Australia’s largest private hospital operator Ramsay Health Care (RHC) is confident of another year of solid earnings growth for the year ahead after lifting 2014-15 net profit 27% and boosting dividend payout.
Ramsay lifted its fully-franked final dividend 9.5 cents to 60.5 cents a share, making a final for the year of $1.01 a share, up 17% from 2013-14’s payout of 85 cents a share.
The shares jumped more than 5% to $63.68.
RHC 1Y – Ramsay lifts net profit 27%
Ramsay said net profit jumped 27% to $385.5 million for the year to June 30, up from $303.8 million earned in 2013-14.
The result was boosted by the company’s acquisition of Generale de Sante in France, which made it that country’s largest hospital operator.
Chief executive Christopher Rex said the company would continue to expand its international operations and would also receive a boost from ageing populations in its markets.
"Utilising our global experience in acquiring and integrating hospitals, we will continue to canvas opportunities in new and existing markets," he said.
"At the same time, demographics will continue to drive the need for capacity expansion and we expect ongoing benefits to flow from our brownfield investment strategy."
The company is looking at further opportunities in France and is also targeting the Chinese market where Ramsay has signed an agreement to jointly operate five hospitals in the city of Chengdu, which it plans to use as a foothold for its expansion into that untapped market.
Underlying net profit rose 19% to $412.09 million from the $346.15 million earned in the previous year.
Ramsay, which was founded by the late Sydney-based billionaire Paul Ramsay, said revenue rose 49.8% to $7.4 billion while group earnings before interest and tax rose 37.4% to $803.89 million.
