Group revenue from continuing operations up 29% to $34.9m (1H15: $27.1m)
Underlying EBITDA(1) increase of 46% to $4.5m (1H15: $3.1m)
Interim fully franked dividend of 0.3 cents per share declared
Executed on 7 specialist hospitals and day surgeries, with completions through 2H16
Specialist private hospital and day surgery operator Pulse Health Limited (ASX Code: PHG or the “Company”), today released its results for the first half of 2016, reflecting further revenue and underlying earnings growth. An interim dividend was declared to shareholders.
The Company reported that revenue from continuing operations had increased 29% on the same period last year. Growth in revenue and underlying earnings was driven by the full period contribution of The Hills Clinic, acquired in May 2015, and the ramp-up of Mackay Rehabilitation Hospital to profitability.
After excluding one-off transaction costs associated with the execution of the acquisition pipeline, and the ramp-up costs at the Gold Coast Surgical Hospital, Group EBITDA increased by 46%.
Continued growth through acquisition and development
The Company’s strategy is to grow as a niche operator of specialist private hospitals and day surgeries. The Company completed the acquisition of Healthwoods Day Surgery in Sydney on 15 January 2015 (should read 2016). This is the first of the 7 acquisitions announced on 7 December 2015. Other acquisitions are expected to complete within the next 2 – 3 months as regulatory processes conclude, bringing to 15 the number of Pulse Health facilities.
Beyond this, progress continues on execution of a robust pipeline of strongly accretive acquisitions of mental health and surgical hospitals and day surgeries.
Outlook
The Company reaffirms guidance of FY16 underlying EBITDA(2) of more than $10.2m from existing assets, upgraded to more than $11.4m with acquisitions to complete in 2H16. Gold Coast Surgical Hospital is forecast to make a contribution in 1H17.
PHG Price at posting:
45.5¢ Sentiment: Buy Disclosure: Held
