NMC Health lifted by medical sector gains

What's Up: NMC Health Group revenue jumped in the third quarter of the year, riding high on the growth of the country's burgeoning medical sector.

NMC Health Group revenue jumped in the third quarter of the year, riding high on the growth of the country's burgeoning medical sector.

The healthcare division of the group made revenues of US$61.2 million between July and last month, a 17.5 per cent rise over the same period last year, the company reported. The market responded positively to the news with London-listed NMC shares trading at 187.40 pence at about midday, up 1.46 per cent.

The London-based investment banking group Numis Securities has a "buy" rating on the shares.

NMC Health's first half revenues this year touched $238m, while revenues were $440m last year. The profits for the first half of this year stood at $27.5m, a 21 per cent increase over the same period last year. The company reported a profit of $43.8m last year.

The increase was attributed to strong demand, higher revenue clinical procedures and improved performance within the group's pharmacy business.

"Occupancy levels in our hospitals are increasing as we see continued demand for private healthcare services in the region and we increase our range of services available," said the chief executive BR Shetty.

Hospital occupancy rates improved by 6.8 percentage point to 59.4 per cent between June and last month as compared to same period last year.

"The figures are not surprising given that NMC Health is one of the leading healthcare players in the UAE," said Don Lim, senior director in Dubai for Al Masah Capital, which acquired Abu Dhabi's National Hospital and New National Medical Centre from NMC Health last year.