SYB symbion health limited

big hospital trouble

  1. 1,155 Posts.
    No fast fixes for woes at Mayne

    October 04, 2002
    MAYNE Group has admitted there is no quick solution to the performance of its ailing hospitals.

    A comprehensive series of initiatives are currently underway at the largest operator of private hospitals.

    "Nevertheless, we recognise that a 'quick fix' cure for hospitals does not exist," recently appointed chief executive officer Stuart James said in Mayne's annual report, sent to shareholders yesterday.

    "We are working hard to secure operating improvements over time.

    "We will also continue to maintain an objective assessment of the capacity for further growth of these assets going forward."

    Mr James said a high potential product development pipeline provided a sound platform for further growth in Mayne's pharmaceuticals business.

    "In the year ahead we expect to receive around 11 new generic product approvals across key markets, and there are a further number of new products under development for submission for regulatory approval," Mr James said.

    Chairman Mark Rayner said in the review Mayne was continuing to progress a demerger of its Loomis logistics businesses from its core healthcare businesses.

    "As we advised the market, discussions have been held with a number of parties in relation to a trade sale of the logistics assets," Mr Rayner said.

    "A bid comprising an acceptable price and conditions has not yet emerged and as a result, we are continuing to progress towards a demerger."

    Last week, Mayne extended the deadline for the proposed demerger by three weeks to October 31, following revised offers to buy it.

    Meanwhile, Mayne revealed Peter "Pacman" Smedley, received $3.84 million in 2001-02 as the company's share price fell dramatically.

    Mr Smedley received a base salary of $1.74 million, an interest-free loan benefit of $354,000 and other benefits worth $1.75 million, according to the annual report.

    Mr Smedley, who retired from his position in late August, presided over Mayne's net profit for 2001-02 of $173.6 million, up 7.5 per cent on the previous year's $161.5 million.

    The 2001/02 net profit included significant items with a net positive impact of $23.3 million.

    Mayne's share price fell from $6.45 at the end of June 2001 to $4.14 at the end of June 2002.

    The fall came as investors expressed dissatisfaction over downgrades to Mayne's earnings forecasts and rumblings among Mayne doctors upset by the centralised style of administration under Mr Smedley.

    Mayne shares gained 10c yesterday to close at $3.52.

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