This article is from the Australian Property Journal archive
OPERATIONS for Ramsay Health Care Limited (ASX:RHC) have been heavily interrupted by COVID-19 over FY21, with full recovery still intrinsically linked to the world’s response to the pandemic.
Ramsay posted a net profit after tax of $449.0 million, up 58.1% on the FY20’s $284.0 million.
The group’s EBITDA was at $2.2 billion up from $1.8 billion in FY20, with fully diluted earnings per share at 193.2 cents, up from 130.5 cents in FY20.
“Our FY21 financial report is a solid result given the ongoing disruption to the business caused by the pandemic which saw significant restrictions placed on elective surgery and drove a material reduction in demand for non-surgical services,” said Craig McNally, managing director and CEO.
Ramsay reported $1.9 million in acquisitions for the full year, compared to $22.7 million in acquisitions over FY20.
“Despite the unpredictable operating environment over the last 12 months, we have continued to invest in all regions with a focus on modernising and expanding our world class hospital network, investing in data and digitisation and gold standards of clinical care and exploring opportunities to move into new and adjacent services to ensure we are well positioned to meet the strong underlying demand for healthcare services,” added McNally.
Total group expenditure in FY21 was $674 million, while the capital expenditure for FY22 is forecasted to be in the range of $900 million to $1.1 billion.
As on 30 June 2021, net debt was at $4.3 billion, up from 2.775 billion in the previous corresponding period.
The group posted an operating cash flow of $1.48 billion, down 11.9% on $1.6 billion in FY20, while free cash flow was at $852.3 million, down 14.8% from $1 billion.
“The higher than normal dividend payout ratio this year reflects our strong cashflow and financial position allowing the full year dividend to be restored to the FY19 level. The Board recognises shareholder support during what has been the most challenging 18 months in the Company’s history,” said McNally.
Ramsay’s board has determined a fully franked final dividend of 103 cps, reflecting a full year dividend of 151.5cps, where in the last full year the board failed to determine a final dividend.
“We have focused on remaining agile over this period taking advantage of opportunities that have emerged, however we have been careful to maintain financial discipline as we look to improve returns across the business. We have a strong pipeline of development opportunities across the regions as we move into FY22 and beyond,” concluded McNally.
