Primary hit in writedown
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.