29 Jul 2015

Green Cross Health's share price spikes

1:34 pm on 29 July 2015

Green Cross Health's share price is up another 8 percent, after the company announced a special dividend of 15 cents a share at yesterday's annual meeting.

The company says the return of cash to shareholders is the best use of its money, following a period significant growth, in recent years.

Green Cross represents about 300 pharmacies under the Unichem and Life Pharmacy brands, with an equity stake in over 30 medical centres under The Doctors brand, and the recently established community health services operation, which operates under the Total Care Health Services brand.

The chair of Green Cross Peter Merten said the company would now focus on consolidation and improving profitability.

"Basically for us to get to know the businesses a bit better, for us to get to profitability levels that are industry wide as far as community healthcare business is concerned."

Mr Merten said it had spare cash in its balance sheet following significant growth in recent years, and returning that to shareholders was the best use of that money.

He said the firm had not issued guidance for the current financial year.

Mr Merten said two of its businesses are new, so he was not confident enough to comment on the firm's financial performance in the months ahead.

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