News: Pulse Health sells non-core NSW community care business

Hospital operator Pulse Health (ASX:PHG) has disposed of its community care business in New South Wales to Nextt Health Pty Ltd for $750,000 cash, following a strategic review.

The North Coast Community Care (NCCC) business which provided community nursing and home care services from various sites in the Mid North Coast area of New South Wales, Newcastle and Sydney was considered non core for Pulse Health.

The private hospital operator will book 50% of proceeds on settlement date and 50% on the first anniversary of settlement date.

NCCC did not make a material contribution to earnings and the sale has no impact on earnings guidance.

Pulse Health operates eight private hospitals predominantly in regional Queensland and New South Wales.

First half earnings results for 2015 reflected further revenue, earnings and margin growth. An interim dividend was declared to shareholders.

Group revenue was up 12% to $29.7 million.

Underlying EBITDA-R increased by 14% to $5.2 million (1H14 $4.6m). Interim fully franked dividend declared was 0.3 cents per share.

Guidance for FY15 underlying EBITDA from existing assets is for growth in excess of 20% above FY14.