The Company has successfully developed a global portfolio of hospitals, strategically located to meet the growing demands and health care needs of the communities they serve and operated cost efficiently and according to The Ramsay Way philosophy of people caring for people. This year, we continued with our international expansion strategy acquiring Générale de Santé in France, where we are now the largest private hospital operator. This acquisition places us in a leading position in the French market and, over the mid term, will provide a substantial growth opportunity for the Company. OPERATIONS During the year, Ramsay’s Australian and Asian business achieved revenue growth of 8.2% and EBIT growth of 8.6% on the back of strong volume growth as an ageing demographic and the increased disease burden drives increased admissions. Ramsay’s UK business delivered an outstanding result with double digit growth in NHS admissions while EBIT increased 14.6% to £40.5 million. Strong operating margins (EBITDAR) continue to be achieved in the UK. Both Ramsay Santé and Générale de Santé have performed at or above expectations during the year. Our first nine months of ownership of Générale de Santé has confirmed that the business is operating in line with our due diligence. Integration of the two hospital portfolios is now underway with synergies expected to be realised over the next twelve months. Ramsay Générale de Santé, as the merged entity is now known, is well positioned in each of its regional marketplaces to attract volume growth stemming from an ageing and growing population. 6 RAMSAY HEALTH CARE ANNUAL REPORT 2015 BROWNFIELDS CAPACITY EXPANSION Demographics continue to drive the need for capacity expansion in our business. In fiscal year 2015, Ramsay completed developments worth $190 million including the $58.2 million expansion of Warringal Private in Heidelberg, Melbourne; the $53.3 million expansion of Pindara Private on the Gold Coast; and the $19.5 million expansion of Kareena Private in Sydney. These projects, together with the $197 million approved during the year for new brownfields capacity expansion, will see Ramsay Health Care deliver 33 projects with a total of 1041 beds (net 754) and 41 theatres during fiscal years 2015 and 2016. Throughout the world, our brownfields programme is focused on meeting the needs of the communities we serve by keeping our facilities up-to-date and providing our patients, staff and doctors with the latest in theatres, wards and medical equipment. ACQUISITIONS The merger of Ramsay Santé and Générale de Santé was finalised on 1 July 2015 following approval by Générale de Santé and Ramsay Santé shareholders at extraordinary general meetings held on that date. The newly merged entity in which Ramsay now holds a 50.9% controlling interest includes 115 facilities (101 hospitals) and employs over 20,000 staff. Ramsay Générale de Santé is the largest private hospital group in France. Further acquisition opportunities continue to arise in France as a result of consolidation in the sector. Ramsay Générale de Santé has recently entered into exclusive negotiations to acquire Christopher Rex Managing Director Ramsay Health Care’s international expansion strategy, solid organic growth, brownfield developments and excellent cost management contributed to another strong financial performance in fiscal year 2015.
2015 Ramsay Health Care Limited Annual Report
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