Healthia (ASX:HLA) Reports First Half Results and Declares Interim Dividend – The Market Herald

Subscribe

Be the first with news that moves the market

  • Healthia (HLA reports a 51% increase in statutory revenue to $91.7 million for the first half of FY22, which it attributes to 80 new acquisitions across three divisions
  • Unfortunately, the Allied Healthcare Company suffered negative impacts due to COVID disruptions, including a net loss of $86,000, down 102% from $4.9 million.
  • Despite this, CEO Wesley Coote remains confident that the company will be able to continue providing excellent patient care and supporting his team members in the second half of the year.
  • Healthia has declared a fully franked interim dividend of two cents per share
  • Shares of the company are down 3.38% to trade at $2

Allied healthcare company Healthia (HLA) reported a 51% increase in statutory revenue to $91.7 million for the first half of FY22.

Healthia said the increase in revenue primarily reflects the deployment of $102.2 million in capital across 80 acquisitions, including 76 companies within the Bodies & Minds division, three within the Eyes & Ears division and one company. within the Feet & Ankles division.

Among the acquisitions was the purchase of 63 Back In Motion physiotherapy clinics, which helped position Healthia as the number one physiotherapy group in Australia and New Zealand.

While the company has made significant progress in establishing itself as a leading diversified healthcare company, it has also suffered negative impacts due to COVID-related lockdowns and restrictions.

Between July and October, there was an increase in the number of closures and restrictions across the country, which impacted 6,869 clinic trading days in the first half of FY22, compared to 2,152 days trading in the first half of FY21.

During this time, the company continued its activities to ensure that the livelihoods of employees did not suffer significantly and to continue to provide patients with essential health services.

Unfortunately, Healthia was unable to fully utilize its fixed cost base, resulting in a decline in underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin from 17.9 to 13.1%.

CEO and Managing Director Wesley Coote said he was grateful to clinicians and support staff for their commitment during a difficult time.

“The support they have shown to their patients and each other is to be commended and Healthia is stronger for it,” he said.

In terms of earnings, the company reported an after-tax net loss of $86,000, down 102% from an NPAT of $4.9 million in the first half of FY21.

Healthia attributed the $5 million loss to significantly lower other income due to the $7.61 million in JobKeeper payments recognized in the prior period, as well as the aforementioned COVID-19 impacts.

The healthcare stock declared a fully franked interim dividend of two cents per share, supported by its fully subscribed dividend reinvestment plan.

Going forward, the company expects to deliver underlying revenue and EBITDA growth in FY22 and will continue to monitor and manage any impact from COVID-19.

“As we head into 2022 and our ‘new normal’, we will continue to focus on excellence in patient care and support for our team members, which are key factors in the company’s continued success. “, concluded Mr. Coote.

Shares of the company were down 3.38% to trade at $2 at market close.