Al Noor Hospitals first half profit slips despite rise in patient numbers

Six month profits at Al Noor Hospitals Group slipped slightly on higher depreciation costs, even as as its revenues rose by 8.5 per cent year on year.

The Abu Dhabi-based health group reported revenues of US$244 million for the first half of the year, compared with $224.8m during the same period last year, thanks to a 13 per cent rise in outpatient volumes and a 7 per cent increase in inpatient numbers.

The company also highlighted the increasing revenue contribution from its Al Madar Medical Centre network sudsidiary, acquired in 2013.

However, underlying net profit edged lower to $44.9m from $45.4m last year, due to what the company described as “higher depreciation costs arising from our focused plan of investment in growth initiatives”.

Despite this the company announced an interim dividend of 4.1p per share, compared with 3.7p last year.

Al Noor said it expects to deliver “slightly higher growth in revenue and earnings” during the second half of the year, although margins would continue to be impacted for the remainder of the year by the opening of new outpatient medical centres in Sharjah and Al Ain and the continued repositioning of its hospital on Khalifa Street in Abu Dhabi.

“Trading in the second half of the year has started in line with our expectations and we expect to deliver additional growth in earnings from our recent investments in infrastructure and equipment in our hospitals and higher patient volumes at our newest medical centres,” said its chief executive, Ronald Lavater.

The company’s shares, listed on the London Stock Exchange, traded up 2.51 per cent at 857p on Tuesday morning.

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John Everington

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