NMC Health sees growth accelerate in third quarter

United Arab Emirates-focused healthcare provider NMC Health said its remains on track to hit full-year profits after stronger growth in the third quarter, driven bby a strong performance in its Healthcare division and a good recovery in Distribution.

United Arab Emirates-focused healthcare provider NMC Health said its remains on track to hit full-year profits after stronger growth in the third quarter, driven bby a strong performance in its Healthcare division and a good recovery in Distribution.

Group revenue in the three months to September 30th increased by 13.9% from $108.3m to $123.4m, an acceleration from the 8.4% growth seen in the first half. The firm said that earnings before interest, tax, depreciation and amortisation (EBITDA) for the full year is expected to be in line with management's expectations.

Consensus estimates for the year ending December 31st are for revenue of £307.7m and pre-tax profit of £28.4m.

Chief Executive Officer Dr BR Shetty said: "NMC Health continues to perform well across both divisions. Occupancy levels in our hospitals are increasing, as we see continued demand for private healthcare services in the region and we increase our range of services available. Our Distribution Division has seen an improved performance this quarter, and we have attracted a number of new product lines through the year."

Healthcare revenues jumped by 17.5% on last year to $61.2m, driven by continued strong demand for private healthcare services in the region, as well as an increase in the number of higher revenue procedures, the group said. Occupancy improved by 6.8 percentage points to 59.4%.

Revenue in the Distribution division rose by 11.8% year-on-year to $70.2m, helping to offset the subdued performance in the first half. Distribution revenues grew by just 3.9% in the first half. "Gross margin levels also recovered from the levels experienced in H1, 2012 across most of the Distribution Division sectors," the firm said.

The firm said that while most capital projects are progressing well and to budget, the opening of Brightpoint Women's Hospital has been delayed and is now expected to take place in the second half of next year.

By the end of the period, the group had drawn down $120m under its credit facility; a further $30m is still available.

Total group debt totalled $248.8m, while cash and bank deposits stood at $223.2m.

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023