Ramsay shares jump on divestment plans, first-half result
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More news: Shares in Ramsay Health Care were 11.7% higher at $37.83 at 2:07pm AEDT after Australia's largest private hospital operator announced plans to sell its underperforming Ramsay Santé business in Europe.
"The company had recently issued a trading update and the 1H25 result has come at the top end of the ranges. Revenue and underlying earnings from Australia and the UK were beats to consensus, but this was offset by weaker performance from France and the Nordics," RBC Capital Markets analyst Craig Wong-Pan said in a note.
Ramsay Health Care outlines Europe operations sale after HY loss
The news: Australia's largest private hospital operator Ramsay Health Care has announced plans to sell its Europe business after swinging to a first-half net loss due to impairments in the UK and one-off costs.
The numbers: It reported a net loss of $104.9 million for the six months to December, compared to a net profit from continuing operations of $140.4 million a year ago. This reflected one off costs of $263.8 million, including $291 million in writedowns at its Elysium Healthcare mental health business in the UK.
Underlying earnings were down 1% from a year ago to $500.1 million. It will pay an interim dividend of 40 cents a share, unchanged from a year ago.
The context: The company said it has appointed Goldman Sachs to explore strategic options for its 53% stake in Ramsay Santé, which operates hospitals across five countries in Europe. The group has been under pressure to exit the underperforming business.
CEO Natalie Davis said there was significant value and growth opportunity in the company’s core Australian hospitals business, but a multi-year transformation is required. The unit grew earnings by 3.8% for the half year, with a 5.3% increase in revenue from customers. Ramsay expects activity growth in each region for the full year, albeit at a lower rate than in 2024.
The source: ASX
