Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Acurity beats guidance with 55% profit gain

Acurity beats guidance as FY profit gains 55%, sees PPP opportunities

By Paul McBeth

May. 26 (BusinessDesk) - Acurity Health Group, the private hospital operator formerly known as Wakefield Health, boosted annual profit 55 percent, beating guidance, and anticipates growth in the coming year from the public sector, which it says is ripe for public-private partnerships.

Net profit rose to $9.1 million, or 53 cents per share, in the 12 months ended March 31 from $5.9 million, or 34 cents, a year earlier, the Wellington-based company said in a statement. Underlying earnings, which strip out a $1.1 million gain on the sale of its stake in Boulcott Clinic and a $789,000 gain in the, value of interest rate swaps, climbed to $7.2 million from $5.9 million. In February, Acurity said net profit would rise to as much as $8.7 million, and underlying earnings would be in a range of $6.3 million to $6.9 million.

"After a period of tough market conditions, it is encouraging to finish the year with activity levels showing very positive movement," chairman Alan Isaac said. "It is also pleasing to report that with the strong focus on expense control alongside positive contributions from investments, we have delivered a significantly improved net profit result."

Acurity's warning that revenue would be down on a year earlier didn't eventuate, with healthcare services up 0.6 percent to $83.2 million and specialist contract revenue gaining 7.2 percent to $13.7 million. Total revenue rose 2.6 percent to $98.1 million, including the gain on the sale of Boulcott Clinic. The increased specialist contract revenue came from more Accident Compensation Corp work, and more procedures under the Southern Cross Insurance Affiliated Provider Scheme.

Earnings before interest, tax, depreciation and amortisation advanced 13 percent to $20.2 million. Acurity's operating cash inflow rose to $14.9 million in the year from $10 million in 2013, and it held $1.8 million as at March 31 in cash and equivalents, down from $3.1 million, with debt repayments accounting for the biggest outflow. Its term borrowings were $31.9 million as at March 31, down,from $42.3 million a year earlier.

The company said there are increased signs of demand for private sector health emerging, and the extra $110 million allocated to elective surgery in this year's Budget may need to be contracted out due to capacity constraints in public hospitals.

Acurity said the government policy hasn't been developed to set up public-private partnerships with private hospital operators, which it says would "provide a vehicle for optimising healthcare outcomes between the private and public sectors" and allow for shared benefits of capital investment by maximising the use of shared facilities.

The board declared a final dividend of 11 cents per share, payable on June 27 with a June 20 record date. That takes the total return for the year to 23 cents, including a special dividend, up from 14 cents a year earlier.

The shares gained 1,7 percent to $5.34, having shed 3.5 percent this year. The stock was rated a 'hold' with a target price of $5.70 by Forsyth Barr's Feb. 28 report.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news