Vision Eye Institute reports 22.6% rise in underlying net after tax

The group’s revenue rose to $112.9 million, while its underlying NPAT lifted to $14.5 million, although the reported profit actually fell 8.9% compared to the prior year, which was affected by a $2.5 million goodwill write-down (related to Gold Coast clinics which have recently been sold) and a $1.9 million insurance claim that benefited the group’s overall earnings in the 2014 financial year (FY14).
Gross profit was $48.4 million (43% margin), an increase of $0.8 million.
Trading earnings before interest, depreciation and amortization (excluding goodwill write-down and insurance proceeds) was up 12.3% from $24.1 million to $27.0 million.
Net debt was reduced to $5.6 million, down from $27 million in 2014.
Earnings per share were down 15.2% – from 7.9c to 6.7c. A final dividend of 2.5c per ordinary share (fully franked at the corporate tax rate of 30%) has been declared, up from 1.25c in the previous year.
Net tangible assets per share rose 13.4% – from 47.6c to 54.0c.
Operating theatre revenue increased by 9.8% from $37.6 million to $41.3 million; surgical and consulting revenue was down 0.1% from $63.2 million to $62.6 million; and refractive surgery was down 8.2% from $9.8 million to $9.0 million.
Despite the results, the share price barely budged with the stock ending the day at $1.07 because of an all-cash takeover offer recently launched by the Shanghai-listed Jangho Group.
Jangho, which recently purchased a 19.99% stake in the business from Primary Health Care Limited, offered to pay $1.10 in cash per share for each of the shares it doesn’t already own, exceeding the all scrip 88c per share bid previously lodged by Pulse Health Limited.
While the deal is not a certainty to go ahead, Vision’s directors have unanimously recommended that shareholders accept the offer in the absence of any superior proposals. Unfortunately for investors, the board has also established that a payment of a special dividend in conjunction with the takeover offer was not feasible.