Ann: Investor Presentation Slides for FY2014, page-3

Result mildly positive, good news is signs of underlying growth recommencing.

Second half revenue growth of $3m, or some 5.8%, in line with industry growth rates. Good income growth for both theatre and consulting & surgery. By region, Victoria a standout performer; generally flat in NSW and QLD. QLD impacted by volume loss.

EBITDA, in second half of $11.5m down on prior year of $12m, however appears current second half was impacted by increased legal costs, where annual costs hit $2m compared to $700K in prior year; likely impacted in this half by litigation proceedings previously noted etc. Adjusting for this, appears to be a small increase, even though doctor compensations costs continue to increase, which have offset savings in non-legal cost indirect overheads.

Cashflow strong at just over $20m on a free cashflow basis.

Pleasingly, whilst Gold Coast practice strategy of some concern, physical freehold property purchase on Box Hill ($6m) and Melbourne North greenfield site identified and in design phase (first in many years and therefore quite significant) supports demonstration of ability to expand business.

Ongoing guidance tempered by expectation doctor costs will continue to grow. Profit appears to be reserved to allow funding of practice expansion, rather than dividends.