The Healius Ltd (ASX:HLS) share price was trading 15% higher on Wednesday following the release of its 2020 half-year financial report.
For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 6735.1, down 1.92%.
Healius, formerly known as Primary Health Care Limited (ASX: PRY), is a healthcare business that provides pathology, diagnostic imaging, medical centres and low-cost fertility services, such as IVF. It operates across thousands of sites Australia wide.
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Healius – Key Results
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Source: Healius Ltd announcements; author calculations, AUD millions unless otherwise stated.
As can be seen above, the company’s revenue came in at $945.1 million, up $66.2 million over the prior corresponding period.
“The performance across all of our divisions is starting to reflect the efficiencies from our organisational redesign and cost savings initiatives, known as the Sustainable Improvement Program,” CEO Dr Malcolm Parmenter said.
“A mix of volume and fee increases assisted Pathology to achieve above-market revenue growth while Imaging benefitted from new and expanded sites, including the Northern Beaches Hospital in Sydney and the Australian Defence Force Health Services contract in partnership with Bupa.”
Healius’ profit was $66.3 million, up $45.9 million. However, on an underlying profit basis, Healius’ net profit (NPAT) came in at $42.1 million, which was up around 7.6% from last year.
On the cash flow statement, which is an important financial statement since it represents the underlying health of a business, operating cash flow was $129.3 million.
Looking at the different segments, Pathology, Medical Centres and Imaging all showed year-over-year revenue growth. However, Pathology remains Healius’ most important business line, accounting for around two-thirds of operating profit.
Looking towards the future Healius expects to achieve underlying profit between $96 million and $102 million for the full year. “To achieve the top of the range, our second half volumes will require improvements in pathology in line with last year,” Parmenter added.
Healius shares were last seen trading at $3.2, giving the company a market capitalisation more than $2 billion according to Google Finance.
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