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Healius CEO Dr Malcolm Parmenter.Credit:Louise Kennerley

Jangho is Healius'biggest shareholder with a 16 per cent stake,and theSydney Morning Herald andThe Age revealed this week that the bid raised concerns in Canberra because Healius provides imaging services for the entire ADF,andJangho has ties to the Chinese Communist Party.

Healius chief executive Malcolm Parmenter said on Friday those concerns had not been raised as an issue internally,and that Janghou,like other shareholders,did not have access to the medical records its holds.

"The bid was highly conditional,and there’s no bid on that table now,"he said.

"So,from that perspective,it didn’t really get to the point of considering all the other bits because it didn’t really progress anywhere."

Dr Parmenter said he did not know if Jangho was still interested in buying the company,but said it would be a matter for the Foreign Investment Review Board to consider if it did progress. He also dismissed media reports that Healius was looking to sell parts of its business.

Healius reported a full-year profit net profit of $55.9 million,up from $4.1 million a year earlier,when it incurred significant restructuring expenses. Earnings rose 6.5 per cent on an underlying basis,in line with guidance.

There was positive revenue growth across the company's main pathology,radiology and medical centre businesses.

The company reduced its dividend to 7.2¢,from 10.6¢ last year,which it said would to provide a better balance between shareholder payouts,investment and its gearing levels,as it tries to execute a turnaround strategy.

UBS analysts Saul Hadassin said it was a"low quality result"but the decision to cut its dividend was positive given its net debt level.

Healius shares closed 4.8 per cent higher on the result. The stock has delivered total shareholder returns of negative 15 per cent over the past two years,underperforming the market by 52 per cent.

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