8 RAMSAY HEALTH CARE LIMITED Managing Director’s Report RAMSAY HEALTH CARE DELIVERED ANOTHER EXCELLENT RESULT IN FINANCIAL YEAR 2016, WITH ALL SEGMENTS PERFORMING AT OR ABOVE EXPECTATIONS. SOLID VOLUME GROWTH, ONGOING EFFICIENCIES, STRATEGIC ACQUISITIONS, & FURTHER INVESTMENT IN OUR FACILITIES, CONTINUE TO UNDERPIN OUR STRONG FINANCIAL PERFORMANCE & CONTRIBUTED TO ANOTHER RECORD PROFIT RESULT. In financial year 2016, revenue increased by 18.1% across the Group due to a number of factors, including organic growth, the acquisition of the HPM Group of nine hospitals in Lille, France, the opening of a further 500 beds and 26 operating theatres as well as Ramsay Générale de Santé contributing a full 12 months revenue (compared to 9 months in the previous financial year). Most importantly, Ramsay Health Care remains focused on providing the best and safest care to the three million plus patients who enter our hospitals each year and a safe working environment for staff. I am very pleased to report that our strong commitment to clinical governance and occupational health and safety, underpinned by a rigorous risk management system, ensured that, in financial year 2016, we continued to achieve outstanding results in the areas of patient care and staff safety against national benchmarks, in all areas in which we operate. Operations During the year, Ramsay Health Care’s Australian and Asian business achieved revenue growth of 8.8% and EBIT growth of 11.6% on the back of solid volume growth, brownfield developments and ongoing efficiencies. We were very pleased to win the exclusive contract to treat the New Caledonian medivac market (CAFAT) in our Sydney facilities, and to be announced as the provider of hospital services at the new public Albury Wodonga Regional Cancer Centre which opened in Sepember 2016. Ramsay’s UK business delivered another good result with NHS admissions growing by 8% driven by record referrals. Operating margins (EBITDAR) remain high at 26.1% and EBIT increased 9.5% to £44.3 million. In spite of further tariff reductions in France, Ramsay Générale de Santé hospitals continued to perform well, achieving good volume growth across all major specialties and on the back of excellent growth in emergency presentations. Revenue increased by 27.3% and EBIT increased by 2.2%, benefitting from having an additional three months earnings from Ramsay Générale de Santé (acquired October 2014) and six months earnings from HPM which was acquired in December 2015. HPM has now been integrated into our French portfolio of hospitals and puts us in a leading position in this region.
Ramsay Health Care Limited Annual Report 2016
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