Wakefield Hospital posts 12pc increase in half year profit

By NZPA

Wednesday 11th December 2002

Listed health company Wakefield Hospital has posted nearly a 12 percent increase in its interim half year profit.

For the six months to September, Wakefield made a net profit of $466,000, compared to $417,000 for the same period last year.

The company will pay an interim dividend of 2c per share on December 23.

Earnings before interest, tax, depreciation and amortisation (ebitda) were up 29 percent at $1.73 million ($1.34 million).

Wakefield's sales revenue was slightly higher at $11.9 million, compared to $11.3 million, due to a 2.5 increase in admissions.

This was despite a 20 percent drop in private cardiac thoracic admissions .

Soon after listing last September, the hospital lost a cardio contract with Capital Coast Health, causing a 60 percent drop in the company's March year profit and sparking a share price dive from its offer price of $2.50 .

It also prompted a Securities Commission inquiry on whether investors had been fully appraised of the risk in its prospectus.

But chairman John Calder said there were tentative signs of improvement on that score.

"We have experienced similar aberrations in the past and expect an upturn will occur," he said.

"It isn't possible to predict when, but there are signs of an improvement now and the public hospital list has grown."

Wakefield's half year operating surplus was up 49 percent to $959,000 before tax and unusuals, but this was offset by unusuals worth $206,000 due to the Securities Commission inquiry and a reorganisation of its finance and nursing departments.

Earnings per share rose to 5.1cps (4.6c) and shareholders' equity eased to $18.9 million ($19.9 million).

Mr Calder said it was "pleasing to report a substantial increase in underlying earnings after the difficult previous year, our first as a publicly listed company."

During the year, the company completed a new theatre and endoscopy suite and entered an agreement to buy Bowen Hospital in April next year.

"There are potentially significant synergies in the operation of both hospitals," Mr Calder said.

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