Takeover target Acurity Health Group has posted improved half-year financial results and expects revenues to continue to rise during the next 12 months.
The bright trading outlook for Acurity, which provides private surgical healthcare services, is underpinned by health boards outsourcing more procedures and steady patient growth from both the ACC and private, insured patients, its chairman, Alan Isaac, said yesterday.
''The company sees growth continuing in line with forecasts, supported by the ongoing focus on efficiencies and cost savings,'' he said.
Acurity remains the focus of a takeover offer by Connor Healthcare, a company associated with some of Acurity's largest shareholders. A Commerce Commission decision is due on the matter this week.
Connor, which increased its offer to $7.25 a share, has gained Overseas Investment Office consent for the takeover, and has achieved more than 97% shareholder acceptance, which is above the conditional 90% sought.
It is awaiting Commerce Commission clearance for the move, which is expected to be made known by Friday.
Craigs Investment Partners broker Peter McIntyre said it was a good half-year result, with management cost controls reflected in the increased revenue and after-tax profit.
While expecting a continuation of the good trading, he said the main focus remained the takeover and Friday's decision.
The takeover offer prompted Acurity's board not to declare an interim dividend. Acurity shares were unchanged at $7 yesterday.
Revenue from the half year to September was up 13.5%, from $49.8 million to $56.5 million, earnings before interest and tax grew 35.2%, from $5.40 million to $7.31 million, and after-tax profit was up 21%, from $4.06 million to $4.94 million.
Mr Isaac said the additional health board revenue was predominantly from the Hawkes Bay board, but there were also increased volumes from the boards covering Wellington and Bay of Plenty, in Tauranga.
• Connor is owned by Sydney-based Evolution Healthcare, which took an 11% stake in Acurity last year at $5.50 a share, and also owns Boulcott hospital in Hutt City, BusinessDesk reported.
It has a takeover implementation deed with Acurity's majority shareholder, Austron, under which Austron will become the 75% shareholder and Evolution the 25% shareholder in Connor, if the offer is successful.
