NMC Health leads FTSE 250 risers as it prepares for future expansions

 
Courtney Goldsmith
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The hospital network operator said profit and revenue shot up in the first half (Source: Getty)

Shares in FTSE 250 firm NMC Health lifted more than five per cent today as the United Arab Emirates-focused hospital operator gears up for future strategic growth.

The figures

NMC, which is one of the leading global providers of fertility treatments, said profit before tax rose to $99.3m (£77.5m) for the period compared with $71.2m the previous year.

For the six months to the end of June, reported revenues increased by 34 per cent year-on-year to $775.2m.

NMC's share price was up 4.92 per cent to 2,541p in afternoon trading.

Why it's interesting

NMC, which listed in London in 2012, is looking to expand in Gulf markets to diversify from its UAE base.

As part of a long-term strategy, it is seeking growth into more complex medical, and thus higher value added, specialty healthcare segments.

The company has also shaken up its management structure following "significant growth" over the last two years which is "designed to ensure a solid management foundation for our future strategic growth", according to chief executive Prasanth Manghat.

This includes the appointment of B.R. Shetty, who stepped down as chief executive and executive vice chairman in March, as joint non-executive chairman.

Read more: NMC pulls out of the fight for a slice of Al Noor Hospitals

What NMC Health said

Manghat said the company's acquired businesses and newly opened facilities are showing strong growth as the company works to diversify operations from its primary UAE market.

​We have also started phased integration initiatives aimed at extracting synergies from group operations, maximising asset utilisation and achieving revenue enhancements between complementary group businesses.

We are very pleased with the progress of these initiatives which, together with our ongoing strategic plan to further grow and diversify operations both organically and through acquisition, gives us confidence for the future.

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