Pri­mary hit in write­down

Townsville Bulletin - - NEWS -

PRI­MARY Health Care will take a $ 575 mil­lion hit in its full- year re­sults af­ter de­cid­ing to write down the value of its med­i­cal cen­tres as it re­po­si­tions its bulk billing busi­ness.

The com­pany yes­ter­day said the non- cash im­pair­ments re­lated pri­mar­ily to its Med­i­cal Cen­tres unit, which in Fe­bru­ary booked a 36 per cent drop in earn­ings be­fore in­ter­est and tax as bulk billing rev­enue fell.

That per­for­mance con­trib­uted to a 69 per cent fall in first- half profit.

Pri­mary said it also ex­pected its full- year un­der­ly­ing profit to come in at the lower end of its al­ready down­graded guid­ance at about $ 92 mil­lion, com­pared to $ 96.8 mil­lion in 2016.

Act­ing chief ex­ec­u­tive Mal­colm Ashcroft said the busi­ness over­haul was tak­ing longer than ex­pected.

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