Acurity Health says cost control helping lift profit as sales fall

Tuesday 25th February 2014

Acurity Health Group said full-year underlying earning may rise as much as 15 percent as the private hospital operator formerly known as Wakefield Health keeps a lid on costs to make up for declining revenue.

Profit will be $6.3 million to $6.9 million in the year ending March 31, excluding a $1.1 million gain from the sale of shares of Boulcott Clinic and interest rate swap revaluations. Earnings were $6.1 million on the same basis last year. Net profit would rise to as much as $8.7 million from $5.9 million.

"The group's revenue for the year will be slightly down on the previous year but the continued focus on expenses control has resulted in the improvement in the underlying earnings," the Wellington-based company said in a statement. It didn't give details of the revenue decline.

The company said it will pay a fully-imputed special dividend of 6 cents a share in recognition of the one-time gain from the Boulcott sale. It will be paid on March 27 with a record date of March 13.

The shares were unchanged at $5.50 and have gained 10 percent in the past 12 months, lagging behind the NZX 50 Index's 18 percent gain.

BusinessDesk.co.nz

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