Prognosis good for Primary Health Care

Pathology services company, Primary Health Care, has posted a net profit for the 2008-2009 financial year of $108.5 million, up from $7.8 million for the previous financial year.

This substantial jump comes after the first full financial year post acquisition of Primary's rival, Symbion Health Limited in March 2008.

Since the acquisition, Primary has folded Simbion's labs into its own in NSW and upgraded labs in other parts of the country. The company is also in the process of restructuring its imaging business, although it acknowledges this will be a gradual process and will prove disruptive to some centres.

Some of the increase in revenue, up from $650m in 2008 to $1.3bn in 2008, is attributed to increased visits partly caused by swine flu.

According to a company statement, over the next 12 months Primary intends to continue capitalising on synergies with Symbion, focus attention on pathology and imaging and roll out new medical centres.

In afternoon trading, Primary Health Care (ASX:PRY) was up 3.6% to $5.78.