Primary on Monday put its shares into a trading halt after reporting a 5% rise in revenue for the year to June to $1.74 billion and a tiny $8.9 million net profit.
Small as it was, it was at least a profit after the asset impairment-dominated 2016-17 result of a loss of $516.8 million.
The company declared a final dividend of 5.5 cents a share (down a touch from 5.8 cents a share the year before), taking total dividends for the year to 10.6 cents a share, unchanged from the previous year.
Primary also said it sees underlying net profit after tax in the 2018-19 financial year at or just above $92.3 million for the year to June.
"Based on current trading activity, industry growth is expected to be slower in 1H 2019 and then normalise to long-term growth rates. A further update regarding Primary’s trading and outlook will be provided at the AGM in November 2018,” the company said.
The shares were untraded at $3.20 to allow the fund raising to happen. About 100 million new shares will be issued at $2.50 a share and eligible shareholders are invited to subscribe for 1 new Primary share for every 5.21 existing Primary shares. Morgan Stanley and UBS are underwriting the raising.
Primary said it was in exclusive talks to buy a leading day-surgery operator. This acquisition, if successful, would cost $140 million over a three years, including an upfront payment of $75 million, with completion expected in September or October.
“The potential acquisition is a high-quality business run by an experienced management team in a strongly growing sector,” it said in yesterday’s statement.
The company said Jangho Group, its largest shareholder, was supportive and had provided an “irrevocable commitment” to subscribe for all of its pro-rata share of the offer.
Primary chief executive Malcolm Parmenter said when complete, its initiatives would place the company “at the forefront of service delivery for community-based healthcare".
It would be a workplace of choice for healthcare professionals, and would "deliver material clinical and operational benefits as well as a significantly enhanced financial performance", he said.
