19th Aug 2014 10:20
LONDON (Alliance News) - NMC Health PLC Tuesday reported a higher profit and revenue for the first half of the year, boosted by a strong performance from both its healthcare and distribution divisions, and said it was confident about this year and next.
The private healthcare network operator in the United Arab Emirates posted a pretax profit of USD40.9 million for the six months to June 30, compared with a profit of USD32.3 million in the first half of 2013, as revenue rose 15% to USD314.3 million, from USD273.1 million.
Last year's result had been hit by a USD3.4 million write off of unamortised finance fees.
"The board view the outlook for the remainder of fiscal year 2014, and fiscal year 2015, with confidence," the company said.
Its healthcare unit treated nearly 14% more patients in the half compared with a year earlier, and occupancy rates were up even though it increased the number of operational beds by 16 to 277. Revenue per patient rose to USD114.
Still, NMC Health shares were down 0.8% mid-morning Tuesday at 476.00 pence.
The company spent GBP27.2 million more on capital expenditure than it did in the first-half of 2013, as it pumped further investment in its existing facilities and new projects. The company said that due to the phasing of spending on its largest new development, the 250 bed Khalifa City Hospital, it expects capital expenditure to increase even further in the second half of the year.
NMC Health said the general macro-economic outlook in the UAE remains positive, as does the prospects for the company.
"The roll-out of mandatory healthcare insurance in Dubai is expected to be another catalyst for growth from 2015 onwards," the company said.
NMC Health said it will not pay an interim dividend this year, as in previous years. It will pay a final dividend.
"The board remains committed to its previously stated policy to target a dividend payout ratio of 20-30% of profit after tax. The board believes that this is a progressive dividend policy, whilst maintaining an appropriate level of dividend cover. The dividend policy reflects the strong cash flow characteristics of the group, but also allows the retention of cash to fund the ongoing operating requirements and continued investment which the company has highlighted for its long-term growth," it said.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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