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- Healthia (HLA reports a 51 per cent 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 experienced some negative impacts due to COVID disruptions including a net loss of $86,000, down 102 per cent from $4.9 million
- Despite this, CEO Wesley Coote remains confident the company will be able to continue providing excellent patient care and supporting its team members in the second half
- Healthia declared an interim fully franked dividend of two cents per share
- Company shares are down 3.38 per cent to trade at $2
Allied healthcare company Healthia (HLA) has reported a 51 per cent increase in statutory revenue to $91.7 million for the first half of FY22.
Healthia said the revenue increase primarily reflects the deployment of $102.2 million of capital on 80 acquisitions, comprising 76 businesses within the Bodies & Minds division, three within the Eyes & Ears division and one business within the Feet & Ankles division.
Among the acquisitions was the purchase of 63 Back In Motion physiotherapy clinics, which helped to position Healthia as the number one physiotherapy group in Australia and New Zealand.
While the company made significant headway in establishing itself as a leading diversified healthcare business, it also suffered some negative impacts as a result of COVID-related lockdowns and restrictions.
Between July and October, there were an increased number of lockdowns and restrictions across the country which impacted 6869 clinic trading days during H1 FY22 compared to 2152 trading days in H1 FY21.
During this time, the company continued trading to ensure employees’ livelihoods didn’t suffer significantly and to continue providing patients with essential health services.
Unfortunately however, Healthia wasn’t able to fully utilise its fixed cost base which led to the underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin decreasing from 17.9 to 13.1 per cent.
CEO and Managing Director Wesley Coote said he was thankful to the clinicians and support staff for their commitment during a hard 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 profits, the company reported a net loss after tax of $86,000, down 102 per cent from a NPAT of $4.9 million in H1 FY21.
Healthia attributed the $5 million loss to Other Income decreasing significantly due to the $7.61 million of JobKeeper payments recognised in the prior period, as well as the abovementioned COVID-19 impacts.
The healthcare stock declared an interim fully franked dividend of two cents per share, supported by its fully underwritten dividend reinvestment plan.
Looking ahead, the company expects to deliver underlying revenue and EBITDA growth in FY22 and will continue monitoring and managing any impacts of COVID-19.
“As we head into 2022 and our ‘new normal’ we will continue our focus on providing excellence in patient care and supporting our team members which are key factors in the ongoing success of the company,” Mr Coote concluded.
Company shares were down 3.38 per cent to trade at $2 at market close.
