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Virtus delivers big, beautiful profit

AAP logoAAP 22/08/2016 Marty Silk

More women trying to get pregnant later in life have helped Virtus Health lift its full-year profit by 11.8 per cent.

The fertility services provider said its net profit of $32.9 million was underpinned by solid growth in treatment cycles and implantations of fertilised eggs.

Virtus's Australian, Irish and Singaporean operations completed 18,719 cycles in the 12 months to June, a rise of 9.6 per cent over the previous year.

Chief executive Sue Channon said demand for cycles was strong amid rising maternal ages, declining global fertility rates, the impact of underlying medical conditions on fertility, and increasing demand from same sex couples and single women.

"Fertility runs out very quickly after the age of 30 and the demographic factors remain favourable in all the markets we operate," Ms Channon told AAP.

"With the platform we have created in the last five years, we are well positioned to expand."

Earnings jumped 12.3 per cent, underpinned by a solid 3.8 per cent rise in Australian income to $71.2 million.

Virtus said there had been an upturn in demand for its premium clinics, which offer all levels reproduction services from advice to genetic treatments, particularly those in NSW.

The company's budget The Fertility Centre (TFC) clinics in regional areas performed well, offsetting subdued growth in metro area TFC clinics.

Chief financial officer Glenn Powers noted gains in NSW had come despite increased competition from large players entering the market.

He also suggested the solid economic growth in the state could be driving demand for services.

"There does seem to be correlation between economic activity in a state and IVF take-up," he said.

Meanwhile, Virtus's full-year earnings from its three clinics in Ireland skyrocketed 138 per cent to $5.7 million.

The company also managed to trim losses from its one Singapore clinic to just $500,000, down from $1.9 million in 2014/15.

Ms Channon said Virtus was looking at acquisition opportunities in markets with similar regulatory environments and that were at least partially English-speaking, which included Singapore, Hong Kong, the UK and Europe.

VIRTUS HEALTH'S SOLID YEAR

* Net profit up 11.8pct to $32.9m

* Revenue up 11.6pct to $261.2m

* Final dividend up one cent to 15 cents per share, fully franked

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