News Column

Al Noor Hospitals Profits Up On Revenue Growth; Pays Interim Dividend

August 12, 2014

Sam Unsted

LONDON (Alliance News) - Al Noor Hospitals Group PLC Tuesday posted a big jump in pretax profit on the back of a rise in revenues, boosted by higher outpatient volumes and a rise in revenue-generating doctors in the period, and said it would pay an interim dividend to shareholders.

The company, which operates medical surgical facilities in the United Arab Emirates, said pretax profit in the six months to June 30 rose 84% to USD45.6 million from USD24.8 million a year earlier. That came on the back of a 25% rise in revenue in the period to USD224.8 million from USD179.5 million last year.

The jump in profit prompted the company to say it will pay an interim dividend of 3.7 pence per share. The company listed in London in June 2013.

Outpatient volumes for the group were up 20% in the period, while inpatient volumes were up 1.2% against the same period last year. The increase in outpatient volumes came on the back of the number of revenue-generating doctors on Al Noor's books rising 27% over the period to 106, with 31 added during the first half of 2014. The jump came despite a slowdown in doctor hires in the second quarter. The firm said it expects to meet its target of adding 70-80 doctors in the full year.

Al Noor opened three new medical centres during the period, increasing its total portfolio to 16 sites and also helping to drive volume growth in the first half. During the period, the group opened medical centres in Bateen and Baniyas neighbourhoods in Abu Dhabi, along with the ICAD medical centre, an industrial workers residential facility.

It has signed a lease to open a medical centre in the Sharjah commercial centre, due to open in the second quarter of 2015, and is in the process of constructing a new hospital in Al Ain, due for completion in 2016.

"I am pleased to announce that our 2014 first half results have shown further strong profitable growth. Trading in the second half of the year has begun in line with management expectations," said Al Noor Chief Executive Kassem Alom, who is due to step down from his role in October.

"We remain on track to deliver strong growth through our physician hiring programme and the opening of three medical centres," Alom added.

Al Noor Hospitals shares were up 4.4% at 1,034.98 pence in early trade Tuesday, making them the second biggest gainer in the FTSE 250.

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Source: Alliance News

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