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Monash grows profits and IVF market share

AAP logoAAP 25/08/2016 By Andrew Leeson

Monash IVF has delivered a healthy profit bump of $28.8 million helped by acquisitions that have increased its market share to almost one in four of all IVF treatments in Australia.

Monash said it increased its share of the Australian assisted reproductive market to 23.8 per cent as it reported profit rose 34.6 per cent in the year to June 30.

The fertility treatment, diagnostics and imaging services business said revenue rose 25.3 per cent to $156.6 million as acquisitions of Sydney-based businesses helped boost its market share.

Along with its IVF services, the addition of Sydney Ultrasound for Women business bolstered the results of its imaging services, which now accounts for 16.4 per cent of the group's overall revenue.

"Our far-reaching network of ultrasound practices now provides us with an excellent platform to further grow our non-invasive prenatal testing," Monash IVF chief executive James Thiedeman said.

The ability to offer in-house screening and other related diagnostics was key to maintaining and growing the position that Monash IVF held, Mr Thiedeman said.

Monash lifted earnings almost 28 per cent to $49.6 million as the number of Australian patient treatments rose almost 10 per cent against 2014/15, excluding gains from acquisitions.

Success in Malaysia has fuelled plans to move to a purpose-built clinic in Kuala Lumpur, as revenue from its KL Fertility business rose 10.7 per cent to $6.2 million.

"Now that we've demonstrated a capacity to acquire and grow services in the region we are continuing to review a number of other growth opportunities from our Asian hub and indeed further north of the equator," Mr Thiedeman said.

Looking forward the company said it will focus on developing new technology to help ensure patients had the best chance of delivering a healthy baby, Mr Thiedeman said.

Monash IVF's share price closed down nine cents, or 3.64 per cent at $2.38.

MONASH IVF DELIVERS PROFIT BUMP

* Net profit up 34.6pct to $28.78m

* Revenue up 25.3pct to $156.56m

* Final dividend up 0.8 cents to 4.5 cents, fully franked. Full year dividend 8.5 cents.

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