Acquisition Boosts Results For Healthscope
21 August 2008
Acquisition Boosts Results For Healthscope’s NZ Operations
Healthscope, which is now New Zealand’s second largest pathology provider, today reported Net Profit after Tax from Continuing Operations, before Non Recurring Items (NRI’s) of A$74.9 million, up 14 % over the previous year. Annual revenues increased by 16% to A$1.5 billion.
Heallthscope Managing Director, Bruce Dixon said the performance of Healthscope’s New Zealand pathology business was boosted significantly by the acquisition in December 2007 of New Zealand’s second largest private pathology provider, New Zealand Diagnostics Group Limited (trading as Southern Community Laboratories), which contributed additional revenue in the year of A $20.9m.
Annual revenue from Healthscope’s New Zealand pathology operations were up 116% to A$36.6m from A$17.9m in the previous year, with this increase largely coming from the acquisition.
The result included a 5% increase in revenue for Healthscope’s Northland Pathology operation, which completed a major upgrade of its Whangarei laboratory that services the community pathology needs of Northland.
Healthscope is awaiting the Court of Appeal’s decision following its Appeal seeking to have the eight-year contract to provide community pathology services to Auckland re-instated.
·Bruce Dixon said that while earnings were flat for Healthscope’s New Zealand vet pathology business due to both drought and increased competition, the company had continued to bring new tests and innovations to the local market.
Bruce Dixon said the company is pleased with the performance of its New Zealand operations and would seek opportunities for further investment in the New Zealand healthcare market over the long-term.
Healthscope’s full results release is available on the ASX at www.asx.com.au code hsp
For further information in New Zealand please contact:
Sherson Willis Ltd
09 360 8904 or 021 570 803.
Healthscope, headquartered in Melbourne, was formed in 1985 and listed on the Australian Stock Exchange in 1994. It is Australia’s second largest private hospital operator. Healthscope’s pathology business was originally established in 1936. It has grown to become Australia’s third largest pathology provider. The company has market leading community pathology operations in Malaysia and Singapore. Its global operations employ 18,000 staff.
Healthscope is now New Zealand’s second largest private pathology provider
following its acquisition in December 2007 of New Zealand Diagnostics Group Limited (NZDG).
The NZDG’s 11 Southern Community Laboratories around the country have long-term contracts to provide community and hospital pathology to the Otago-Southland, Canterbury, Hawke’s Bay and Lakes District Health Boards.
Healthscope also runs Northland Pathology Laboratory Limited providing community pathology services to the Northland region.