IPN independent practitioner network ltd

ferret stock to watch: independent practitioner ne

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    Ferret Stock to Watch: INDEPENDENT PRACTITIONER NETWORK
    08:38, Friday, 29 September 2006

    ANOTHER WAY TO GO FOR THE SOLE MEDICAL PRACTITIONER

    Sydney - Friday - September 29: (RWE Aust Business News)
    ********************************************************

    OVERVIEW
    ********

    Lone GPs are a dying breed.

    In this era of new technology and huge cost in running a
    state-of-the-art practice, a general medical practitioner can be left
    behind.

    The answer has been medical centres which have a number of GPs
    that give each other backup.

    This concept has been exploited by Independent Practitioner
    Network Ltd (ASX:IPN) to give GPs an alternative and reduce their work
    loads.

    Yesterday, the company announced it had agreed to buy two
    stand-alone medical centres, being the Redcliffe Peninsula Medical
    Centre and The Bay Medical Centre.

    The acquisition is conditional upon certain events but the
    parties anticipate the sale will complete within the next two weeks.

    This complements a series of smaller acquisitions, made in the
    last four months, of practices which have been, or are to be, integrated
    into the company's existing centres.

    Total purchase price paid or committed to be paid for the recent
    practice acquisitions is about $12 million.

    The consideration for the acquisition, reported yesterday, will
    be partly funded through the issue of 6.94 million shares with the
    remainder funded through cash-flow and debt facilities.

    Annualised revenues associated with all of the acquisitions are
    around $5 million.

    The expected annualised increase in operating EBITA will be more
    than $2.5 million, with the majority of such impact expected from
    November onwards.

    SHARE PRICE MOVEMENTS
    *********************

    Shares of IPN yesterday traded steady at 18c. Rolling high for
    the year has been 18.5c and low 6.9c. The company has 971.5 million
    shares on issue with the market cap of $174.8 million.

    Last month the company reported results for the year ended June
    30.

    Directors said they were pleased with the outcome and
    highlighted the most important features:

    * The increase in earnings before interest, tax, depreciation
    and amortisation from continuing operations (EBITDA) climbed 80 per cent
    to $12.2 million;

    * Increase in normalised EBITDA from continuing operations
    (excluding prior year non recurring takeover related costs of $1.4m) of
    49 per cent to $12.2 million;

    * Increase in revenue and income from continuing operations of
    12 per cent to $83.9 million;

    * Increase in net profit from continuing operations after tax of
    223 per cent to $5.7 million;

    * Increase in basic earnings per share of 189 per cent from
    0.19c to 0.55c;

    * Increase in cash flows from operating activities of 30 per
    cent to $8 million.

    IPN's managing director, Dr Malcolm Parmenter, said "This is a
    good result for IPN and the company's strongest result to date.

    "The improvement in the company's performance continues to be
    the result of improved pricing of medical services and IPN's ability to
    consolidate other GP practices into the network with minimal increase in
    the existing overhead cost structure," Dr Parmenter declared.

    The outlook for the 2007 financial year is for continued strong
    growth.

    Further implementation of IPN's strategy should see growth in
    revenue.

    However, the most significant growth over the next 12 months
    will come from growth in the number of GPs.

    IPN has developed a strong pipeline of new GPs wanting to join
    the network, and expects to increase the number of GPs working in the
    network by more than 50 FTEs.

    These GPs will be accommodated into existing medical centre
    floorspace as well as newly developed centres.

    In the past the corporatisation of general practice has been
    viewed with considerable skepticism by GPs, but this view is changing.

    Now IPN is increasingly being seen in the medical marketplace as
    the ethical provider of quality services to conservative general
    practice.

    IPN is keen to develop this relationship with mainstream
    medicine, and management believes the company's good reputation with GPs
    is critical to its long-term success.

    BACKGROUND
    **********

    Independent Practitioner Network Ltd (formerly LifeCare Health
    Ltd) has created infrastructure, facilities and management services for
    the healthcare industry.

    In August 2002, LifeCare Health completed a merger with
    Foundation Healthcare which resulted in an additional 90 clinics and a
    private hospital.

    In August 2004 Sonic Healthcare Ltd acquired 72 per cent of
    IPN's issued capital.

    Since its beginnings over a decade ago, IPN is now rapidly
    building momentum and presence globally by supporting both local
    businesses and multinational overseas corporations.

    Structured to support businesses with typically 10 to 500
    employees, its services include Help Desk, Internet, Email, Backups,
    Disaster Recovery, Server Management and more.

    IPN is experienced in bandwidth management, advanced data and
    voice services, and high performance network management.

    Internet services with IPN include a 24 x 7 Help Desk and a
    fully monitored network.

    The company's Internet services are used by hospitals,
    superannuation funds to host online member services web sites, oil
    companies, graphic design, printing and pre press, architects and
    engineering companies.

    IPN has expertise in Backups and full Disaster Recovery Services
    and is experienced at supporting the Australian based-offices of
    multinational global organisations from start up and through their
    expansion in the Asia Pacific area.

    IPN's Security Suite includes both a Security Audit and an
    External Vulnerability Check.

    ENDS

 
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