NMC Health PLC (LON: NMC), the leading private healthcare operator in the Gulf States has denied reports it is looking to acquire assets in India.
In a brief statement, the FTSE 100-listed company said it “has taken note of questions it has been receiving on the back of various news articles regarding acquisition of assets in India. NMC denies such news and reaffirms its current focus on the GCC (Gulf Cooperation Council) market for capital deployment.”
READ: NMC Health shares jump as it issues positive outlook after strong first half
It added: “The Fertility business and O&M vertical remain the only exceptions to the above and maintain a wider geographic focus.”
Earlier this month, NMC shares shot higher after saying it has a positive outlook for the rest of the year following a jump in first-half earnings and revenues.
The company posted a 32.1% increase in underlying earnings (EBITDA) to US$225.5mln for the first six months of the year as margins grew by 220 basis points to 24.2% and revenues rose 20.2% to US$932.0mln.
NMC also said it had agreed to buy Aspen Healthcare, which has a network of nine facilities across the UK, including four hospitals, from Tenet Healthcare for £10mln.
The firm also signed operations and management contracts in Kenya for two hospitals and said that it is planning to expand its IVF fertility business, having recently entered three new markets including Sweden, Latvia and Kenya.
Sticking to the knitting
Russ Mould, investment director at AJ Bell commented: “Big strategic moves can generate headlines and market excitement but often it is best for a company’s management to stick to the knitting, focusing on what they are good at rather than operating outside of their realm of expertise.”
He added: “Recent first-half results demonstrated the ongoing organic growth potential in the Middle East with earnings up more than 30%.
“The company is busily getting more patients into its medical facilities as well as increasing the number of operational beds. It is also benefiting from the introduction of mandatory health insurance in Dubai earlier this year.”
In late morning trading, NMC Health shares were nearly 4% higher at 3,964p.
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