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Highlights

  • Ramsay is an ASX-listed acute and primary healthcare services provider in multiple locations
  • In FY23, the company witnessed 78.8% YoY increase in operating cash flow
  • In upcoming year, the company plans to invest AUD 250-300 million to tap brownfield and greenfield opportunities

Ramsay Health Care Limited (ASX: RHC) offers a range of acute and primary healthcare services through its private hospitals, imaging centres, primary care clinics, day surgery facilities, and pharmacies in multiple countries like Australia, the UK and many more.

Moreover, the company offers allied and mental health, rehabilitation, and a range of at-home and in-community healthcare services.

In the financial year 2023 (FY23), the company reported a 11.6% YoY growth in revenue to AUD 15,339.1 million and an 8.8% YoY increase in NPAT to AUD 298.1 million, underpinned by improved earnings in Australia and enhanced performance of UK-based acute hospital business. The period saw 78.8% YoY surge in operating cash flow to AUD 1,279.6 million.

FY23 performance was driven by increased surgical admissions and improvement in non-surgical activity. Contributions also came from Elysium Healthcare and GHP Specialty Care, the business acquired in 2022. Moreover, the company accelerated operational and digital transformation, negotiated increase in reimbursement rates and progressed other growth initiatives.

Top 10 shareholders of RHC

Top 10 shareholders of RHC have nearly 44.74% shareholding in the company, while the top four have around 35.71% shareholding. Paul Ramsay Holdings Pty. Ltd. and Netwealth Investments Ltd. are the top two shareholders of the company with a shareholding of ~18.74% and ~10.36%, respectively.

Recent business update

Through an ASX-filing dated 18 December 2023, the company informed that Craig Ralph McNally has acquired 64,652 performance rights in the company, as of 15 December 2023.

On 8 December 2023, the company shared an update on sale of its Asian joint venture, Ramsay Sime Darby Health Care Sdn Bhd. RHC informed that it has received thumbs up from the Australian Investment review Board for sale of joint venture to Columbia Asia Healthcare Sdn Bhd.

Outlook

The company expects a further increase in earnings in FY24, backed by mid-single digit revenue growth. The focus is on strengthening the core hospital business by a series of transformation campaigns.

The company is committed to boost performance of its Australian business with initiatives like discussions with payors regarding reimbursement rates. Moreover, the focus is on cost control programs to fast track the implementation of AI and technology across the business and improve profitability.

RHC intends to invest AUD 250-300 million to take advantage of brownfield and greenfield opportunities in the upcoming financial year.

Share performance of RHC

RHC shares closed 0.63% up at AUD 51.36 apiece on 20 December 2023. With this, RHC share price has witnessed a fall of 19.62% in the last one year and a rise of 1.08% in the past one month.

The 52-week high of RHC is AUD 69.66, recorded on 12 April 2023, and the 52-week low is AUD 46.76, recorded 25 August 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 20 December 2023. The reference data in this report has been partly sourced from REFINITIV.