NMC Health records increase in quarterly revenues

NMC Health has posted an 11 per cent year-on-year increase in first quarter revenues to 139m dollars, bolstered by demand for specialist clinical services in its healthcare division.

The chain, which has branch hospitals in Dubai, Sharjah and Al Ain, said it was trading in line with expectations for revenue and earnings before interest, tax, depreciation and amortisation (EBITDA).

Its healthcare division's occupancy rates increased 64% in the quarter, compared to 55.7% the year earlier, despite an additional 31 beds.

Revenue in the Distribution division increased by more than 10% to $77.3m, compared with the three months to March 31st 2012. Gross margin levels remain as expected.

The group had $217.6m of cash and bank deposits, and a total group debt of $302.6m as at March 31st 2013, both broadly in line with management expectations.

"NMC Health has made a strong start to the year. Occupancy levels in the healthcare division continue to increase driven by a strong demand for our services in the region," Chief Executive Bavaguthu Raghuram Shetty said.

"The Distribution division continues to perform well in good macro-economic conditions in the UAE. We are looking forward to opening our day patient centre in Mussafah in the coming weeks and I am pleased with the progress we are making with our other capital projects."

The group added that its capital projects remain on budget. Projects include the Brightpoint Women's Hospital, Mussafah day patient medical centre, Dubai Investment Park General Hospital and Khalifa City Specialty Hospital.

The share price fell 3.23% to 326.90p by 09:35 Tuesday.

RD