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Healius- Performance so bad company considers rebranding to Primary Healthcare.

"NON-UNDERLYING COSTS" UNDERLYING THE VALUE DESTRUCTION

Every major cost program — Project Leapfrog, SIP, digital transformation has been classified as non-underlying for years, masking the true cost base. The gap between reported and underlying EPS has been persistent and widening.

These cost-out programs have failed (Project Leapfrog, SIP Phase 1 & 2, Cost Reset, T27) each costing A$80–150M have delivered no discenible benefit. EBIT margins declined ~820bps from FY16 to FY24.

STRATEGY WHIPLASH:

Three CEOs in five years: Parmenter (departed Dec 2022) → Jaquet (resigned Mar 2024, 15 months) → Anderson (current). Each transition triggered a new strategic review and another new cost-out program.

The company acquired Day Hospitals as a growth strategy in 2018 (via equity raising), then sold them in 2022 as non-core. It divested Medical Centres, then Imaging, and is now selling Agilex. Goodwill reached a peak of $2.34B all while margins & profits declined.

No doubt paying monstrous fees to advisors on this pitiful journey to a smaller earnings base, more debt and less strategic optionality.

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3 participants have contributed so far

Source: Bloomberg

Source: Google

openYes / No voteCloses 15 June 2026 · Resolves 15 June 2026

HLS- Healius is a Disaster- considers rebanding as Primary Healthcare and changing ticker to PRY - Should they do it?

Rebrand to distract

Your vote

OtheropenYes / No voteCloses 30 May 2026 · Resolves 30 May 2026

HLS- Activist Investor says Healius can improve balance sheet & ROIC by selling Ed Batemans pallet of single ply- is he right?

HLS: Another day, downgrade, & asset review..what's left to sell..just the sinlge ply Are they right- could HLS double ROIC by selling the pallet of sinlge ply that Ed Bateman bought for head office more than a decade ago. Sadly the value of single ply has plummeted since the original bulk purcahse was made as houses across the country are still stuffed full or the tough stuff since the Great Shortage. Clearing of the decks of this excess would be accompanied by a "non-cash" impairment bringing down Invested capital and improving ROIC metrics going forward.

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