REPORTING SEASON: Ramsay Heath Care (RHC)
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Figure 1: Ramsay Health Care 12 month chart
Australia’s largest private hospital operator Ramsay Health Care (RHC) posted a slightly better than forecast $171.6m half year underlying profit.
The result was driven by increased demand for its facilities, continued capacity expansions and acquisitions. RHC operates 151 hospitals and day surgeries across Asia Pacific, the UK and France.
Despite its presence globally, facilities across the region continue to be the main contributors to profit.
Operations in Australia, Malaysia and Indonesia generated $161.1m (93% of earnings).
RHC is continuing with its Brownfield expansion project, which aims at building additional capacity at existing hospitals. RHC added 33 new sites to its portfolio – 30 psychiatric facilities in France and three hospitals in Malaysia over the half. Further acquisition opportunities remain.
The world’s largest private healthcare company, Hospital Corp of America and the smaller UK based BMI could be forced to divest a number of UK hospitals (over the medium-term) by the Competition Commission.
Should this occur, RHC seems well placed to expand in this market. Looking ahead, RHC has upgraded its guidance for the year by 4%; expecting 16-18% FY14 profit growth.
A fully franked $0.34 per share interim dividend was declared, payable to eligible investors on 26th March.