Wellington, May 14 NZPA - Hospital operator Wakefield Health Ltd has reported a 38.9 percent fall in annual earnings as softness in demand for private and government funded surgery persisted.

The net profit after tax of $6.2 million in the year to March 31, was down from a record $10.1m last year.

Revenue fell 10.8 percent and operating costs fell 5.5 percent.

Chairman John Calder said ACC funded patient numbers did not return to previous levels and the company performed significantly less District Health Board work compared to the previous year.

Earnings before interest, tax, depreciation and amortisation fell 26.1 percent to $16.3m.

The company is paying a final dividend of 10c a share on June 18, taking total dividends for the year to 18c, down from 25c last year.