Ramsay reaffirms guidance

Ramsay says its hospital operations in France are consistent with the company's expectations.

Private hospitals operator Ramsay Health Care has reaffirmed its guidance for core net profit after French hospitals group Generale de Sante performed to expectations.

Generale de Sante (GDS) is the leading private hospitals operator in France.

Ramsay currently holds a controlling stake of 50.9 per cent of GDS, following the merger of GDS and Ramsay Sante in early July.

Before the merger, Ramsay held a stake of 48.8 per cent in GDS.

"Ramsay confirms that the results released by GDS are consistent with Ramsay's expectations," Ramsay said on Friday.

"Accordingly Ramsay reaffirms its upgraded guidance (given in February 2015) for core net profit after tax and core earnings per share growth of 18 per cent to 20 per cent for full financial year 2015, including nine months of GDS."

Generale de Sante said that in the six months to June 30, 2015, revenue lifted 1.2 per cent to 893.3 million euros but EBITDA (earnings before interest, tax, depreciation and amortisation) fell 8.2 per cent.

Earnings were affected by a decrease in pricing and an increase in expenses.

GDS has changed the closing date for its financial year from December 31 to June 30, so the 2015 financial year covers only six months.

Ramsay reports its own full year financial results for the 2015 financial year on August 27.

Shares in Ramsay were $3.12, or 4.7 per cent, lower at $63.25 on Friday.


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Source: AAP


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