Debt repayment was significant and stability strengthens...

Debt repayment was significant and stability strengthens outlook.

Price paid by all shareholders to prevent doctor departure and implosion was a $4.2m, or 30% increase in remuneration to doctors, on largely flat doctor consultation and surgery fees, as compared to growth in day surgery fees. To put this in perspective, at 6 times ebitda, the opportunity loss in market cap is around $25m, or 30 cents a share.

Segment profit results fell (yes, fell) for both Victoria and NSW by $1m and $1.1m respectively ie. these key business units are less profitable than the prior year and have continued their downward trend over the last few years.

Now that the debt fears have largely subsided, the test will be whether the group can generate EBIT growth and stop the rot in underlying business unit earnings.