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Primary Health doubles profit to $46m
Primary Health doubles profit to $46m

Medical centres operator and pathology provider Primary Health Care says it is operating in line with expectations and expects to meet its earlier annual profit guidance.

Primary this morning booked a first-half net profit of $46.3 million, more than double its profit of $20.3 million in the prior corresponding period.

The prior corresponding period's bottom line was negatively affected by $34.7 million in non-recurring items.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 9.5 per cent to $166.8 million.

"Primary is operating in line with its trading expectations for the group for FY2012 (the 2012 financial year)," Primary said in a statement on Wednesday.

The company said the successful refinancing of its bank debt and a stable regulatory environment would ensure Primary's focus on delivering revenue and earnings growth.

"Primary confirms its earlier earnings guidance for FY2012 of $120 million to $125 million net profit after tax (excluding a $5.9 million after-tax charge for unamortised borrowing costs regarding early re-finance of bank debt).

"Underlying this guidance is an EBITDA range of $345 million to $355 million, with Primary historically having a minimum EBITDA split of 47.5 per cent/52.5 per cent between the first and second six months of each financial year."

Primary's revenue for the six months to December 31, 2011, climbed 4.7 per cent to $686.2 million.

The company declared an interim fully-franked, dividend of five cents per share, up from three cents in the prior corresponding period.

More to come…