The Healius Ltd (ASX: HLS) share price is on watch this morning after a trading update provided at the company’s annual general meeting (AGM).
What could move the Healius share price?
While shareholders are waiting to hear from management at the AGM, all eyes will be on the company’s trading and management update released this morning.
Healius announced underlying net profit after tax (NPAT) for FY20 is expected to be between $94 million and $102 million, which could see the Healius share price move today.
At the top end of that range, this would represent a 9.4% increase on the prior corresponding period (pcp) as anticipated in the company’s 16 August update. Healius would then have delivered in line with the seasonally adjusted run rate from 2H 2019.
The Aussie healthcare company also confirmed a raft of management changes in today’s announcement. Scott Beattie will be taking over as CEO of the group’s Medical Centres business. These changes all form part of Healius’ organisational re-design, which was announced earlier this year.
What else did Healius announce?
Chairman Rob Hubbard noted FY19 was a big year for the Aussie healthcare group. The company rebranded as Healius during the year and rejected a takeover bid from its major shareholder, Jangho, due to share price and conditionality.
In terms of financials, Healius delivered revenue up 6% on pcp to $1.8 billion with underlying NPAT up 6.5% to $93 million as the Healius share price climbed higher in 2019.
Pathology was the company’s largest division, with about 60% of the group’s profit on the back of a 2H 2019 turnaround. Healius’ Medical Centres division grew revenue and EBIT by 13% and 19%, respectively, and the Imaging division delivered a third successive year of double-digit growth.
Mr. Hubbard said FY20 will be the peak year of adjustments to the company’s reported earnings.
Capital expenditure remained higher in FY19, mostly due to strategic investments such as its Montserrat Day Hospitals acquisition.
The Healius share price is up 27.87% to $3.12 per share, prior to this morning’s open.
The post Healius share price on watch after trading update appeared first on Motley Fool Australia.
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