NMC Health 2014 profit rises 12% to Dh284.4m

UAE-based healthcare services provider NMC Health's net profit for 2014 increased by 12.1 per cent to $77.5 million (Dh284.42 million) on the back of new healthcare facilities opened last year.

Its group revenues increased by 16.9 pe rcent to $643.9 million while healthcare division revenue increased by 14.8 per cent to $332.2 million.

Earnings per share amounted to $0.412.

The London-listed company said proposed dividend pay-out ratio is maintained at 20 per cent of profit after tax, amounting to 5.4 pence per share.

Dr B R Shetty, Chief Executive Officer, said: ”2014 was a good year for NMC, where both divisions performed well… three new healthcare assets were opened, including the first private sector women’s hospital in Abu Dhabi. The group delivered double digit EBITDA growth and set the stage for accelerated growth in the future supported by its growing network and the new $825m financing facility announced in February 2015.”

Total capital expenditure for the year reached $112.3 million in 2014, 35.8 per cent higher compared to the previous financial year.

Its net debt reached $113 million as the group continued to advance its on-going healthcare projects.

Commenting on the outlook, the company said the macro-economic outlook for 2015 in the UAE and the Gulf region remains positive and is expected to continue supporting the growth of our business divisions.

The Emirate of Dubai’s started rolling-out mandatory medical insurance in Q4 2014 in a phased approach over the following two years, starting with the largest employers.

Dubai Health Authority (DHA) estimates around 66 per cent of the Emirate’s residents are without healthcare insurance. With the addition of the NMC General Hospital in Dubai Investment Park in 2014, NMC Health increased its bed capacity in Dubai by 55 per cent and now has three hospitals and a day surgery in the Emirate. In addition, NMC is a leading distributor of pharmaceuticals, a segment expected to grow as a result of increased medical insurance penetration.

The flagship 250-bed NMC Super Specialty Hospital in Khalifa City, Abu Dhabi is expected to join its portfolio of operational healthcare assets in 2015 and contribute towards the Group’s growth in future periods.

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