REPORTING SEASON: Ramsay Healthcare Ltd (RHC)

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Figure 1: Ramsay Healthcare Ltd 12 month chart

 

Ramsay Healthcare (RHC) overseas expansion pays high dividends for group.

·         Private hospital operator, Ramsay Healthcare (RHC) FY14 result was better than markets had expected with Net Profit increasing by 14% to $303.4Million. Core NPAT of $346.2Million and Core EPS ahead of Ramsay’s upgraded guidance given in Feb 2014.

·         Strong revenue and admissions growth in Australia with Australian hospitals operating margin (EBITDAR) increasing from 18.8% to 19.1% and Ramsay’s Asian expectation is going well.

·         Ramsay’s UK delivered a solid result with EBIT up 11.1% helped by a lift in NHS admissions.

·         Growth in France (Ramsay Santé ) was stronger than expected with earnings growth (EBIT) up 85% helped by its new Clinique de L’Union (acquired in June 2013) and the Medipsy psychiatric (acquired in Dec 2013)

·         RHC’s strong balance sheet will continue to fund organic growth and cash in store for future acquisitions. Ramsay is targeting Core NPAT and Core EPS growth of 14% to 16% for FY 2015 – which is slightly lower than the market expectations of 16-18% growth.

·         RHC will pay a 2H Dividend of $0.51 up 22.9% (Y/Y) paid out on 24th of September 2014.

 

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Juliana Roadley, Market Analyst,