chief executive Malcolm Parmenter said in a statement on Friday.

"We have a new head of the Medical Centres recruitment team and a greater number of internal recruiters who understand the skills set they are looking for."

Dr Parmenter said Primary will have opened four new medical centres, an IVF clinic, a day surgery, and an imaging site by the end of the current financial year.

Primary raised its interim dividend by 0.3 cents to a fully franked 5.1 cents and reiterated full-year guidance for underlying net profit of between $92 million and $97 million.

PRIMARY'S H1 PICK-UP

* Net profit up 4.7pc to $22.1m

* Revenue up 5.9pc to $856.5m

* Interim dividend up 0.3 cents to 5.1 cents, fully franked

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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