27 May 2013

Drop in profit for hospital group

12:28 pm on 27 May 2013

Acurity Health Group has reported a drop in profit following subdued demand and revenue but it was still ahead of guidance.

The company, which was formerly Wakefield Health, reported a 2% fall in profit to $5.9 million in the year to the end of March, compared with $6 million for the same period a year ago.

Revenue fell 1% to $79 million, while operating earnings fell 12% to $14.2 million as a result of increased costs for contracting surgeons for ACC and district health board work, and also a substantial increase to insurance premiums.

Chairman Alan Isaac said the reduction in underlying earnings reflects patchy demand.

The company will pay a tax-paid dividend of 8 cents per share, down from 10 cents last year.