Primary Net Profit Falls By 24%
BY AIR DAILY - 11/02/2008
Get More Commentary, Dicussion & Market Information On -
• PRY - PRIMARY HEALTH CARE LIMITED
Primary Health Care reported a lower first-half net profit today, hit by the interest costs of buying a 20 percent stake in its takeover target Symbion Health.
Net profit fell by 23.7% to $20.4 million for the six months to December from $26.8 million the previous year.
Although revenues were up strongly from its 40 medical centres during the six months to December, the company had borrowed more than $500 million to help fund the Symbion purchase.
Last week Primary made its final bid for Symbion of $2.7 billion and said it would declare the takeover bid unconditional if it secured more than 50 per cent of Symbion by tomorrow.
Primary said as of Feb. 8 it had a 49.7 interest in Symbion, 25.35 percent of which was held in an institutional acceptance facility, from which the original owners may withdraw their shares.
The company has been vying with private hospital operator Healthscope for control of Symbion's medical testing business, in a long-running battle for assets in an Australian healthcare sector set for rapid growth as the population ages and use of private health insurance increases.
Primary shareholders will receive an interim dividend of 22 cents per share.
Shares in primary fell by 36 cents to close down by 3.4% at $10.24.
| Sponsored Links |
 |
|
Information provided to you by the Australasian Investment Review. AIR publishes a weekly magazine. Subscriptions are free at www.aireview.com.au. |
All AIR material contained in the weekly publication, as well as on this website, consists of general information only. It is not intended as advice of any kind, including and without limitation investment advice, or to be construed as making any recommendations or statements of opinion in relation to any financial product or class of financial products or other investment opportunity and must not be relied upon as such. Investors should obtain independent investment advice before making any decisions based upon any information or material contained or referred to in this magazine and on its website, including in particular any investment in any financial product.
