NMC Health profit surges on increased patient numbers

Net profit for the year to the end of December rose 38% to $209.2m (£151m) as revenue rose 31% to $1.6bn. Pre-tax profit rose 39% to $210.4m.

Revenue rose 41% to $1.2bn at NMC’s core healthcare division as patient numbers increased by a third to 5.8m as the FTSE 100 company expanded existing facilities and made acquisitions including Al Zahra Hospital in the emirate of Sharjah. Revenue per patient from healthcare services increased 7.6% to $189.80 as NMC added higher value services such as long-term care.

NMC is expanding rapidly to tap into growth in the Gulf’s healthcare market as an increasingly affluent population becomes more prone to diseases such as diabetes. It paid $560m for Al Zahra in March and funded the purchase with debt and a share placing.

Prasanth Manghat, NMC’s chief executive, said the company was confident about its prospects and would continue to expand, possibly through further acquisitions.

Manghat said: “Sustained ramp up of utilization at facilities we opened in recent years, integration of acquired assets and continued discipline in organic and inorganic expansions should all translate into a very promising 2018 and beyond.

“The company continues to benefit from ready access to debt financing and a supportive shareholder base that we will not take for granted. While we continue to apply strict criteria to our expansion opportunities this backdrop gives us confidence in addressing any future funding requirements to support our ambitious growth plans.”

Group debt increased to $1.4bn at the end of December from $1.05bn a year earlier. Financing costs rose to $63.8bn from $41.7bn.

NMC shares fell 7.5% to 3,102p at 08:33 GMT. The shares had more than doubled since the start of 2017, sending the company into the FTSE 100 index.