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

 

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news