NMC Health plc (LON:NMC), the leading private healthcare operator in the Gulf States, has raised its annual earnings and sales guidance following a strong second-half performance and said it expected to deliver further growth in 2019.
In a statement issued ahead of its capital markets day, the FTSE 100 group raised its 2018 profit (EBITDA) guidance from US$465m to US$480m, 36% up from last year, and said that it expected 2018 revenues to rise by 24%, year-on-year, following positive developments during the second half.
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For 2019, NMC also forecasts profit growth of 18%-20% in 2019 and revenue growth of 22%-24% following a “sustained ramp-up at key facilities, integration and expansion of acquired entities as well as strong operational performance.”
During 2019, NMC expects to open new greenfield facilities, particularly in UAE, and sees the continued ramp-up of various facilities across multiple geographies and full-year consolidation of recently acquired Aspen Healthcare, all of which will impact EBITDA margin.
NMC said its joint venture with Hassana Investment Company - the investment arm of Saudi Arabia’s state-run pension fund - is on track for completion during the fourth quarter of 2018. The company added that it remains confident on the longer-term margin guidance and is on track to achieve a 25% profit margin by 2020/2021.
“The confirmation that the company remains on track to achieve a 25% profit margin by 2021, and still has the benefit of a large joint healthcare venture with the Saudi government to come, is very positive for investors,” said analysts at The Share Centre.
“Despite a pullback in the shares in recent months the company has still comfortably outperformed the market over the past two years. It trades on a relatively high valuation so we continue to see the shares as no better than a ‘hold’,” they added.
Shares in NMC were 8% up at 3,274.03p in late morning trade.