NMC Health (NMC.L), a private healthcare operator in Gulf Cooperation Council nations, reported early Monday that first-half adjusted earnings surged by almost a third as acquisitions complemented the strong growth in organic revenues and margins expanded.
Reported sales surged by 20.2% to $932.0 million during the six months that ended June 30, from $775.2 million a year ago, the south-west London, UK-based company, whose service proposition spans across 17 countries, said in its earnings statement.
Sales were primarily driven by a 19.7% jump in the group’s key healthcare division, which accounted for 73% of group revenues in the first half. Bed occupancy rates reached 69.9%, up 80 basis points. It said ongoing initiatives to improve asset utilisation, efficiency projects across the healthcare businesses, and continuing benefit from a previous introduction of mandatory health insurance in Dubai, United Arab Emirates, propelled the company’s revenues.
NMC also announced in the first half a “landmark” operations & management deal with the Abu Dhabi National Oil Company, which holds the seventh-largest proven reserves of oil in the world, to manage its healthcare facilities.
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In January 2018, NMC acquired 70% of ComeSurge, a cosmetic surgery clinic in Dubai, contributing “attractive” levels of margin and providing an opportunity to take advantage of a number of identified revenue and cost synergy opportunities, it said. The group also bought Aspen Healthcare, a network of nine facilities across the UK including four hospitals, three of which are based in Greater London.
In line with higher turnover, the firm reported an increase in adjusted earnings per share to $0.67 in the first half from $0.51 a year earlier. Earnings before interest, tax, depreciation, and amortization margin also climbed to 24.2% from 22.0%.
Looking ahead, the company said it sees “continuing” good growth potential across different parts of the group in 2019 and beyond.
“The benefits of scale, our mix of healthcare verticals and cross utilisation of assets and business streams are now starting to be reflected through enhanced revenue and improved efficiencies and margins,” Chief Executive Officer Prasanth Manghat said in the statement.