Vision Group beat own forecasts for FY11

Vision Group beat own forecasts for FY11

Shares in ophthalmic services company Vision Group (ASX:VGH) grew 3.45% on Wednesday after the company estimated it beat its forecast for FY11.

Vision Group is now expecting revenue of $107 million, the company advised, compared to the prior forecast of between $96 million and $101 million.

Normalised ebitda is believed to have been in the range of $27 million to $29 million, representing ebitda margins of 25%-27%.

This contrasts with the previous forecast of normalised ebitda in the range of $23 million to $26 million, and margins of 24%-26%.

The company disclosed that two lucrative Gold Coast doctors will withdraw from the company's umbrella shortly.

Dr Stephen Godfrey – who contributed revenues of $2.1 million in FY11 – and Paul Ng – who was responsible for $2.7 million – have elected not to extend their services contracts.

But Vision Group said it still had long-term contracts with five key doctors practising in the Gold Coast, so will be able to organise alternative arrangements to meet patient needs.

VGH shares grew to $0.090 in Wednesday's trading, after gaining 16% on Tuesday ahead of the announcement.

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