10th Dec 2018 08:20
LONDON (Alliance News) - NMC Health PLC on Monday reiterated its previous annual earnings guidance, citing supportive industry dynamics and continued positive operational developments.
The UAE-based private healthcare operator also said it has secured a contract to manage a hospital in Seychelles.
The company added that it has revised its management incentive target conditions following feedback from key independent institutional shareholders.
For 2018, NMC Health said it expects to record 24% year-on-year growth in total revenue, with organic revenue growth of 15%. Total revenue in 2017 stood at USD1.60 billion, with organic growth have contributed roughly 16% that year.
A 24% increase suggests 2018 revenue will be just short of USD2 billion.
Earnings before interest, tax, depreciation and amortisation for 2018 is predicted to total USD480 million, up 36% from USD353.4 million a year ago.
NMC Health estimates 2019 revenue growth of around 22% to 24% and Ebitda growth of 18% to 20%. Excluding impact of acquisitions completed in 2018, revenue growth for 2019 is anticipated to be 12% to 13% and Ebitda growth around 15%.
The company said receivables collection has been normalising in the second half of 2018, improving cash flows.
NMC Health noted its Saudi Arabia healthcare joint venture is expected to be signed early in the first quarter of 2019. In June, NMC signed a partnership with Hassana Investment Co to create a new healthcare platform and company in Saudi Arabia.
The company secured the Seychelles hospital operations and management contract from UAE Ministry of Presidential Affairs.
It said it has increased Ebitda growth requirement for 2019 long-term incentive plan awards to a range of 10% to 18% from 5% to 15% range set previously.
Shares in the company were up 1.2% at 3,202.00 pence each on Monday morning in London.
Related Shares:
NMC.L