Primary Health Care profit rises 26%

Medical centre operator Primary Health Care Ltd has posted a 26 per cent lift in annual profit and says its growth prospects are strong as the company continues to open more outlets.

The Sydney-based health care company today reported a net profit of $47.5 million for 2005/06 on improved operating margins and declared a special cash dividend of eight cents per share.

Primary Health Care managing director Edmund Bateman said the result reflected the company's organic growth.

"With only a small share of the total market, growth to come from the newly-opened centres, and more centres to come in the next 18 months, prospects for growth are strong," Dr Bateman said.

Primary opened seven new medical centres around the country during the year, bringing the total number to 31.

Another five are due to be set up in the second half of this financial year.

"The group remains on target to meet the previously indicated 40 centres in operation by 31 December 2007," the company said.

Total revenue, which also includes the company's smaller pathology and health technology businesses, rose 25 per cent to $241.9 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 31 per cent to $94.5 million.

Revenue from medical centres rose 21 per cent to $140.8 million.

The division's EBITDA/revenue margin - taken after head office costs - increased to 49.5 per cent from 48.3 per cent.

Revenue growth from pathology services was strong, improving 15.9 per cent to $79.1 million, the company said.

And in the health technology business, which was added to Primary in February 2005 when the company bought software maker Health Communication Network (HCN), revenue increased to $29.3 million from $13.3 million.

The company said HCN had been completed restructured and all its major software products - used by most Australian doctors and hospitals - had either maintained or increased market share.

The company declared a final dividend of 22 cents a share, bringing the total dividend for the year to 42 cents.

The special fully franked cash dividend of eight cents a share will be paid on October 30.

At 1157 AEST, Primary Health Care shares were three cents higher at $11.48.