Pathology and medical centre operator Primary Health Care says the opening of new centres and investments in new technology and businesses will dent its performance in the current financial year.
Chief executive Malcolm Parmenter told the company's annual general meeting that the opening of four medical centres and one imaging site will impact Primary's short-term performance.
There will also be additional costs from the roll-out of technology programs and investments in the company's Health & Co private medical centres and IVF operations, he said.
In the financial year so far, GP recruitment has been softer-than-expected, the performance of the pathology business has been solid and imaging is performing above last year, Mr Parmenter said.
He forecast an underlying profit for the year of between $92 million and $97 million, which compares to a $92.1 million underlying profit in 2016/17.
Equities researcher Citi said in October that consensus analyst estimates of an underlying profit of $97 million was overly optimistic, citing revenue challenges, rising costs in Primary's medical centres division and pathology collection centres, and the loss of a $30 million-per-year cancer screening contract from the second half of 2017/18.
Mr Parmenter said the loss of the bowel screening contract will not be material to the company in 2017/18, though "will be a headwind in the latter part of the year".
Primary shares dropped six cents, or 1.7 per cent, to $3.50.
