Healius (ASX:HLS) share price jumps 6% on update and $200m share buyback plan

The Healius Ltd (ASX:HLS) share price is pushing higher on Wednesday after the release of an update and $200 million share buyback plan…
The post Healius (ASX:HLS) share price jumps 6% on update and $200m share buyback plan appeared first on The Motley Fool Australia. –

hand on touch screen lit up by a share price chart moving higher

The Healius Ltd (ASX: HLS) share price is charging higher on Wednesday following the release of an update.

At the time of writing, the healthcare company’s shares are up 6% to $3.85.

What did Healius announce?

This morning Healius provided investors with an update on its performance so far in FY 2021 and its plans for some of the funds raised from its medical centres sale.

In respect to the former, management revealed that Healius’ performance has been strong and its volumes are improving.


The Pathology business continued its strong revenue growth in October and November. This was driven by a mix of COVID-19 testing volumes and the on-going recovery of non-COVID-19 revenues.

Community COVID-19 testing remains broadly within a band of 7,000 to 10,000 per working day, whereas commercial COVID-19 testing is continuing to grow.

Its non-COVID revenues are trending up to be flat year-on-year.


The Imaging business has delivered sustained growth in revenues in all states in October and November. This was driven by both volumes and average fee growth, other than in Victoria and South Australia.

In Victoria, activity is returning rapidly with the easing of restrictions and revenue was above the prior corresponding period in November.

In South Australia, the COVID-19 related shutdown temporarily impacted revenues in November. Though, revenues are still ahead year to date.

Day Hospitals.

Day Hospitals revenue was materially ahead of the prior corresponding period in October and November.

Management notes that Montserrat is delivering good returns with Westside at record levels. The Adora Fertility business is also performing well with record cycles in November.

On-market buyback.

Last month the company completed the sale of its medical centres to BGH Capital. This led to the company receiving proceeds of $483 million.

This morning the company has announced a new capital management plan which aims to facilitate strategy, optimise shareholder returns, and manage uncertainties.

Part of this will see the company undertake an on-market share buy-back of up to $200 million in 2021. This remains subject to the Healius share price and market conditions.

It has also revised its dividend payout ratio to a target of 50% to 70% of reported net profit after tax.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Healius (ASX:HLS) share price jumps 6% on update and $200m share buyback plan appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!