REPORTING SEASON: Ramsay Healthcare Ltd (RHC)

Brought to you by CommSec

 

Figure 1: Ramsay Healthcare Ltd 12 month chart

 

Ramsay Health Care (RHC) now a market leader in France and Australia

 Australia’s largest private hospital operator, Ramsay Health Care Limited (RHC) reported a 19% increase in Core Net Profit after Tax to $204.4 million with Net Profit up 21% over the year to the end of December 2014.

 Revenue and earnings were solid with gains in all its geographic segments helped by new acquisitions. The completion of its purchase of the controlling stake in Générale de Santé in October 2014 (for about € 429 million) means Ramsay is now a market leader in France and Australia. Ramsay is still keen to explore opportunities in existing and new markets to grow the business.

 Australian and Asian revenue increased by 8.8% and EBIT (earnings) growth lifted a solid 12.6% thanks to strong hospital admissions.

 Ramsay’s UK business continues to grow on higher NHS admissions up 12%, but the markets still looking for more growth from this division. Ramsay’s UK revenue increased by 9.0% to £198.1 million. Ramsay’s French unit listed revenue growth of 437.1% on acquisitions and organic growth.

 RHC upgraded its FY15 guidance and now expects Core NPAT growth of between 18% – 20% (up from 14% – 16%).

 RHC will pay $0.405 interim dividend to shareholders on 26 March 2015.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,