S&P/ASX All Ordinaries Index (ASX: XAO) share Australian Clinical Labs Ltd (ASX: ACL) is trading 2.1% higher at $3.40 per share.
The All Ords Index is also up 0.84% to 8,264.3 points at the time of writing.
It seems investors in this ASX All Ords healthcare share are unperturbed by news of a major sell-down.
Let's see what Australian Clinical Labs told the market today.
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ASX All Ords share in the green despite sell-down
Australian Clinical Labs released an announcement before the market open on Thursday.
The company said that major shareholder Crescent Capital has sold its entire 30.12% holding.
The shareholding was sold in a block trade.
Crescent Capital has confirmed it no longer holds stock in the ASX All Ords healthcare share through its various investment vehicles.
No other information was released.
What else is happening with Australian Clinical Labs?
Last month, during earnings season, the private pathology services provider reported a 0.1% decline in total revenue to $696.4 million for FY24 despite a 59% decline in COVID-19 revenue.
The underlying EBIT of $62.6 million was in line with FY24 guidance.
The company reported a stronger improvement in performance in 2H FY24, with underlying EBIT of $39.1 million at an 11% margin compared to $23.4 million in 1H FY24 at a 7% margin.
The underlying net profit after tax (NPAT) was $31.6 million, down 12.5%. The profit attributable to members of Australian Clinical Laboratories fell 33.3% to $23.9 million.
Basic earnings per share (EPS) fell 32.8% to 12.03 cents per share.
On 27 September, the ASX All Ords share will pay a higher final dividend of 9 cents per share, up from 7 cents per share in FY23.
The total FY24 dividend was lower at 12 cents per share compared to 14 cents per share in FY23.
The company also announced an on-market share buyback of up to 20 million shares.
CEO Melinda McGrath said:
ACL has been able to hold margins constant on FY23. In H2, the business returned to double digit EBIT margins, despite a material decline in COVID-19 revenue in FY24, and significant industry cost pressures. The business expects to realise earnings growth in FY25 as the market starts to show signs of recovery, with strong volume growth year-to-date.
ACL has a clear strategy to drive top-line growth through disciplined network expansion, investment in strategic new business, as well as a range of billing enhancement initiatives over the next 12 months. As always, the business will remain focused on operational efficiencies with margins expected to continue strengthening over time.
